Are you looking for a way to improve your income online?
You’re not alone! Many people are struggling to find the right opportunity with all the options available out there.
But luckily, the solution is incredibly easy!
The online shopping market has grown exponentially in the last few years, with e-commerce sales exceeding 5.7 trillion in 2022 alone.
If you want to know how to start an Etsy business, this guide will walk you through everything you need to know to start selling stuff online!
- How Profitable is Owning a Business On Etsy?
- What You’ll Need to Start a Business on Etsy [& Associated Costs]
- Why You Should Consider Starting a Business On Etsy As a Side Hustle
- How to Start a Business On Etsy in Seven Simple Steps
- Things to Consider When Building a Business On Etsy
- Inspiration: Business on Etsy Ideas
- Frequently Asked Questions
- Similar Businesses to Consider Starting
- Wrapping Up
How Profitable is Owning a Business On Etsy?
Recent reports show that Etsy’s revenue from sales exceeded $2.32 billion in 2021, netting over $493 million in net profits.
Although Etsy doesn’t release information about its seller’s performance, the average Etsy seller could make around $2,900 per year.
However, you should know that this is calculated by averaging all sellers, so it’s not a true reflection of what everyone makes.
For instance, the top sellers on Etsy can make thousands of sales per month while others struggle to make a few sales over a year.
In other words, having unique products and marketing them properly play a huge role in the profitability of your Etsy business.
What You’ll Need to Start a Business on Etsy [& Associated Costs]
To start a business on Etsy, you need to prepare some essentials, including:
- Find a suitable product niche that you’re fairly knowledgeable at
- Compare wholesale options for the products or materials necessary to create them, and choose the right offer
- Procure, order, or create the items you want to sell – There’s no set budget here but we recommend starting with $100 to $200.
- Buy a decent camera with a rotating tray for taking pictures and videos of the final products. (around $50 to $100)
- Open a bank account for receiving your sales payments – The fees vary depending on the banks ($0 to $50)
Do I Need a License or Certificate to Start a Business on Etsy?
Luckily, Etsy doesn’t require any licenses or certificates to start a business on the website.
However, the local laws where you live may require you to obtain a permit or a business license to sell products online.
In that case, you’ll need to check your legal status to provide any required documents before starting the business.
Why You Should Consider Starting a Business On Etsy As a Side Hustle
Etsy is one of the most popular online shopping websites.
According to MarketPulse reports, it has sustained an active buyer base of around 90 million over the last few years.
Although these figures may not be the largest in the e-commerce industry, Etsy is a popular alternative to Amazon Handmade goods.
This makes it an excellent choice if you mainly want to sell accessories, handcrafted jewelry, artisan products, craft supplies, vintage items, etc.
Another reason why it’s a good choice for a side hustle is that the process of selling on Etsy is remarkably easy.
You don’t have to pay subscription fees for the seller account.
This allows you to save this money for promotions and running Etsy ads (sponsor your products) to reach more customers!
Etsy also charges only 6.5% on sales, which is relatively lower than many e-commerce websites, making it ideal for small businesses.
How to Start a Business On Etsy in Seven Simple Steps
Now that you’re settled about creating an Etsy business and have your goods ready, here’s a step-by-step guide that shows you how to start your business and sell your products online.
1. Create an Account
Navigate to Etsy’s homepage and click the “sign in” button at the top right corner.
This will prompt a window where you can create a new Etsy account either by clicking the “Register” or by signing in using your existing email address (Google, Facebook, or Apple).
You’ll need to enter basic personal information, such as your first name, email address, and a new password to continue.
The “sign in” button on the website will be replaced with your profile button.
Click it and choose “Sell on Etsy” from the drop-down menu.
2. Pick Your Store Preferences
The “Sell on Etsy” button will open a new window where you need to enter some basic store details, including
- Whether you want to be a full-time or a part-time seller (don’t worry, the choice here doesn’t affect your shop’s visibility)
Click “save and continue” to head to the naming section.
Here, you’ll enter your potential store name to check its availability.
Take your time while choosing the name because Etsy has limited name changes.
After the fifth name change, you’ll need to contact Etsy support.
3. Create Your Listings
Next up, you’ll need to stock up your shop with your products.
This step may take some time but it’s critical for your shop’s visibility and performance.
You can list as many items as you want, but Etsy recommends that you start your shop with at least ten products.
You don’t have to fill them all now, as you can come back later and add more anytime you want.
Listing and publishing an item on Etsy costs $0.20 (flat fee), and the product stays up for 4 months or until it sells out, whichever comes first.
Etsy allows you to describe your products thoroughly using a variety of aspects.
The more details you provide, the merrier.
These are the essential fields in order of appearance:
- Photo: You need at least one photo per product, but we highly recommend taking multiple professional pictures from different angles
- Video: While it’s optional, it massively boosts the product visibility and is highly recommended
- Product details: This includes the title, who made the product, category, type (physical or digital), description/features, tags, etc.
- Pricing: This is where you list the product’s cost, quantity per order, stock-keeping units (SKU), etc.
- Variation: If the product comes in different sizes, designs, colors, etc, you can adjust that here
- Shipping details: Shipping costs (if you don’t offer free shipping), where you’ll ship from, processing time, shipping locations, shipping services, handling fees, etc.
5. Choose a Payment Method
After saving your listing information, you’ll need to adjust your Etsy payment method.
First, choose whether you’re registering as a sole proprietor or an incorporated business (legal entity).
In both cases, you’ll need to provide all the necessary information to continue, including your registration number in the case of businesses.
You’ll also need to provide your banking details where you’ll receive sales payments.
6. Detail Your Billing Information
Besides the banking details, you’ll also need to enter your credit card details.
This is necessary to pay listing fees, processing fees, and transaction fees after sales.
7. Optimize Your Etsy Storefront
After entering your billing information, the “Open Your Shop” button will become clickable.
You’ve officially started your Etsy business!
You can still adjust various aspects of your Etsy shop, such as the seller’s bio, shop policies (returns, cancellations, and refunds), and more.
Things to Consider When Building a Business On Etsy
Before establishing your online business on Etsy, there are some aspects and essential tips to keep in mind if you want your store to succeed.
Can You Run a Business On Etsy By Yourself?
Luckily, running an Etsy store as a sole trader is quite achievable.
Besides updating your listings and running your finances, you’ll also need to keep up with buyers and reply to questions whenever possible.
All this is achievable for a small business, but you may need some extra help as your business grows.
Is Etsy Search Engine Optimization Important?
Most Etsy buyers make purchases after using the website’s search engine.
For that reason, you have to keep Etsy SEO in mind at all times.
Include all the relevant keywords and tags while listing a new item but avoid using the same keywords too often.
You can also use specialized Etsy SEO tools to improve your product’s visibility on the website.
Keep Your Etsy Store Specific and Unique
Selling generic products on Etsy is rarely profitable nowadays as you’ll be competing with highly established stores.
Instead, keep your products special to stand out among the crowd.
When you’re first starting, you should also focus on a particular category while listing items.
Dominating a certain category helps in improving your visibility and gives your store an excellent reputation among Etsy shoppers.
Inspiration: Business on Etsy Ideas
Here are some simple yet profitable ideas for products to sell on Etsy:
- Wedding items: Handcrafted wedding supplies sell for a high profit and are easy to make if you have the right tools and skills
- Gemstone jewelry: The variety of tastes will create a market for almost all kinds of accessories, and some customers are willing to pay top dollar if they like your products
- Paint-by-number kits: You can create these kits yourself and provide all the necessary coloring supplies.
Frequently Asked Questions
Is it Still Profitable to Sell on Etsy?
Competition on Etsy is becoming more fierce due to generic stores opening every day, so while it can be an easy side hustle, it doesn’t pay as much as it used to.
Yet, you can still earn a lot of money on the website if you’re offering something unique or if you’re marketing your products properly.
What Sells the Most on Etsy?
According to a CEDCommerce report, the top-selling product on Etsy is clothes, followed by jewelry, house decorations, and craft.
Similar Businesses to Consider Starting
You can also consider some of those Etsy alternatives to create a market for your products:
- How to Sell on Craigslist: Craigslist is perfect for making some extra cash from selling all clutter and unused stuff in your house without worrying about fees.
- How to Sell on Amazon: As the largest e-commerce website, Amazon is ideal if you want to reach as many customers as possible.
- How to Sell on Facebook: the Facebook marketplace is remarkably easy to use and helps you sell items quickly (used or new) through direct contact with customers.
This marks the end of today’s guide that shows you how to start a successful Etsy business in seven easy steps.
What we like about this website is that you can start right away and make a decent profit with relatively low risk!
Don’t forget to leave us a comment if you have any thoughts and share this guide with others if you find it helpful!