How to Sell on Etsy in 6 Easy Steps (A Comprehensive Guide)

Ryan Patrick

• 11 min read
How to Sell on Etsy in 6 Easy Steps (A Comprehensive Guide)

Etsy was founded in 2005 to help people who make handcrafted goods like clothing, art, home decor, jewellery, and other must-have knick-knacks. As of 2023, the platform had over 9 million sellers and over 96 million active buyers. From these statistics, becoming a seller on Etsy is viable, but you must be prepared to face stiff competition.

If you make any products with your hands, from woodwork to candles, you can sell them on Etsy, and if they’re made elsewhere, you can also sell them on the platform. So, how do you determine if Etsy is the right platform for you? For starters, Etsy has existed for almost two decades, making it a credible platform to do business. The owners noted the need for artisans to have a central place to sell their goods away from the industrial platforms.

Today, millions of goods are produced every day, and whatever you list to sell on Etsy must be unique, high-quality, handmade products. Etsy buyers are looking for goods you can only find in an undiscovered thrift store. As one of the largest online stores in the world, anyone can sell the right products on Etsy. For this reason, Incorpuk present to you a comprehensive guide on how to sell on Etsy in six easy steps.

An Easy Guide on How to Sell on Etsy

Starting an online store can be a challenge, especially for a novice. Before opening your store on Etsy, it’s worthwhile to understand how things operate on the platform before hitting the ground. However, if you don’t know where to start or how to sell on Etsy, we’ll break it down into six simple steps below.

1. Create a Brand

Before rushing to create a store on Etsy, you need to create a compelling brand by fulfilling the following:

  1. Name of your shop
  2. Logo
  3. Brand personality

After creating a brand identity, you can proceed to create an account to help you start selling on Etsy. A unique brand identity will set you apart from competitors and make a lasting impression on potential customers.

1a) Choose a name (memorable and unique)

Choosing a business name can be challenging, but it’s also vital to opening an online store. The name should be unique and memorable for customers. It should represent your business and the products you’ll sell online to evoke your customer’s feelings toward your brand.

When choosing a name, consider what makes your store unique, mainly if you sell jewels, vintage, or handcrafted goods. Include any unique detail in your brand’s name. Use name search tools to ensure the name is unique and available and not similar to any existing business, as this can confuse customers, sending them to the wrong store. Plus, your name shouldn’t be so dull or generic that it doesn’t turn up when customers search online.

1b) Invest in a logo

Create a visually appealing logo to make a solid first impression and build brand awareness by reflecting your store’s uniqueness. You can use the many free design apps online to design a logo or hire a professional designer to make it for you.

2. Create an Etsy Account

From your browser, visit the official Etsy page (Etsy.com) and create a free account by following the on-screen prompts. If you’re new to the platform, click Create a new account, and if you already have one, sign in.

Provide all basic personal information as directed, then submit the information by clicking on Create account. You can use a desktop or laptop to create the account and then use your mobile device to manage the online store later.

2a) Create your Etsy profile

Your Etsy store needs a profile that will help customers identify your store. It should be about the business to help shoppers learn more about the store and what you’re selling.

  2. Click on the icon at the top right corner, then select Edit public profile on the next page.
  3. You can add a profile picture of your store’s location and share information about yourself. If the products you’re selling are handmade by you, share briefly about yourself and what you do. Share the materials you use under the Favourite Materials section to list the materials you use for your creations.

3. Launch Your Etsy Storefront

Your profile is ready, and you’re closer to selling on Etsy. Click on the user icon at the right corner and choose Sell with Etsy to set up your Etsy storefront from the account you created earlier.

Start by typing in your store preferences, such as language, and describe your products, country, and the currency customers should pay in. Next, provide your shop name, a combination of letters and numbers, as a single name (the unique name you created earlier).

4. Create a Product List

You can start selling on Etsy once your store has a list of products you’ll be selling. Create a new listing for every product through the marketplace: handcrafted goods, vintage items, or arts and crafts. The most vital part of your Etsy listing is the images to please customers, as many online shoppers purchase through what they see. It’s because online shoppers can’t touch, feel, or smell something, so they trust their eyes. Hence, you need excellent photography to woo customers.

Under each listing, you can add up to 10 high-quality images or one video shot from different angles. Each image must be eye-catching to stand out against similar items by other sellers on the marketplace. Scroll down the page and click on add more information to further describe your product by providing the following:

  1. Product Title
  2. Details about the listing - who made it and when
  3. Product category
  4. Listing type
  5. Tell the buyer if it’s a digital or physical product.
  6. Product description with your Unique Selling Point (USP)

Remember, online stores connect the buyer and seller with a search engine. Therefore, you should use language the search engines understand: Search Engine Optimisation (SEO). The best SEO practices include using relevant keywords in your Etsy listing for easy findability.

Go to the Inventory and Pricing section to set your product prices by entering the amount a buyer will pay per item in your preferred currency. You can also provide product variations, like colours and sizes, to assist the buyer in making a favourable decision.

4a) Set up shipping

Etsy has various shipping options to accommodate different preferences, such as free shipping or charging. You should determine your shipping options and charges based on shipping location or product weight.

Set clear expectations to help customers understand if shipping is part of the product price, if it’s separate, and how long the shipment will take to reach them or be delivered. Remember to account for processing time, especially for customized products, to clear all queries that may arise.

5. Payment and Billing

To receive Etsy payouts, inform the buyer if you’re selling as an individual or an affiliation to some incorporated business. Don’t forget to provide your address and your bank account details. Consider using Etsy Payments to offer flexible payment options to your customers. When customers purchase using Etsy Payments, they can pay in their local currencies through:

  1. Creditor debit card
  2. PayPal, and
  3. Digital wallets like Apple Pay, Google Pay, or other popular payment methods

5a) Set up billing

As an Etsy seller, there are several charges you must pay to the platform for listing and selling your products on the marketplace. Hence, you must set up billing information to determine how to remit the fees. Sellers using Etsy Payments don’t have to worry since the costs will be automatically deducted from their total sales. Alternatively, a seller can use another payment method, a credit card, to settle the expenses.

6. Launch Your Store

Now that you’re set to start selling on Etsy, finish setting up your product listings to prevent issues like missed sales or confusion, which can stagnate your business. Some of the product updates to ensure are current include:

  1. Upload a profile and banner photo which can of yourself, the products in your store, or a business logo of your Etsy store.
  2. Create a user profile to introduce yourself to potential buyers as the shop manager and put a face to the products you’re selling on Etsy. A complete profile gives potential customers confidence that a human is on the other side, not a robot.
  3. Provide information about your new store. What you’re selling, Why, and how your store came into existence. Let your first-time customers know a little background about you and give them a reason to purchase your products.
  4. Upload your shop policies, such as delivery, privacy, payment options, exchange, and return policies. Ensure the terms of buying from your store are clear to avoid misunderstandings with your customers or confusion among customers.

Now that your store updates are in check, you can go public and let customers start purchasing. You must be prepared to begin processing orders and shipping them to respective customers by this time. When everything is ready, go to your account and tap Open Your Shop.

The journey to selling on Etsy doesn’t end here because you need to generate some buzz for your new storefront on different social channels to drive traffic. Plus, you can use other marketing channels to assist potential customers in finding your store.

Benefits of Selling on Etsy

Selling on Etsy is undoubtedly a challenge that requires much work to take off, make sales, and generate revenue. However, you’ll enjoy these benefits by selling on Etsy:

  1. Setting up shop is easy
  2. There are options to customize the store
  3. A readily built-in audience
  4. Etsy is described by many as the world’s largest craft fair and the best place for artisans to sell online
  5. Etsy is famous for its responsive seller support for anyone who needs it
  6. Brand building is accessible as the marketplace allows you to send your business card alongside a product
  7. You can link your online storefront or website to your Etsy store

The Cost of Selling on Etsy

Once you decide to sell on Etsy, there are no upfront costs for you to pay, making it easy to set up shop and begin trading in the marketplace. However, the various costs will pile up when you list items for sale. Etsy selling fees include:

1. Listing Fees

The most common fees on Etsy are seller fees. Every new listing seller uploads to their store is charged 20% regardless of whether the listing leads to a sale or not. Store listings are displayed on Etsy’s marketplace for four months by default until the item sells. If you select auto-renew, you’re billed 20% once every four months.

2. Transaction fees

Have you sold an item through Etsy? If so, you’ll pay a transaction fee of 6.5% to the marketplace to facilitate the sale. The cost is in conjunction with the shipping, shipping, and gift wrap pricing for every listing. The transaction fees for sellers in the UK, Italy, France, and Spain vary, yet they also have to pay a regulatory fee for every listing. The cost is charged on total revenue, the total price you charge your customers.

3. Payment processing fees

The bank details you provided when setting up your Etsy store can be used to receive payment. An alternative method for store owners is to use Etsy Payments, which gives buyers the option to choose from other payment methods such as:

  1. PayPal
  2. Apple Pay
  3. Google Pay, and
  4. Klarna

You must remember that enabling Etsy Payments makes you liable to payment processing fees.

Before a seller’s Etsy revenue is transferred to their bank account in countries like the Philippines, Mexico, and South Africa, they must meet minimum payment thresholds.

4. Currency Conversion Fees

All business on Etsy is conducted in US dollars. Although sellers aren’t restricted to receiving payments in other currencies, all charges related to selling are billed in USD. Before the transfer, Etsy will convert your funds to your bank account’s currency. However, you need to know the rates might vary depending on the market value. Plus, Etsy will take away a 2.5% fee for doing business in a different currency.

5. Offsite Ads Fees

Even if your product listing is optimised to reach potential customers in the Etsy search engine, the marketplace also offers advertising. Sellers on Etsy can go for Offsite Ads, where their products are displayed across the platform’s marketing channels. The products can appear on Etsy’s Google and Facebook and display ads without an advertising account.

Whenever a product sells through an offsite ad, Etsy sellers are billed for it. For stores that don’t surpass the $10,000 sales mark within the last year of the marketplace, 15% of the total revenue is charged as payment for the Offsite Ad program. But when you surpass the $10,000 threshold, your Offsite Ads fee reduces to 12%.

6. Etsy shipping costs

Sellers in areas that accept Etsy Payments or PayPal can buy shipping labels through the marketplace, which are deducted from their accounts. The rates vary depending on the origin, carrier, destination, and size of every package. There are extra charges that apply for signature confirmation and insurance.

7. Etsy Plus

Etsy sellers can opt into Etsy Plus, which charges $10 monthly. Once you subscribe, the package offers more features for sellers, like 15 listing credits and a credit of $5 in Etsy ads, in addition to the following:

  1. Options to customisable the shop
  2. Custom domain names are discounted
  3. Shoppers receive emails when an item is back in stock

The Good and bad of Selling on Etsy

Before you hit the ground running to sell on Etsy, you need to know the pros and cons related to the platform.

PROS:

  1. Etsy is trusted as the marketplace has millions of built-in buyers
  2. Setting up shop on Etsy is simple, fast, and easy
  3. Sellers have the freedom to sell anything unique and handmade or art and crafts

CONS:

  1. Selling on Etsy is challenging as the marketplace is vast, especially for sellers who join a congested niche like handmade jewellery.
  2. Etsy has numerous fees seller fees to think about

All in all, Etsy is still a leading marketplace for artisans to sell their work. If you’re new to e-commerce, starting on Etsy will be a good stepping ground before advancing to more complex platforms.

Success Selling Tips to Boost Your Etsy Store

As a new seller on the Etsy marketplace, these tips will help push you toward the success of your online store:

  1. Build a solid brand to stand out on the platform
  2. Optimise your shop using keywords to boost findability
  3. Promote your shop on different social media channels, work with brand influencers, or use Etsy marketing tools
  4. Price your products competitively to attract customers
  5. Encourage product reviews and feedback from buyers
  6. Offer top-notch customer service to encourage return customers
  7. Link your Etsy store to your other websites to increase organic traffic and sales conversions

Frequently Asked Questions

Can you open an Etsy store without money?

Yes, you can open an Etsy store with money, but once you start to list products and make sales, it will cost you.

Can I make money on Etsy as a beginner?

Anyone can make money on Etsy, including beginners. The platform favours creative novice entrepreneurs who get introduced to a network of more than 96 million active buyers and over 9 million sellers. Whether using Etsy to connect to a broader audience for your website,  the platform is a great place to meet potential clients.

How can I make my first product listing on Etsy?

To make your first listing, log in to your Etsy account, go to Shop Manager, Select Listings, and then Select Add a listing. Provide the necessary information about the product you want to list on the list creation form.

Do You Need Help Forming Your Company in the UK?

Incorpuk offers a range of fast and efficient online company formation services that makes it easiest and cost effective to take your business global. Kindly contact incorpuk if you need any help on company formation services today.

In Summary

Etsy is a marketplace that allows artisans to sell handmade goods like intricate necklaces, upcycled furniture, or crocheted animals. Setting up an account on Etsy is free and easy. In a few steps, you have an online store where you can sell your handcrafted products to millions of buyers.

The platform is famous for displaying unique items in the vast online marketplace. Hence, if you decide to set up a store on Etsy, you’ll be doing business with international customers.

Don’t hold back because you haven’t been on an e-commerce platform, but give yourself the opportunity to try different things and learn. Because if you keep waiting to gain enough knowledge to run an online store, that day might never come. It’s better to start and get things done than to wait for a day that will never arrive.