You asked Google “How to sell on Etsy” and found yourself here.
Etsy the home of creatives.
Since its launch in 2015 Etsy has expanded and is often regarded as the largest online market for artists. There are 54 million members on Etsy, 35.5 million buyers, 198 million sellers.
Also, there are more than 50 million unique items listed on Etsy.
But how do you sell on Etsy?
This guide takes you through the setting up process, discusses the cost of selling, gives tips on how to succeed on Etsy plus addresses FAQs, and much more.
So Let’s begin.
What is Etsy?
Etsy is an ecommerce platform that specializes in selling artistic products, crafts, works of art, handmade items, clothing, custom-made children’s toys, and vintage items that are difficult to find in local stores.
Artists without a website can also use this platform to showcase their art shop and artistic skills.
How to Sell on Etsy: Setting Up
To get started
Visit Etsy.com
Customize your shop
Select your language, location, and currency.
Select shop name
Select a name that reflects your brand. The name should have 4 to 20 characters with no space or special characters.
Start Listing your products
To give details to your shoppers add photos. For each item listed Etsy allows 5 photos taken from different angles. You can opt to add a product video instead.
Adjust thumbnail
Make the thumbnail count. It’s the first image shoppers see when they land on your shop. It gives the first impression of what to expect from your brand.
Complete your listing info
Add product description details, item titles, product size, weight, the material used, and product features. Use available tags to best describe your products.
Enter quantity and price
Price each item include quantities, size, color, and material
Add shipping details
Add shipping details from your country of origin, processing time, weight, and size. Keep the information updated to guide your customer through your shipping process.
Select the payment method
Select either Etsy payment, PayPal, credit, or debit cards You also can allow partial payment, or buy gift cards.
Preview and publish
Counter check everything before you click finish.
How Much Does It Cost To Sell on Etsy?
Setting up Etsy costs nothing. But that doesn’t mean it’s free there are other costs that you incur. Let’s break them down.
Listing fee
Each item incurs a standard listing fee of $0.2 for every four months.
For instance, if you are listing 100 hats of different colors then you will create one list, including the different colors, and pay $0.2 for the list.
You can choose to auto-renew after four months which saves time or instead renew manually where you will have a chance to update items giving priority to those that are making profits and removing those that are underperforming.
For example, if a seller creates a list of six handmade sweaters that are available in different colors and sells one sweater before the end of four months. The listing fee reverts to zero and the listing is auto-renewed afresh for the remaining five sweaters. But if the seller has new sweaters that they want to add to the list they can edit the list and add them with no extra cost.
On the other hand, if a seller buys four sweaters in one order the seller will get an extra charge of $0.40 alongside the earlier $0.2 from the three listing fees. The listing will also auto-renew itself even after four sweaters got paid in one transaction.
The thing is, each time a seller makes a sale the listing renews itself and again after four months.
Transactional fees
Just like selling on eBay, Amazon, or Facebook, there is a transaction fee of 5% for every sale.
Payment processing fees
It varies from country to country. US shops checking out with Etsy payments pay a processing fee of 3% of the total sale +$0.25 flat fee per order.
Depending on your shop location you could incur extra costs that are informed by taxes, and also the cost of converting local currency to USD
PayPal fees
PayPal fee are 2.9% of the total transaction value + $0.30 cents per transaction
Etsy Shipping fee
Shipping fees vary from location and most customers are responsible for their shipping. They can use either USPS, FedEx, or the Canadian Post.
However, the shipping labels are generated from Etsy depending on the weight, country of origin, and country of destination.
The shipping fee takes care of shipping time cost, customs, duty for international purchase, refund, and exchange policies.
If you are considering offering free shipping then you must factor in shipping cost in your price. You also need to research the best shipping option within different locations. Otherwise, shipping costs may end up eating your profit.
Promotion cost
To promote your shop you have several options. You can start a pattern site which is like a website that’s registered separately and used to promote your items. It costs $15/month.
You can also use the Cost Per Click (CPC) ads that cost $0.10-$0.50 per click.
Other costs
VAT (Value Added Tax) consult your tax department as it varies from state to state
Currency conversion fee: Depends on the market but also you will be charged 2.5% to send funds to your account.
Summary
| Cost type | How much | |
| Listing fee | $0.2 per item for 4 months | Must |
| Transactional fee | 5% of every transactional | Must |
| Payment processing fee | 3% of total sale + $0.25 flat fee per order | Etsy payment |
| PayPal fees | 2% of total sale +$0.30 flat fee per order | Optional |
| Shipping fee | Left for buyers to decide | Optional |
| Promotional fee | Pattern site $5/month Advertising fee-CPC ($0.10-$0.50) per click | Optional |
Tips on How To Sell on Etsy Successfully
After listing items you have to pull your (socks, boots, sleeves, sweater) name them as real work just began.
Here’s how to do it.
Optimize your shop
Does an optimized shop look good? probably yes. Imagine walking in a crowded supermarket where everything is misplaced. Sugar together with tissues, cooking oil with books it’s disgusting, right? Things aren’t easy to find.
Many online shops suffer the same because they are not optimized. So to optimize your shop.
Add shop policies: Include FAQs section where customers can ask more about your items. Add shipping timelines to show your customers how long it will take to get their items. Also, add return policies showing what you accept and what you don’t accept.
Update your profile: Complete your profile with a short bio about you adding your photo. Write on what motivates your art, your values, and even short personal stories not necessarily related to your shop. The goal is to create a personal connection with your customers.
Add shop bio: Etsy allows you 5000 characters to write your story. Write with passion about how you make your products. Be transparent, honest about your values. You can also insert photos and short videos of how you make your products. Share your shop’s social media link too.
Tap on Social media
Relationships are like currency and as a business, you need to build relationships. Social media is the best place where you can start and build relationships. Currently, over 3 billion people are using social media, that’s about 40% of the human population.
Use your social media influence to drive traffic to your Etsy shop. Start with one channel, for instance, use Instagram to post news about your shop, new designs, new patterns, seller events, giveaways, collaborations and so much more
Don’t forget to play by the rules. People get annoyed when you constantly poke them with “buy my stuff post”. Instead, add value to their lives, share tips, DIY projects, free resources to create a mutual relationship.
Hire a photographer
People are visual and prefer to see, touch, and feel products before buying. Taking great photos can bring that feeling.
Hire a photographer to take hero shots that are up-close photos of items on a white background. And also take lifestyle shots that show your products being used in a natural setting.
If you don’t have the budget you can as well do it by yourself but ensure
- You use a clean background without any clutter
- Take products photos from different angles
- Take shots of the product being used
- Make sure there is enough natural light
- Use a quality camera
Organize your shop
Shoppers hate cluttered shops where things are all over the place. Instead, they prefer a well-organized shop that groups items in different categories. The more organized your shop is the more customers it attracts.
Consider Etsy SEO
Search Engine Optimization on the web is almost the same but there are specific Etsy SEO techniques. Try to understand how people search on Etsy and begin to use as many right keywords. to describe your products. Keep it natural with no keyword stuffing.
Add as many tags as possible you can use almost 13 tags to describe your items. Also, learn from other people how they place keywords on their product descriptions and titles.
Optimize your pricing
Find ways to reduce your production costs so that you can increase profit. For those buying in bulk, you can consider giving a discount.
Use this formula to calculate your retail price.
Supplies + labour + Expenses + profit = retail price
For example, if you make oil paintings and your supplies cost $10 and spend 3 hours to paint that you can cost $25/hour ($75 as labor). Then expenses can include Esty costs (listing, processing, promoting) estimated at $20.85 and then a profit of $25. Then your retail price will be
$10 +$75 +$20.85 +$25 =$130.85
So anything below $130.85 might be considered a loss.
Bookkeeping matters
Even online shops need proper financial records. Use Google Sheet or Excel to keep simple financial records. For more detailed records you can use accounting software to track your expenses.
But if you don’t have the time and knowledge needed to balance your books you can consider hiring an accountant.
Keep your word
Be careful of what you tell customers and always keep your word. If you promise to call, email, deliver an order do exactly that.
According to research by Luigi Zingales of the University of Chicago shows that businesses with a culture of keeping their word are more profitable than those that go against their word. A broken promise balloons outward like an ever-expanding universe that ruins your relationship with your customer as well as everyone they know.
Write stellar product description
You can only use words to tell shoppers about your product. Write great product descriptions giving the details of your product features and benefits. Stick to the point from the very first line and highlight the key points.
You can engage a copywriter instead to help you write.
Upselling and cross-selling
Add other items that you can sell together with your items. These items will complement your items and can be a good match if bought together.
Join Etsy teams and chat forum
Etsy has good forums that you can join, meet with other artists, and exchange ideas.
On these forums, you will get selling tips and also meet with like-minded artists with whom you can work together in the future.
Accept custom orders
Some people prefer custom orders. By accepting custom orders it shows that you listen to your customers who might reward you by paying more or referring you to their friends.
Check Etsy inbox
Always check your Etsy inbox as you may be a second away from closing a deal. When shoppers find nice things they immediately email the shop owner and the faster you respond the better.
How To Sell on Etsy FAQs
How many items can you sell on Etsy?
There is no definite answer. You can list as many items as you wish but remember to be organized. People hate cluttered shops. Likewise, you can introduce small items at a time testing their performance.
Do you need a license to sell on Etsy?
Etsy doesn’t require you to have a business license to sell on their platform. Generally, there is no sales tax required on Etsy but also you have to adhere to TAX policies from your state.
Is it profitable to sell on Etsy?
Yes, the expense is lower and the risk is also low than selling in a craft show. Etsy is also better than selling on wholesale if you have lower margins.
What’s the best selling category on Etsy?
Crafts and supplies are the best selling list. In this category crochet and knitting patterns are the most trending and sell very well.
Why is my Etsy account deactivated?
If you don’t stick to Etsy seller policies then your account will be deactivated. Selling animals bones, ivory, trademarks are not allowed.
Is Etsy Right for You?
If you are an artist and have something unique to sell handcraft, custom toys, knitting, beadwork, vintage collections then Etsy might be right for you.
As an artist you can’t go wrong with Etsy it has over 35.8 million buyers and over 198 million sellers just waiting for you.
Etsy is also cheaper and less risky as compared to craft shows. You don’t have to transport items but sell them where they are.
Is Etsy the best platform for artists to sell online? Have you sold or bought anything from Etsy? Please share your experience in the comment section.
Further reading
