How To Start Business On Etsy

Etsy is a unique marketplace for handmade items, vintage goods, and craft supplies. Whatever objects you love to craft, no matter what niche, there are huge customers out there looking for your product, and most of them are browsing on the Etsy marketplace. You’ll find a community of makers, small-business owners, and shoppers. If you don’t have previous experience with Etsy it seems like it is very complicated to start but in reality, it is very much straightforward. Etsy provides an optimal home for your products.

Here are the important stats you should know about Etsy shops:

  • More than 2.1 million sellers offer over 60 million items for sale on Etsy.
  • 86% of Etsy sellers are women and nearly 95% of Etsy sellers run their shop from their home.

We’ve created a comprehensive guide to help the process of starting an Etsy shop. As year passes no of buyer's on Etsy is also increasing. See the below graph you will understand clearly.

No. of active Etsy buyer's from 2012 to 2019(in millions)
No. of active Etsy buyer's from 2012 to 2019(in millions)

The guide on how to open an Etsy shop

Watch the below video to get familiar with starting an Etsy shop:

How To Start An Etsy Shop For Beginners 2020

1. Set up your account

Before starting a business on Etsy you need to sign in or create an Etsy account. You’ll use this account to run your shop and to buy from other makers on Etsy. After creating your account add profile picture and name to that other Etsy community know who you are. Once you’re registered, you can start setting up your shop. You’ll be asked to specify a few basic preferences – like language and currency. To open your Etsy shop:

  • Click Sell on Etsy at the top right of
  • Click Open your Etsy shop.
  • Select your shop language, country, and currency, then click Save and continue.
  • Choose your shop name, then click Save and continue.

2. Brand your Etsy shop

Your Etsy shop must be unique. Your brand and brand identity should also be unique. But, your brand identity is the way your customers and potential customers will perceive your shop. Your brand identity’s importance cannot be understated – especially in the authenticity-driven world of Etsy.

So if you want to make sales on Etsy then you’ve got to create a brand identity that communicates the essence of what your shop is about and builds confidence in your shop visitors.

Your shop has three major branded elements that you should be aware of:

  • your shop name
  • your  logo
  • the shop banner or cover photo

Your shop name, avatar, and banner or cover photo are specific branding tools. But, that’s not where branding ends in your Etsy shop.

Kevin Jones of Debt Free Happens (an Etsy entrepreneur, personal finance expert, and blogger) explains:

If you sell cute stickers it may not make sense to also sell customized beer mugs in the same shop. Both are great products but you are trying to create an environment that the buyer feels comfortable in.
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3. Crunch the numbers

When you start any business it is very much important to learn “numbers” which you should be discussed in your business plan. Etsy entrepreneurs want to track sales and profits, you just need to keep eye on startup-costs. Luckily, start-up costs for Etsy businesses are minimal compared to virtually any other type of business.

Setting the right prices may make or break the shop. To create an effective pricing strategy, you have to start by knowing how much it costs you to produce or acquire your products. This includes material costs and the value of your time.

Taylor Combs, a writer, and editor for Etsy’s Seller Handbook explains;

First and foremost, your price should account for the cost of the materials that went into making the item and your time. If you’re unsure, try searching for similar items on Etsy to see what the average price point is.

Your potential customers are shop more than just your goods. They are also shopping with your competitors too. And, they know how much those items cost.

You must be aware of what your competitors are charging too, You might feel that your products are worth more, or that you want to charge less, than your competitors. Your branding can influence how your product is perceived, as well.

So, remember to considering your brand and competitor’s pricing when creating your pricing strategy.

4. Create your product listings

Your product listing is one of the important parts of your Etsy shop. Creating compelling listings can help your sales with rapidly increasing. The best and worst listing on the Etsy listings is consists of three components product titles, descriptions, and photographs.

Listing titles

Your listing titles identify your products to potential customers.

Etsy’s Taylor Combs advises:

Think like a shopper and use words and phrases that buyers might use when searching for your item.

Providing more information increases the likelihood of the listing will be found. And more descriptive your title is the more the customer knows about your product.

Product photos

Strong product photography is the best sales tool. Shopping on the internet makes people more uncertain than shopping in person. In stores, one can handle and examine an item with your own two hands. But great product photos may leave that uncertainty. well-styled photos that showcase the product in a way that it draws more customers.

Take as many photos as needed to give your customers a complete understanding of the product.

And remember one thing these pictures must appeal to your target customer and you can change according to those customers in mind and style the photos.

Product description

Writing an awesome project description is the final step to creating a stellar listing. This is your opportunity to tell the story of your product. Include all of the unique details that make your item special. If you made the product, be sure to talk briefly about your process.

5. Fill in the business blanks

Here comes the main part. Starting an Etsy business is a user-friendly way to start a business. This means you need to follow all the rules and legal requirements.

First, you’ll need to choose a legal structure for your new Etsy business. After creating the business structure you will need file any necessary paperwork.

The Etsy website has all the info you need to find out what sort of license or permit you’ll need for your Etsy shop in your state.

And, be sure to get familiar with Etsy’s own legal policy for sellers.

6.Make a stocking strategy

Opening a shop is a great step. But if you hope to run a successful business then you need to plan what plans what comes after next. Maintaining the shop properly is the key to success.

Etsy allows three different types of shops: hand-made goods, vintage items, and crafting supplies.  Each of these three categories will have different requirements for maintaining your stock.

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7.Plan for shipping

Shipping is part and parcel to running an Etsy business. People always have to expect steady shipping also with excellent communication. So plan in such a way that your shipping logistics should be first-class and you don’t keep your customers waiting.

You can print shipping labels, calculate shipping charges, and track packages right from your Etsy shop.

8.Marketing, branding, and promotion

A marketing strategy is key to the success of your Etsy shop. Marketing will help new customers find your products, lets your existing customers up to date with the latest with your shop.

Some tips:

  • Optimizing your shop for Etsy search
  • Add your location so that your shop can be found in local searches
  • Link your shop to your social media accounts
  • Marketing your shop through paid advertising
  • Offering discounts to shoppers to buy with sales and coupons
  • Join the Etsy community and teams where you can network with sellers and shoppers.
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About Souvik Dey

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