“Etsy is the global marketplace for unique and creative goods. It’s home to a universe of special, extraordinary items, from unique handcrafted pieces to vintage treasures”
Etsy has rapidly become a go-to platform for those looking to buy and sell unique, handcrafted, and vintage items. This article aims to guide you through everything you need to know about selling on Etsy, from setting up your shop to maximizing your sales. This comprehensive guide will help you confidently navigate the Etsy marketplace.
Etsy is a popular selling marketplace with approximately 97.3 million active users worldwide. With a constantly increasing number of sellers and shoppers, Etsy yields billions of dollars annually. It has a large audience and is a great place to buy and sell handmade goods, vintage, and craft supplies. Etsy’s mission is “to keep human connection at the heart of commerce.”
👀 Did you know that Etsy acquired Depop in June 2021.
You can sell handmade items, vintage fashion, and craft supplies on Etsy. Handmade items are the top-selling category on Etsy. On Etsy, handmade goods are made by the seller, ranging from clothing to décor and everything in between (including digital downloads). Vintage items are at least twenty years old, for which you can provide age authentication. Craft supplies include tools, ingredients, and materials whose primary purpose is for use in the creation of an item or special occasion (including party supplies).
💡 Tip: While I always recommend reading the terms of use for every selling platform, here is an introduction to selling on Etsy.
Etsy has low seller fees (especially considering the seller’s freedom in shop policies), but many resellers are deterred by the listing fee (it’s not too bad at twenty cents…).
Etsy has a somewhat complicated fee structure.
Etsy’s listing fee is $0.20 per listing (which automatically renews and charges every four months by default, but you can disable that).
Transaction fees are the charges applied by Etsy for each completed sale on the marketplace. These standard commission fees are essentially the cost of using Etsy’s marketplace to reach potential buyers and are a crucial part of Etsy’s revenue model. Currently, Etsy charges a transaction fee of 5% on the sale price of each item. Remember that the sale price includes the cost of the item and applicable shipping, handling, and gift wrapping charges- 5% of that total.
Payment processing fees cover the costs of handling payments made through Etsy’s platform. These fees are applied to each order to facilitate secure and efficient transactions between buyers and sellers. The standard payment processing fee is 3% plus $0.25 of the total sale price per order. These fees may vary depending on the payment method used by the buyer or the seller's location. For example, international transactions may incur different processing fees due to varying banking regulations and processing costs.
Currency conversion fees apply when a seller lists items in a different currency than the buyer's. These fees are incurred when Etsy converts the payment into the seller’s currency, allowing the funds to be deposited into their account. The currency conversion fee typically amounts to 2.5% of the total sale price. This fee is particularly relevant for sellers targeting international buyers, as it can impact the overall profitability of sales made in foreign currencies. Understanding these fees is essential for accurately pricing items and managing costs when selling internationally on Etsy.
There is also an optional 15% off-site add fee. If you choose to opt into an Etsy Ads Campaign, a 15% fee applies only when you make a sale as a direct result of the off-site ad.
Note that if your Etsy shop made $10,000 USD or more in the past 365 days, you'll be required to participate in Etsy Ads for the lifetime of your shop and you'll get a discounted advertising fee. If your Etsy shop made less than $10,000 USD in the past 365 days, Offsite Ads are optional. Learn more about Etsy Ad requirements here.
Etsy puts the seller in control of all things shipping, including handling time, cost, geographical limitations, taxes, and shipping carriers, including FedEx, USPS, and UPS. You can control these settings in custom shipping profiles in your shop manager.
Sellers in the United States can pay for and print automatically generated USPS labels directly from Etsy.
Etsy Tip: I highly recommend using Pirate Ship for the lowest rates.
Selling on Etsy can be lucrative, but it requires careful planning and execution. This step-by-step guide will walk you through the essential processes to set up and manage a successful Etsy shop.
You might also be interested in the article Best Things to Sell on Etsy in 2024.
The first step to selling on Etsy is creating an account. Sign up on the Etsy website or app by providing basic information such as your name, email address, tax information, payment methods, and password.
Once registered, set up a seller profile with a clear photo and a brief introduction about yourself or your business. This helps build trust with potential buyers.
💡Tip: Make your shop bio personal. Etsy buyers love to shop small.
Next, it's time to set up your Etsy shop. Choose a memorable and relevant shop name that reflects your brand. Set up shop preferences, including your shop’s location, currency, and the languages you’ll support.
Craft a well-thought-out shop description that tells your story and explains what makes your products unique. Also, establish your shop policies, including shipping methods, return policies, and processing times, to set clear customer expectations.
💡Tip: If you’re familiar with eBay business policies, Etsy profiles are very similar. They allow you to create rules that you can apply to your listings. Note that you can apply different profiles to different listings. Vendoo users can sync your Etsy Shipping Profiles with Vendoo. Learn how here.
Creating effective listings is crucial to attracting buyers. Start by taking high-quality photos of your products from multiple angles, ensuring the images accurately represent your items. Write detailed and engaging descriptions that highlight each product's features and benefits. Don’t forget to select relevant tags and categories to help potential buyers find your listings through Etsy’s search features.
💡Tip: SEO (search engine optimization) is hugely important on Etsy. To learn how to maximize your descriptions, check out A Reseller’s Guide to Keywords and SEO.
You’ll need to set up your payment methods to start receiving payments. Link your bank account to your Etsy shop to enable direct deposits of your sales revenue. You’ll also need to provide billing information to cover any fees associated with your shop. Consider the payment options available, such as Etsy Payments, which allows buyers to pay using various methods like credit cards, PayPal, and more, thereby widening your customer base.
💡Tip: Enroll in Etsy payments so that your buyers can pay in any way offered on Etsy. This widens your customer base.
Personalizing your shop’s appearance is essential for creating a cohesive brand identity. Use Etsy’s customization tools to add a logo, banner, and other branding elements that align with your shop’s aesthetic. A consistent visual identity helps make your shop more recognizable and appealing to customers.
Marketing your Etsy shop is key to driving traffic and increasing sales. Leverage social media platforms to showcase your products and connect with potential buyers. Consider using Etsy Ads to boost the visibility of your listings within Etsy’s marketplace. Offering discounts, promotions, and special deals can attract customers and encourage repeat purchases.
💡Tip: You will also want to set up automatic offers to interested buyers in your Shop Manager.
Once you start receiving orders, efficient management is crucial. Monitor your orders through your Etsy Dashboard and ensure timely communication with buyers to answer questions promptly. Handling shipping and returns promptly and professionally will enhance customer satisfaction and build a positive reputation for your shop. Positive reviews are important on Etsy as they effect your shop’s promotion and listing visibility.
List, manage, and grow - all in one place.
Getting paid on Etsy is quick and simple. When you are a brand new Etsy seller, you will be in a probationary period whereby your funds will not be available for deposit until 3 days after a sale. After 90 days, Etsy payment orders will become available for transfer the next business day after a sale. On Etsy, you can set up a deposit schedule for funds or request your funds at any time. Either way, Etsy makes direct deposits to your bank account.
You may also like 11 Great Marketplaces Every Reseller Should Consider
Maximizing your sales on Etsy requires a strategic approach to how you list and market your products. By optimizing various aspects of your shop and leveraging the right tools, you can significantly increase your visibility and attract more buyers. Here are some essential tips and tricks to help you boost your Etsy sales:
Etsy is a Vendoo marketplace, so you can easily cross-ist your items directly to Etsy from Vendoo! Crosslisting allows you to reach a broader audience by making your products available on multiple marketplaces, increasing your chances of selling.
Vendoo simplifies this process by enabling you to manage your listings across various marketplaces from a single platform. By using Vendoo to crosslist your items on Etsy and other marketplaces, you can save time, reduce manual effort, and ultimately expand your reach to a wider customer base.
Like other reselling marketplaces, high-quality photographs are essential for standing out on Etsy. With so much competition, your product images need to capture attention and convey the quality and uniqueness of your items. Ensure that your thumbnail image (cover photo) is eye-catching, as it’s often the first thing potential buyers see. Additionally, consider incorporating video content to showcase your products in greater detail, which can further enhance their appeal.
💡Tip: According to Etsy, listings with videos get twice as many orders as those without them!
Effective descriptions are crucial on Etsy, as they inform potential buyers about your products and play a key role in search engine optimization (SEO). To maximize your listings' visibility, use relevant keywords throughout your descriptions and carefully select tags, categories, and attributes that accurately describe your products.
For a comprehensive guide on trending styles, BOLO brands, and keywords for Etsy, check out A Reseller’s Guide to Cores & Aesthetics.
By optimizing your descriptions and tags, you can ensure that your products appear in relevant search results, thereby attracting more potential buyers.
Etsy offers many “optional” listing fields in your item details. Treat these fields as mandatory for best results and execute them fully to enhance your exposure. Many attribute fields are also search filters; if you fail to execute them, you’re eliminating your listings from potential buyer searches.
💡Tip: If you are selling personalized items made to order, a few other steps are involved in the listing process.
The competition is stiff on Etsy. Offering competitive pricing is one of the most effective ways to attract buyers on Etsy. Research market prices for similar items and adjust your pricing to stay competitive. Additionally, consider how your shipping costs impact the overall price of your product. Offering low or free shipping can make your listings more appealing and increase your chances of selling. Balancing your pricing with shipping costs is key to remaining attractive to buyers while maintaining profitability.
Etsy recommends optimizing your shop profile with strong branding and a professional appearance. A well-branded shop profile makes your shop more visually appealing and builds trust with potential buyers. Take advantage of the tools and resources available to enhance your shop's appearance, such as customizing your shop banner, logo, and other visual elements. A cohesive and professional shop profile can help establish your brand identity and make your shop stand out in a crowded marketplace.
Engaging with your customers is vital on Etsy, especially given the platform’s focus on niche, personalized goods. Building relationships with your buyers can lead to repeat business and a loyal customer base. Respond promptly to inquiries from potential customers, offer personalized service, and go the extra mile to make your buyers feel valued. Encouraging customer engagement enhances the shopping experience and increases the likelihood of receiving positive reviews, which can further boost your shop’s reputation.
Consider an Etsy Plus subscription once you’re comfortable selling on Etsy and ready to take your shop to the next level. Etsy Plus users benefit from customizable shop options, customer alerts, a website domain, bonus listings, and advertising credits. These features can help you further enhance your shop’s appearance, increase your visibility, and ultimately boost your sales.
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As we've discussed throughout this article, setting up and growing a successful Etsy store involves several key steps: from creating a compelling shop profile and listing high-quality items to optimizing your listings for SEO and engaging with potential customers. These strategies are essential to standing out in the competitive Etsy marketplace and maximizing your sales potential.
One of the most powerful tools to help you streamline this process and manage your inventory across multiple platforms is Vendoo. By using Vendoo, you can effortlessly cross-list your items on Etsy and other marketplaces, reaching a broader audience and increasing your chances of making sales.
Vendoo helps you save time and enhances your ability to scale your business efficiently. With Vendoo, you can manage your inventory seamlessly, ensuring that your products are always up-to-date across all marketplaces.
If you want to boost your Etsy store and maximize your selling potential, I highly encourage you to try Vendoo. It’s the perfect companion for any Etsy seller looking to enhance their selling experience and achieve greater success on Etsy and beyond.
Start enhancing your Etsy selling experience with Vendoo today!
Do you sell on Etsy? Please share some of your best Etsy tips and tricks below! 👇🏼