How to Create an Etsy Shop

With the potential to reach some of Etsy’s 300+ million customers each month, it’s no wonder you’re considering opening an Etsy shop. Perhaps you sell custom-designed clothes, jewelry, or crafts.  Perhaps you already sell products locally or on a website and want to expand your reach. Or maybe you’re new to e-commerce, and rather than purchase an existing business, you’re ready to start your business from scratch on Etsy.

No matter what path leads you to create an Etsy shop, you’ll need a little help getting started. This guide is for you!

Before We Get Started…

Before we dive into the steps to open a shop on Etsy, you’ll want to make sure you can sell your product(s) on this online marketplace. There are eight primary categories of products on Etsy:

• Jewelry & Accessories
• Clothing & Shoes
• Home & Living
• Wedding & Party
• Toys & Entertainment
• Art & Collectibles
• Craft Supplies & Tools
• Vintage

Start by determining if your products fit into one of these categories. Also, check the list of prohibited items to make sure yours isn’t on the list.

Also, it’s a good idea to review the fees that Etsy charges so you can decide if it’s worth cutting into your profit margin to get in front of such a large audience. If you’re new to selling products online, knowing the fees you’ll have to pay can help you set your pricing so you have adequate profit margins.

Here are some (but not all) of the fees:

• Listing: $.20
• Shipping labels: varies
• Transaction: 6.5% of the total order amount 
• VAT: varies if applicable
• Advertising: varies
• Payment processing fees: varies.  A set rate plus a percent of the total sale price of the item
• Currency conversion: when applicable, 2.5%
• See other fees here

Step 1: Create an Etsy Account

If you don’t already have an Etsy account, you’ll need one before you can start selling. You can also use your Etsy account to buy from other sellers.

You can sign up with your email address, Google, Facebook, or Apple ID. Add your profile picture and bio so people can feel a personal connection with you as a seller.

Step 2: Open Your Etsy Shop

Once you’re logged into your account, choose the option Sell on Etsy from the dropdown menu on the right.

Answer questions about the language, country, and currency your shop should use, as well as questions about your business experience. Consider whether selling on Etsy will be a full-time job or more of a hobby. This is a question Etsy asks for its own research, but it’s also good for you to consider how much time and energy you will want to put into this new endeavor; treating your endeavor as a business (rather than a hobby) will allow you to deduct business expenses. 

Step 3: Pick a Name

Your Etsy shop name should be easy to spell and memorable. It might relate to the products you’re selling or a vibe you want to portray with your brand.

Make it easy for shoppers to understand what you sell with your name. For example, Fancy Formaggio tells visitors you sell upscale cheese. Om Jewelry might sell spiritually-inspired jewelry. This may also help your products appear higher in search results on Etsy.

You can also use your own name or an abstract word or concept. Here are more tips for choosing your Etsy shop name.

Once you land on one you like, make sure no one else is using it on Etsy. Also, Google it to make sure it’s not copyrighted elsewhere. The last thing you want is to get into litigation over your Etsy shop name!

Step 4: Add Your Products

Now it’s time to stock your virtual shelves! Each product listing should have:

• Title
• Description
• Photos
• Inventory (how many do you have available)
• Pricing
• Product variations (if it comes in other colors or sizes)
• Shipping costs

Your product photos should be professional and show each product from different angles. You can also include videos of the products.

Add as many details as possible in the description, including the dimensions, how or where the product was made, and keywords that will help your product appear in search results. You can also indicate if your product is customizable. The more information people have, the more likely they are to buy from your Etsy shop.

Etsy allows you to add up to 13 tags, which are keywords or phrases that customers would search for to find your item. This can help you gain visibility on Etsy.

Step 5: Decide on Your Shipping Options

Another deciding factor for shoppers on Etsy is how much it will cost to ship your product to them. The simpler you make it for them to figure out those costs, the faster they can add your products to their carts.

The easiest approach is to use Etsy’s calculated shipping option, though you can set a fixed price per item for shipping based on weight and size. Decide whether you want to ship internationally, as it will require a bit more legwork than shipping domestically.

Step 6: Set Up Your Preferred Payment Option

In this section, you’ll have to indicate whether you’re operating as a sole proprietor or an incorporated business. Not sure which to select? Your business is a sole proprietorship (or partnership if you have a partner) by default unless you’ve set up your business as another entity through a formal process and application.

You’ll be asked questions about your name, address, Social Security number, and details for the bank account where you want your sales to be deposited. You can connect directly to your bank account with Etsy's third-party service called Plaid. When you get paid, your profits will be electronically transferred.

Step 7: Provide Your Credit Card Details

Etsy charges your debit or credit card directly for any fees you owe each month, so you’ll need to input details for the card you want to use.

Step 8: Make Your Storefront Pretty

Now that your products are ready to go, you’ll want to design an appealing storefront that will attract customers and get them to buy. Just like a physical storefront, your Etsy storefront should be visually striking and give visitors a reason to click on your products.

You can custom-design logos and banners to highlight specific products or sales. Change these out when your promotions change.

Step 9: Add Shop Policies

We’re almost ready to launch your Etsy store, but first, something important: your shop policies. These should include policies for returns, exchanges, shipping, processing times, and anything else your customers might want to know about.

Keep in mind that shoppers want to be reassured that if the product is faulty, they can return it to you easily.

Step 10: Start Making Money!

Now your Etsy shop is up and running! You’ll get notifications when you make sales or when customers have questions, and you can view statistics in your dashboard to see how many people are visiting your shop and your products.

Marketing and Advertising Tips

Know that just because you have an Etsy shop doesn’t automatically guarantee sales. It’s up to you to promote your shop and your products through a variety of channels consistently over time.

Many sellers benefit from having social media accounts that promote their Etsy shops, like Instagram. You can link from a post directly to your Etsy product page to make it easy for Instagram followers to make a purchase.

Also, consider investing in advertising. Etsy offers ads within Etsy search results as well as ads on other websites that can drive traffic to your products.

You may also benefit from having a sales strategy. You can discount products you want to push during certain seasons (such as holiday decor in the weeks leading up to Christmas) or offer coupon codes or free shipping to entice people to buy.

Keep an eye on which products get the most traffic and highlight those to spur sales. Consider removing any that aren’t getting any traction.

Etsy is a great marketplace to expand your reach or simply make selling products online easy. With a platform that includes your shop, analytics, payment processing, marketing, and more, Etsy can be a low-stress opportunity to boost sales.