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Selling products on Etsy is becoming increasingly popular for small businesses and entrepreneurs. More than five million sellers sold goods through Etsy in 2021 to almost 100 million buyers worldwide.
Etsy has become the marketplace of choice for people who create handmade craft items or sell vintage products such as jewellery, candles, or art.
But what are the benefits of selling on Etsy and how do you get started? Read our in-depth guide for everything you need to know.
Creating and selling crafts became very popular during the pandemic as people had more time at home. Our research from November 2021 found that over one third of people in the UK now run their own side hustle.
For many people selling on Etsy remains a viable second income or even a main job. A recent study by Aviva found that almost two thirds (63 per cent) of people who started a side hustle during the pandemic are still continuing to pursue it in 2022.
Whether you’re continuing your pandemic side hustle or creating crafts is your main job, it’s likely you’ll have thought about selling on Etsy if you aren’t already doing it.
Below we outline the key things you need before you get started.
1. Decide on your product
Before you start selling on Etsy, you’ll need to decide what you’re going to sell. Some of the best selling items on Etsy are handmade or personalised items.
Our research shows that craft stalls were the fastest growing small business trade in 2021, with growth of 237 per cent compared to 2020.
Even if you already have an idea of what you want to sell, it's worthwhile doing some research to see if other people are already selling it on Etsy. You could also do a competitor analysis.
2. Create a brand
Once you’ve decided on your product, you’ll need to come up with a brand. Here are some of the things you’ll need at first:
Building a brand can help your listings stand out on Etsy and support your social media strategy.
Read our guides on developing a brand identity and how to use tone of voice for some top tips, while our Business Name Generator can give you some light-hearted inspiration if you don’t have a name yet.
3. Come up with a pricing strategy
Setting the right price for your products can be difficult. On one hand, you want to make sure the price is appealing to customers. However, you also need to make sure the sale price factors in your costs and is worth your while.
4. Work out your delivery and packaging costs
This is an important part of your business strategy. You’ll need to make sure your packaging protects your products, but isn’t so expensive that it eats into your profits.
When setting your postage price, remember that buyers like round numbers and are unlikely to pay more than it costs to send the item. It can help to play around with different price points, oreven offer free delivery to encourage more sales.
It’s important to note that Royal Mail prices went up in April 2022, and are likely to go up again later in 2022. Read our guide to the best business couriers for an overview of the options.
5. Create a marketing strategy
Hopefully, you’ll get lots of eyeballs on your products from the Etsy search results. However, you’ll also need to promote your product in other ways.
Posting images of your product on Instagram, Facebook, or TikTok could help you to build your brand and drive traffic to your Etsy shop.
Be careful to mix up your posts so that they’re not all about pushing your product. For example, could you share images and videos showing how it’s made? Think about what’s interesting to your audience and share it.
If you’ve got the budget, social media advertising can be a good way to get your posts in front of a wider audience.
Meanwhile, if you’re doing something a bit different like framing crushed beer cans, why not get in touch with the local press to see if they’d be interested in writing a story on your business?
The costs of listing on Etsy are fairly simple:
For example if you sell a homemade candle for £12, you’ll pay a £0.78 transaction fee, plus a payment processing fee of £0.68. This leaves you with a total of £10.54.
You’ll also need to factor in the listing fee (0.16), postage costs (which the buyer will pay separately), and the cost of creating your item.
Listing fees are charged on a monthly basis. Once you start selling items, they’ll be taken out of your fees so you won’t need to pay them upfront.
When you sell an item, the funds are sent to your Etsy payment account. You can then decide how often they’re deposited into your bank account, for example on a weekly or monthly basis.
Earlier this year, more than 14,000 small business owners boycotted Etsy in response to a rise in fees. From 11 April 2022, transaction fees increased for the first time since 2018, rising from 5 per cent to 6.5 per cent.
Etsy is also launching a purchase protection program on 1 August 2022, which will allow buyers to receive a full refund for items that don’t match their description, arrive damaged, or don’t arrive at all.
The program is set to cost Etsy $25 million a year, allowing sellers to keep their earnings when things happen outside of their control.
Once you have a listing template that works, you can use it repeatedly. Below are some of the key things you should consider when creating your listings.
Etsy is a competitive marketplace, so it's crucial that you take the time to make sure your images are of the highest quality so they stand out in search results.
You can include up to 10 images per listing. Here are some tips on how to get the best out of your images:
As well as descriptive photos, adding videos to your listings can make them more appealing to your target customers.
According to Etsy analysis of over five million sales, shoppers are more likely to purchase an item if the listing includes a video.
Etsy’s tips for adding videos on listings include:
Read more about making Etsy videos that can help to sell your products.
When selling on Etsy, you need to think of it as a search engine. This means you need a Search Engine Optimisation (SEO) strategy. It's all about making it easy for customers to find your products with the description, tags and categories you choose.
Firstly, you’ll need to make sure your products fit into the right category. For example if you’re selling a vintage lamp, you could choose these categories:
You’ll also need to add a range of tags to your listing, with the aim of mirroring what your customers might search for. For example, if you produce personalised golf gloves, “golf glove gift” is a good tag to include in your listing.
Even if you’ve got a big social media following or have your own shop, if you want people browsing Etsy to find your products, you’ll need to choose the right tags and categories.
As with selling any product online, your description should be detailed and easy to read. On Etsy, you can provide information such as:
You can also use the description to answer any FAQs customers may have about your product.
On a site like Etsy, where people are buying from small and often unknown businesses, it’s highly likely that people will look at reviews before buying a product.
Positive customer reviews can be very powerful and even have a bigger impact than your marketing material.
Although it can sometimes be difficult to get buyers to leave a review, you should treat them as a priority. You could improve your chances of getting reviews by adding a note to your orders asking for one, as well as offering discounts on future orders or a loyalty reward scheme to those who do.
The reviews you receive are included under your listings at the bottom of your shop. You’ll get an average item review score, and if you get an average score of 4.8 stars or above, you could become a “Star Seller”, which will help your listings appear in front of more buyers.
Before your Etsy shop is up and running, there are just a few more things to consider. First, it could be beneficial to take out product liability insurance. This could protect you financially if one of your products is faulty and injures someone or damages their property.
You’ll also need to make sure that your shop and its products meet Etsy’s “House Rules” and Seller Policy, which covers what can be sold, communication standards, and Etsy’s terms.
What are your tips for selling on Etsy? Let us know in the comments below.
Conor Shilling is a Copywriter at Simply Business with over two years’ experience in the insurance industry. A trained journalist, Conor has worked as a professional writer for 10 years. His previous experience includes writing for several leading online property trade publications. Conor specialises in the buy-to-let market, landlords, and small business finance.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
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