As one of the largest online marketplaces for hand-made and unique goods, etsy.com offers artisans and creators a global audience of shoppers to showcase their products. In the first quarter of 2024, more than 91 million global buyers, including 5.7 million new buyers, shopped the Etsy marketplace. In 2023, the gross Etsy marketplace sales were $13.2 billion. Read that again: $13.2 billion!

Essential Etsy: A Guide to Launching Your Own Shop

Tap into 91 million shoppers by taking your retail shop to Etsy

By: Katy Ibsen

(Originally printed in the May/June 2024 issue of Insights.)

As one of the largest online marketplaces for hand-made and unique goods, etsy.com offers artisans and creators a global audience of shoppers to showcase their products. In the first quarter of 2024, more than 91 million global buyers, including 5.7 million new buyers, shopped the Etsy marketplace. In 2023, the gross Etsy marketplace sales were $13.2 billion. Read that again: $13.2 billion!

For creatives in the personalization industry, Etsy offers an undeniable opportunity to reach new customers and grow your direct-to-consumer sales online.

For those less familiar with using an e-commerce tool to grow business, Etsy can seem intimidating, but the onboarding process is actually very simple, and maintaining your shop can be easier than you think.

To better illustrate Etsy’s simplicity and value, we’ve created a step-by-step guide, along with tips for success.

The APA Guide to Becoming an Etsy Seller

1. Gather Your Paperwork
When registering as a seller on Etsy, you will need to provide your Federal Tax ID number to verify your business is recognized by the IRS and a business license number. If you do not have these, you can acquire a Federal Tax ID at irs.gov for free and a business license through your city/county office(s).

Once you begin the registration of your shop, you will also need to have on hand:

• Your business banking information
• Credit or debit card
• Driver’s license

2. Register
Go to etsy.com/sell and follow the prompted steps and introductory questions. While you will register on a desktop, you will eventually want to download the Etsy Seller app for your mobile device. This will be the blue app (orange is for buyers).

Success Tip: Etsy wants sellers to succeed. One way they do this is by asking questions during the setup process to better understand your needs. When prompted, take advantage of assistance to: name and brand your shop and learn how to get discovered, and even how to photograph your items.

Etsy will guide you through six shop preference settings. These include:

• Language
• Naming your shop
• Stocking your shop
• Determine how to get paid
• Billing information
• Shop security

 

3. Name Your Shop
In theory you would use the same name as your existing business, but you may need to adjust slightly depending on what's already taken on Etsy. You’ll want something unique, and there are a few parameters to work within.
The name should:

• Be between 4 and 20 characters
• Use no profanity
• Use no trademarked words or names
• Not be the same name as another shop’s (even if that shop has closed)
• Use no spaces and no punctuation

When you brainstorm your shop name there’s a few things Etsy suggests to keep in mind: Do you want the name to be descriptive, abstract, or even your personal or business name? Consistency across all platforms (website, social media accounts, marketing) will work in your favor. Put the name to the test: Is there anything else similar to it on Etsy? Google the name to see what else, if anything, is out there (remember, Etsy shops can be found in Google searches). Spelling counts! If using multiple words, consider capitalizing each one of them: For example YourPersonalizationGifts is better than yourpersonalizationgifts.

Success Tip: Etsy expert Lauren Kilgore, owner of Etsy wreath shop BeautifulMesh, suggests thinking about the following when naming your shop: Make the name memorable; make it easy to spell (do not replace C with a K or S with a Z);
if possible, match your social media account names (and website too, if applicable); and don’t box yourself in to a certain product (in case you want to expand your offerings later).

4. Stock Your Shop
Begin by selecting the primary category under which you would like your shop to appear in searches. This category includes subcategories. Take time to click through several options until you feel you have the best representative product category (for example: Housewarming Gifts, Pet Supplies, Home Decor, Food & Drink).

When prompted, fill in the other required information. You will confirm if the product is physical or digital, who made the item, and if it is a finished product or made-to-order.

Success Tip: At this stage, it’s important to disclose if you use a production partner. According to Etsy, “a production partner is a company or individual (who’s not part of your Etsy shop) that helps physically produce items based on your own, original designs, such as a printing service, an apparel producer, an engraver, etc. … Production partners do not include your own shop members or suppliers from whom you source ready-made products to resell.”

Describe Your Products: Here you will add the product title, at least one image (you can add up to 10 images and one video per product), and the product description. In this section you can also indicate if the product will need to be personalized and then provide instructions for the customer.

Success Tip: The more words you add in the description, the more ways potential customers will be able to find you via searches.

Set the Price and Inventory: Mark the price of your product and indicate how many are for sale (set value to one if the price is per a single product). In this section, Etsy provides an estimated-profit calculator that can be helpful to see net profit. This section also allows you to enter existing SKU numbers.

Set Up Variations: Set up any variations that can be offered with or for the product. This may include the size, material, colors, etc.

Share Tags and Attributes: Attributes are specific details that define the characteristics of your products, and tags are words or short phrases that describe your item. Both help Etsy connect your shop with the right buyer. Tags and attributes will vary based on the primary category you selected. Etsy states, “Collecting this structured data across the millions of listings helps provide a better search and browse experience for buyers, and typically results in more visits and ultimately sales for sellers.”

Success Tip: Take your time to think about what to add under tags and attributes. What you input here will be used by the algorithm(s) that help shoppers find your shop. If you are too general, you’ll potentially lose traffic.

 

Add Details: These will match your selections from the first Stocking Your Shop page. At this time you can update the primary category or the core details, which will adjust the tags and attributes, to dial in the product page.

Create a Shipping Profile: We suggest using the recommended pricing unless you already know the cost/carriers to ship. Here you will indicate origin ZIP code, processing times, if you are shipping in the U.S. or elsewhere, carrier services (typically USPS), whether or not free shipping is offered, and handling fee, if applicable. 

Configure Settings: Declare how you want the product to be displayed on your shop. You will indicate what, if any, return policy your shop would have. For existing personalization businesses, these details can match your current policies for consistency. 
At this point, you can duplicate the product listing you just created and fill in the details of a new product. With each new product, you can update the product descriptions, variations, and price, while shipping, details, and settings remain the same.

Success Tip: Before you stock your shop, collect all product images and information into one central folder on your computer’s desktop. This will make the upload and settings process more efficient.

5. Get Paid
Follow the prompts to enter all your financial and tax information. This is where you will include your Federal Tax ID number and business license number. Etsy will also verify your identity with your personal address through a third-party service. They will not sell, share, or publish this information.

You will then connect your banking information. Etsy uses the financial service Plaid to run the connection. Follow the prompts given.

Finally, you will upload an image of your official government-issued ID from your country of residence.

6. Provide Billing Information
Etsy does have minimal charges for using its marketplace, and at this step you will provide a credit card and billing address for these expenses.

The Etsy billing schedule is:

• One-time setup fee: This one-time $15 fee supports Etsy’s infrastructure and enhanced security checks to protect the marketplace.
• Listing fee: Etsy charges $0.20 (excluding tax) per product listing created or renewed. This charge is due on the first day of the month. At the initial registration, they will charge $0.60.
• Transaction fee: Etsy will collect 6.5% of the order total (excluding tax). This is charged on each sale made. A portion goes toward keeping Etsy safe, sustaining their Purchase Protection program, providing customer support, building seller tools, and marketing to buyers.
• Payment-processing fee: A 3% fee is collected from the order total (including tax and shipping), plus $0.25.

Success Tip: Consider the true cost of the listing, transaction, and payment-processing fees when pricing your products. Nowadays customers typically realize that the convenience of Etsy comes at a slight cost, which can be reflected in a slightly more expensive product.

7. Add Shop Security
As with all things e-commerce, keeping your shop and your customers safe is paramount. Etsy allows you to adjust security settings, which include deploying two-factor authentication, sign-in notifications, and sign-in history.
Etsy also recommends a creative, uncommon password and keeping all mobile software and apps up-to-date.

8. Open Your Shop
Now your shop is ready for customers!

Building a successful Etsy shop involves more than just listing your products — it requires effective marketing. At a minimum, share links to your shop on your website and social media platforms to drive traffic to your Etsy shop. These promotions will also help with Google searches over time.

Success Tip: Positive reviews and word-of-mouth recommendations can significantly impact your Etsy business. Offer exceptional customer service by responding to inquiries daily, processing orders efficiently, and ensuring timely delivery. When you exceed your customers’ expectations, they’ll likely return the favor with repeat purchases and positive reviews.

By following these steps and embracing the spirit of Etsy, you’ll be well on your way to building a successful Etsy shop and sharing your personalization business with the world.

Success Tip: Don’t stop here. Utilize the Etsy Seller Handbook for more tips on how to succeed and improve your shop. Go to etsy.com/seller-handbook.

Katy Ibsen is the founder and owner of Ampersand Publishing in Longmont, Colorado. She guides clients through print and digital opportunities to support their business goals. Her Etsy shop would sell watercolor paintings of dogs. Contact Katy at katy@ampersand.pub