How to make money selling on Etsy


Are you creative enough or have a flair for design? You can easily start your own little business by selling your products on Etsy if you can make something unique.

If you’re unfamiliar with Etsy, it’s an online marketplace focused on “unique items,” which they describe as handmade or vintage items (at least 20 years old) as well as craft materials.

It does have over 4 million active sellers and over 38 million active buyers, so if you can create something that people desire, you’ll find an audience.

You can easily make enough money to fill up your bank account every day if you have the correct product and follow our exclusive recommendations below.

How much money can I expect to make on Etsy?

To be honest, this is totally dependent on the success of your business.

Some people generate a consistent side income of up to 300 us dollars each month, while others earn enough to quit their jobs and sell full-time on Etsy.

Although selling on Etsy is unlikely to make you a billionaire, if you follow a few easy principles, you might easily supplement your student loan during university.

What do I need to start selling?

When it comes to setting up your Etsy business, it’s critical not to overcomplicate things. The most important thing you could do is to start. If you spend too much time perfecting things, you may never launch your business, and once you have something up on the web, you can always make adjustments.

To begin, you’ll need at the very least the following five things:

  • Something for you to sell

This is indeed the tricky part, but if you pick carefully, you may be on your way to starting up a business. It doesn’t have to be a tangible thing; many artists sell their designs for others to print at home, or generate graphics for others to use on their websites and social media.

If you’re having trouble coming up with ideas for what to sell on Etsy, have a peek around the site to see what others are selling. Instead of copying someone else’s concept, use this as a chance for inspiration.

If you’re really determined, now is the time to design or order a prototype or test product. It will allow you to preview how it will appear, make taking product photos easier, and test the build quality.

  • A name and logo for your shop

Don’t put too much thought into the name of your Etsy store. It will have little effect on your sales, and you will have one chance to rename it. Try not to be too cryptic or sophisticated, and instead think about something basic and concise.

Once you’ve settled on a name, you can quickly create a personalized logo using Canva.
It’s a free online platform that’s similar to Photoshop but much, much easier to use.

If you aren’t comfortable doing it yourself, you can still hire someone to do that for you on a platform like Upwork or Fiverr.

  • Clear and attractive images of your items

This one is considerably more essential on Etsy than it is on eBay. If your product has never been seen before, a stunning picture may make all the difference, potentially more than your shop’s name and logo.

This should be simple if you ordered or created a test product as mentioned in point 1.

Examine what other businesses with comparable items are doing, pick the style you want, and then work towards making yours equivalent.

  • A little bit of money

Unlike many other online marketplaces, selling on Etsy is not completely free, as each listing costs 20 cents to publish. We estimate that investing $1 into listing five products will be more than enough to get you started.

While you’re thinking about money, consider the cost of your item(s). Spend some time calculating the cost of production (including any upfront expenditures that will be spread across a few units) and then determining a price. Don’t get too greedy here; it’s the internet, and if you overcharge, someone else will undercut you and grab all the potential clients.

  • A way to get your item to buyers

Find the most cost-effective method of packing and shipping your products; it may be best to use the Post Office, but if your products are really large or heavy, a courier company may be a better alternative. Before proceeding, be certain that you are aware of the expense.

How much does Etsy charge for listing items?

When compared to other selling platforms, Etsy’s costs are rather complex. Every time someone purchases anything from your shop, you can be charged different sorts of fees:

A listing fee – It costs $0.20 to list each item for sale, and each listing is valid for four months or until it sells out. If you have many goods available, you may set them to auto-renew, and you’ll be charged another 20c as soon as an item sells to keep it live.

A transaction fee – Whenever you sell something on, you’ll be charged a transaction fee of 5% of the price you set for each listing.

A payment processing fee – If you use Etsy’s payment system, this is 0.20 + 4%.

As an example, suppose you sell something for 2.99. If you use Etsy’s payment system, you’ll pay 0.50 in transaction fees, and 0.25 in transaction fees. This comes to a total of $1.25.

Why sell on Etsy in particular?

Buyers are considerably more focused on the quality and originality of each individual listing on Etsy than on price or location unlike on other selling sites like eBay or Gumtree.

While a normal eBay or Amazon client may enter a search phrase and sort the results by lowest to highest price, an Etsy shopper would not anticipate their search to yield a page full of identical products. This makes it much simpler to stand out if you’ve made something one-of-a-kind, regardless of the cost.

Before you even start selling on Etsy, you need to create a store, and you are advised to include a logo, a banner, a description, and social network connections to help a visitor learn more about you. eBay seller sites are often bland and impersonal, but there are several ways to add a personal touch on Etsy.

All of these features are used by the finest Etsy businesses to develop their own distinct brand that customers would seek out by name. If you want your address to link directly to your shop, Etsy will also put one up for you (for a cost).

Etsy has features that make it easier to sell customized things, and because custom orders take longer to make, you may charge more for them. You may also generate discount coupons to reward your social media followers or to encourage consumer loyalty. You can also close your business if you need a break, which can be a great way to reassure loyal customers who return and find an empty store.

International opportunities
According to a bunch of Etsy sellers in the UK, a significant amount of their orders originate from outside the country, particularly Australia and the United States.

People are less concerned about speedy shipment because each item is handcrafted. This implies there are even more potential consumers for you out there.

What sells the most on Etsy

We have used the web app CraftCount to check at the best-selling Etsy stores, and the range is impressive!
Here are a few of the most popular categories:

  • Craft & Supplies
  • Handmade Items
  • Jewelry
  • Wedding Items
  • Accessories
  • Paper & Party supplies
  • Clothing
  • Vintage Items
  • Home & Living
  • Art & Collectibles.

However, people are selling all kinds of beautiful handcrafted things on Etsy, and the more unique, the better. We’ve seen successful stores sell anything from nail polish to food, so don’t limit yourself to what’s trendy.

What new Etsy sellers should know?

Some established Etsy sellers shared what they wish they’d known when they first started selling on the platform:

Keep an eye on your margins – initially I worked out my prices to give me about 10% profit, but once my cards started to get really popular I realized I was underpriced compared to my competitors and I’d missed out on earning a lot more. Oh, and don’t be afraid to buy Etsy adverts, I spend about $2 a day and it works for me – just keep an eye on it.”

– Leah from Famous Last Cards

“I wish I’d known how hard and time consuming it would be at first. I also wish I’d known that I’d make some mistakes, and that’s okay! It’s all about trial and error.”

-Meg from Second Seam on the Right


“When I opened my shop I wish I’d been more aware of the extra costs involved. It’s not quite as simple as just casually buying a stamp and envelope for every sale – that gets expensive fast! I’d recommend going online (eBay or Amazon) and buying a bulk pack (start with 50 if you’re committing to this) of what you need to pack and send your items. For me that’s A5 cellophane pouches and board backed envelopes. It’ll save you money in the long run!”

– Sarah from Sarah’s Chapter

Downsides to selling on Etsy

Etsy, like so many online selling platforms, isn’t without flaws.
Here are a few of the disadvantages:

You aren’t paid instantly – You may opt to get your payments monthly, weekly, biweekly, or daily, but after they’re “paid,” it takes approximately 3 days for the money to reach your bank, according to our Etsy seller experts. This is inconvenient since you might have to pay the postage before then.

It’s primarily a US website – Sad to say, UK sellers are at a disadvantage in comparison toward those located in the United States. Whether it’s due to the longer shipping time, more expensive delivery charges, or the fact that the pricing will appear as $13.02 for a US buyer instead of £10.

You get charged fees monthly – Once your business is up and running, it might be difficult to keep track of all the listing fees, commissions, and payment costs, which are collected in one lump sum once a month. Remember to set money aside to pay them, and don’t consider everything you earn on Etsy to be profit.

What are the alternatives to Etsy?

Etsy isn’t the only platform where you can sell vintage and handcrafted products.
The following are the finest of the others:

eBay – You’ve possibly heard a lot of this one; many people use it to sell things similar to those found on Etsy. If you can keep your expenses low enough to compete and want to sell products rapidly, eBay could be the place for you.

Shopify – Shopify allows you to open an online store without listing fees or commissions, but it costs $29 per month for the basic plan, which may be a cheaper choice depending on your volume.

Depop – If your Etsy business niche is linked to fashion, Depop is extremely popular among trendy individuals looking for something unique. You do not have to pay to list an item, however there is a 10% ultimate value charge.