How to start an Etsy shop: Start selling in 9 easy steps

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If you’ve ever created handmade or artisanal products, you may have been told to consider selling them on Etsy. Setting up an Etsy store is a relatively simple process that can be completed in just nine steps. These steps include creating an account, setting up your shop preferences, uploading product listings, and configuring payment and shipping options.

By following these steps, you can have your shop up and running in no time, ready to showcase your unique products to an audience of potential buyers. Whether you’re a seasoned seller or just getting started with your handmade creations, Etsy can be a great platform to help you reach a wider audience and grow your business.

Before you set up your shop

Here are some things to know before setting up your Etsy shop:

Design

Assuming that you already have a product you wish to sell on Etsy, it is crucial to understand the significance of branding. Effective branding can be the key to securing your first sale on the platform.

If you are not confident about your branding skills, it is highly recommended that you consider hiring a professional graphic designer to create product labels that align with your brand’s values and aesthetics. Alternatively, you can also opt for ready-made label templates available on Etsy.

Once your product labels are ready, you can easily print them at home using a laser printer or order them online from a reliable vendor. This will ensure your products stand out from the crowd and attract potential customers on Etsy.

Photos

When it comes to selling your product, having high-quality photos is crucial. They showcase the effort you’ve put into creating and labeling your product and can make a huge difference in attracting potential customers. But you don’t necessarily need to hire a professional photographer to get great images. You can take great product photos yourself with a few simple tips and tricks.

First, find a location with good natural light. A sunny window or a well-lit outdoor area can work well. Then, use portrait mode on your phone or camera to take images of your products on a white background. This will help your products stand out and create a clean, professional look. You can also use a poster board or a white sheet for the background.

If you want to take your product photography to the next level, consider investing in a lightbox. These simple, affordable tools diffuse light and create an even, soft glow around your products, eliminating harsh shadows and creating a more professional look. You can find them easily on Amazon; they come in various sizes to suit your needs.

By following these tips, you can create beautiful product photos that showcase your hard work and attract potential customers.

Banking

If you are running a business on Etsy, keeping your personal and business finances separate is important. One way to do this is by setting up a separate bank account dedicated solely to your Etsy business. This will help you keep track of all your business-related expenses, such as supplies, shipping, and fees, in one place.

By doing this, you can easily calculate and file your business taxes without having to sift through personal transactions. Moreover, having a separate bank account will give you a better idea of your business’s financial health and help you make informed decisions for its growth and success.

Packing materials

If you’re running an Etsy store, it’s crucial to ensure that your packages are shipped quickly and efficiently to meet your customers’ expectations. To achieve this, you need to have all the necessary packing materials on hand. This includes sturdy boxes, biodegradable packing peanuts, high-quality packing tape, and shipping labels.

As your business grows, you may want to consider investing in branded boxes and a thermal label printer. Branded boxes can help your business stand out and create an impression on your customers. On the other hand, thermal label printers can help you streamline your shipping process and save time by allowing you to print shipping labels directly from your computer.

By having a well-stocked inventory of packing materials and investing in the right tools, you can ensure that your Etsy store runs smoothly and your customers are satisfied with their purchases.

9 Steps to set up an Etsy shop

Here are the 9 steps to setting up your Etsy shop:

1. Create your Etsy account

To create a seller account on Etsy, you need to have a consumer account. First, navigate to the top right corner of the Etsy website and click on the “Sign In” button. A dialogue box will appear where you can enter your email and password to sign in. If you haven’t created an Etsy account before, click the “Register” button and enter your information to create a new account. Once you’ve signed in, you’ll receive an email asking you to confirm your account.

After confirming your account, you can proceed to create your seller account. To do this, click on the gray circle with a silhouette, located next to the shopping cart in the top right corner of the website. A drop-down menu will appear, and you can click on the option that says “Sell on Etsy.”

This will take you to the “Sell on Etsy” page, where you can start setting up your shop. You’ll find a black button that says “Open Your Etsy Shop” below the banner. Click on this button to begin creating your Etsy shop and start selling your products.

2. Enter your shop preferences

To get started, let’s set up your shop preferences. This will help Etsy personalize your experience and give you tailored recommendations.

Firstly, please select your preferred language. This will ensure that all communication and notifications from us are in a language you are comfortable with.

Next, please choose your shop country. This will enable us to provide accurate tax and shipping information and give you access to country-specific features and promotions.

Please also select your preferred shop currency. This will help you manage your finances and ensure that you receive payments in a currency that works best for you.

Lastly, Etsy wants to know whether your shop is your full-time income or not. This will help us understand your needs and offer relevant resources and support.

Once you’ve made your selections, click “Save and continue” in the bottom right corner, and you’re all set!

3. Name your shop

When setting up a shop on Etsy, you will be prompted to name your shop. Your shop name must be unique and should not exceed 20 characters. It should only contain unaccented Roman letters and numbers, without any spaces.

To check whether your proposed shop name is available, simply enter it and click on “check availability.” However, it’s worth noting that picking a name that’s too similar to existing shops may confuse buyers. Therefore, it’s always better to create a unique and creative name that reflects your brand and products. If you’re stuck and struggling with a name, Etsy has useful tips to help you choose a shop name that fits your brand and style.

Keep in mind that once you’ve set your shop name, you can only change it once, so it’s important to choose a name that you’re happy with in the long run. Once you’ve decided on your shop name, click “save and continue” to complete the process.

4. Create your listings

If you plan to sell your products on Etsy, then knowing how to create your listings effectively is essential. Etsy suggests that you should have at least ten distinct listings to increase your chances of getting more visibility.

When you create your listing, make sure to include some necessary details such as photos, videos (if applicable), the title of the product, who made it, when it was made, whether it’s a physical or digital product, inventory and pricing, product variations (if any), personalization, and shipping information.

It is necessary to add at least one photo, and you can add up to ten photos to showcase your product from different angles. You can also add a video if you think it will help potential buyers understand your product better.

In the listing details, mention the product’s title, who made it, when it was made, and whether it’s a physical or digital product. This information will help buyers understand your product better and make informed decisions.

In the inventory and pricing section, mention your item’s price and include an SKU to easily track your product. If your product has multiple sizes or colors, make sure to add product variations, which will help buyers choose the right product that suits their needs.

If you offer personalization options, mention them in the listing so buyers know what they can expect. Finally, mention the shipping information, including the shipping cost, estimated delivery time, and other relevant details.

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Before you save the listing, preview it to ensure everything looks good. Once you’ve added all your listings, select “save and continue” to complete the process.

5. Input your payment details

When setting up your Etsy shop, it is important to provide accurate tax information. As part of this process, you must indicate your tax filing status, whether you are an individual, sole proprietorship, or a registered legal entity.

If you are an incorporated business, you must enter the legal entity’s name, legal business address, state, business registration number, and EIN. Additionally, Etsy needs a primary contact for the business, so it will ask you to provide the full name, address, date of birth, and the last four digits of your Social Security number.

Once you have completed this section, the next step is to provide details of the bank account where you want your Etsy sales to be deposited. You will need to provide the country where your bank is located, along with the relevant bank details. This information is crucial to ensure that you receive your payments promptly and accurately.

6. Enter your credit card details

As an Etsy seller, you will likely need to pay fees to use the platform. These fees include listing, transaction, and payment processing fees (if you use Etsy Payments).

You will need a credit card to pay for these fees. When making a payment, you will need to input your credit card number, CCV, expiration date, and full name on your card. To make things easier, you can sign up for auto-billing, meaning Etsy will automatically bill your card on the first of the month or when you pass your fee threshold.

Alternatively, you can pay anytime between the first to the 15th of the month. By understanding the fees associated with selling on Etsy and how to pay for them, you can ensure that your shop runs smoothly and successfully.

7. Open your shop

Once you have entered your credit card information, the “open your shop” button will become active, and you can click on it to launch your shop. This means that your online store is now open for business. You can start sharing your shop with others, including your friends, family, and followers. It’s important to note that your shop URL comes in two different formats, which you can use to promote your store.

The first URL format is https://www.etsy.com/shop/nameofyourshop, while the second format is https://nameofyourshop.etsy.com. You can use either of these URLs to direct people to your shop and start making sales.

8. Update your bio

When setting up your shop on an e-commerce platform, it is important to have a brief but informative bio that introduces you to potential customers. A well-crafted bio can help you stand out from other sellers and allow customers to connect with your brand on a more personal level.

In your bio, you can share your story, inspiration, and reasons for starting your shop. For instance, if you are raising funds for a particular cause or event, such as IVF or adoption, you can mention it in your bio. This will help customers understand the motivation behind your business and be more inclined to support your efforts.

Additionally, including a photo of yourself or your team can be beneficial as it adds a human touch to your shop and helps build customer trust. So, take some time to update your bio and add a photo that accurately represents you and your brand.

9. Set up your shop policies

When setting up your online shop, it’s important to establish clear policies that can help you avoid potential misunderstandings and conflicts with your customers. By anticipating any questions or concerns buyers might have, you can provide them with the necessary information upfront and avoid unnecessary back-and-forth exchanges via chat.

To create a comprehensive policy section, you should consider including the following essential elements:

  • Processing time: This refers to the amount of time it takes for you to prepare an order for shipment after it has been placed. Depending on the type of products you sell, your processing time may vary, so it’s important to communicate this to your customers.
  • Shipping policies: Your shipping policies should outline the carriers and shipping methods you use and any associated costs. For example, you may only ship via USPS Priority to take advantage of free insurance or offer expedited shipping options for an additional fee.
  • Payment options: It’s important to clearly state your accepted payment methods and any applicable fees or restrictions. This can help avoid confusion or frustration on the part of your customers.
  • Returns and exchanges policy: If a customer needs to return or exchange an item, it’s important to have clear guidelines. Your policy should outline the conditions under which returns or exchanges are accepted and any associated costs or deadlines.

By including all of these elements in your shop policies, you can help ensure a smooth and positive shopping experience for your customers while also protecting yourself in the event of any disputes.

How much are the fees on Etsy?

When selling your products on Etsy, it’s important to understand the different seller fees you may encounter. You’ll need to consider three main types of fees: listing fees, transaction fees, and payment processing fees (if you choose to use Etsy Payments to process your payments).

Listing fees are relatively low at just 20 cents per listing, which means it’s a great way to get your products in front of potential customers without spending much money upfront. These fees are non-refundable, but you can edit your listings anytime without additional charges.

Transaction fees are another type of fee you’ll encounter when selling on Etsy. These fees are calculated as a percentage of each sale, including the item’s price and shipping cost. The current transaction fee rate is 5%, meaning that for every sale you make, you’ll need to pay Etsy 5% of the total amount you receive.

Finally, there are payment processing fees to consider. If you use Etsy Payments to process your payments, you’ll need to pay a processing fee of 3% plus 25 cents for each sale. This fee covers the cost of processing your payment, and it’s deducted automatically from your earnings.

Overall, it’s important to keep these fees in mind when selling on Etsy, as they can significantly impact your profits. However, with careful planning and pricing strategies, you can still make a great income by selling your products on this popular platform.

Does Etsy report my shop income to the IRS?

If your Etsy shop has sales exceeding $20,000 and more than 200 transactions in a calendar year, Etsy is obligated to report your income to the Internal Revenue Service (IRS). This is a legal requirement that all online marketplaces, including Etsy, must adhere to.

You will receive a 1099-K form from Etsy, which will be provided to you and the IRS, indicating your gross sales transactions for the year. You must file these earnings on your tax return, and the information provided by the 1099-K will assist you. It’s important to keep accurate records of all your Etsy sales and expenses to make the tax filing process as smooth as possible.

How do I choose a product to sell?

There are plenty of options, even if you don’t have any design skills! One option is to hire a designer to help bring your product idea to life. Another option is to use a dropshipping application, which allows you to sell products without handling inventory or shipping.

Alternatively, you can explore new crafting skills and create your own unique items to sell. With some creativity and research, you’ll be on your way to choosing the perfect product to sell on Etsy in no time!

Can I buy shipping labels through Etsy?

If you’re an Etsy seller looking to purchase shipping labels for your orders, you’ll be happy to know that Etsy offers a convenient way to buy and print labels directly from their platform. By purchasing your shipping labels through Etsy, you can access discounted rates of up to 30% off compared to what you would pay at the post office.

This is because Etsy has negotiated special rates with USPS for their sellers. In addition to Etsy’s built-in label purchasing system, you can use third-party providers like Pirate Ship or Shippo to purchase and print your labels. These providers also offer discounted rates for USPS shipping and can integrate with your Etsy shop to streamline the shipping process.

The bottom line

Etsy is a popular online marketplace where makers can easily sell their handmade goods. It is a go-to platform for people looking for unique, one-of-a-kind items they cannot find anywhere else.

Setting up an Etsy shop is a breeze and requires little time and effort. The platform has a low barrier of entry, allowing anyone to start selling without any prior experience. To get started, all you need to do is create an account, which is completely free of cost. However, you will need to pay a small fee for listing your items and another fee when they sell.

This fee structure is designed to be affordable and reasonable, ensuring sellers can profit while keeping their costs low. Overall, Etsy is an excellent platform for creators, makers, and artisans who want to sell their handmade products to a global audience.