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Artists and crafters worldwide want to make money doing what they love. Etsy gives them that opportunity. If you're obsessed with making things, you can set up a shop on Etsy to sell your artistry.
Etsy started in 2005 as an alternative online marketplace for art, handmade products and vintage items. Nothing on the site can be mass-produced. This gives customers a unique buying experience finding handmade items from artisans and creatives in one place. It has grown into a publicly-traded company with over 60 million items for sale .
Some people have an Etsy shop as a side hustle, but many artisans make a great income selling online . Are you wondering how to start an Etsy business? The good news is it’s easy to get started and open an Etsy shop. We've put together this complete guide to share how it’s done and what to consider to establish your e-commerce business legally .
Etsy makes it easy for artists, designers, artisans and hobbyists to make money selling the things they make online. Obviously, you need to have the skills to make products, but do people want to buy what you make? That’s the big question. Are your products creative and unique? Do they fill a gap in the market or make the perfect gift
Before opening your shop, research what other shops are doing well and see who is your competition. If five other shops sell a similar product, how can you make it different or better? Or maybe you want to come up with another product altogether. For your business to succeed in a competitive market, you need a Unique Selling Point
Some of the critical skills needed to set up a successful Etsy shop include:
Product photography
SEO
Marketing (particularly social media)
Persuasive writing
Customer service.
But if you're not confident in your ability for any of these skills, don't panic. Providing you can create unique products, you can develop your skills as you build your Etsy business. Plus, there are tonnes of online tutorials and courses you can take to boost your skills.
If you are making a business out of selling online — rather than just a hobby or side hustle — you’ll want to create a business plan . Starting an Etsy shop takes time and effort, so you may find it’s not worth it for only a few items. If you want to get serious about it and make a decent income from selling online, consider a few things before jumping in.
What is your brand name?
What is the design look for your brand and Etsy shop?
What are your unique selling points (USPs) and niche?
What craft supplies will your business need?
What are the start-up costs and expenses?
How many items will you sell, and at what price?
What is your business model and legal structure?
What rules and regulations must you follow?
Do you need an accountant or assistant?
What is your marketing plan , and how will you build your online presence?
Having an e-commerce business can only be successful if you put in the time to plan out all these details so nothing sneaks up on you later. With millions of products being sold on Etsy, you have to set yourself apart and be a step ahead of your competitors. So don’t skip this part.
The good news is that starting an Etsy shop is free. Each listing you make on the site for your wares costs a small fee, and Etsy takes a 5% commission on every sale. If you use their payment system, there is a processing fee per transaction. The seller sets prices for goods, so consider the fees and commission you’ll pay when coming up with costs.
Setting up an Etsy shop is as easy as pie. Firstly, go to etsy.com to create an account. Create your shop and add preferences, ensuring you have an awesome name for your shop. Then, list your items with really great photos and descriptive text.
But the work doesn’t stop after you hit publish. There are always things to do when running an Etsy business:
Optimising your shop for searches
Marketing your shop across social media
Packaging and shipping products
Creating new products
Coming up with creative sales
Creating discounts to incentivise shoppers
Taking care of administrative tasks.
Don’t forget to save receipts for your materials, equipment and other expenses. Keep track of any business expenses because you may be able to take deductions on your taxes.
While setting up an Etsy shop is relatively straightforward, it can be daunting if it's your first e-commerce adventure. Plus, there are over 4 million Etsy sellers worldwide , so setting up your Etsy shop correctly the first time is crucial. To help you out, we've put together the eight steps you need to do to get started on the Etsy marketplace.
Creating an Etsy seller account is incredibly straightforward. Before setting up an Etsy Seller account, you'll need to have a consumer account. Go to Etsy.com , click on "Sign In", and select "Register" to register a consumer account. As their website says, "Registration is easy". You'll just need to input the following:
Email address
First name
Password.
You'll receive an email to confirm your account and then sign in to your account. To set up a seller account, go to the drop-down menu next to the shopping basket icon in the top right. On the drop-down menu, select "Sell on Etsy". On the "Sell on Etsy" page, a black button says "Open Your Etsy Shop".
After clicking "Open Your Etsy Shop", it’ll take you to a page where you can select your Etsy Shop preferences. Shop owners will need to select:
Shop language — This is the default language for your product descriptions. You won't be able to change this language later, so choose carefully. You can add more languages later, though.
Shop country — This is where your shop is based. Unfortunately, Etsy isn't available in every country, so you may need to wait if your country isn't listed. Alternatively, you may be able to set up a UK business as a non-resident to get around this issue.
Shop currency — This is the currency you'll use for your product prices. Don't worry; customers from other countries will see prices in their own currencies.
After choosing your shop preferences, you'll need to select a description for your business. The options are:
Selling is my full-time job
I sell part-time but hope to sell full-time
I sell part-time, and that's how I like it
Other.
You won't need to think about your shipping price at this stage. But you should be considering your shipping costs or offering free shipping. Free shipping is a big incentive for buyers and adds legitimacy to your business.
If you're registering your Etsy shop, you've probably already got a shop name in mind. But it's important to remember that Etsy has naming rules you'll need to follow:
Maximum of 20 characters
Must be unique
It may only contain roman letters and numbers
No spaces.
If you've got your shop name ready, you can check its availability with Etsy's shop name checker. Unfortunately, if your chosen shop name is already taken, you'll need to find a new one. You can probably play around with the one you've already chosen but make sure it's different enough from the existing shop.
Read our guide on creating a stand-out business name.
As a shop owner, you may be considering creating a separate e-commerce website for sales later on or possibly a brick and mortar store. If that's the case, you should check to see if the web domain for your chosen name is available. It's also worth checking if the name is available on Companies House using a business name checker .
When choosing your shop name, you should consider your shop's branding and logo. Although you can complete this step after choosing your name, some names lend themselves to better branding and logo designs .
There are millions of shops on Etsy, so you've got a lot of competition even if you sell entirely unique items. Your logo and branding are crucial if you want your shop to stand out from the crowd. You've likely got a creative flair as you're setting up an Etsy shop, so designing your branding shouldn't be a problem. You'll need to create the following assets for your shop:
Shop logo — 500 x 500 px
Cover photo — 3360 x 840 px
Banner image — 760 x 100 px
Profile photo — 400 x 400 px.
Etsy has inbuilt photo editors and designers that you'll access after set-up. But, if you have your assets ready, you'll be able to get your shop set up more quickly. If you're unsure about designing your branding, there are plenty of tutorials online and logo services available to help.
You may also need to pay an advertising fee if sales come from offside ads. While the fees may seem minor initially, they can quickly rack up if your products prove popular.
The amount that Etsy shop owners make varies drastically. According to the CEO of Etsy, the average Etsy seller makes around $2900 (2,222.34) a year. It's important to note that this includes all Etsy sellers, both full-time and part-time, which skews the numbers.
Most of your success comes down to the effort you put into your store and the popularity of your products. There are plenty of Etsy sellers that make far more than the average.
The short answer is yes. If you sell more than £1,000 in a year on Etsy, then you will need to register a self-employed business and pay taxes depending on your income. Every country has different rules regarding taxes, and you must pay on income made from an e-commerce enterprise. Please consult an accountant in your country of residence to determine your tax obligations.
When you are ready to start your Etsy business in the UK, you need to register with HMRC. If you plan to make selling online a large enterprise, you might consider forming a limited company. You can go the sole-trader route if it’s more of a side hustle. Deciding and completing your company formation is crucial to your business success. We can help you set up Etsy tax fast and easy.
Are you ready to start an Etsy business? At Mint Formations , we help you form your limited company and remove all the stress of starting a business. We’ll secure your brand name and get your company registered fast so you can start doing what you love.
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