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How to Start an Etsy Shop That Actually Gains Profit?

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Welcome to a detailed tutorial about how to start an Etsy shop that actually gains profit.

You've probably ever asked yourself the question of the best place for you to sell your products. If your answer is "unique on Amazon," you are missing out on the opportunity to receive huge sales. Amazon can rule the kingdom of online sales, but branching out to niche or less competitive locations, can help you win.

Etsy's "virtual market" is home to 300,000 people from 84 countries participating in the trade. Etsy can be considered a success of dot.com company (specializing in business via the Internet), it is the second-largest in the world after eBay.

Established in July 2005 with a capital of USD 1 million, Etsy currently employs 35 employees and attracts 300,000 members from 84 countries around the world. In which 50,000 people are entrepreneurs. Over the past two years, they have sold through Etsy 12 million USD of goods and collected 1 million USD of a service fee.

These figures are undoubtedly the clearest evidence that Etsy is truly the ideal place to start.

Is it worth it to start selling on Etsy?

In the past, most craftsmen and artisans sold their goods at fairs, open markets, and shipping. While the Internet opens the door to reach consumers outside their local area, many artisans don't want the hassle of setting up their own website, credit card processor, or an eCommerce platform to sell online. While eBay and other e-commerce DIY sites have helped, Etsy has provided a unique market for manufacturers.

Etsy allows each seller to build up a custom online "store" full of e-commerce features using a simple setup wizard. It's easy, fast, affordable, and an useful way to reach consumers.

Etsy is a good choice because it gives you so many benefits. The first is the lower fee and easier eBay to receive payment. Furthermore, you can take advantage of free shipping and free Etsy ads. Besides, there are many other benefits such as many sales promotion tools, Etsy sales statistics are apparent, can link the list of items with Twitter, Pinterest, and Facebook, enthusiastic support team.

For more details about the top reason you should sell on Etsy and know whether you need a business license to sell on Etsy or not, visit Why Selling on Etsy?

What you need to know before opening an Etsy shop?

Many people hesitate to start a business. My advice to you is to get started right away. This will make it easier for you to leap to others. However, before you begin, here are some essential tips to keep in mind.

1. Open a separate bank account

This is considered to be a priority when you start. You will not necessarily need to open a Google business account because sometimes, Google business accounts will be charged extra. This account will be a container for your earnings and can be used for business expenses.

You will probably wonder what if your personal money is mixed with business finance. You can easily view the spending and the amount of money earned in a blink of an eye if there is a designated location for business funds.

2. Perfect your product

Everyone who goes into business is also interested in profit. However, not so you accept selling unfinished, fake, and out-of-date products to customers. The snatching trade will never last. It may bring high profits in the immediate future, but in the long run, it's like shooting yourself. You will not have a good brand, and of course, your customers will know your product is not trustworthy and give up on you. Lost money can be found, but when prestige is lost, it is challeging to find it again. When you sell something well, you will gain prestige and long-term profit.

To do this, find answers to the following questions:

  • Where will you source your raw materials?
  • How much is the total cost to produce and the time to create an item?
  • What kind of variation can you provide?
  • What information and message would you like to send to the buyer?
  • How do you ship the product?

You should be a salesperson who always aims for high-quality products and is calm enough to realize if any problems occur. Every product is different, so all you need is backup plans. These are plans to help you solve problems that may occur, such as running out of materials, items in transit, etc.


3. Take Product Photos

Nice product images will make your store look more professional and stand out among the countless items in searches. Therefore, it's undeniable that quality photography is the key to turning viewers into your customers.

Using a professional photographer is always recommended, but if not, you can use your iPhone to take beautiful photos. Therefore, in my opinion, learning how to take some basic pictures of your product is part of being an Etsy store owner.

Another great thing you can take advantage of is stock photos. It would be awesome if you sold items that could be digitally made like t-shirts or coffee mugs. You can take a view of some amazing stock photography on Etsy.

If your product can be shot professionally, it will be even more incredible. Although we all know it is not the easiest thing to find someone with a similar style. Furthermore, it is also not the most cost-effective because you need to pay good photographers. Besides, there can be a lag with turnaround time in case you have to wait for the photos to be edited. However, a truly professional image will be a powerful weapon to help your items look more valuable and contribute to increased sales. Indeed the image quality is worth the investment.

4. Research Competition and Pricing

Enterprises cannot defeat competitors without understanding the strengths and weaknesses of the opponent. The activities of competitors affect every aspect of the business, from product design to pricing and customer acquisition. Therefore, it's highly recommended that you should spend time on Etsy to look at stores that sell products similar to yours.

You can browse through some products and pay attention to the listing description, photo style, turnaround time, or your opponent's policy. Besides, you can search words by keywords that buyers are likely to use to search for items like yours.

You need to observe what is being sold, how to sell it, and how much it will cost. This way, you can better understand your opponent and make a difference. This creates the unique nature of your store, impressing your customers. In particular, you will be able to price your product the best. Also, when pricing products, you need to show what is different about your product. That way your product will be highly appreciated.

5. Choose a Name

Good, impressive, and meaningful shop names create a brand for your store and an effective form of advertising without spending any money. Furthermore, you are only allowed to change the store name once after signing up. Therefore, this is an important decision; you need to take time to decide.

Think carefully and get inspired by thinking about related things like product characteristics, shocking or curious names, feng shui or personal preferences, etc. There are many ways to name an interesting and inspirational name. However, don't just focus on each of your products; you can name the store according to your style and your mission.

One important thing to keep in mind when naming your Etsy store is to consider the future. It shows your business's outlook for the next few years. In particular, a name that is easy to understand, easy to pronounce, and memorable is always a priority.

You need to check the store's availability not only on Etsy but also on social media and websites. You may not have thought of setting up a platform outside of Etsy. However, when the time comes, maybe you will.

Read more:

6. Etsy's sales fee

Etsy provides a comprehensive e-commerce platform and a payment system where individuals can sell handmade products or crafts.

The good news for you is that from October 2019, you can open the store on Etsy completely free.

The only cost you pay is posting fee, $ 0.2/approved post, along with 5% transaction fee, and 3% + $ 0.25 payment processing fee.

For example:

If you sell a handmade chain that costs $ 10 and uploads 4 listings on Etsy, the posting cost is 4 x 0.2 = $ 0.8.

When someone buys your $ 10 bracelet, the transaction fee is $ 0.05 (5%), and the payment processing fee is $ 0.28 (3% + $ 0.25).

The total cost you pay is $ 0.53 for each necklace sold on Etsy.

You may have to pay additional fees off the Etsy floor, such as packaging materials and shipping costs.

Compared to the cost of setting up a website that features international sales and payments, Etsy is a reasonable alternative.

Moreover, Etsy is the world's largest e-commerce platform for crafts or handmade. When you post here, the probability of your product being sold is very high.

Read more:

How to start an Etsy shop: Step-by-step guide

If you're ready to open your Etsy store, it's a fairly straightforward process. Here is how to do it.

Step 1: Sign up for an Etsy account

Start by visiting the Etsy homepage and clicking on the Sell on Etsy in the upper right corner.

On the next page, click the Open button to open your Etsy store.

First, you must create an Etsy account, as simple as creating an account on any other online service. Once you've done that, you'll find yourself at the beginning of building your Etsy store.

Step 2: Set your store options including currency, country, and language

The first step is to choose your language, country, and currency, as well as select the checkbox to indicate whether you are selling full time or part-time. Click Save and Continue to move on to the next section.

Step 3: Name your Etsy shop

The next step is an interesting part: naming your Etsy store. Enter the name you want to use and then click Check Availability of Test Mode to see if that name is available for use. If your name is duplicated, it will display a red error. You will have to be creative with your name to be available, but Etsy gives you suggestions if the name you want is already taken.

When you select an existing name for your store, click Save and Continue at the bottom to move on to the next step.

Step 4: Create a listing for the sale item you want to sell

Next, you will create a listing for an item you want to sell. This step is required and you cannot continue without listing at least one item. Click Add a listing to get started.

The process of selling products on Etsy is quite simple. Upload the product image from your device. You will start by uploading photos of your items and they cannot be larger than 10MB. However, you can add up to ten photos to the list.

Scroll down to enter a title for your listing, as well as answer a few questions about how the product was created. You will also choose a category that best suits your item.

If you are selling a digital item (such as a digital copy of a poster or printout your design), be sure to check the Digital's options. Below that, you'll enter a description of the item you're selling.

Next, you will want to enter up to 13 tags, and this is very important. These are keywords that describe your item and they play a big part in ranking your item in search results. So use the keywords that shoppers will use to search and find your item.

Then scroll down a bit further to enter the cost of the item and the amount you have in stock for sale. You can sell items by order, but you still need to list a quantity. A good rule of thumb for ordered items is to include an amount you can realistically expect to make and deliver quickly if someone orders so much.

Tip: You should enter the number several dozen in the Quantity field. If you enter 1, then when selling a product, the post will expire and you will have to pay to renew it (the cost is equal to the new posting fee).

If you enter a lot, sell a few dozen, the listing is still in "stock" and you do not have to spend a penny to renew it.

Different versions are for you when you have a product with multiple versions - like different colors, shapes, sizes, etc. This is where you list those different versions and even choose different prices for each version.

Next, scroll down and enter the shipping costs for your item. You can ask Etsy to calculate the shipping cost for you (based on the total weight and package size of the item) or you can enter the shipping cost yourself.

The final step is to upload the file you are selling if you are selling a digital item. That way, your shoppers can download it right away.

Once you've entered all the necessary details, take a look at everything and click Preview at the bottom if you want to see what the list will look like. If not, click Save and Continue.

Your item is now listed and you can add more items if you want by clicking Add more lists. If not, click Save and Continue to go ahead.

Step 5: Enter payment details

The next step is to add your bank account so Etsy can deposit your sales, as well as add a credit or debit card to pay your sales fees.

For the former, you will start by selecting your country of residence.

Next, enter your bank account details.

You will then provide information such as your name, mailing address, date of birth, and the last four digits of your social security number.

On the next page, you will enter your credit or debit card to pay the sales fee. Once you've completed everything on this page, click the Open your store button at the bottom.

Step 6: Optional: Avado recommends that you should take this step

At this time, your Etsy store is active and ready to go. However, there are still a few more things you should do to make your Etsy store more attractive to potential customers.

From the Dashboard, click the pencil icon next to your store name in the lower-left corner.

From here, you should add details about your store, including uploading your store logo, adding store titles, and entering your store location. This makes your Etsy store look more legitimate to shoppers. There is also an About Ads section you can fill in if you like.

Note: Etsy will charge you for this first listing for $ 0.2 to confirm and complete your account registration.

That's it, you’ve already had an Etsy account to start selling.

Some advanced tips to successfully start an Etsy shop

Selling on Etsy is a relatively new form of sales and it will be a great playground for those who have a good sense of art and craftsmanship. Therefore, to stand out in this playground, these cool tips will be extremely helpful for you.

1. Gather essentials

Gather essentials for your new business will help your store opening process be quick and easy. Therefore, it's highly recommended that you should download the Quick Start Checklist to start preparing everything you need, including product prices, photos, and your bank’s routing number.

2. Set specific and achievable goals

To make it more clearly, I'll give you a good example. That was the case with Christina Lembo when she started the Etsy shop called Franny & Franky Designs. When she opened this store, she hoped that it would one day develop it into a wholesale business. She thought about her initial to-do list and said, “I live in a fantasy world where I want to do everything. In the actual world, I don't have time to do anything!”

Christina made a wise decision to identify small milestones that were easier to manage instead of creating task lists based on her long-term goals. She took it as her starting milestone to make her first sale within three months. Thanks to this, you can focus on achieving small goals and managing your task list. She often takes photos, designs, prints, and lists at least two new items every week. She says that “It really kept me on track and put me in the habit of taking small steps toward larger goals”. As a result, she achieved her original goal and earned more than 480 sales since.

This is an inspiring example. It encourages you to set wise goals to be truly successful when you start with Etsy.

3. Consider keywords

We all know that customers often search for products they want by typing words or phrases into the search bar on Etsy. Therefore, a smart salesperson needs to put himself in the mind of the customer to determine the keywords that are searched by potential customers most often.

Start thinking of words or phrases that customers use to find your items so you can get the most out of your keywords. If you identify a list of most likely capabilities, circling the strongest will be the best. Also, if there is a change, you need to go into the list editor and plug the terms into your product tag. In addition, you should plug them into the section titles and at the top of your item descriptions. It's highly recommended that you should check your Shop Stats (under Your Shop> Stats). This will help you see which keywords are active and change ineffective keywords.

4. Think like a brick-and-mortar shop

Have you ever walked into a store that was so beautifully designed that you want to buy everything? Therefore, to succeed, you can also take advantage of a brick-and-mortar shop's strengths to turn it into the strength of your Etsy store. You can do things like providing a selection of products that match perfectly together. This will make your customers impressed by the beauty combined so perfectly and encourage them to buy them at the same time. Or else, you can also offer multiple items at different prices to attract different customers. This leads to more purchases and stimulates customers to repeat purchases. Even if you create a unique product, you might consider listing it with different materials or colors. Last but not least, if you want to add a banner, make sure that it brings extra power to your product design and fits your brand.

6. Choose the shipping method

This is very important because Esty has a structure of how many days of shipping, and if the item doesn't arrive within that number of days your account will be warned. So you should choose the reputable shipping service distributors, the price may be higher, but because it is a handmade item, it will not have a specific price. Therefore, choose a reliable shipping service.

7. How to avoid your Etsy account from being locked out

Everyone notices Etsy is a handmade sales site and usually will not allow you to dropshipping, so all the products you list on must be handmade products.

  • About the images: if you download images online then you should use photo editing software to put them on a white background or it is best to use your own images.

  • About the title: For Etsy, it has comparison algorithms so if you copy the title from another website, it can check out and suspect your dropship. This is also one thing that makes your account very easy to get locked. Therefore, it's highly recommended that you should write it yourself. Or if you copy, you should also edit a little to make a difference.

  • About the description: Like the title and description content, people should write and try to describe the whole process of making handmade products, what materials to use, how long it takes to make one product, how is it different from other products, etc. This will make Etsy appreciate that product, and it will help us to increase our sales ability to make our customers more confident.

Also, an important note you need to follow is not logging into your account on multiple computers and multiple wifi networks, use the user to manage your account and do not open multiple accounts on one computer. No matter how well your product is sold, if Etsy detects related accounts, it will delete your account.

8. What if your account receives an amount that exceeds Paypal limit

When selling goods on Etsy, we will use Paypal as a method of receiving money. Note that if you intend to sell high-value products on Etsy, you should upgrade your account to business to avoid receiving money that exceeds the Paypal limit.


Above is a transparent tutorial about how to Start An Etsy Shop That Actually Gains Profit. With illustrated photos and clear steps, Avado does hope that you find this easy to follow.

This guide is just meant to get you started. There is a lot to learn about Etsy, including SEO optimization, your store marketing, and more. Hopefully, this gives you the proper impulse to get you off the start line and into the race.

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