If you want to learn how to start a business on Etsy, take a look at our startup guide. Find out if an online store is right for your business and read up on things to consider before setting up shop. We’ll go over costs, eligible products, and how to make money on Etsy. We’ll also mention the best Etsy business ideas so you can start quickly.
Since 2001, MyCompanyWorks has formed tens of thousands of companies for entrepreneurs just like you. Starting your e-commerce business is simple with affordable packages and an expert support team. Launch your Etsy side-hustle or dream business today.
NOTE: While we do not open Etsy accounts, this guide offers helpful information, links, and resources to get you started.
Below are answers to some of the top Etsy FAQs:
$.20 listing fee to keep your item active for four months or until they sell (whichever comes first).
6.5% transaction fee on the sold item, then 3% + $.25 for payment processing.
15% Ad Fee for items that sell through an offsite Etsy ad (they advertise your items across the Internet).
With the Standard account, you just pay these fees. There’s no monthly subscription fee. Etsy offers a Plus account, which provides more tools and support to grow your brand. Plus accounts are charged $10 per month, in addition to seller fees.
There are some restrictions on what can be sold, and each category has its own requirements. Most requirements are to make sure you’re selling authentic items that match descriptions. Each category is linked to its detailed seller’s policy.
If you have a solid business plan and make some smart decisions, it is highly possible to run a successful Etsy shop. How much you make depends on the time and effort you invest, as well as the products you sell. Some items are more profitable than others. If you already have a unique product or design, work with what you’ve got! Online shoppers are constantly looking for new and creative patterns, designs, and decorations.
You’ll need to figure what is called Cost of Goods Sold (or COGS by some). By calculating the COGS, you’ll know how much to charge for each product in order to make money. 100% markup is typical for crafting supplies, so if your COGS is $10, your target retail price is somewhere around $20. Make sure to add Etsy fees to your pricing to cover those costs. Good price planning is the key to making money in any market. Craftybase offers a free Etsy calculator to making pricing easy.
Without a doubt, Crafts and Supplies is the best-selling category on Etsy. Crafters find everything from patterns, to fabrics, to tools and supplies online. There are also several other top-performing Etsy categories, with Jewelry being one of the most profitable. If your creations land in one or more of the following categories, an online shop may be the right avenue to launch your products. If you’re looking for ideas, find inspiration by browsing these categories.
These categories are followed closely in revenue by Fashion and Clothing, Vintage Goods, Home and Living, and Art and Collectibles. There are plenty of products that fall within these categories. Doing some research on your product can help you decide if Etsy is the right place to open shop.
Consider the following options to find your niche.
Art supplies, craft supplies, custom wall art, digital prints, and stickers (believe it or not!) are very successful Etsy products.
Online shoppers use Etsy as a go-to online source for personalized beaded and stamped jewelry, engraved pendants and bracelets, gemstones, and jewelry supplies.
Everything you can imagine to decorate and celebrate can be found in the Wedding category. Items like customized printed goods, party favors, wedding party gifts, bachelor and bachelorette party items, and unique cake toppers sell frequently, and there’s no shortage for business.
Classic wooden toys and games are wildly popular on Etsy and other online selling platforms, especially around the holidays. Handmade toys, wood puzzles, dollhouses, and rocking horses are all best-sellers. You can even charge an additional fee for personalizing toys.
Fashion and clothing are HOT on Etsy. It’s an excellent place to debut new clothing lines and apparel accessories. Personalized clothing for children and adults, bags and purses, embellished shoes, belts, sashes, and hats frequently sell out.
TIP: Clothing and jewelry go hand-in-hand, so consider cross-selling to promote your clothing shop.
When it comes to special occasions, people love to use unique and customized items to celebrate. Handmade greeting cards and party supplies for holidays and special events sell like crazy, especially when customers can personalize their purchases. Holiday cards and other goods made from upcycled and recycled materials are growing in popularity, so selling eco-friendly products can increase revenues.
While we’re not able to open your Etsy shop, they make it very easy to get started. You’ll be guided through five steps to open an Etsy account and launch your online store.
NOTE: Etsy does not require a business license to open a store, but you are required to follow all laws that governing online stores. Check out our business licensing section for more information.
By now, we hope you have enough information to start a successful Etsy business. We’ve covered costs, discussed what can be sold, how to make money, and the best Etsy business ideas to help you get started. The process to set up an Etsy account and store is pretty simple. All you need to do is decide which products to sell, how to price your products, and launch the online store. You won’t need a business license for the Etsy account, but federal, state, and local laws still apply to your business. All US companies must be registered to do business, in addition to having an online store.
If you’re ready to start selling, order your LLC or Corporation with a few details on our online order form. We offer competitive pricing and packages that are tailored to each business type, so all you have to do is provide some basic information. Many companies received completed paperwork in days, not weeks or months. Our detailed FAQ page has answers to many common business questions, and our support team is available during business hours for anything else you need. Join thousands of satisfied customers when you start your Etsy business with MyCompanyWorks. Contact us today.
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This entry was posted on Tuesday, June 28th, 2022 at 11:18 am and is filed under New Business Ideas, Starting A Business. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.