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Etsy is an online marketplace for handmade goods and artwork. Opening an Etsy shop can be free and relatively easy, and it can provide a home for your products — however niche — without having to build your own e-commerce website.
Here’s how to sell on Etsy in eight steps, plus information on Etsy seller fees and tips for success on the platform.
1. Create an Etsy account
You can set up an Etsy account by visiting etsy.com/uk/sell, then selecting ‘Open your Etsy shop’. You can create an account with your email address or an existing Google, Facebook or Apple account.
If you’ve shopped on Etsy before and have an existing account, you can log in with your credentials and then select ‘Open Your Etsy Shop’ to start creating your own store and get ready to sell on Etsy.
2. Set your shop preferences
With your Etsy account set up, you’ll be asked some simple questions, such as why you’re exploring Etsy and if there is anything specific, such as branding, that you need help with. You have the option to skip these questions if you would prefer not to answer.
Then, you’ll be directed to the ‘shop preferences’ screen, where you’ll designate the basic settings for your store — your default language, the country you’re based in and what currency you plan to use.
If you list products using a different currency than the one in your Etsy Payments account, you’ll have to pay a 2.5% currency conversion fee on each sale.
3. Name your Etsy shop
Here’s where you can start to get creative: coming up with your Etsy store name. Your store name can be anything you’d like, as long as it falls within Etsy’s guidelines that say it should:
- be four to 20 characters long
- have no spaces, special characters or accented letters
- not have a name that’s already in use by another Etsy seller
- not have trademark infringements
- contain no profanities
You can change your shop name as many times as you like before it’s open. And you can still rename it once your shop is open. While this will change your URL, web traffic will be automatically redirected to your new name. Etsy will display an icon next to your shop name on your pages to show that the name has changed.
If you try to enter a name that’s already in use, Etsy will suggest some similar names that are available:
To get the ball rolling, consider the following name suggestions:
- Try suggestive, descriptive names: You can use words or phrases that evoke the feeling of your brand or describe what you’re selling.
- Try abstract names: Abstract names can set your store apart and make it easier for customers to find your store when searching online.
- Use your name: Your own name can be a quick and simple option — and allows you to easily change or adapt the products you sell. Consider adding a modifier, such as ‘Studio’ or ‘Workshop’.
If you think you might eventually expand your online business, do some additional research to ensure that you can acquire a business domain (the web address of your trading name) that matches your shop’s name.
4. Add items to your shop
Listing physical and digital items (think printable stationery, patterns, stickers or gift tags) in your Etsy shop involves separate processes. We’ll show you the basics of how to list a tangible item; you can consult Etsy’s guide if you’re listing a digital item.
Add photos and videos
You can include 10 photos and a description for each item you want to sell on Etsy. The website recommends shooting in natural light, showing items in use and including other objects to show scale.
You can also include one video lasting five to 15 seconds, but without any sound.
Complete your listing details
Give your item a title that describes the product in as much detail as possible, but keep in mind there’s a 140-character limit. You’ll also have the opportunity to provide an in-depth description, a bulleted overview of the product, and additional details, such as the product’s category and type.
Providing as much accurate information as possible will improve your listing’s chances of appearing to customers via Etsy search results. You can also use relevant keywords and engaging titles to improve the appearance of your listings when found via Etsy search results.
As you start to fill in product details, Etsy will prompt you for additional information specific to that type of product — such as whether a piece of art comes framed, whether it’s designed for a certain holiday or occasion, or whether it belongs in a particular room in the home.
Pay attention to the section called ‘renewal options’. If you select ‘Automatic’, your listing will automatically renew after it expires every four months. Each time the listing renews, you’ll be charged 20 cents (converted from dollars to 16p at the time of writing). Bear in mind that Etsy gives its fees in dollars, so will be subject to exchange rate fluctuations and bank processing charges may vary.
If someone else helps you produce your goods, you may need to add information about them too. Etsy defines these ‘production partners’ as any person who is not part of your shop’s staff or any outside company that helps produce your goods. This might mean they have some skills or equipment you don’t have or that you’re contracting out some work in order to keep up with orders.
Finally, take advantage of all 13 tags available per item. Shoppers find your item by searching for keywords in the search bar, so work backward and think about what a customer might type into search to discover your item and use those words as your tags.
Complete your inventory and pricing
In this section, you’ll enter your product’s price, VAT (if applicable), quantity and Stock Keeping Unit (SKU) number (if you have one). These are used to keep track of inventory, so you can add a product’s SKU number to the listing to help with organisation, but it won’t be visible to anyone else.
You can also add variations — such as sizes, materials and colours — and link photos to those variations.
Don’t under-sell yourself; price your products so that you can cover your material, labour and production costs, plus Etsy’s fees. But keep in mind that one of Etsy’s major draws is the prospect of buying unique items at prices that won’t break the bank. Try to strike a balance between the two.
Set your delivery prices
Here, you’ll include all the details needed for delivery services, such as Royal Mail and Evri, including costs, country of origin and processing time.
Both Royal Mail and Evri offer a range of methods for delivering products within the UK and internationally. For international deliveries using Royal Mail, including from the UK to any country within the EU, you’ll be provided with the necessary customs forms. Items sent without these forms may be delayed or returned. If using Evri for EU deliveries, you won’t need to fill out any additional documentation, as it is only required if you’re posting something from the UK to a country outside the EU.
Create your return and exchange policy
Etsy offers sellers a returns and exchanges policy in line with the UK’s distance selling laws, in which buyers have the right to return certain products for any reason by contacting the seller within 14 days, starting from the moment a customer receives the product (not when they purchase it). There are some exceptions to this rule, including custom-made or perishable goods, digital products and items that can’t be reused for health or hygiene reasons.
Publish your listing
You can preview your listing to see how it’ll look to customers before it goes live.
5. Etsy Payments and choosing payment preferences
Once you’ve added an item to your store, you’ll need to set up your Etsy payment preferences.
Etsy requires sellers to offer Etsy Payments in their shops, which allows you to accept credit cards, debit cards, Apple and Google Pay, Etsy gift cards, PayPal and, in some cases, Klarna. There will be a payment processing fee for this.
If you use PayPal, Etsy recommends that sellers use its integrated PayPal account for payments to go into your account, but you can choose to be paid into your own PayPal account.
Etsy Payments charges a payment processing fee of 4% plus 20p per transaction in the UK.
6. Set up billing
You’ll need a credit or debit card on file so that Etsy can charge you selling fees. This cannot be a non-reloadable prepaid debit card.
Even if you’re starting to sell on Etsy as a side hustle, strive to keep your business and personal finances separate. The easiest way to adopt this best practice is to open a business bank account dedicated to your Etsy store’s revenue and expenses. Depending on the structure of your business, you may be legally required to open a separate bank account.
Etsy fees for sellers
Like most e-commerce websites, Etsy charges its merchants fees associated with listing and selling products. Although joining and starting an Etsy shop can be free — unless you opt for a paid subscription plan — you’ll need to pay listing and transaction fees for each item you sell on Etsy, converted into Sterling. You may also have to pay a one-time set-up fee when you open your online store for the first time. Bear in mind that, depending on your situation, you may also be charged VAT on these fees. For further information on how VAT is applied, visit Etsy’s website.
If you’re using Etsy Payments, these fees will be deducted automatically from your sales funds. If you still owe additional fees at the end of the month, Etsy will automatically charge the credit card you have on file, or you’ll have to make payments yourself. Here are the fees that Etsy charges:
Etsy listing fees
Etsy charges 15p (depending on currency fluctuations) per listing at the time each item is listed.
You have to pay this Etsy listing fee for each product, regardless of whether or not the product sells. Listings expire after four months; if you want to keep them active for an additional four months, you’ll have to pay the fee again.
Etsy transaction fees
Etsy charges 6.5% of the total order amount, including shipping and gift-wrapping costs.
Etsy payment processing fees
Etsy charges 4% + 20p per transaction in payment processing fees.
Etsy currency conversion fees
Etsy charges a 2.5% currency conversion fee where your shop’s listing currency is different from the currency of your Payment account.
Additional Etsy seller fees
Etsy may also charge other fees, including:
- Delivery fees: If you deliver with Royal Mail or Evri, you can buy and print your shipping labels directly through Etsy. Delivery label fees vary for each purchase.
- Square fees: If you sell items from your Etsy store in person using Square POS and don’t sync them with your Etsy shop inventory, Etsy will charge a 16p fee.
- Etsy ads: If you purchase paid adverts from Etsy, fees will vary but you can set your daily maximum spend.
- Offsite ads: You’ll be charged 5% or 12% of any order made if Etsy offers an offsite ad for your listing. The fee you pay will depend on how much revenue your shop generated the previous year, up to a maximum of $100 per single order (£79).
7. Open your Etsy shop
Once you click ‘Open Your Shop’, your store will be live and you are ready to begin selling. Etsy shoppers will be able to see and purchase your listings.
The URL for your shop will be in one of two formats:
- www.etsy.com/shop/shopname
- shopname.etsy.com
8. Customise your shop
Now that you’ve actually opened your Etsy shop, it’s time to start selling online. Just like a bricks-and-mortar store, your digital store should be easy to find, well curated, intuitively organised and regularly updated.
Here are a few sections you can fill out to ensure that you sell on Etsy successfully:
Add a personal bio and photo
Your public profile is how visitors to the site can learn more about you, both as a business owner and as a person outside of your work.
Add images
You can add four different images to customise your Etsy storefront:
- a shop banner, which appears at the top of your shop on desktop and mobile
- an order receipt banner, which shows up at the top of customers’ receipts
- a shop icon, which is a small image that conveys your shop’s brand
- a shop owner photo, which is a photo of you that appears in your Etsy Conversations threads
Rearrange your items
Feel free to move your items around on the page. You can also ‘feature’ up to four items, which will show up high on your shop’s homepage.
Add sections
Group your items into up to 20 categories so that buyers can more easily sift through your products. Sections will appear on the left side of your homepage and include the number of products within each category.
Add your shop’s ‘about’ section
Just like your personal ‘about’ section, your store deserves its own bio, too. You have 5,000 characters to tell customers your business’s origin story. Keep in mind that Etsy (and customers) value transparency and openness, so don’t worry too much about writing traditional marketing copy — just be genuine.
You can also provide photos or a video of your studio space or creative process and add links to your store’s social media profiles.
And you have to list anyone you employ to help you make and sell products.
Add a shop announcement
This text appears on your shop’s homepage, under your listings. It should broadly summarise what your shop is about and include any time-sensitive information, such as whether you’re on leave or vacation and when you’ll return.
Next steps: Tips for selling on Etsy
With your Etsy store set up, your online business is ready to go and you can finally sell on Etsy. But what about going the extra mile and achieving better growth and results? Here are some further tips to get your Etsy business firing on all cylinders.
Customer service
By selling on Etsy, you will need to agree to adhere to the website’s customer service standards. Etsy states that sellers must provide great customer service and maintain trust with buyers by:
- adhering to dispatch and processing times
- responding quickly to customer messages
- honouring any specified Etsy shop policies
- notifying buyers of any issues with their orders
- attempting to quickly resolve disputes with buyers
Following these rules and making sure you provide good customer service can be a solid way to secure repeat business for your Etsy store.
Etsy ads
Once a store has been open for 15 days, Etsy shop managers can take advantage of an Etsy Ads campaign to boost the visibility of their products in the countries they deliver to. A campaign will ensure that your listings are promoted through Etsy search results and other Etsy pages. To take advantage of the feature, all you need to do is:
- Select Etsy Ads in the marketing section of the Etsy Shop Manager.
- Input a daily budget, which represents the maximum you are willing to dedicate to Etsy Ads per day. The minimum amount is $1 (79p).
- Hit the “Start Advertising” to kick off your campaign.
You can choose which listings to advertise, but other than that Etsy does the rest by automatically picking the places where your ads will perform best.
Offsite ads
You can also spread promotion of your products beyond the realms of Etsy with the website’s offsite ads feature. Your Etsy store will be automatically enrolled in the offsite ads, though some shops with lower sales can opt out of the feature.
As enrolment is automatic for anyone choosing to sell on Etsy, you won’t necessarily have to do anything to take advantage of offsite advertising. However, products with high-quality listing information are more likely to be featured in these kinds of promotions. As such, you should ensure that you keep you work to achieve and maintain high-quality listings, even taking note of how other sellers who do feature frequently in ads tend to describe their products.
There are no upfront advertising or promotional fees, but a 12% to 15% fee will be deducted from a sale achieved via offsite ads.
How to sell on Etsy FAQs
While it’s sometimes free to sell on Etsy, the company does charge a one-time set-up fee to some sellers. In addition, Etsy charges UK sellers 20 cents (16p) per listing and 6.5% per transaction. You’ll also pay 4% plus 20p per transaction in payment processing fees. You may also need to pay VAT on certain sellers’ fees, depending on your situation.
While a free account is available, sellers can pay a $10 (£7.87) monthly subscription fee for Etsy Plus. In exchange for this monthly fee, you can access perks such as listing credits and Etsy Ads credits, which you can use to advertise the products you sell on Etsy.
Additional fees may include:
- listing fees
- currency conversion fees
- delivery fees
- Etsy ads fees
- offsite ads fees
You’ll most likely have to process your customers’ online payments through Etsy Payments. Customers can use credit or debit cards, Apple or Google Pay, Klarna, Etsy gift cards, store credit and more. If you opened your shop before 26 April 2021, you can also accept payments through your PayPal account. Etsy recommends that shops opened after this date use Etsy payments, which has a PayPal integration.
Etsy Payments takes a payment processing fee of 4% plus 20p per transaction in addition to Etsy’s transaction fee of 6.5%.
To receive payment, you will need to connect your bank account to your Etsy shop. You can do this through the ‘How You’ll Get Paid’ section of the Etsy website. Consider setting up a business bank account if you do not already have one.
Sellers are responsible for the delivery of sold items to buyers. If you’re using a delivery service, the seller is still ultimately responsible for getting the items to the buyer. However, you can choose to pass the cost of delivery on to your customers or offer free shipping.
New sellers receive deposits in their bank account weekly, as long as you don’t owe more in Etsy fees than you’ve made in sales. Store owners can change the regularity of these deposits to make them daily, fortnightly or monthly.
Etsy stores sell a wide variety of items, from craft supplies and handmade decorations to clothing and vintage items. The website’s rules state that Etsy stores can sell goods, which are made, designed, handpicked or sourced by the shop manager. Reselling mass-produced items is generally not allowed through an Etsy business.
Etsy’s prohibited items list includes:
- pornography
- tobacco
- alcohol
- drugs and drug paraphernalia
- some animal products
- items promoting or glorifying hatred or violence
If you are not sure what to sell on Etsy, why not consider clothes, candles, food or photography? Or check out NerdWallet’s helpful guide for budding small business owners.
All prices listed in pound sterling were calculated at the exchange rate at the time of writing.
A shorter version of this article initially appeared on Fundera, a subsidiary of NerdWallet.
Image source: Getty Images
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