How Much Does It Cost to Sell on Etsy? Here's What to Know Before Setting Up Shop
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Since its launch in 2005, Etsy has become the go-to e-retailer for unique gifts, quirky home goods, vintage jewelry, and plenty more. As fun as it is to browse and shop the site, Etsy is also a great platform for independent artists and designers to sell their wares. If you’ve ever considered turning your hobby into a side hustle or full-fledged business, you might want to consider learning how to sell on Etsy.
If you’re new to selling online, the team behind Etsy makes it easy for beginners and seasoned entrepreneurs alike to get their stores up and running. The first step is to create your Etsy shop, and that process is as simple as pressing a button (literally). Next, Etsy will ask you a series of questions, such as what brings you to the platform and in what ways the company can support your business. Lastly, you’ll set up your shop by filling out your shop’s preferences (i.e., your shop’s language, country, and currency), giving your store a name, creating listings for your products, and sharing your billing/tax information so you can get paid.
Of course, there’s a little more that goes into selling on Etsy beyond setting up shop. It’s a business, after all, and having a product and a platform to share it is just the start. Ahead, we’re breaking down all you need to know regarding how to sell on Etsy so that you can go into this venture prepared.
What can you sell on Etsy?
Etsy is a one-stop shop for a myriad of goods, from bookish gifts to chic crossbody bags, care package kits to bridal accessories, and so on. The Etsy marketplace is chockful of unique items that can't be found anywhere else — but there are still guidelines for what you can sell there. Your store and products will need to comply with the company’s Terms of Use and follow its Prohibited Items Policy.
Curious about what sells well? These are the five most commonly sold goods on Etsy:
Handmade items made and/or designed by the seller
Vintage items at least 20 years old
Craft supplies
Party supplies
Digital items made and/or designed by the seller
How do you promote your Etsy shop?
In a world where online e-retailers are ubiquitous, word of mouth is helpful to get eyes on your website — but generating revenue will require some marketing on your part.
Luckily, Etsy provides several marketing tools — one of these is Etsy Ads. All you have to do is set your ad budget and denote which listings need advertising, and Etsy does the rest. The fees for using Etsy Ads vary. It depends on where your ad is shown and how many clicks it gets.
You can also join an Etsy Team made up of sellers near you to help boost each other’s sales with cross-promotions and collaborations. Or, you can join an Etsy Seller Program to access collaborative opportunities and educational resources, connect with experienced sellers, and participate in events.
How much money can you make on Etsy?
Etsy is a company that allows smaller businesses to sell on their platform. In the same way that a brick-and-mortar shop would have to pay rent to its landlord, Etsy sellers owe fees and taxes to their parent company and the government.
If you sign up for Etsy Payments, these fees are automatically deducted from your earnings. Still, it’s helpful to know what fees you’re paying and how much they are.
Here’s a breakdown:
General listing fee: $0.20 per listing
Auto-renew expired listing fee: $0.20 per listing
Auto-renew sold listing fee: $0.20 per listing
Private listing fee: $0.20 per listing
Shipping labels: Fee depends on your selection when purchasing Etsy Shipping Labels
Transaction fees: 6.5% of the total order amount
Value-added tax (VAT): Amount varies
Offsite Ads: 15% of order total if sales are less than $10,000 in 365 days
Offsite Ads: 12% of order total if sales are more than $10,000 in 365 days (but will never exceed $100)
Etsy Ads: Fees vary based on number of clicks and location of ads
Payment Processing Fee: Varies by country
Deposit Fees: Applicable only for sellers who accept payments through Etsy Payments
Currency Conversion: 2.5% fee when this feature is required
Regulatory Operating Fee: Applicable for sellers in UK, France, Italy, Spain, and Türkiye, percent determined based on order total
How to provide great customer service on Etsy
One key component of learning how to sell on Etsy is providing reliable customer service for your digital storefront. Going the extra mile for your customers helps establish and grow a loyal following.
One of the best ways to do this is to promptly respond to your customers if they reach out. If a customer messages you, answer their question or respond to their feedback within 24 hours. Be polite, concise, and honest in your reply to them. If the customer is reaching out because shipping is delayed or someone went wrong with their order, honesty is always the best policy.
How to become a Star Seller on Etsy
Becoming a Star Seller on Etsy grants your shop and listings a small purple badge that helps you stand out in a crowded marketplace. Consider the Star Seller badge the pinnacle of customer service success on Etsy: It's given out to sellers who promptly respond to customer messages, earn a certain percentage of five-star reviews, quickly ship orders and provide tracking information, and have a consistent 3-month sales performance.
To be eligible for a Star Seller badge, your Etsy shop must be active for a minimum of 90 days. Shops are evaluated every month, and you can check your standing in your Star Seller dashboard. Just note: Becoming a Star Seller will not impact your ranking on Etsy. It's simply a nice perk that could potentially help you attract more business.
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