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Etsy Money Making: A Step-By-Step Guide

A friend of mine showed me some drink coasters that she made out of tile squares. It was cool to see her change something old into something new. They’re pretty awesome.

She should sell her side hustles on eBay. She immediately set up her online shop to sell her handmade items. I told her to start a home-based side business. She is researching the steps to get her business off the ground.

It can be that easy. You are halfway there!

If you can make cool things like home decorations, T-shirts, and handmade jewelry, you can sell them in an Etsy store to make extra money. It’s a great platform for entrepreneurs to start selling their products online.

Keep reading to learn everything you need to know about making money on Etsy. You will be able to join a supportive and creative community of entrepreneurs who are eager to help you succeed.

What Is Etsy?

One of the top destinations for selling handmade items and crafts is Etsy. It also allows users to purchase vintage items and supplies.

Home decor, jewelry, clothing, wedding gifts, kids’ supplies, and anniversary presents are some of the main categories on the site. It is easy to find something special on the site. There are earrings, wallet, stickers, and everything in between. You’re sure to find something special here, no matter what your budget is.

It has been around since 2005. It is an online marketplace for handmade and vintage items. The company is publicly traded and has a market cap of $11 billion at the time of writing. Its products are well-known around the globe, and it is one of the most successful companies in the world.

Recent data indicates Etsy has more than 7.5 million sellers. The platform’s gross merchandise volume increased from $10.3 million in 2010 to $13.5 billion in 2011. Etsy’s annual revenue reached $2.3 billion in 2021.

More than 61 million new and reactivated shoppers joined the platform in 2020. People looking for alternative ways to purchase goods are likely to be the reason for the surge in shoppers.

During the busy holiday season between October and December, 13 million users joined, a 76.7% increase compared to the same time in 2019. The increase in users is a reflection of the increased need for online shopping and services. People are avoiding in-store shopping because of the Pandemic. The majority of consumers have shifted to online shopping.

How Does Etsy Make Money?

To post an item for sale on eBay, sellers pay a nominal listing fee. The listing fee is charged regardless of whether or not the item sells.

The company charges a 5% transaction fee and a 3% processing fee when you sell an item. The amount of money you receive for your item will be deducted from this fee.

offsite ads are paid to be used to advertise items across the web. Promoting the visibility of items that are listed on the marketplace increases sales for sellers. So, if you make a sale from one of those ads, you’ll pay a 15% offsite ad fee.

Top Features for Etsy Sellers 

There are a lot of useful features on the website. Small businesses can sell their handmade items on the platform. Here are some of my favorites. I like finding new favorites to add to the list.

Mobile Access

You are most likely on the go throughout the day, bouncing between jobs and side hustles. It’s important that you take the time to rest and refresh so that you can be productive and successful. You can manage orders, respond to buyers, and edit listings from any location with the Sell on Etsy App.

The Sell on Etsy app has 4.35 stars in the App Store and 4.2 stars in the Play Store. The app is easy to use and intuitive.

Custom Website Templates

You don’t have complete control over the design of your own website, but the templates it provides are highlycustomizable. Adding your own images and branding to the templates will make them unique and representative of your brand.

For a few examples of what a store can look like, check out ChloeandCoStudio and DiosDesigns.

You can have a lot of fun putting your flair into your online store, and you can get out what you put into it. You can make your store stand out by giving customers an enjoyable shopping experience.

On-Site Messaging

Customer service and communication are important in delivering positive experiences to customers. Good customer service policies can help build customer loyalty.

Suppose you sell T-shirts. If you include a free gift with each purchase, you could offer a discount for customers who buy more than one shirt. A buyer might want to know where the cotton came from and the type of dye you use. A growing number of buyers will only buy clothes that are ethically produced. Conscientious shopping has become a priority for many fashion consumers, and companies are increasingly recognizing the importance of ethical production. If you don’t respond to a customer’s question, they will go somewhere else.

To communicate directly with buyers, use the messaging feature. When it comes to customizing merchandise, messaging is important. It is possible to give customers the option to personalize their purchases. It’s easier to collaborate and produce personalized goods if you attach images and files to messages. It is easier to share ideas, provide feedback and create a seamless experience with this.

Community Hub

When you have a great product, it can be difficult to sell it. Strong sales skills and a good understanding of the customer’s needs are important in order to be successful. Pricing, branding, marketing and everything in between are some of the factors that influence a sale. To be successful at making sales, you need to understand all these factors and how they work together.

A few small adjustments can make a big difference. Taking the time to modify your approach can pay off in the long run. To see if you can pick up some tips, it’s helpful to talk with other sellers who have used Etsy successfully. As you set up your shop, it is a good idea to research Etsy’s guidelines and best practices.

Through its community hub, Etsy facilitates these types of conversations. The community hub is a great place to share ideas. You can learn the latest trends, browse forums for advice, and even link up with sellers in your area to communicate and collaborate as a team. This is a great place to start if you want to get involved in the world of fashion and design.

Here are a few recent discussions that are trending in the community:

  • The issue of loving your products too much
  • A new shopowner asking for honest feedback

Users offer honest feedback in the forums. You can see how satisfied people are with a product by reading their reviews on the forums. In a forum where a user asks for advice about running a store, other sellers give solid insights about pricing.

Seller Newsletter

If you don’t have time to browse through user forums, you can always catch up on the latest trends through the seller newsletter. Valuable information is provided in the newsletter to help you stay ahead of the competition.

A steady stream of tips on improving your shop and making money will be sent to your inbox if you join the email list.

Advertising Tools 

Advertising and marketing can help boost your brand.

The company helps you create targeted posts for social media platforms. Insights into which platforms are the most effective for your business and how to maximize your reach on each platform are provided by the company.

You can reach millions of shoppers on and off the platform using Offside Ads.

You have to spend money in order to make it. It’s true when it comes to investing in yourself and your business. It is possible to accelerate your store’s growth by making some shrewd advertising investments.

Etsy Standard vs. Etsy Plus 

The site gives you two options if you want to open a store. You can get 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 800-273-3217 There’s The Standard is free and the Plus is $10 per month. Both the Standard and Plus give sellers access to a suite of tools and services to help them manage their online shop.

Everything you need to start a business is included in the standard. Tools are provided to help you manage and grow your business. You can market your products with sales and coupons. It’s important to promote your products on social media platforms. You will need to pay for extra services when you use Etsy Standard.

If you are looking for more control over your business and want to scale your operation, you should look at Etsy Plus. Increased visibility in Etsy search results, as well as additional analytics tools to help you better understand your customers, are offered by Etsy Plus. For a small monthly fee, you will get a small budget for listings and ads, as well as the ability to personalize your store’s web address. A small fee is a great way to get your business up and running quickly.

When shoppers want sold-out items, we send you restock requests on top of that. There are also discounts on custom packaging and promotional items, as well as advanced customization options for your shop.

My Advice: Spring for Etsy Plus

You should go with Etsy Plus. It is worth considering if you want a variety of benefits and features designed to help your business grow. It doesn’t cost a lot and you get a more comprehensive experience with more tools and perks. It’s a great deal for anyone who wants to start on their own digital journey.

The tools should help you drive more sales, which will hopefully cover the cost of your subscription. By the time you measure the success of your campaigns, you’ll be able to improve them as necessary. If your business is profitable, you should be able to write off the subscription as a legit business expense. You should always check with your accountant to make sure you are taking advantage of the tax benefits available to you.

Don’t worry about deciding between the two plans. You can change your subscription at any time. To make sure you’re still getting the best deal, it’s important to review your subscription settings regularly. As quickly as you can, is the most important thing.

Setting Up and Getting Started 

Signing up for Etsy only takes a few minutes and there isn’t any kind of approval process.

Go through the registration process and confirm your email. You have to decide which type of plan you want. The best way to do this is to research various options and choose the one that works best for you.

If you register with the site, you will be able to modify your own shop. You can sell your own products in no time. It’s that easy.

You don’t have to pass a background check to be a side hustler. There are very few barriers to entry for ridesharing, making it an easy side hustle. It is important to have some technical and website experience in order to modify your template. You will get up and running quicker if you don’t use it. Before you start, you should take a few moments to read through the instructions.

If you get stuck setting up your online store, think about your friends who are good at computers or websites. You could look for online help with the setup process. Offer to buy them coffee or a beer. It’s a great way to show your appreciation, and it’s also a nice gesture to offer to buy them some coffee or a beer for their advice.

How to Make Money on Etsy 

Now that you have a general idea of how the platform works, it is time to discuss how you can make money on it.

If you want to make it rain on your online business, you still have to put in work. Making sure your shop is well-stocked with quality products, engaging with customers, and marketing your store are all essential tasks that can’t be ignored.

If you want to build a successful startup, you should keep these tips in mind. Word-of-mouth referrals are the most valuable source of revenue for your business, so take the time to build relationships with your customers.

Think of a Catchy Shop Name

Every successful shop has a killer name. The first step in building a successful shop is a killer name. One of the first things people will notice about your business is your shop name. It is important that it stands out from the crowd and conveys the right message.

I suggest you read the guide on the website. Don’t be afraid to let your creative side out, because Etsy caters to creative types. If you take the time to read through the rules and policies, you will be more successful on the site. That is even better if you can come up with a pun. You can come up with a good pun if you let your imagination run wild.

I would like to create a vintage baseball cap shop on Etsy. Let’s call it the Grant Slam. We can make a weekly challenge to see who can come up with the most creative ideas. Boom! The store is bound to attract potential customers with its unique product and name. The staff at the store knows how to help customers find what they need.

You never know when a clever name can catch someone’s eye, and this goes for both new customers and potential new business partnerships.

The Product Is What Matters

The best fish taco is served by the local food truck. I like to try new things on the food truck’s menu. It is not much to look at. It’s reliable and has served me well over the years. The food is cheap and delicious. If you served them next to a plate of $50 foie gras, I would take the fish taco every time. The fish taco is an obvious choice for me because I’m not a fan of foie gras.

It doesn’t matter how you dress up a product, it will sell itself or it won’t. Ensuring that the product is of good quality is important. You shouldn’t have a problem making money if you list items that are interesting and affordable. Being able to spot trends can help you make more money.

If your product is overpriced, poor quality, or doesn’t look authentic, you will run into issues. When artists are passionate about their work and when they aren’t can be seen by customers. It is easy to see that passion is what sets great art apart.

Know Your Audience 

It caters to all types of people. You are just as likely to find women’s hair accessories as men’s beard accessories. There are accessories that are suitable for both genders.

Don’t worry about whether your product is a good fit for a particular audience. It’s important to create a product that works well and appeals to as many people as possible. You should spend more time thinking about whether your product makes sense. If you want to reach your target audience, it’s important that you use the right platform. Your audience will find it if it is. It’s important to make sure your content stands out.

They do have some limitations, but they are pretty laissez faire about what you can offer. Before setting up a shop, you should review the limitations laid out in the terms of use. If you want to learn more about the seller policy, check it out. Whether you’re selling handmade goods, vintage items, or craft supplies, it’s important to know the policies and guidelines of Etsy.

You can’t sell psychic services on eBay. It is important to remember that there are strict policies on what can and cannot be sold. Sorry, witches!

Offer Personalized Accessories

26% of shoppers are interested in buying something on the platform. These shoppers are looking for unique and one-of-a-kind items that can’t be found elsewhere.

You can take advantage of this by thinking about ways to sell personalized accessories. You can look into trends in the industry to find new ways to market your items and research what types of personalized accessories have been successful in the past. You may want to make high-quality, handmade mugs or T-shirts with custom slogans or images on them.

People usually go to Etsy to find things they can’t get in places like Target and Walmart. This means that you can find unique, one-of-a-kind items that you can’t find anywhere else. They want to discover a new artist. They want to feel like they are a part of something. You will increase your chances of making money if you provide that experience. Customer satisfaction should always be your top priority when it comes to making money.

Use Stats for Your Etsy Shop

If you want to be a successful online seller, you need to know how to analyze website data and metrics. There are many free and low cost resources available to help you understand website data. Whether you sell on eBay, Amazon, or anywhere else, this holds true. It is important to understand the marketplace and how to properly promote your product no matter where you sell it.

The good news is that Etsy’s It can be helpful to know where your traffic is coming from, how many visitors you have, and what the conversion rate is for those visits. It’s possible to see how effective your content is in achieving your goals.

You can use that data to improve your shop and make more money. By understanding your customer’s behaviors and preferences, you can create a tailored shopping experience that increases customer satisfaction and drives more sales. You can focus more resources on scaling traffic if you know that a particular Facebook post is high-converting. This data can be used to inform the types of content you create in the future.

It is possible that one item is outselling all of the others. It’s a good idea to highlight that item and give it more attention on your website or other marketing material. You may be able to understand why that is the case by looking at your data. You could use the data to identify areas for improvement. You can use those insights to expand your offerings in that particular niche while scaling back on products that aren’t selling. Ensuring that your customers have the best experience will help you maximize your profits.

Consider Blogging

It’s a great way to support your shop. It is possible to engage potential customers and build relationships with existing ones. It doesn’t cost anything other than your time and you can write about anything that ties in with your brand.

You can make unique wall prints. You can market your prints to interior designers, home decor stores, and even individual customers looking for something special for their homes. If you want to discuss your favorite contemporary artists and how they have influenced your style, you might start a blog. Interviews with other up-and-coming artists could also be included.

If you post more of this unique content, you will pick up more readers and boost your search engine rankings. If your content is relevant to your niche, it will be more likely to be found by potential readers. When there is more organic traffic to your website, you can sell more.

If you want to push out similar content on other social media platforms, you can. This will help you reach a larger audience. The more content you publish, the bigger the net you will be casting for potential customers. You can use this wider net to reach customers and grow your business.

Alternatives to Etsy

It is always a good idea to spread your business out over different platforms, even if you do not find it to be a slam dunk. It is possible to maximize your reach and drive more sales for your business. There are a few other platforms to consider. It’s important to research and evaluate each platform to make sure they meet your needs.


eBay serves 180 countries around the world. It’s a go-to source for millions of users looking to buy or sell online. You can sell anything on this site. It’s a great way to make money in your spare time.

Up to 250 listings can be created for free on eBay by members. This means that members have the ability to make a lot of money. The company charges a fee for anything over that. The company offers bulk discounts for large-scale campaigns. The company charges a selling fee and a transaction fee. Overall costs for sellers are kept low by the fee structure.

Amazon Handmade 

Amazon Handmade is similar to Etsy. You will be able to reach a global audience of artisan shoppers and sell products with artists from over 80 countries. You can expand your business and share your products with the world.

Handmade uses an application and audit process to make sure that sellers only offer handcrafted goods. Ensuring that customers can trust that they are buying quality handmade items is part of this process.

Every sale that you make, Amazon takes a 15% referral fee.


Another online marketplace is called Bonanza. It’s a great option for those who want to expand their online storefront options. Run-of-the-mill crafts are not what the site focuses on. It’s a great place to find something special. You can find everything from women’s and men’s fashion to home and garden supplies. No matter what you’re looking for, you can find it here.

The base fee is 3.5%. Bonanza has exceptional customer service and support for sellers. When you opt into the advertising plan, rates increase a bit. It’s still a great deal for the services provided, and is worth considering for any business looking to get their name out there. You can pay 9%, 13%, 19%, or 30%. It’s important to understand the tax rates in order to make an informed decision.


You can set up an online store with plug-and-play simplicity with the help of Shopify. With thousands of professional themes to choose from, it’s easy to create a unique look and feel for your brand.

There are a few different plans. You can choose the plan that best suits your needs. The basic plan costs $29.99 per month, the standard plan is $79.99 per month, and the advanced plan is $299 per month.

Frequently Asked Questions (FAQs)

Can You Make Money with 3D Printables on Etsy?

There is a place to sell 3D-printed objects. It’s a great place to find unique, handmade items. Believe it or not, one user made over $18,000 selling 3D printed objects on the site.

The cost of a 3D printer is between $200 and $500. Before investing in a 3D printer, it is important to consider how often it will be used and what type of projects it will be used for. More expensive models can cost more. When shopping for a new bike, it is important to consider the cost and what features are available in your price range; some models can be found for as little as $100, while others may cost up to $1,000.

There are fun, unique items that catch people’s eyes. This can encourage customers to visit your store.

How to Create Digital Downloads for Etsy

Did you know that you can make money selling digital products? You can create and sell digital products on other platforms.

If you want to make money as an artist, you can create a digital download and list it as a physical product. It’s easy to track sales and automate the delivery process, making it a convenient way to make money. When a customer makes a purchase, you uploaded the product. The uploaded product can be accessed by the customer, making it a much quicker and easier process.

Does Etsy Make a Good Side Hustle?

It all depends on your level of commitment and what you hope to get out of the experience.

With the right approach, an Etsy business can make a great side hustle. It can become a full-time job if it takes on a life of its own.

Be prepared to scale if your products take off, and know what you are getting yourself into before you start. If your business starts to grow, be sure to research the costs associated with scaling up so you know what to expect. You could end up pulling all-nighters trying to fulfill orders if you don’t.

Can You Make Money on Etsy without Making Anything?

There are a lot of handmade and vintage items on the site. It has a wide variety of unique and one-of-a-kind items. If you can find great products at great prices at tag sales, secondhand stores, and antique shops, you might be able to flip these items on Etsy for a profit. If you research items you find, you can determine if they have the potential to be resold at a higher price.

Supplies and kits are also sold on the site. Those who want to get started on their own crafting journey can use these supplies and kits. Needlecraft patterns and craft supplies are items that people shop for on Etsy. There is a wide variety of vintage items and handmade jewelry on the website. This is a unique way to make money. It’s a great platform for creative entrepreneurs to market their wares because it has a wide selection of handmade items.

The Bottom Line

Success isn’t automatic and running a small business is hard work. A good understanding of the business world is required to ensure long-term success. This is a great way to make money online once you get used to it. It is worth giving it a try and seeing what you can achieve.

One of the best personal finance moves you can make is to unlocked passive income streams. Financial freedom and the opportunity to focus on what matters most to you can be provided by passive income.

It takes a lot of time and effort to create high-quality products. If your time is limited, and you still want to try it out, you may want to consider setting up a business with a friend. Sharing the workload of running an Etsy business can be a great way to benefit from the success of the venture. You can hire someone to manage your site as you scale the operation. As your business grows, you can hire an agency to help with certain tasks.

If you want to get started, you should check out the seller handbook. It is a great resource to help you get started.

Since you’ve made it this far, you’re interested in trying out the site. There are a few steps you’ll need to take if you want your shop to succeed. Setting up your storefront can be done on the platform. You can open your store in no time at all. You don’t know if the next product idea will change your financial trajectory. It is important to have faith in your abilities and take risks. Happy selling!

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