Since launching in 2005, Etsy has expanded into one of the world’s largest online marketplaces. There are 54 million members on Etsy, including 35.8 million buyers and 1.98 million Etsy sellers. Additionally, there are over 50 million unique items for sale on Etsy.com .
So how to open a shop on Etsy. Below we will give you a detailed introduction to how to open an Etsy store.
1. What is Etsy?
Etsy is an e-commerce platform that specializes in buying and selling art, crafts, and antiques that are hard to find in traditional online stores.
Buyers on Etsy browse their marketplace for handmade products rather than mass-produced items.
It’s also a channel for small business owners like art shops and people with artistic skills to showcase their wares and sell products to a wider audience without having to have their own website like Shopify.
People looking for products on Etsy will find antique and handmade items, custom art, hand-printed clothing, custom children’s toys, and more.
Etsy occupies a unique position making it the number one platform for art and collectibles worldwide.
It’s important to point out that Etsy does not manufacture products. It acts like an intermediary that connects buyers and sellers, bringing them to a marketplace.
If Etsy isn’t right for you, you can build your own online store to sell your own products .
2. How much does it cost to open a store on Etsy?
1) Store opening fee
It costs $0.20 to open an account on Etsy and list an item for sale. Yes, it’s only 20 cents, it’s so tempting to start selling on Etsy and open a shop for just 20 cents.
However, before you open a shop and sell your products on Etsy, you need to know the total cost of selling your products. The cost of setting up a store on Etsy includes listing fees, transaction fees, payment processing fees, shipping fees, and promotion fees (if you advertise).
According to the seller manual, items for sale can be displayed on Etsy for four months or until the item is sold. Each listing will pay Etsy $0.20 every 4 months while the item is on display, and a 5% transaction fee will be incurred once the item is sold.
Many closed their accounts after a month because sales were too small or not sold at all. Therefore, we must consider the relationship between long-term income and costs. If you decide, it is recommended to open a store for a long time instead of just trying it.
2) What are Etsy transaction rates?
Just like eBay and Amazon, sellers need to pay other types of fees to continue doing business on Etsy. Whenever an item is sold, the seller pays Etsy a transaction fee of 5% of the sale price.
3) How much does it cost to promote Etsy?
Etsy users also have the option to create promotional listings and promote their products. Pricing starts as low as $1/day, depending on CPC model. When a user performs an Etsy search, there are both paid and unpaid listings. The only difference buyers can see in the sale items is the small white “Ad” in the upper left corner of the image:
It’s not easy for new sellers to succeed on Etsy, especially when launching new products. Investing in advertising to increase awareness is a good idea to test the market viability of your product. Once you start promoting with ads, you can access your dashboard where you can view your statistics.
It is recommended that you set a maximum cost-per-click (CPC) of $0.10-$0.50 per click to start testing.
4) What are the Etsy payment processing fees?
Etsy charges a transaction fee of 3% + $0.25 when buyers checkout directly on Etsy and use the Etsy payment system.
Additionally, depending on the location of the seller, additional fees in the form of taxes may apply, including fees for conversion to local currency if the item listed is not in U.S. dollars.
5) Who pays for Etsy’s shipping costs?
Usually, the buyer pays the shipping fee. The cost will depend on the buyer’s location. However, problems can arise when shipping charges are calculated incorrectly, and sellers may have to pay more for shipping than originally expected. So sellers need to take this factor into consideration. The selling price can be increased appropriately to make up for the freight loss.
3. How to start a shop on Etsy
Want to open a shop on Etsy and make money online ? Here we will explain in detail the steps and procedures of how to open a store as follows:
1) Open the Etsy.com website
Visit the Etsy homepage, click on the ” Sell on Etsy link ” link, then click on Open your Etsy Shop .
2) Customize the settings of your store.
Set your preferences for how you want to sell your products. Choose the language to use, as well as the currency to use for transactions, including your location, and more.
3) Choose a store name.
Use your imagination to find a name that reflects your personal brand. Your store name should be relevant to the products you offer and easy for customers to remember. The name must be between 4 and 20 characters and cannot contain spaces or special characters.
4) List your products.
Please follow these steps to set up product information:
Add Photos : Etsy recommends that sellers take at least five photos of each item from different angles so buyers can get a proper idea of what your product will look like. Pictures should be of high quality and shot with a good background.
Adjust thumbnails : Your thumbnail is the first image that buyers encounter when searching for or discovering your product. These determine the look and feel of your store, so make sure they are consistent and match your brand.
Complete your listing information : Your product description should have a title and description to describe its contents in detail.
Create product tags : Additionally, take advantage of the 13 “tags” available for each product. Buyers find products based on keywords, so make sure those keywords match what’s in the tags.
Enter inventory quantity and price : Add the price for each product and make sure all costs are factored into the sales price. Include inventory quantities and whether product models are available, such as size, color and material.
Set the shipping fee : This is where you include shipping cost, country of origin, handling time, weight, and dimensions. You can always update this information later if needed.
Preview your Etsy listings : Check your shop to see if there have been any changes. Before the first launch, it’s essential to have a good feel for how your store will look from a customer’s perspective. Click Finish to add your first product.
5) Choose your payment method.
There are many types of electronic payments on Etsy. You can offer PayPal or Etsy Payments, which most sellers use. Etsy Payments allows sellers to earn through different options like credit and debit cards (as well as store credit cards) and Etsy gift cards.
6) Add billing information.
This will depend on your nationality. Etsy may require a credit card for authorization and identification. You will also provide a card so Etsy can charge you fees and commissions. With everything in place, it’s time to start optimizing and promoting your product.
7) Optimize your store.
Here are a few ways to optimize your Etsy shop and drive more sales.
Add Your Profile : This will include a short bio about you and a photo. This will let visitors know who you are and increase your credibility as a seller. You can use this opportunity to create a personal connection with your customers and learn more about your products.
Add Your Shop Policies : This section includes answers to frequently asked questions that customers may ask about the product. You can also add processing and shipping schedules so customers know how long it will take to get their products. Return policy (if any) also falls within this section.
Add A Store Bio : This section allows you to talk more about your ecommerce store and who you are. Etsy gives sellers 5,000 characters to write your biography. Remember to write with passion and connect with potential clients. People value transparency, so try to be transparent about your values. You can also show them how to create your product by inserting photos or videos of your workspace. You can also share your store’s social media links here.
Use Etsy’s Marketing Tools Use Etsy’s Marketing Tools : This allows you to reach a wider audience through social media. Etsy makes this easy with new marketing tools that give sellers the opportunity to share their products on social platforms like Pinterest, Facebook, Instagram, and Twitter. Now that you have your Etsy shop built and optimized, how do you drive sales over time? Are there any ways to improve your “Etsy SEO” and gain more visibility as a new shop owner?
Six tips and considerations for increasing sales on Etsy.
1) Hire a professional photographer.
People are visual creatures and want to see, touch and feel the product before purchasing it. Good pictures can attract customers’ attention.
The main types of product photography shots include close-ups and lifestyle shots.
First, the close-up is a close-up of the product with a simple white background. These photos are ideal for your main photo and should be high-resolution so users can zoom in and view the product individually.
Next, lifestyle photos show the product being used or with more context. For example, an image of a smiling woman outside a park might be wearing a women’s sweater.
A final tip is to use a combination of both styles and shots in between. For example, an image of a handicraft can be exploded to show all the parts, arranged in a beautiful pattern.
Etsy allows a maximum of 10 photos, and it is recommended to use them all. High-quality photos will help drive sales of your products.
2) Arrange the order of product display.
You should place each item in the list in the order specified. Placing products everywhere in random order does not inspire confidence in the quality of your product. Make a good first impression so buyers entering your store see a professional layout.
3) Learn Etsy SEO.
SEO (or search engine optimization) allows you to increase your visibility online on platforms like Google. But Etsy SEO is also key to driving sales.
SEO techniques depend on the platform. eBay, Amazon, and Google all have different SEO techniques, and so does Etsy. However, the basics are the same and it all comes down to keywords.
What do people search for on Etsy? Try to understand the main product categories you are in and use unique keywords to stand out. Use valuable keywords whenever possible so that user searches can match your products and bring up your store in search results.
4) Optimize pricing.
Pricing directly affects your sales. Generally speaking, it is difficult to find the right pricing, because lowering the selling price may lead to a price war, and selling too high will make it difficult to sell the product.
Look for ways to reduce production costs in order to increase profit margins. You can regularly update your prices based on the market and costs to find the right pricing that balances volume and profit.
5) Keep financial records.
Knowing your sales metrics can help you set goals and understand whether you are making a profit or losing money. The better you know the exact numbers, the more informed your decisions will be.
6) Research data.
Use analytics tools to help you track your business. Some products may outsell others, and it may be necessary to discard underperforming products and increase the number of hot-selling products.
Summarize
The above is a detailed explanation of the process and precautions for how to open a shop on Etsy. Remember, most successful sellers on Etsy started small and grew over time. The biggest obstacle to selling on Etsy is often not taking the first step to open a store. You don’t need a huge team – 79% of businesses on Etsy are run by individuals, and 97% are run from home. There are millions of potential buyers on Etsy. Why not start your business by opening a shop on Etsy today?
If you want to take it a step further and start your own online store website, see: How to Build a Website
Or see: Recommended foreign website building platforms . There are many website building platforms there that can help you build your own online store.