Into crafts? Maybe you love collecting unique antiques? Turn your hobby into income with an Etsy online store!
In this article, you'll learn how to earn successfully on Etsy and what you need to know to open an Etsy account.
What is an Etsy store and how does it work?
Etsy is a global e-commerce platform where sellers can set up their own online store. Etsy stands apart from other online store platforms with its focus on crafts and various antique goods.
Etsy is a great platform for turning your hobby into an extra source of income, since it's intuitive and user-friendly — sellers can easily set up and manage their store, and buyers can easily get their hands on the item they want.
What products can you sell on Etsy?
Etsy is known primarily for crafts and antiques, as well as for selling craft supplies.
Etsy offers a wide range of products, from handmade clothing and jewellery to mugs, bags, stickers, and candles. Popular products also include things like handmade party supplies or wedding accessories.
Etsy is also a great platform for selling limited product runs, which helps create an exclusive, unique feel around a product.
ESTO credit line
Meet our ESTO credit line payment option.
What to consider before setting up your Etsy store
Opening your own online store on Etsy is fairly straightforward, but there are a few steps to take to make setting up shop and selling your first products go as smoothly as possible.
1. Products
This might sound obvious, but before opening an Etsy account, check what products you're planning to sell. Your products need to be quality and unique to stand out among competitors and attract more buyers.
Make sure you have enough stock, and that the items you're selling are in good condition.
Check Etsy's selling terms and make sure your products meet the requirements. This helps you avoid potential problems down the line. If you're planning to sell vintage items, for example, keep in mind that Etsy considers a product antique once it's at least 20 years old.
2. Pricing
Think carefully about how you price your products. Researching the prices of similar products can help. Set prices that cover all your costs — materials, packaging, and shipping — while also factoring in your profit.
For handmade items, don't forget to factor in the time spent making the product too.
3. Product photos
Product photos should give a clear sense of what your product looks like, its size, and its features.
Invest time in quality product photography, since it's the buyer's first point of contact with your goods. If you have the resources, consider hiring a professional photographer to get high-quality shots. If you're shooting products yourself, make sure you have good lighting and a clean background so the product stands out as much as possible.
4. Packaging
Think through your product packaging. Consider both the product's own packaging and the outer packaging needed for shipping. Is one layer of packaging enough, or is it important to add extra protective packaging to keep the product safe?
Remember, customers judge the whole shopping experience, including the unboxing process. Give your customers a pleasant experience with beautiful, thoughtful packaging.
To make your products feel even more personal, a good idea is to include a personal thank-you note with every purchase, plus, say, an interesting fact about how the product was made.
Building your Etsy shop
Choose a unique, memorable shop name that reflects your brand and products.
Set your shipping and payment terms. Make sure, for example, that the platform supports payment by credit card and PayPal, as well as Etsy credits and gift cards.
Think through your returns and order cancellation policy. Good practice is to let customers cancel an order within, say, 6–12 hours, though it's not mandatory. Also follow requirements that apply to your market — in the European Union, for example, customers have the right to return an item bought online free of charge within the first 14 days and get a full refund.
Consider your costs
Every business needs some initial investment. Running an Etsy store may involve material costs — packaging for your goods, for example — or service costs, like hiring a photographer. Work out all the costs involved and consider whether you have all the money you need on hand right away.
To get your business up and running quickly and start giving buyers a quality shopping experience right away, you could consider getting your starting capital through an ESTO credit line.
A credit line can be opened with no contract fee, and you repay the amount based on a flexible repayment principle. You can use the funds paid into your bank account exactly as you see fit.
ESTO LV AS credit line example: loan amount 1 231 €, repayment term 12 months, interest rate 0 % for the first 30 days, 37,9 % from day 31, monthly payment 124,84 €, arrangement fee 0 €, monthly administration fee 0 €, payout fee 3,5 % + 3,5 EUR, annual percentage rate (APR) 52,25 %. Total repayable amount 1 498,08 €.
This calculation is for informational purposes only. We'll prepare an individual offer once we've received and reviewed your loan application.
It's fair to say Etsy offers a great platform for selling certain kinds of goods to a wide audience. With proper planning and preparation, Etsy can be an effective platform for building your brand and selling your products to an international market.
Read more on our blog: What is dropshipping and how does it work?