It can be overwhelming to open an Etsy store. I still remember the struggles I faced when I opened my Etsy shop. I read time-consuming Etsy seller policies, standards, official guides, rules, and regulations to make sure my shop doesn’t get suspended. And still, I couldn’t get many things right about Etsy. I wish I had found some good beginner-friendly resources to help me navigate my Etsy journey smoothly. Therefore, I have written this beginner-friendly practical guide for new Etsy sellers based on my real-life experience. In this guide, I have summarized key Etsy policies and provided insights on how to sell successfully on this platform.
What can actually be sold on Etsy?
Before we learn how to sell successfully on Etsy, you should first know what can be sold on Etsy. Etsy is different from marketplaces like Amazon and eBay. With few exceptions, you cannot resell or dropship products on Etsy.
Except for dropshipping-permitted items, all items sold on Etsy must incorporate a human touch. Certain items that you did not make or design, such as vintage and natural items, are still allowed to be sold on Etsy because they reflect your unique personal collection. Another similar example is a theme-specific gift basket you can sell, as long as you personally hand-picked and packaged the items to create a unique set.
As per Etsy’s creativity standards, you can sell the following products on Etsy:
- Handmade goods
- Your original designs (produced or printed by a third party or offered as digital downloads)
- AI creations based on your original prompts
- 20+ years old Vintage items
- Natural items formed organically (e.g., a rock, a fossil, a dried flower)
- Theme-specific, unique gift baskets containing an assortment of different items
- Craft and party supplies
- Items personalized with a buyer’s custom text or image
Does Etsy Allow Drop Shipping or Reselling?
Dropshipping is not allowed on Etsy except for craft and party supplies. Reselling is not allowed on Etsy except for craft and party supplies, vintage items, and gift baskets. You can refer to the Etsy article Does Etsy Allow Drop Shipping or Reselling? for more details.
How to Find Product Ideas to Sell?
You can explore Etsy’s categories to find product ideas. In the screenshot below, you can see that the Etsy home page has a categories section. You can click each category to discover popular products on this marketplace.
Choosing Between Digital vs. Physical Products
You can sell both physical and digital products on Etsy. In general, selling digital products costs less and does not involve physical shipments because they are delivered via instant download. Therefore, they are easier to scale than physical products. However, digital products are typically more price-sensitive due to low perceived value. Their styles are also easily copied and tend to get saturated quickly. If you want passive income and enjoy creating digital designs and templates, you can sell digital products. On the other hand, if you want to build a serious brand and are willing to invest, you should opt for physical products.
Always Begin with a Niche
A niche is an audience-specific approach. If you plan to sell digital templates, begin with a specific product.
e.g., resume templates, social media templates, wedding templates
If you plan to sell physical products, start with one specific type.
e.g., T-shirts, stickers, kitchenware
Why is Niche Important at the Start?
There are two reasons why a niche is important in the beginning:
- Niche conveys specialization, which helps with initial sales. It is easier to rank with a niche.
- Niche allows you to test design ideas for other niches. For instance, you can later sell more expensive products, like sweatshirts, with your best-selling T-shirt designs.
Entering Other Niches
Once your store is established, you can consider entering other niches ONLY if it is a good mix. For instance, if you are already selling T-shirts, you can consider selling sweatshirts, but NOT digital templates. If the new niche does not fit in your existing store, you should open a second one.
Understand Etsy Fees
Etsy charges fees for each listing and sale transaction. You must consider these fees to determine the ideal selling price.
| Fee type | Charges |
| Listing fee | 0.20 USD per item initially and every four months. |
| Transaction fees | 6.5% of total sales. |
| Payment Processing Fee | 3% of sales + fixed amount (region-specific). |
| Offsite Ads* (if applicable) | 15% of attributed sales (sales < 10,000 USD) OR 12% of attributed sales (sales > 10,000 USD) |
*Etsy advertises your products on Google, Bing, Facebook, Instagram, Pinterest, and other partner sites. Etsy only charges this fee if you make a sale from these ads. These ads are enabled by default, and you can opt out at any time before you reach the 10,000 USD threshold. Once you reach this threshold, participation is mandatory for life, and you will always be charged a discounted fee of 12% irrespective of the threshold.
Many Etsy research tools, like Everbee and eRank, offer a free profit calculator that automatically factors in these fees. In the screenshot below, you can see that all Etsy fees are automatically calculated in the Everbee profit calculator.
How to Choose Your Shop Name?
If you want to build a serious brand, you should carefully pick your shop name. Your shop name should reflect your shop’s vibe, e.g., RetroApparel, MinimalistUrbanWear. It should not be too specific; for instance, the shop name ‘MinimalistTees’ will not be ideal if you subsequently change your mind and wish to offer other products like sweatshirts, mugs, and phone cases. Etsy does not allow spaces in the shop name; therefore, you should separate words by capitalizing them, e.g., RetroApparelStudio. Furthermore, your shop name should not be too long; the ideal length is 1-3 words.
Should You Register Your Etsy Business Right Away?
Unless you are selling risky products that go in or on a body, e.g., skincare, food, and baby toys, you do not need to register your Etsy business right away. When you are new to Etsy, you are testing your ideas, designs, demand, and pricing. You don’t even know if it will work yet. Business registration is just an extra cost and workload. Once you start getting consistent sales, you can consider business registration.
Open Your Etsy Shop with 40 Free Listings
Etsy gives you 40 free listings if you open an Etsy store only with a referral link from an existing seller. You can get 40 free Etsy listings using this link.
The Catch: You must use a referral link before you open the shop. If your shop is already in progress, you cannot claim this perk.
Designing Your Products
Every Etsy beginner struggles with product designs. Let’s discuss the dos and don’ts of designing products.
Dos
- Explore different versions. For instance, if you plan to sell digital templates, experiment with different colors, fonts, graphics, and layouts to find the best.
- Seek feedback from friends and family.
- Keep refining your design.
- Research competing listings to get an idea of what sells.
- Take learning tutorials.
- Continue learning about the latest trends.
Don’ts
- Avoid getting stuck in perfectionism.
- Avoid complex designs in the beginning.
- Never copy other designs.
Invest in Good Listing Photos
The importance of listing photos cannot be emphasized enough; they are the first thing customers notice about your product. High-quality listing photos not only showcase the best version of your product but also demonstrate your shop’s professionalism. You can refer to the Etsy article Requirements and Best Practices for Images in Your Etsy Shop for more details.
Ideal Dimensions
There are various acceptable dimensions for listing photos, but 2000 x 2000 px provides the best viewing experience for both the desktop and phone.
Consider Adding a Listing Video
Etsy gives you the option to add a 3-15 seconds long listing video. According to Etsy’s own statistics, listings with video get twice as many orders as listings with just photos. A listing video offers a viewing experience that images cannot provide. You can highlight the creative process, show your products in use, and address common questions in these videos.
Add a Shop Icon and Cover Photo
You can design the cover photo and shop icon in a graphic design application like Photoshop or free alternatives, such as Canva and Affinity. You can also leverage Canva’s Etsy cover photo and shop icon templates.
Ideal Dimensions
- Big Banner: 1200 x 300 px
- Mini Banner: 1200 x 160 px
- Shop Icon: 500 x 500 px