Found a passion for crafts? Or maybe you collect unique antiques? Turn your hobby into a profitable venture by opening an Etsy store!
Keep reading to find out what it takes to set up an Etsy account and sell successfully on the platform.
What is an Etsy store and how does it work?
Etsy is a globally known e-commerce platform where sellers can build their own personal online store. Etsy stands out for its focus on unique handmade or vintage products.
The platform is a great way to turn your hobby into an extra source of income. It's built around intuitive navigation, which makes it easy to use for both shoppers and sellers looking to sell their own work.
What can you sell on Etsy?
Etsy is known as a marketplace for handmade goods, antiques, and craft supplies. Here you'll find a huge range of products — from handmade clothing and jewellery to mugs, bags, stickers, or candles. Among Etsy's most popular products, you'll also find party supplies and wedding accessories.
ESTO credit line
Keep your work-life balance in check with an ESTO credit line.
What to consider before opening an Etsy store
Opening a store on Etsy is fairly simple, but there are a few steps worth thinking through to make setup and your first sales go as smoothly as possible.
1. Products
Once you've set up your Etsy account, review the products you plan to sell. Your items should be high-quality and unique enough to stand out from competitors and attract as many buyers as possible.
Make sure you have enough stock, and that the items you're selling look presentable and market-ready.
It's important to check Etsy's selling terms and make sure your products meet the platform's requirements. This will help you avoid potential issues and misunderstandings later on. For example, if you plan to sell antiques, keep in mind that Etsy classifies an item as antique only if it's at least 20 years old.
2. Pricing
Think through your pricing strategy. Researching similar products will help you set the right price. Calculate your fee so it covers all your costs — materials, packaging, shipping. Don't forget to factor in the amount you'd like to keep as profit.
And if you make handmade items, also factor in the time you spent creating the product.
3. Product photos
Product photos should give a clear sense of the product's size, quality, look, and features.
Invest in high-quality product photos, since they're your buyer's very first encounter with what you're selling. If you have the resources, consider hiring a professional photographer. That way you'll guarantee high photo quality and boost the appeal of what you're selling. If you take the photos yourself, pay attention to good lighting and a clean background so the product stands out as much as possible.
4. Packaging
Pay attention to your product packaging. Keep in mind you'll need packaging for both the product and shipping, so ask yourself — will one layer of packaging be enough, or does the item need to be packed more securely? Or maybe your product calls for more attractive or premium packaging?
Remember that customers judge the entire buying experience, including unboxing the product. Give your customers a pleasant impression with beautiful, carefully thought-out packaging.
Personalising your product is a great idea. Consider adding a personal note or card thanking the customer for their purchase, or a discount for their next order. This kind of extra attention costs you nothing but sparks genuine delight in the buyer.
Setting up your Etsy store
First, come up with a unique, memorable store name that reflects your brand and your products.
Next, set your shipping and payment terms. For example, the platform lets you accept both credit card and PayPal payments, as well as Etsy credit and gift cards.
Think through return or cancellation terms that work for you. Good practice is to let customers cancel an order within, say, 6–12 hours, though it isn't mandatory. Here, the most important thing is to sell in line with the relevant market requirements. For example, a buyer shopping within the European Union has the right to return an item within 14 days free of charge and get a full refund.
Work out your total costs
Every business needs some upfront investment. Setting up an Etsy store may come with costs for materials, such as product packaging or photography services. Add up all your costs and check whether you have enough funds for a successful start.
To start building your business right now, while also giving buyers an outstanding shopping experience, consider an ESTO credit line to help you secure starting capital.
You can open a credit line with no contract fee and repay the amount with flexible payment terms. You can use the amount paid out to your bank account however you like.
ESTO credit line example: repaying a borrowed 300 EUR (minus the payout fee) over the first 3 months, with a minimum monthly instalment of no less than 109.27 EUR and a payout fee of 10.50 EUR, the annual interest rate is 53%, the monthly administration fee is 0 EUR, the total amount payable by the customer is 327.79 EUR, and the APRC is 70.99%. Terms may vary based on the amount chosen, the size of the monthly instalments, or the results of a creditworthiness assessment.
Use ESTO's services responsibly, as this is a financial commitment. Before borrowing from ESTO, we recommend assessing your ability to make timely payments and, if needed, consulting with UAB ESTO specialists.
In short, Etsy is a genuinely great platform for creators and anyone wanting to sell in an incredibly broad, global market. With careful planning and preparation, you can turn Etsy into an effective tool for showcasing your brand and selling internationally.
Read more on our blog: What is dropshipping and how does this way of selling work?