How to Set Up An Etsy Shop the Simple Way

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Etsy is the perfect way to earn income on the side, or turn into a full-time gig! If you have a passion for creating, and want to share this with others, then learn how to set up and Etsy shop easily and quickly with this guide.

Setting up a shop is simple, and it’s something you can get started on right now!

Here's how to set up an Etsy shop and get your handmade business up and running, even as a beginner.

how to set up an Etsy shop

How to Create an Etsy Account

To get started on Etsy, you first have to create an account on the platform. Go to Etsy.com and click on Sign in. 

Then fill out the form to register and usee your email address to create an account, or select Continue with Google, Facebook or Apple.

Check your email inbox for confirmation email from registration@etsy.com and from there follow the instructions provided to confirm your account. 

Want to start on the app? Just simply download the app, and tap sign up. Fill out the form the same as above and sign in! You can also add a profile picture and fill out your bio on your public profile. 

You can also choose to open a shop by selecting “Open a Shop” at the bottom of the site. 

How to Set Up an Etsy Account to Sell

Wanting to set up an Etsy account to start selling? You can do this by clicking on Sell on Etsy on Etsy.com and setting up your account. Enter in your email, name and password, and clicking Register. 

You also have the option to create an Etsy account with Google, Facebook, or Apple, as mentioned above. 

If you already have an existing Etsy customer account, you can simply log in and then click on Open Your Etsy Shop to start creating your own store. 

This is all it takes to start your account to sell! Then you can begin setting up your Etsy shop. 

How to Set up an Etsy Shop Step by Step

After you have successfully created your account to sell, then it’s time to start setting up your shop! It is always a good idea to fill in all the sections of your shop.

Here is a step by step guide to creating your own shop on Etsy.

Shop preferences

This step involves entering some of the basic info Etsy needs for setting up your shop: your language, the country you’re in, the type of currency you’ll be collecting, etc. 

Shop name

The next step is a fun one! Here is where you get to choose the name for your shop, and see if your first choice is available! If not, simply make a minor change and you should find one that is open. Just think of a relevant or catchy title that works for you and what you’re hoping to sell.

Need ideas for a shop name? Check out our 99+ Etsy shop name ideas!

If you want to change your Etsy shop name at a later date, we have created a tutorial on how to change your Etsy shop name here.

Stock your shop

This next step is where you will begin to add all of your items to your shop. Hopefully you already have some images of your products ready to go, as well as your pricing, shipping details, processing time, etc. 

Start thinking about the layout for your description. Take time to think about key information your customers need to know. Here are a few things to consider for your listings: 

  • Photos: Be sure to use images that draw your customers in and are high-quality. Use a backdrop for physical products to minimize distractions, and do some editing with apps like Photoshop, Snapseed, or Fotofuze. Use Canva to make mockups for digital products.
  • Title: Change your title for each listing, and include relevant keywords. Use as many of the characters as you can. Use commas to separate the keyword phrases.
  • Descriptions: Answer any questions your customers may have and include all important details for your product. 
  • Sections: This is how you can group your products into collections. It’s a great way to keep your shop organized and make it easy for customers to find your products.
  • Tags: This is a key way for your products to be found through Etsy’s search, so you need to use up all 13 tags. Have a wide variation of phrases to raise your chance of your products being seen. For tag ideas, think of what people would type into Google or the Etsy search bar when searching for what you sell.
  • Variations: If you have a listing that comes in different sizes, colors, etc. this is where you will add in those different options. There is also an option to choose to have the price vary for each variation, in case the price is different for each size, style, etc. 
  • Shipping & Processing Time: You can choose to set a fixed price for shipping, have it calculated for you based on the size and weight of your product, or offer free shipping. This is also where you will choose your processing time (how long you think it will take to make the product). This is also something to change at a later date, if you need to extend your processing time. 

How you will get paid

After you add some listings, you will need to fill out the details for how you would like to get paid. Be prepared to enter your bank information here. 

Set up billing

Next, you will need to set up how Etsy will bill you for listing fees, transaction fees, and payment processing fees. Yes, it sounds like a lot of fees, but as long as you take these into account in your pricing then it won’t be a problem!

Your shop is now done and ready to be designed!

How to Start an Etsy Shop as a Beginner

Being a beginner on the platform shouldn't intimidate a beginner who wants to start their own Etsy shop! Here are a few tips to get you started: 

  • Do your research! Look into how to run a successful Etsy shop. What do you need to prioritize? What should you work on first?
  • Take your time. Don’t rush into listing products just to get them up there and not take the time to make sure everything is high-quality. 
  • Take a peek at your competitors. This doesn't mean so you can steal designs or ideas from them, but solely to see what they are doing right to bring in customers. 

Take time to get to know the platform as well. It is a user-friendly platform, but if you are new it may take just a little time to get used to. Navigate your Shop Manager page to find where you list items, where you find orders, how to edit your shop page, etc. 

You will get the hang of it quickly!

How to Open an Etsy Shop for a Minor

If you or a family member want to set up shop as a minor, there are ways to make this possible. Stated in Etsy’s Terms of Use, you must be at least 18 years of age to create an account. Anyone under 18 are considered minors on Etsy, and they are not allowed to create an account. This is regardless if they plan to buy or sell. 

If Etsy believes a minor is running an account in violation of their policies, they will permanently close the account. 

For minors aged 13-17, Etsy states they are permitted to use the platform only if they have permission and direct supervision by their parent. The account must be created with the parent or legal guardian’s information. 

This parent or legal guardian is responsible for all account activity that is conducted by the minor. 

How to Sell Digital Downloads on Etsy

Want to start a shop selling digital downloads? This is a great way to make more passive income, and a low-cost way to start since you don’t have to hold inventory. So what do you need to set up a digital download shop? 

All the steps to creating a shop and adding listings are the same, besides the detail of choosing the listing type between Physical or Digital. 

Once you select Digital, this removes all of the shipping details and instead has a place for uploading your files. You can upload up to five digital files. The maximum size for each file is 20MB.

What do you do for images? A great way to display your digital downloads for your listings is by creating a mockup. You can do this by using a platform like Canva. 

Make sure you have policies for delivery, returns, and exchanges. You want to be sure that everything is very clearly laid out, so your buyer knows what to expect. 

Too often buyers still think they’re getting a physical product, even if you mention everywhere that it’s a digital product. So the more you include details and specifics on the digital download, the better!

How to Open an Etsy Shop with No Money

Can you start an Etsy shop with no money? Absolutely! You will need to purchase some supplies to actually make your items (unless you plan to create digital designs!) and list them on the site. 

The cost of growing your inventory will differ depending on the type of product you are creating and selling. But think creatively on how you can start with the basics, like not having to make the item in every color and just having them as options when ordering. 

Use your phone for images of your product, or the free version of Canva to create your mockup photos for digital downloads. 

For photos taken on your phone, use a free photo editing software like Snapseed to edit your images and give them a high quality look.

Investing in your business

Have $10 to spend on your business? Put this into your photography. This can be to purchase a higher-quality photo editing app, or to purchase materials like a whtie foam board to use as a background. 

Have a little more money to invest in your business? Take a step into your branding materials and purchase business cards, or potentially a logo for your business. 

You can create a logo for free on Canva, or if you want to leave it up to the professionals, you can hire someone to create a logo for you. 

Investing in your branding is a great way to really establish your business. 

How much money does it cost to start an Etsy shop?

The only thing that you have to pay for when starting a shop are the three fees: a listing fee of $.20, a transaction fee, or a payment processing fee. 

You don’t have to pay anything up front to start a shop or pay a monthly fee.

You just recieve a charge of $.20 when you list a product, and then receive the other two fees when you make a sale. 

What to Do Before Opening an Etsy Shop

Before opening up your shop, there are a few things that you should do. 

First of all, test your products. Get some thoughts from other people. Test them out if it’s fitting. Take time to make sure it is a quality product that can sell.

Prepare prior to opening up shop to save yourself from the stress of scrambling once you make your first sale. 

Plan out your shipping and packaging. How do you want to ship: boxes or bubble mailers? Are you wanting to add extra touches to your packaging? Start planning out the supplies you need.

Where are you going to get your supplies? Think about the most cost-efficient way to buy your supplies, and if you can find them in bulk.

Next, is planning out your photos. The way your products appear in your photos is key! Figure out how you will take your photos, what you want as a background, how to edit them, etc. 

Finally, you need to think about how long it will take you to create each item, as well as how long you need if you have multiple open orders. Even if you only need 1 or 2 days to create an item, it may be best to choose 3-5 days for processing just to be safe. 

These are just a few things to consider before opening up shop!

How much do Etsy shop owners make?

This can be a very wide range of answers, as there are small shops that make a few hundred dollars a month, or shops that make $10k a month.

A statement made by Josh Silverman, the CEO of Etsy, in 2020 stated that the average Etsy seller made around $2900 a year. 

But again, this can be different, especially if you are putting full-time or part-time effort into your shop, as many use it as a side hustle. 

You can easily make a full-time income on Etsy, as long as you can put full-time effort into it and your product is in high demand. Effort by itself though won’t bring in your sales, because there are many factors that can control your success. 

In general the longer you’ve sold on Etsy, the more you can expect to make in your shop per year. Having a more established shop will help you generate more sales, and thus more income. 

Etsy sellers can easily make a couple thousand dollars a month, or even up to $100k a year. It all depends on what you’re selling and the effort put into your shop.

Is it worth it to have an Etsy shop?

Based on the opportunity to at least earn a part time income, Etsy is worth it if you have the time to build a shop and learn how to successfully run a shop.

The more effort you put in on the front end with research and product development, the better the chances are to make an income. 

It may take time to build up your shop, so starting a shop sooner rather than later is best. But because it does take time, this means it usually isn’t a “get rich quick” scheme. 

It really does take time to build a business, so you need to have realistic expectations. But is the time worth it? Usually, yes!

Obviously, it’s hard to know whether your shop will be a success. But it is worth it to create a business selling products you have a passion for!

Final Thoughts

Selling on Etsy is an opportunity to make an income creating physical products you have a passion for, or making passive income with digital downloads. 

It’s a simple and user-friendly platform that anyone can get the hang of. Bring in that extra spending money!

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Katrina Waardenburg

Katrina Waardenburg

Katrina is an Etsy seller and content writer who was formerly a teacher. In her own words, "Being a mom of two girls, I work hard at growing this business and helping others grow as well so I can provide for my little family.”
Katrina Waardenburg

Katrina Waardenburg

Katrina is an Etsy seller and content writer who was formerly a teacher. In her own words, "Being a mom of two girls, I work hard at growing this business and helping others grow as well so I can provide for my little family.”

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