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How to Start an Etsy Shop: Step-by-Step Guide

Hero Image How to Start an Etsy Shop
by AMZScout T.posted on 11.12.2023

Etsy is an amazing platform for crafters around the world to sell their unique products. It’s also a really easy-to-use tool, where even beginners can start their shop in just one day. In this article, you will find four simple steps to help you organize your own Etsy shop and start earning on handmade gifts right away.

How to Open an Etsy Shop in 4 Easy Steps

This process is hassle-free and is designed for people without any prior or in-depth business knowledge. However, there are a couple of points you should consider when starting your journey on Etsy.

Below, you will learn how to evaluate your product’s potential, explore the possibility of generating profits from it, gain inspiration from additional trends, and finally, learn how to create an Etsy shop.

Step 1. Do Your Product Research

With any kind of business, you need more than just passion to begin a successful venture. It’s essential to conduct a thorough market analysis on Etsy and understand whether the product you are creating has the potential to be profitable. It is also important to validate your analysis results and find some additional ideas through different sources, like Amazon and Google Trends.

Where to start:

1. Look through Etsy

Explore a niche where you want to sell your product.

1. Check the level of demand for your product. Search for your product on Etsy. 

  • Review the top 20 results, and pay attention to the products with the “Best Seller” and “Start Seller” labels. Analyze their styles, materials, designs to understand what makes them popular. 

  • Check out the customer reviews in your niche. The number of assessments and comments can indicate products that are already selling well. They will also give you an idea of what people are actually looking for as you create your own versions of profitable products.

  • You can also consider the Top Sellers page on Etsy, and look through the various categories: jewelry, clothing, home decor, art, and more. If you come across products like yours on the Top Sellers page, that is a good indicator that your product is in demand. 

2. Check the profitability of your product. Figure out if the product you’re creating is likely to generate a profit. Analyze your competitors’ prices, factor in your own expenses for materials, working hours, Etsy fees, and any other additional costs.

2. Look through Amazon

Amazon is a global marketplace with millions of sellers, on which you can conduct thorough research within the Amazon Handmade section. Here, you can validate the information you get from exploring Etsy. Check if there is stable demand for your product, if it’s profitable to sell, and which types of products are currently trending. 

If your product sells well on Amazon, then you are right that there is global demand for your product.

You can also find some additional ideas on Amazon to sell together with the main product you create and generate extra sales.

Below, you can find out how to analyze the demand and profitability of the items you create, and discover ideas for other products, with the help of automated tools such as AMZScout’s Product Database and PRO Extension.

How to Use the AMZScout Product Database to Evaluate the Potential of Your Product and Find New Ideas

AMZScout’s Product Database helps you to determine if your product is in-demand on the market, and find profitable ideas for additional items to sell. 

Here’s the process:

1. Head over to the AMZScout Product Database.

2. Begin your evaluation with a risk-free trial. If you haven't registered yet, the web app will automatically direct you to the sign-up form. Enter your details and start your trial, without any need for payment or credit card information.

3. Narrow your search. Enter keywords related to your product or the product category, and use search filters like weight, price, size, etc. to find similar products on Amazon.

Product Database filters and Product Selections
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4. Click “Find Products” and check the search results. Look for a product that is similar to yours, and review the metrics shown in the Product Database (such as average monthly sales, estimated revenue, etc.) For example, if you see more than 300 sales of your product/month, this may mean that there is a demand for it. 

Analyze AMZScout Product Database results
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5. Find additional products to sell. For example, if you draw, then in addition to your pictures, you may consider offering cups, T-shirts, bags, and anything else that features a print of your artwork. Set filters that will narrow down your search. If you are not sure what to choose, you can use pre-made Product Selections filters.

To do a further in-depth evaluation of your product and any additional ideas you found in the Product Database, let's use the AMZScout PRO Extension.

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Brainstorm New Niche and Product Ideas with the Product Database

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Brainstorm New Product Ideas with the Product Database

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Check Product Profitability with AMZScout’s PRO Extension

1. Begin with a free trial of AMZScout. To get started, just provide your email address and install the PRO Extension. No need to enter your credit card information.

2. Open the AMZScout PRO Extension, and it will automatically direct you to amazon.com. Enter any keywords into the Amazon search bar related to your product or any additional ideas you’ve found in the Product Database.

3. Discover the profitability of these products. A handy table of the PRO Extension will present essential product details, such as net margins and revenue. 

Open AMZScout PRO Extension
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4. Analyze the product for sales potential. Check any Product Score from 1 to 10 by clicking on the corresponding section. This analysis is based on revenues, the number of reviews, and quality of the listing, where a score of 10 indicates the best product to sell. The higher the score, the better.

How to check Product Score for PL and reselling
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5. Analyze the niche. Click on “Niche Score” to see a comprehensive market analysis for the niche based on its revenue, competition, and demand.

Where to find the AMZScout Niche Score
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6. Ensure a continuous high level of demand. The Niche History feature will let you explore historical sales data, and understand how it may fluctuate seasonally.

Where to find the AMZScout Niche History
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AMZScout’s Product Database and PRO Extension toolset will help any beginner in handicraft business gain detailed data.

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Find profitable products with the AMZScout PRO Extension

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Find profitable products with the AMZScout PRO Extension

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3. Check Google Trends

Another way to check the demand for your items and brainstorm ideas for other products is to use Google Trends. This can provide valuable insights into what people are searching for and are interested in. Here's a step-by-step guide to using Google Trends effectively.

1. Go to the Google Trends website (trends.google.com)

2. Explore Trending Searches on the homepage. These topics can give you an idea of what people are interested in at the moment.

3. Search for specific keywords. For example, if you have a T-shirt business, you might search for a “vintage T-shirt” or “custom T-shirt”.

Use Google Trends to start an Etsy shop
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4. Refine your search using filters such as country, time range, category, and type of search (web search, image search, etc.)

5. Analyze interest over time, as your chosen keyword may be either a seasonal trend or attract year-round interest. 

Step 2. Create an Etsy Account

Now, it’s time to learn how to set up an Etsy shop. The process is as easy as 1-2-3!

  1. Make final preparations. Check if you can sell the products you create on Etsy, and review their Prohibited Items Policy. Get acquainted with locations where Etsy payments are available and any required fees.

  2. Create your shop. Use your desktop browser to do this. Go to etsy.com/sell and click “Get started”. Answer a few questions about your location and business experience, and choose your preferred language, country, and currency. Select a unique shop name and save.

  3. Set up your payment and billing details. The process is a bit different for the USA, Australia, and UK, so take the time to organize your business legally and correctly.

  4. Add your profile picture and bio for customers to show that you are real and trustworthy.

  5. Set up your storefront. Add a banner, products, and a shop logo. Consider details such as your expected production time, policies, and your plan for shipping.

That’s it! When your shop is ready, it’s time to create and promote your product listings.

Step 3. Create Your Listing

A “listing” is a product card that appears on Etsy. In order to stand out from the competition and attract new customers organically from searches, you need to create a visually appealing and optimized listing with high-demand keywords, high-quality imagery, and a sales-motivated description.

  1. Sign in to your Etsy account and select “Add a listing”.

  2. Upload clear, high-quality photos of your product. High-quality visuals create a positive first impression and immediately capture the viewer's attention.

  3. Write a compelling title and detailed description that highlights your product's unique features. Include relevant keywords in the title and description, as this will improve your product's visibility among search results, which will lead to more organic traffic and potential sales.

  4. Set the best price, choose relevant tags and categories, and specify your shipping details. 

Once you review and confirm your listing, it will be live and visible to Etsy shoppers. Happy selling!

Step 4. Promote Your Etsy Shop

The final step in the process of setting up an Etsy shop is to promote it and make it known to as many people as possible. This can be done in numerous ways, such as these.

Optimize your Listing

One of the most efficient methods of promotion is optimizing your shop's appearance and content, regardless of how old or new your shop is. This will help you increase your listing visibility among search results, attract more traffic, and increase conversions rate… absolutely for free! Use high-quality images, write compelling product titles and descriptions with relevant keywords, and complete your shop policies. 

Use Social Media

Utilize social media platforms to showcase your products and engage with your audience. Create accounts on platforms like Instagram, Facebook, Pinterest, and TikTok to share attractive images, behind-the-scenes content, and promotions. Engaging with followers and potential customers will help you build a loyal community.

Offer Promotions

Attract customers with special offers and promotions. You can offer discounts, free shipping, or bundle deals to incentivize purchases and encourage repeat business.

Participate in Etsy Teams

Join Etsy Teams, which are communities of sellers with similar interests or niches. Engaging with other sellers can provide valuable insights, support, and cross-promotional opportunities.

Participate in Local Events

This method is not as obvious, but is very effective. If possible, participate in local craft fairs or events to showcase your products in-person. Hand out business cards or promotional materials directing people to your Etsy shop.

Remember that making a successful Etsy shop takes time and effort. Consistency and dedication will gradually lead to increased traffic, sales, and a loyal customer base.

How Much Does it Cost to Start an Etsy Shop?

Initially, the Etsy Standard Plan is free, so it costs nothing to sign up on Etsy. However, you will have to pay several fees after publishing your listings and you start using the platform. Here’s a breakdown of the main fees charged by Etsy:

Listing Fees

Listing your items on Etsy comes with a one-time fee of $0.20 USD. The good news is that if you already have items listed on your Etsy shop, there are no extra fees when you add them to your website created with Etsy’s website builder , Pattern.

Transaction Fees

When you successfully make a sale on Etsy.com, a standard transaction fee of 6.5% is applied to the price of each item, in addition to shipping and gift wrapping.

Advertising and Promotional Fees

Etsy provides sellers with an opportunity to promote their products with the help of paid ads. This includes Etsy Ads and Offsite Ads. Etsy Ads is easy. You simply set your daily limit and get promoted on the platform. Off site ads promote your business through a network of Etsy’s partners, and the standard fee you will pay is 15% on Attributed Orders.

Subscription Fees

Growing businesses can benefit from Etsy Plus, which offers an expanded set of tools. The fee for an Etsy Plus subscription is $10 USD/month.

Payment Processing Fees, Shipping Fees, and Regulatory Operating Fees

Depending on where your business or bank is located, you will have to pay specific Etsy fees. Payment Processing fees are charged for each transaction made through Etsy Payments, Shipping fees (for fulfilling orders), Regulatory Operating fees are a result of the increased cost of operating in the country where your business is located.

Managing an Etsy shop requires you to find the right balance between cost-effectiveness and quality. It's important to note that while selling on Etsy isn't necessarily cheap, it also doesn't have to be expensive. Pay close attention to all the fees and tariffs, and you’ll be able to find the path towards a prosperous handicraft business.

Conclusion

Etsy provides amazing opportunities for artists and crafters worldwide to showcase their unique creations and earn money from their passion. From print on-demand to digital products, anyone can find something to sell. In this article, we have covered how to start an Etsy shop. We’ve also discussed how to search for profitable handcraft ideas through product research using such tools as Amazon, Google Trends, and Etsy Top Sellers. We have reviewed how much money the process requires, how long it takes, and how to further promote an Etsy shop. So, don’t hesitate to start your own business, it’s totally worth it!

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