How to Make Money on Etsy
Last Updated: August 2, 2022
If you’re a creative entrepreneur, this article is for you. We’ve provided valuable information on how to make money on Etsy.
This online marketplace for unique items, handmade and vintage goods, art and craft connects buyers with sellers from around the globe. The platform has helped millions scale their business without even setting up a website.
Keep reading to find out how to create an Etsy shop and what items sell for more cash.
Can You Make Good Money with Etsy?
According to Statista, approximately 7.5 million sellers sold items on Etsy, and there were about 96 million active buyers on the platform in 2021. That said, you can most certainly make good money with Etsy. Entrepreneurs can even make a living on Etsy.
However, making money on Etsy will depend on how you run your business. The platform is similar to any online store because you have to manage stock and ensure you’re providing high-quality products and services. You can also boost sales by creating a powerful marketing strategy to promote your products.
As you start to make more sales, your Etsy store will become more popular, increasing demand for your products. But you must be consistent with your sales to make good money on Etsy.
How Much Does the Average Person Make from Etsy?
The average Etsy income is between $40,000 and $46,000 annually. On the other hand, top earners on the platform have sales reaching $65,000 per month. But you’ll need patience to get to this level. In addition, the money you make on Etsy will also depend on the demand for the products you sell.
To give you an example, here are the top-selling shops on Etsy:
- PlannerKate: This shop sells digital products such as stickers, vision boards, planners and icons. It has 1,866,372 sales, and 95% of those sales have 5-star reviews. In 2021, the owner made $2.1 million, making the shop one of the top sellers on Etsy.
- ModParty: If buyers are looking for unique handmade gifts for birthdays or weddings, ModeParty is the shop to visit. This Etsy store has over 1,375,906 sales with about 11,4844 admirers. Unfortunately, there are no details on how much the store makes in sales.
- CaitlynMinimalist: This store sells dainty personalized jewelry. It has about 1,682,070 sales and 266962 admirers. The owner of the store, Kate Kim, has stated in interviews that she made over $1 million selling her jewelry on Etsy.
As you can see, all three Etsy stores sell different products but have managed to make millions of dollars in sales. Of course, you could also make that amount of money if you’re dedicated to scaling your Etsy business.
What Sells for a Lot of Money on Etsy?
The best things to sell on Etsy to make money are mostly digital products such as:
- Mood boards
- Graphic posters
The reason why digital products sell well on Etsy is that you don’t have to factor in shipping, and buyers don’t have to spend money on delivery. Once the digital product is bought, it can be downloaded and saved onto a device. You could make as much as $7,000 per month selling digital products on Etsy.
Other items that sell well on Etsy are handmade goods such as:
- Resin molds
- Wedding products
- Home decor
- Paintings (oil, watercolor or acrylics)
- Furniture such as tables or dressing tables
- Vintage items
How much you make from the products you sell will depend on the price of your items. You’ll also need to factor in shipping costs.
How to Sell on Etsy and Make Money
The best way to make money on Etsy is to gradually build your online store and reputation. It’s not going to be an overnight success. There will be some strategy involved, but if done correctly, you can have a successful online shop. Here is a guide on how to start selling your products on Etsy.
Read and understand Etsy’s guidelines
Etsy has specific guidelines that sellers must follow. There are items that the site allows you to sell, and there are products that are prohibited. Etsy allows you to sell handmade, vintage or any type of craft. But, as the site’s policy explains, your products must be of your original design.
Furthermore, Etsy has a zero-tolerance policy on prohibited items. You are not allowed to sell:
- Items that promote glorified hatred
- Products promoting illegal activity
- Pornography or mature content
Selling products against Etsy’s guidelines can get you banned from the site. So, learning about what you can sell on the platform is essential.
Etsy’s guidelines also explain the best way to list your products. Detailed listings will increase your sales, so you should take your time developing your shop. The guidelines also provide information on how to communicate with your buyers professionally. You must adhere to communication guidelines to avoid penalties and build a positive reputation on Etsy.
We highly recommend that you read Etsy’s guidelines thoroughly before signing up to understand their terms and conditions for selling and building your reputation.
Decide what products you want to sell
You may need to do some market research to decide what things to sell on Etsy to make money. As mentioned before, there’s a high demand for digital products such as stickers, journals or even knitting patterns. The resin/epoxy art industry is also extremely popular, so you can sell various types of resin molds for artists.
Of course, you can sell any arts and craft items you like even if there isn’t a high demand for them. Simply build your platform using marketing strategies. You never know; you may set a new trend.
When you’ve decided on what products to sell, ensure you have enough items for your listing. You want to have sufficient stock on your site if you’re selling physical products. If you’re selling digital items, make sure you have various options for your buyers. For example, if you’re selling stickers, ensure you have hundreds of items to choose from in various categories and in different formats such as PDF, SVG and JPEG.
Create your Etsy shop
When you have sufficient stock to sell, it’s time to create your Etsy shop. How you develop your profile will determine the success of your business. Here are tips on how to set up your Etsy shop.
Sign up and customize your shop
Signing up for Etsy is free and takes less than five minutes, but you’ll want to spend more time customizing your page to make it look professional.
If you want to design your shop, you can buy a tool on Etsy called Pattern for $15 per month. This tool allows you to create a professional website and expand your online sales beyond Etsy’s platform.
Filling in the gaps
To develop your brand on Etsy, add your company logo, your shop’s name and content to your bio page. Also, add links to your website and social media pages. The bio section is a great way to show your personality and describe what your shop is all about. So be descriptive and use a friendly tone when writing out your bio.
Adding photos to your listing
You’ll start earning Etsy income when you make sales. But you won’t be able to sell items if you don’t have proper listings. The best place to start is by adding photographs to your listings. Images will help buyers decide which items they want to purchase.
With Etsy, you can add 10 photos per listing. It’s recommended to add a minimum of five images per listing and show various angles of your product. When taking pictures of your items, you must:
- Capture them in natural light
- Add a close-up image to show detail
- Snap a picture of your product in use
- Add an image that shows the scale of your item
Descriptions of your product
Buyers want to know more about products before they buy them. So the best way to make money on Etsy is by adding descriptions to your listings with keywords for SEO purposes. Describe your product concisely and use a consistent tone with your brand.
When adding a description to your items, provide details on:
- Instructions on how to use them
If you’re selling digital products, list the formats that they’re in and how to download or use the products in different programs. You’ll also need to add prices to each listing and provide shipping fees and discount details.
Start marketing your products
You won’t be able to make money selling on Etsy if people don’t know about your products. You’ll need to start marketing your Etsy shop to create brand awareness. Start by sharing your information on your social media platforms. You can also drive sales to your Etsy shop through platforms such as Pinterest or Instagram.
Accept online reviews
Another way to build brand awareness and boost sales is by accepting product reviews on your listings. Allowing reviews on your products can provide the following benefits:
- Build trust and credibility
- The ability to resolve your buyer’s problems quickly
- Opportunity to build a positive reputation
- Buyers can learn more about products from other users
- SEO opportunities to increase online visibility
To access your reviews, follow these steps:
1. Click on Shop Manager
2. Find your shop under Sales Channel
3. Scroll down to the reviews section
You can generate reviews by sending buyers a personal thank you email after purchasing an item and a link to your review page. You can also include cards with packages asking customers to leave reviews on your page.
Check your stats
One of the benefits of selling at Etsy is that the site provides valuable metrics such as:
- Page views
With your Etsy metrics, you can compare month-to-month and year-to-year sales to see patterns and improve your processes. You can also see where your traffic is coming from, such as from social media or your website. Seeing where your visitors are coming from will help you improve your marketing strategies through these channels.
How to Make Money Selling Art on Etsy
One of the best things to sell on Etsy to make money is physical and digital art. People either want art for their houses, offices and schools or for their social media pages, websites and Pinterest pages.
Additionally, you can either sell original paintings or you can sell fine art from other artists with their permission. Follow these steps to start selling art on Etsy:
1. Create pieces of art or collect them from other artists.
2. Take high-quality images of your art pieces.
3. Add your listings to Etsy with at least five images of your art piece.
4. Include a description of your artwork and describe what type of painting it is (watercolor, acrylic, oil or digital. If the art is digital, mention the size and format of the artwork.
5. Finally, add your price to the listing and details on shipping or download methods.
As you can see, Etsy is the perfect platform to sell digital and physical products and make decent money. The advantage is that you can have a regular job and use Etsy to make extra income. It’s an easy platform to manage, and you can create a professional online shop in no time.
With the information in this guide on how to make money on Etsy, you can develop a successful shop where you can make decent sales every month, provided you sell products within the platform’s guidelines.
How Much Does It Cost to Sell оn Etsy?