How to Start an Etsy Shop This Year!

Are you looking for a creative outlet that can also bring in some extra cash? Learning to start an Etsy shop is an excellent, affordable option for exposing your art to a global audience.

This post may contain affiliate links. Read our disclosure

Let’s look at how easy it is to set up your first Etsy shop. Plus, I’ll help you choose the best items to sell and save money on your new business.

How to Start an Etsy Shop this Year

While it may take a little time to set up your Etsy shop initially, you don’t need to be tech-savvy or have much experience with the platform to get started.

Create your Etsy seller account.

Before becoming a seller on Etsy, you must have a general consumer account.

Once signed into Etsy, click the gray circle with a silhouette (top right corner). You should see a drop-down menu. Click on “Sell on Etsy”.

Fill out your shop preferences.

The first screen you should see will say “Shop preferences.” Fill out the required information, then click the “Save and continue” button.

Choose a name for your shop.

Understanding how to choose a name for your Etsy shop is vital for the sustainability of your business. You will want to brainstorm a list of name possibilities.

The name should be easy to say, remember, and reflect your products.

Once you have a few you like, enter the name on Etsy to see if it’s available. If it’s not, go down your list of names until you find one you can use.

Add product listings to your shop.

Create product listings to fill up your shop with goods. Remember, your listings will be shown together, so it’s best to take all your photos with a similar background and lighting.

Doing so will make your shop cohesive and aesthetically pleasing, like your favorite Instagram feed.

Listing products will take the most time but will have the most significant return. Take the time to add multiple photos, a video, and a detailed description.

Etsy recommends starting with at least ten listings; however, adding more than ten and consistently adding more daily, weekly, or monthly listings can help boost traffic.

You will also price your product, determine the inventory of each item, and decide whether your listing will have product variations.

You can preview your listing before you save it. Once you like what you see, click the “Save and continue” button.

Tip: If you are selling physical products, purchase a scale to weigh your products, preferably along with what you will ship the item in.

Shipping mistakes can destroy your profit, so being proactive about shipping weights can give you and your customers an accurate view of postage costs.

Be tax compliant

When you are a new Etsy shop, you will most likely fall into the Individual or sole proprietorship tax category.

By choosing this category, you can use your social security number to be tax compliant. If you are already an incorporated business, you can select this option.

After you provide personal information, Etsy will ask for your bank information. The account you provide receives direct deposit Etsy payments when you make a sale.

Tip: Create a bank account just for Etsy. A separate business banking account is vital for keeping your personal and business transactions separate.

Set up payment for Etsy fees.

Etsy is not a free website. When you create listings, make a sale, and use Etsy payments to collect money from consumers, Etsy will charge you a fee.

Etsy asks for a credit card number to bill you automatically on the first of the month.

A credit card on file ensures you pay your fees on time, and Etsy receives its cut for using the site.

Open for business

Once you have completed all the above steps, you can click the “open your shop” button (it will turn black when you have completed all the steps).

You can now share your shop using one of two URLs:


Finishing your profile

Even though your shop is now LIVE, there are a few things you can update to make sure your shop is ready for business.

Add a bio photo and description so consumers can see who the maker is. The more consumers can relate to you as an artist; the easier it will be for them to hit the buy button.

Use the policy section to answer typical buyer questions such as processing and shipping times, accepted payments, returns, and exchanges, and to protect from disputes.

What to sell on Etsy

With over 1,300 categories, there are many opportunities on how to sell on Etsy. Whether you choose to sell physical products or digital ones, there is profit to be made.

Here are a few of our favorite ways to make money on Etsy:


Making printables takes a lot of time upfront but can create passive income once you have a few popular designs. Choose a niche that you are passionate about and research your competition.

You can use free software like Canva to make printables, upload images, and start marketing. You won’t have to stock inventory or worry about shipping.

Check out my guide on starting an Etsy printables shop.

Pet treats

Dog owners spend billions of dollars yearly on their furry friends, and Etsy has a category just for pet treats.

If you like to pamper your pets, share your passion by starting an Etsy shop. Watch this free workshop if you want to start a dog treat business.

Print on demand

If you love designing t-shirts, mugs, and home decor, you could quickly create an Etsy shop to share your designs with friends, family, and an eager global market.

I recommend taking this print on demand online course if you are interested in how to set up an Etsy shop.


Calling all planners and stationery collectors. Custom stickers are a hot market on Etsy. Many sellers start at home using traditional printers and cutting machines like a Cricut or Silhouette.

Check out our interview with Created by Christine, who is crushing it in the sticker space.

Custom vinyl

Etsy began out of a need for people to have unique, personalized gifts, and this category is still going strong.

Custom vinyl products can represent any niche, and you can even start a shop that focuses on downloadable SVG images that consumers can download for their projects.

I recommend reading this post on how to start a vinyl business.

How to save money when running an Etsy business

There are several ways to save money when running an Etsy shop. Let’s look at a few of our top tips:

Cut fees

Search for YouTubers/Influencers that offer free listings on Etsy.

For example, Selling with Lucy is currently offering 40 free listings along with additional tips on how to open an Etsy shop.

Buy shipping and product supplies in bulk. Supplies can add up depending on what you are selling.

Researching your supplies to get wholesale pricing can save you money in the long run.

For example, purchasing poly mailers on Amazon can save significant cash from buying a few from the post office or a department store.

Stop making impulse purchases

Starting an Etsy business can be exciting. It can be easy to start picking up random supplies for future projects that may or may not come to fruition.

Keep track of your expenses, set a budget, and stick to it. Any impulse purchases you make will eat into your overall profits.

Don’t invest in ads until your business is profitable.

Running ads may seem like a fast track to Etsy fame, but promoting your products on social media for free is much wiser when you first open your Etsy shop.

Start an Etsy Shop Today!

Current Etsy sellers’ best advice for new shop owners is to start today.

While it’s relatively easy to set up your shop, it may take a few months for consumers to see your products and make the move to purchase.

The quicker you start, the faster you can earn a profit. What are you planning on selling on Etsy this year?

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *