How to Start an Etsy Shop

Are you a creative and crafty individual who loves DIY work? Chances are that you’ve thought about opening your own shop in the past. Sadly, many people don’t actually go on to open their shops, thinking it is too difficult or that others will be uninterested in the handcrafted items.

But Etsy begs to differ. It’s a platform where anyone can start their own shop and sell different products, whether it’s random items featuring popular shows, cosplay costumes, art, and other products.

How to start an Etsy shop, though? If you’re ready to promote your products and start making money, this post will teach you how to start your new online shop.

How to Open an Etsy Shop

In order to start an Etsy shop, you must go through a series of steps. The good news is that the process is pretty easy. Here is what you have to do:

Step 1: Create Your Etsy Account

The first thing you have to do is register on Etsy if you haven’t done this already. To do so, you must create the account by choosing the “Sell on Etsy” link. You will then have to fill in your name, email, and password. After doing this, you’ll simply click “Continue”.

In case you already have an account but it’s a consumer one, you can log into it like you normally would and select “Open Your Etsy Shop”.

But if you want, you can also sign up through other existing platforms like Apple, Facebook, or Google.

Step 2: Setup Your Etsy Shop Preferences

After opening your Etsy account, you have to choose your shop preferences.

This means you’ll have to pick the default language in which your products will be described. Then, you can select the currency in which your items will be presented and your home country.

You’ll also have to mention if you’re a part-time seller, full-time seller, or other. Regardless of your choice, you can use Etsy the same way for selling products.

Keep in mind that currency conversion fees will apply if the shop currency is different from the bank one.

Step 3: Choose a Name for Your Etsy Shop

Now you’ve reached the fun part – you have to pick a good name for your shop. If you already have a name in mind, that’s great, but if you don’t, you’ll have to think of a good one, preferably a unique one that represents your products.

In case you try to go for a name that was already chosen by someone else, you will get suggestions for available similar names.

If you don’t know what to choose, you can go with your own name but add something to it to represent the shop. For instance, it can be something like “LaylaMarshallArt”, “MarkStudio”, “SarahWorkshop”, and so on.

You can also try going for more abstract names, especially if you want a name that consumers will remember due to its originality. On top of that, it’d also be easier for people to find your shop this way.

Another thing you can do is choose a descriptive name. Think about words or short phrases that can be used to describe your shop, and make them into a name. For example, it can be something like “WhiteDogPaintings”, “Cosplay Paradise” and so on.

Here are some guidelines you’ll have to take note of when you’re coming up with your Etsy shop name:

• Don’t use special characters or spaces
• No trademark infringements
• Don’t add profanities to your name
• Refrain from choosing a name that another Etsy shop already uses
• The name has to be between 4 and 20 characters

 Step 4: Add Products to Your Etsy Shop

After setting up your shop and coming up with the right name, it’s time to add products to it. In order to increase your visibility, Etsy suggests adding at least ten different listings.

The first thing you have to do when adding a listing is upload photos of the products. Ideally, you should add at least five photos for each item, but you can add up to 10. This is very useful as it allows your potential customers to see the product from different angles. Furthermore, it will also let you show the product in different variations, such as colors, sizes, and more.

Next, you’ll have to work on adjusting the thumbnail, the first photo someone will see when they stumble upon your product.

After doing this, you must list all the item details. Choose a title that describes your product, then go to the description section and offer more in-depth information about it, mentions the materials, and add tags. The great news is that you’ll be able to optimize for SEO as you will have a feature that allows you to see your Google search result listing.

Add a price for the product considering how much you worked on it, how many materials you used, plus the shipping materials and shipping cost.

In case you have a product that comes in different variations, such as multiple colors and sizes, make sure to list them too. Select whether you offer product personalization or not.

Step 5: Choose the Payment Preferences for Your Etsy Shop

Considering you’ll have to get paid for your work, you must pick the right payment preferences. Keep in mind that you’ll have to select if you’re a registered legal entity or an individual or a sole proprietorship.

If you’re an incorporated business, you’ll offer the name of the entity, state, legal business address, EIN, and business registration number. Lastly, you have to mention who the owner of the shop is – offer their address, name, birth date, and last Social Security number digits.

If you’re an individual or sole proprietorship, though, you’ll only have to give your full name, country, address, birth date, phone number, and last social security number digits.

You’ll then select the country where your bank is located. Enter the checking or savings account number as well as the routing number.

The owner of the shop will have to choose a preferred payment method. If you know how to set up a PayPal account, you can choose PayPal. However, you can also choose Etsy Payments, check or money order, or “other”.

Step 6: Set Up Billing Preferences for Your Etsy Shop

Choose your billing preferences. You may need to enter your credit card and have a credit card on file, allowing Etsy to charge selling fees.

Also, U.S. sellers can opt for auto-billing, so the website will charge you automatically for any selling fees.

Step 7: Open Your Etsy Shop for Business

You’re at the end of the process! Simply click “Open Your Shop” and you’re done!

How to Open an Etsy Shop FAQ

Let’s take a look at some commonly asked questions about opening Etsy shops:

How much are the seller fees on Etsy?

Etsy will charge you a $0.20 listing fee for every item you add for sale on the platform. Then, when you sell a product, you’ll have to deal with a transaction fee of 6.5% of the listing’s price, as well as the cost of gift wrapping and shipping.

Can I buy shipping labels through Etsy?

You can buy shipping labels through Etsy. However, you have to pay some fees for it based on which shipping labels you pick. The fees depend on various shipping settings such as your location and others.

Does Etsy report my shop income to the IRS?

Yes, Etsy reports your gross income to the IRS. In case you don’t get a 1099-K form, though, your sales income will have to be stated on your tax report.

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Final Thoughts

Before you set up an Etsy shop, you need to know the answer to questions like “How does PayPal work?”, “How much will I be charged by Etsy?” and more. However, setting up the actual shop is easy. Follow the tips in this post and you’ll have no issues.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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