Learn how to open an Etsy shop and begin selling.
What Is Etsy?
Etsy is an online marketplace where vendors can connect with buyers. Sellers on Etsy typically sell a variety of handcrafted or vintage goods. Products sold on Etsy include:
ArtsCrafts and crafting suppliesJewelryPaper goodsHousewaresArtisan foodsSmall-batch cosmeticsHandmade personal care itemsClothing and accessories
Many artists sell digitally downloaded items, such as art prints, stationery designs, planners, or other printable documents. Vintage items must be at least 20 years old to qualify. Vintage items sold on Etsy include costumes, clothing, accessories, jewelry, photos, housewares, games, books, and toys.
How Etsy Works
Selling on Etsy is simple and straightforward. However, it requires regular work and attention on the part of the seller to create listings that are searchable and appealing, as well as to provide good customer service.
How Much Does Selling on Etsy Cost?
There is no setup fee to open an Etsy shop. Instead, sellers are charged fees for listing and selling items. Sellers must pay a $0.20 per item listing fee, along with a 5% transaction fee when the item sells. This is 5% of the listing price plus any shipping, personalization, and gift-wrapping charges you add on when the item is purchased. If you are selling from the United States or Canada, the transaction fee is not applied to sales tax, GST (Goods and Services Tax), or HST (Harmonized Sales Tax). If you are selling from a location other than the U.S. or Canada, sales tax should be included in the price of your item and will be counted for the 5% transaction fee. You can also choose to use additional services that come with fees, including:
Etsy Payments: comes with a processing fee, which varies based on where your bank is locatedEtsy Ads: pay-per-click ads, which are placed automatically based on your daily ad budget and an “auction price” that is determined by the number of listings that fit the same search criteriaShipping fees: option to purchase shipping labels through Etsy, fees vary based on the carrier as well as add-ons (like tracking and insurance)Currency conversion: only charged if your listings are in a different currency than your payment account
Etsy automatically provides a monthly statement, at which time all fees are automatically deducted from your payment account. If there are sufficient funds in the account to cover your fees, you don’t have to take any further action. If there are insufficient funds, you are responsible for paying all remaining fees within 15 days.
Do I Need an Etsy Shop?
Etsy provides a marketplace specifically for craftspeople, artists, and vintage vendors to sell their goods without needing a brick-and-mortar store or an individual e-commerce platform. Etsy allows each seller to set up a customized online shop with full e-commerce capabilities on a platform that consumers already understand and trust. This can reduce your overhead, limit the time you need to spend selling through consignment stores and craft fairs, and make it easier to connect with customers all around the world.
Alternatives to Etsy
If Etsy isn’t the right platform for what you want to sell, there are other online marketplaces that you can use. Each one appeals to a different set of customers. If you want to sell online without using a marketplace, you can also create a business website with integrated shopping, credit card processing, and e-commerce.
