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6 tips to open your first Etsy shop


A banner that reads: Curious about opening a store on Etsy? Tips to turn your passion & creativity into an income!An open laptop with Lissa Sue Designs' Etsy shop visible on the laptop screen.
Curious about opening an Etsy shop? 6 Tips to turn your passion and creativity into an income.

One of the questions I get asked the most is "How difficult is it to open a shop on Etsy?" I usually chuckle and reply, "How long do you have? Want to pull up a chair and chat?"


Etsy is an excellent platform for selling handmade and hand-designed goods, and while I personally feel like it is the most user-friendly platform for those who are just getting started, it certainly has a learning curve, and I like to be transparent about that. I opened my Etsy shop Lissa Sue Designs in 2017, and have benefited greatly from my experience in Etsy's marketplace. I've learned that, as with most things in life, the amount of time and energy you pour into your Etsy shop is generally what you'll get back in visibility and sales, so let's talk a bit about what it takes!


If you're thinking about creating your first Etsy shop but not sure where to start, here are 6 tips to open your first shop within Etsy's vast marketplace:


1. Choose a niche.

Start by asking yourself...

  • What are you passionate about?

  • What are you good at making?

  • What kind of products do you think people would be interested in buying?

  • Who is your target audience and how would you engage them?


It's important that you find a niche that combines all four qualifiers listed above! You may be passionate about making handmade earrings, but if you don't have the ability, time, or resources to produce them, then you likely need to reconsider my options. Alternatively, you could envision creating and selling something that is currently a hot and trending item, but if it is something you don't believe in, it'll likely be difficult to sell others on it, too.


What are you passionate about?

Perhaps another good question to ask yourself is "what part of your story led you here?"

Do you love ministry? Do you have a passion for supporting hurting families navigating cancer treatments because you yourself have been down that road with someone you love? Do you see a hole somewhere in your circle of influence that needs to be filled with something exciting you can provide? Or maybe your passion isn't about something that deep -- perhaps you're passionate about your affinity for cats or grammar or classic movies! Whatever it is, incorporating what you love into what you sell makes perfect sense. Even if your Etsy shop is just created on a whim, make sure you enjoy what you're offering, because you're the shop owner, and you get to decide!


For me, it was a deep love for ministry and design that led me to open my Etsy shop. My husband and I had been working in full-time youth ministry for over a decade when my father was diagnosed with a terminal illness that took his life one year later. It was during my time of grief and early motherhood that our family needed to take a step back from the hectic, jam-packed lifestyle of youth ministry as my husband transitioned into a pulpit ministry role, and I found myself feeling a little lost. It was about that time that a dear friend suggested that I take several of the graphic designs I'd created for our youth ministry events over the years and make them available for others via Etsy. The notion that complete strangers on the internet would ever find any interest in my faith-based digital artwork had never once entered my mind. Boy, was my mind blown when the surprising answer turned out to be "YES!" Ministry was still my heart, and now I had the chance to steal a few quiet moments midday while my babies napped to design encouraging reminders that my own soul needed to hear.


What are you good at?

Artistry takes time to be learned, and it's likely that your unique story and experiences (along with potentially a little God-given talent) have shaped your abilities in big ways over the years. Perhaps you have a grandmother to taught you to knit as a child, or maybe you have a history of volunteering with organizations that required you to learn new creative skills along the way. Whatever your story may be, more than likely you have learned some skills that led you to consider creating something that you're good at making. You don't have to be a master craftsman, but a little skill, a good dose of determination, and a willingness to learn are critical to the success of an Etsy shop.


What kind of products do you think people would be interested in buying?

This question takes a little bit of introspection as well as some research. It's 100% fun and even encouraged to sell something unique, but to be successful, you need to make sure that your product or service has the ability to appeal to a large enough body of shoppers. Ask yourself what problems your product or service would solve, and who would be most likely to benefit from what you have to offer (this will become your target audience--see more on that below). One fun way to research and get inspiration is to check out Etsy's ever-evolving gift guide here. Combine your research with your personal passion to brainstorm products that will really sell! Don't be afraid to ask friends and family their honest opinions about the products you'd like to offer. Not only can they be a huge asset as you work through your creative thought process, you may quickly learn who is the perfect target audience for your product or service! Which brings us to the next important question to ask yourself...


Who is your target audience and how would you engage them?

Who is the most likely demographic to be drawn to your product or service? Does your product's primary purpose span a large demographic or a smaller niche group? Early on, I personally found that it was my friends that fit into my target audience who really were able to help point me in a solid direction when I felt conflicted about a new item I considered listing or a new type of offering to add to my store. They became a "focus group" of sorts and continue to be that for me even today. I learned that sometimes as a designer, it's easy to get lost in the amount of passion and energy that I've poured into something I've created and I occasionally forget to consider that my focus group doesn't generally get to see my creative process in its entirety, so if they don't get my products, I don't need to take it personally, but rather consider it constructive criticism. Relying solely on your own creative bias isn't usually the best way to choose your direction, so be sure to pass along your ideas to some trusted confidants!


Once you've narrowed down your options and chosen your niche, you can start to focus your marketing efforts and create products that appeal to your target audience.


2. Do your research.

Before you start listing your products, take some time to research the Etsy marketplace. See what other sellers are doing in your niche, and what kind of products are selling well. This will help you set realistic expectations and make sure you're on the right track. Searching outside Etsy's marketplace at other online and local vendors for comparable items is usually helpful too, but remember that your items listed online will essentially "sit on the same shelf" as your Etsy competitors' comparable listings, so at-a-glance price comparison will be important. Can't find anyone else on Etsy's marketplace selling what you can offer? That can be a great asset, as it means you won't have to worry about too much competition - BUT - it can also sometimes mean there just isn't a readily available market for your listing...yet. It's important to honestly consider which is the more likely scenario before you invest too much in your plan.

It's also important to do some local research to determine what taxes and fees will pertain to your business based on your geographic location. One of the coolest parts of working with Etsy is that you have the option to allow Etsy to collect and remit state taxes on your behalf, but you'll want to be sure that you're adhering to tax and business laws within your local jurisdiction.


3. Create high-quality listings.

Your product listings are essentially your shop's storefront in the digital world, so it's important to make sure they're well-written, informative, and put their best foot forward.

  • Use high-quality photos. Your photos are the first thing potential customers will see, so make sure they're clear, well-lit, and show off your products in the best possible light. Alternatively, websites such as Canva.com or CreativeMarket.com offer great options for creating mock-up images for a myriad of items that range from t-shirts, tote bags, wall decor, coffee mugs, and everything in between! There are even hundreds of Etsy sellers with shops in Etsy's marketplace that offer quality mock-up images for purchase that can elevate your listings with minimal headache. If you're even the teensiest bit digitally savvy with software like Photoshop or apps like Canva, you will likely discover that mock-ups can save a lot of headache! That being said, make sure that your mock-up images *correctly* depict your true end product as to not unintentionally mislead your buyers.

  • Write clear, detailed, and concise product descriptions. Your product descriptions should be informative and easy to read. Be sure to include all of the important details, such as the materials used, the dimensions, and any care instructions if applicable.

  • Use keywords in your product titles and descriptions. This will help your products show up in search results. Etsy encourages sellers to include up to thirteen "tags", which are keywords that you believe customers are likely to search for, and you will want to be sure to use every opportunity to include applicable tags to boost your "find-ability". If you're new to SEO (Search Engine Optimization), you can also learn a lot about how to improve your shop's likelihood of being discovered by utilizing third-party apps such as Marmalead.


4. Set competitive prices, but consider the fees.

This one is a bit tricky, and I will note here that recent inflation has increased prices on practically everything in recent months, so keep in mind that your prices may have to adjust over time as the market shifts and you learn what works for you. You want to make sure you're pricing your products competitively, but you also want to make sure you're making a profit. Do some research to see what other sellers are charging for similar products, and be prepared to adjust your prices accordingly.

You'll also need to be sure to keep your shipping costs and Etsy fees in mind as you consider your pricing strategy. At the time of writing this post, Etsy's fees include the following:

  • $0.20 listing fee per item

You'll incur this fee every time you list an item to your Etsy page, including auto-renew fees if you set your listing up to renew every time an order is placed. Each listing expires after 4 months.

  • 6.5% transaction fee per item sold

This fee applies to the listing price as well as the shipping price you determine for your listing.


  • *12% or 15% Offsite Advertising fees (*Optional for sellers who make less than $10,000 per year)

This fee only applies to shops that opt in to Etsy's Offsite Advertising Plan -OR- shops that exceed $10,000 in sales within a year.

This particular fee is one that is a little less straightforward than the others listed above. I'll break it down for you here: Etsy now offers the option to advertise items in your shop at other websites and you only have to pay an advertisement fee if someone makes a purchase via that ad. If you opt-in to Etsy's Offisite Advertising Plan, you only pay the 12% or 15% fee on the listing that you sell when someone clicks on the ad that brings them to your shop, BUT it doesn't necessarily mean it's the item that Etsy advertised, and the seller doesn't have control over which items Etsy advertises. You must keep in mind that if someone clicks an ad for one of your listings that usually sells for $5 but within 30 days of clicking that ad they ultimately purchase a different item in your shop that sells for $25, you will pay the fee based on the higher-priced item that was actually purchased. You can learn more about Etsy's offsite ad fees here.


  • Optional Etsy Onsite Ad fees

Another Etsy advertising option is Etsy's onsite ads in which Etsy advertises listings you specify on Etsy's app and marketplace. Fees for onsite ads will vary. You can learn more about Etsy's onsite ad fees here.


For more information on Etsy's additional fees and currency conversion check out Etsy's Help Center here.


5. Promote your shop.

Once you've listed your products, it's time to start promoting your shop. Share your products on social media and engage with your followers. This is a great way to promote your shop and connect with potential customers. Share your listings on social media, and consider the use of Etsy's marketing tools to reach a wider audience. I personally found a benefit in creating a Lissa Sue Designs Focus Group Facebook group in which I uploaded links to new listings and also asked for feedback on various items I considered offering. It has continued to be a great sounding board as well as the perfect place to offer promo codes to loyal customers and let them be the first to hear about pre-orders and special sales. I also created handles for my business with a page on Facebook and a profile on Instagram and on Pinterest. Depending on your business, you may find that other social media outlets benefit your shop and your target audience more effectively. Whichever outlet(s) you choose, just be sure not to miss the opportunity for FREE promotion that each outlet provides. It takes a little time and effort, but it's usually well worth the investment!


6. Provide excellent customer service.

This is hands down one of the most important aspects of running an Etsy shop. Take to heart the old adage "The customer is ALWAYS right" and do your best to go the extra mile to make sure your customers are happy. This means that you as the seller...

  • Deliver your customer's purchase in great condition within the specified timeframe you selected on your listing's shipping information.

  • Respond to customer inquiries promptly, respectfully, and with kindness.

  • Are willing to go above and beyond to make things right when problems arise (and they occasionally will). It may not have been your fault that a customer's order arrived in an unfavorable condition, but it becomes your responsibility to find a way to make things right, even if it costs you. I've learned that losing a few dollars occasionally when appeasing a dissatisfied customer is more than worth it for the good business practice lessons learned and the positive reviews that often follow. The way I have come to see it, I've determined that "Happy customers make repeat customers" is a good business lesson - "Treat people the way you want to be treated" is a good life lesson.

So there you have it! Starting an Etsy shop can be a lot of work, but it can also be very rewarding. If you're passionate about your products and you're willing to put in the effort, you can be successful on Etsy.


I'd love to hear from you! Have you considered opening a shop on Etsy or elsewhere? I'll be rooting for you as you consider your options!





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