How to Make Money on Etsy
If you’re looking to turn your innovative ideas into profit, Etsy might become your perfect start point. The website had an estimated number of 33.4 million active buyers and more than $3 billion in gross merchandise sales in 2017. Learning how to make money on Etsy is easy, yet passion and creativity aren’t enough to grow a successful business and achieve success on the online marketplace. If you’re looking to find the way to earn pretty money on Etsy, here are a few important things to consider in order to reach your goal.
1. Ensure your idea has the future and is profitable
The first thing to learn how to make money on Etsy is it’s vital to sell a product or service that has the future and you’re interested in. Take a minute to think if you would buy this product or service. Ask your friends for their opinion. You can also do a proper market research with the help of Etsy’s search bar.
Make sure you’re specific in your search and click through to various shop pages to check out how many sales were made since that shop opened. If the product isn’t that popular and people aren’t interested in it, then it’s better to either skip this idea or come up with the way to make it profitable.
If your idea turns out unique or popular, find out the cost of producing every item. For example, you want to sell your pictures or some crafts, find out the cost of materials and also consider the cost of labor you put into making each item. Calculating the cost of each item will help you know at least an approximate price of your product and the amount you can make and sell in a week or month.
Once you find out the popularity and the cost of your potential product, pay attention to the competition. You can look for similar products on Etsy or any other marketplace like local stores or even Amazon.
If you have no idea but still want to make cash on Etsy, check out what others sell. There’s nothing wrong in looking for inspiration in this way. Who knows, maybe you will come up with something more creative?! Here are some of the bestselling categories on Etsy:
- Enamel pins
- Greetings cards
- Knitting patterns
- Art prints
- Personalized t-shirts
- Glasses and bottles
2. Come up with logo and name for your Etsy store
Even though a name doesn’t have too much impact on the sale rat, it’s still important to come up with some eye-catching name of your Etsy store. Remember that you can rename it anytime, so feel free to experiment and be as creative as possible. Consider something snappy and simple and avoid complicated or hard-to-read names. Stay away from the mixed words like #garycoolstrore.
A logo isn’t a must, yet it will make your online store more trustworthy as people doesn’t trust many online stores. Avoid duplicating name and logo as it’s a first sign that customers shouldn’t trust you. Once you come up with name and logo, you can create a custom logo with the help of Canva, which is easier than Photoshop and is free. In case you have some cash for ordering a logo, be sure to do it.
3. Consider the fees and prices
The next part is important with how to make money on Etsy. Some online selling websites have no fees, but they’re not as popular as Etsy or Amazon, for instance. Selling on Etsy isn’t totally free, as each listing can cost $0.20, depending on your currency. If you are short on money, 3 to 6 listings will be enough to start your online business.
There are other fees to consider as well. There’s also a 3.5% fee for everything sold on Etsy. Since it excludes the cost of shipping, you’ll need to think of those costs too – especially if you’re going to sell the physical products. Plus, the website’s payment processing system, Etsy Payments, will cost you an extra 3% of the total sale price and the fee of $0.25.
Apart from fees, think about the price of your items or services. Consider any upfront costs, fees, deals, and shipping (if needed) and then set a realistic price. Make sure you don’t overcharge, though. Don’t forget about competition; there’ll definitely be someone who might undercut you and allure your customers. If you’re going to sell special and hard-to-find stuff, then it’s okay to set a higher price.
4. Take great images of your products
Have you ever searched for something online and saw the blurred or low-quality pictures of the items sold online? Would you buy such an item? You’re more likely to doubt, so your potential customers do. A clear photo makes a huge difference in how successful your online business will be.
If you created or ordered a test product or you’re doing some crafts, ensure you take great images. Check out the way other online stores with the similar items are doing their marketing. Decide on the style you think will be the most effective and productive.
The more professional your camera is and the more professional your product images are, the higher the chance of your products being sold. Even if you create the most unique and beautiful piece of vintage jewelry, you’ll have trouble selling it if the images of your items are horrible.
You don’t need to invest in a million-dollar camera or hire a professional photographer, but try to take the best pictures you can with your camera. It’s all about composition and lighting, so do your research and experiment with various pictures before posting them.
5. How to start Etsy store right now
As soon as you identify what you want to sell, its price, and other selling details, it’s time to finally create your Etsy store. You don’t need to have any special skills as the whole process is quite simple. Just sign up, choose the â€œSell on Etsy’s category, and fill in the details, including your store name, billing information, and listings.
Once you’ll handle the registration issues, consider finding someone on forums who has or had a business on Etsy or joining a team to help you find out the basics of Etsy success, such as low-quality pictures of your products, writing the online store product descriptions, name and logo, and a lack of promotion and ads. Then, focus on one of the hardest parts of growing a selling business online – marketing the products.
The way you market your products greatly depends on your budget, but why not start with some free ways? For instance, create an Instagram account or Facebook page for your store. Oftentimes, it’s the only best way to start. Find similar pages and accounts and check the relevant ideas and hashtags for your posts. It’s important to post something interesting and useful regularly and you can also offer your products. Ensure you interact with your followers and answer any comment â€“ be it positive or negative one.
If you can use WordPress or any other websites that allow blogging, you can start a blog related to your products or services. For instance, if you’re going to sell a vintage jewelry, you can write blog posts about how to choose or take care of a vintage jewelry, etc.
You can also invest some cash in marketing if you can afford it. There are the paid methods like Google’s Shopping ads tool or Etsy’s Promoted Listings product to help you promote your items and find new buyers.
As your online store thrives, set specific sales goals, think of the way to improve your service/product and look for a business partner. Moreover, opt for Etsy’s web analytics tool to boost your sales. It will help you find out whether your marketing tactics work or you need to change your tactics.
6. If you fail, don’t give up
That’s probably the most important tip to keep in mind when starting your business on Etsy. You never know how people will perceive your product, especially if you have no money for marketing. If your idea fails, try another one.
Let’s say, if you were selling handmade crafts and people didn’t buy it, try an absolutely different product. Try selling digital products, which are astonishingly popular these days, but don’t forget about a super high level of competition. The perk of selling digital products is that you don’t have to take care of and pay for shipping.
If you donâ€™t feel like changing your product, consider upgrading it. You can jazz up your vintage jewelry with a modern twist or start making themed jewelry for weddings, parties, and office life. The sky is the only limit here. Just don’t give up, that’s important when you want to learn how to make money on Etsy.
How to Make Money on Etsy Final Thoughts
So that is how to making money on Etsy is possible if you’re truly serious about it. Some initial investment might be needed, but it’s also possible to start your business from scratch without a dollar in your wallet. In this case, you must be very creative and clever. Get ready to work hard and don’t expect the results overnight. The most successful entrepreneurs on Etsy had been promoting their products for years before they experienced an ultimate success.