Did you know that Etsy has an extremely local customer base looking for exceptional customer service and personalized goods?
Etsy is known as a platform for small business owners. You might find the Etsy marketplace ideal if you have handmade stuff to sell. We came up with 23 of the best Etsy shop ideas to attract Etsy shoppers.
We’ll introduce you to Etsy and discuss the profitability of Etsy stores. Then we’ll discuss profitable Etsy shop ideas and answer some frequently asked questions.
You won’t believe how much some of these unique etsy shop ideas make! You can either keep reading straight through or click on any of the links below to jump to the section that interests you:
What is Etsy?
Etsy is an online marketplace where 7 million shop owners sell handmade, vintage, and personalized products to Etsy’s 92 million buyers. The primary Etsy listing categories are:
- Art & Collectibles
- Craft Supplies
- Clothing & Shoes
- Home & Living
- Jewelry & Accessories
- Seasonal Offerings
- Toys & Entertainment
- Wedding & Party
Is it still profitable to sell on Etsy?
Yes, it can be highly profitable to sell on Etsy. According to Etsy’s 2023 annual report, the amount due to sellers increased by 13.4%, which indicates that sellers are making more money than in previous years. The key is to differentiate yourself from the competition by having unique Etsy shop ideas.
Vlad Kuksenko discusses what it takes to be an Etsy seller in his UpFlip Academy course, The Etsy Blueprint. He explains that Etsy is focused on keeping eCommerce human. That means the items for sale are often personalized or handmade.
Great Etsy Shop Ideas
Idea #1. Personalized Gifts
According to Etsy people search for birthday gifts every second, anniversary gifts every two seconds, and baby gifts every three seconds.
Some of the best Etsy shop ideas include personalized gift ideas. Etsy shoppers love personalized items because they seem more thoughtful to the recipient. Consider creating personalized mugs or other customized items to help people celebrate special occasions.
• Average annual revenue: $458K
• Average profit margin: 8.4%
• Average startup cost: $30K
• Average time to launch: 4 months
• Projected market growth: 2.6%
• Market size: $25.2B
The average gift store makes more than $458K per year with an 8.4% profit margin.
Check out our interview with Vlad to learn how he became one of Etsy’s top sellers. Vlad’s Etsy shop focuses on selling personalized dog collars and makes over $600K each year.
Idea #2. Wall Art
According to Etsy, wall art makes the perfect Etsy shop idea. There’s a sale every two seconds.
• Average annual revenue: $1.3M
• Average profit margin: 3.80%
• Average startup cost: $150K
• Average time to launch: 12 months
• Projected market growth: 3.4%
• Market size: $69.5B
This Etsy shop idea would be considered part of the home decor sector. The average home decor shop makes $1.3M per year with a 3.8% profit margin.
Idea #3. Handmade and Custom Furniture
Creating unique furniture is another of the best Etsy shop ideas.
• Average annual revenue: $2.3M
• Average profit margin: 3.7%
• Average startup cost: $275K
• Average time to launch: 15 months
• Projected market growth: 2.2%
• Market size: $147B
Furniture stores average $2.3M in sales with a 3.7% profit margin. Find out how Blacktail Studio makes $15K monthly with woodworking in our interview below:
Idea #4. Vintage Clothing
Many Etsy shop ideas involve vintage items. Clothing is considered vintage when it’s at least 20 years old.
• Average annual revenue: $493K
• Average profit margin: 6.7%
• Average startup cost: $55K
• Average time to launch: 9 months
• Projected market growth: 1.5%
• Market size: $14.2B
Selling vintage clothing has an average profit margin of 6.7%, and it’s part of a $14.2 billion industry.
Katie Echeverry started Unique Vintage with just $2K and it’s now one of the fastest-growing privately held companies in the United States. Find out how she started it below:
Idea #5. Pet Store
People love spending money on their pets. The average pet store makes $1.6 million per year with a 4% profit margin. While you’re brainstorming pet businesses, remember that your Etsy shop idea should still focus on something personalized or handmade.
• Average annual revenue: $1.6M
• Average profit margin: 4%
• Average startup cost: $150K
• Average time to launch: 15 months
• Projected market growth: 1.7%
• Market size: $28.8B
Find out more about Vlad’s company, TagPup, in our interview below:
If your Etsy store sells pet food or treats, make sure you’re aware of government regulations and shipping policies. You probably won’t do well if you ship food that spoils by the time it gets to your customers.
Idea #6. Beauty Supply Store
Etsy users are always looking for new ways to beautify their homes as well as themselves.
• Average annual revenue: $427K
• Annual profit margin: Unknown
• Average startup cost: $110K
• Average time to launch: 12 months
• Projected market growth: 3.7%
• Market size: $36.5B
Selling beauty products on Etsy isn’t the easiest idea to get into. Etsy requires your beauty products to comply with government regulations, which may be a challenge for some people.
Idea #7. Handmade Jewelry
Handmade jewelry is one of the best Etsy shop ideas. Etsy businesses sell everything from hemp necklaces and jewelry-making kits to custom engagement and wedding rings.
• Average annual revenue: $1M
• Average profit margin: 4.3%
• Average startup cost: $60K
• Average time to launch: 9 months
• Projected market growth: 2.8%
• Market size: $72.6B
I will warn you that many of the people who start selling on Etsy aren’t completely honest with their jewelry pricing. When we were shopping for rings, we found Etsy ideas were often mislabeled or downright fraudulent when listing diamond and gold style.
Just being honest can be a huge advantage because the pricing is phenomenal compared to a brick-and-mortar store.
Idea #8. Handmade Soap
Selling handmade soap, body wash, and other hygiene products is a great Etsy shop idea.
• Average annual revenue: $9.6M
• Average profit margin: 5.4%
• Average startup cost: $55K
• Average time to launch: 15 months
• Projected market growth: 2.1%
• Market size: $47.4B
Given that soap companies make an average of $9.6 million per year, you could make some real money if your Etsy store idea takes off.
Idea #9. Handmade Candles
New Etsy sellers might consider making candles and selling them on Etsy.
• Average annual revenue: $1.6M
• Average profit margin: 10.8%
• Average startup cost: $1.1K
• Average time to launch: 2 months
• Projected market growth: 1.7%
• Market size: $2.9B
Jen and Jocelyn started RxLA as a side gig. Today, they’re making $500K per year. Watch our interview with the owners to learn more:
Idea #10. Fabric Shop
Maybe you’re not the most creative small business owner. That doesn’t mean there aren’t Etsy customers for you. Businesses on Etsy need suppliers, and they often look on Etsy too.
Selling craft supplies like fabric can be an extremely profitable online business.
• Average annual revenue: $158K
• Average profit margin: 4%
• Average startup cost: $62.5K
• Average time to launch: 4 months
• Projected market growth: 0.40%
• Market size: $4.6B
Keep reading for more easy things to sell on Etsy.
Idea #11. Party Supplies
Party favors are a good business idea for easy things to make and sell on Etsy. As we mentioned earlier, there’s an Etsy search involving the word birthday every second.
• Average annual revenue: $779K
• Average profit margin: 8.3%
• Average startup cost: $30K
• Average time to launch: 3 months
• Projected market growth: 1%
• Market size: $7.9B
Help people celebrate their special occasions with your new Etsy shop.
Idea #12. Bridal Boutique
It shouldn’t surprise you that the wedding industry has a major presence on Etsy.
• Average annual revenue: $4.7M
• Average profit margin: 6.6%
• Average startup cost: $150K
• Average time to launch: 9 months
• Projected market growth: 0.30%
• Market size: $26B
When my wife and I planned our wedding, she spent hundreds of hours reviewing Etsy sellers. We got everything from our rings to signage to decorations from Etsy shops.
Idea #13. Pallet Supplier
As far as Etsy shop ideas go, this one may sound a little odd, but selling wooden pallets is a great Etsy shop idea.
• Average annual revenue: Unknown
• Average profit margin: Unknown
• Average startup cost: $55K
• Average time to launch: 9 months
• Projected market growth: Unknown
• Market size: Unknown
You can sell the pallets as they are or do a little work to prepare them so that other Etsy buyers can start creating crafts right away.
Idea #14. Crochet Supplies
Crochet hooks, yarn, buttons, and crochet kits all sell on Etsy fairly well. You might consider this Etsy shop idea if you want to sell craft supplies.
• Average annual revenue: Unknown
• Average profit margin: Unknown
• Average startup cost: Unknown
• Average time to launch: Unknown
• Projected market growth: 5.2%
• Market size: $50.9B
Crochet supplies fall under the umbrella of arts and crafts. Since this is only a small part of such a large market, annual revenue and profit will vary widely.
Idea #15. Baby Clothes
Parents love getting customized baby clothes for the newest edition to their family. That makes cute baby clothing one of the easiest things to sell on Etsy.
• Average annual revenue: $179K
• Average profit margin: 5%
• Average startup cost: $100K
• Average time to launch: 8 months
• Projected market growth: 0.9%
• Market size: $32B
Baby clothes are part of the larger market for clothing boutiques and apparel.
Idea #16. Digital Goods
While many Etsy niche ideas are centered around handmade crafts or designs with customization features, you can also sell digital goods. This category includes templates, checklists, guides, and watercolor clip art images.
• Average annual revenue: $125K
• Average profit margin: Unknown
• Average startup cost: $6K
• Average time to launch: 2 months
• Projected market growth: 1.9%
• Market size: $16.9B
Just make sure you add some flair in addition to functionality. Etsy customers care about how items look just as much as they care about usefulness. Digital goods are some of the easiest Etsy ideas to sell because they only have to be made once.
Idea #17. Shoe Store
You might consider a new Etsy business that sells handmade or custom shoes.
• Average annual revenue: $4.8M
• Average profit margin: Unknown
• Average startup cost: $350K
• Average time to launch: 9 months
• Projected market growth: 1.8%
• Market size: $62.2B
Custom shoes would make great personalized gifts. You can even offer fun designs for special occasions.
To learn more about this niche, read our blog about how to open a shoe store.
Idea #18. Baby Accessories
Like other clothing, baby accessories are great things to make and sell on Etsy.
• Average annual revenue: $179K
• Average profit margin: 5%
• Average startup cost: $100K
• Average time to launch: 8 months
• Projected market growth: 0.9%
• Market size: $32B
You can sell handmade items or personalize them by letting customers add the baby’s name, birthday, or cute phrases.
Idea #19. Hat Shop
Selling cowboy hats, bandanas, and other head gear can be a profitable Etsy store idea. Find some hats at a good price, buy some materials to bedazzle them, and get started.
• Average annual revenue: $829K
• Average profit margin: 6.7%
• Average startup cost: $150K
• Average time to launch: 4 months
• Projected market growth: 0.6%
• Market size: $1.6B
You might be wondering, “What can I make to sell on Etsy that works on hats?” If so, check out some of these cool hats for inspiration.
Idea #20. Custom T-Shirts
T-shirts are another great idea of things to sell on Etsy. There are tons of print-on-demand companies where you can create your own designs and allow customization. The supplier prints the T-shirts when you receive an order.
• Average annual revenue: $1.1M
• Average profit margin: 3.5%
• Average startup cost: $30K
• Average time to launch: 9 months
• Projected market growth: 2.5%
• Market size: $13B
Just be careful with this business model. As Vlad warned:
Idea #21. Greeting Card Store
Cards are used for birthdays, weddings, holidays, thank you notes, and so much more. There are so many occasions that people need cards for that you’re sure to find demand in this niche.
• Average annual revenue: $11M
• Average profit margin: 1.2%
• Average startup cost: $150K
• Average time to launch: 8 months
• Projected market growth: 1.9%
• Market size: $6.8B
If you love holidays and special occasions, create seasonal items to make it even more fun.
Idea #22. Tote Bags
Have you considered tote bags, backpacks, and other bags while thinking about what to make and sell on Etsy?
• Average annual revenue: $407K
• Average profit margin: 11.4%
• Average startup cost: $150K
• Average time to launch: 7 months
• Projected market growth: 2%
• Market size: $28.5B
Start your own business and make handmade items that people use to carry their stuff. Keep reading for more easy Etsy shop ideas.
Idea #23. Fashion Accessories
Creating cute fashion accessories for your own Etsy store is a great way to use your creative juices and make a living.
• Average annual revenue: $179K
• Average profit margin: 5%
• Average startup cost: $100K
• Average time to launch: 8 months
• Projected market growth: 0.9%
• Market size: $32B
Go check out ideas by taking a look at best-selling accessories. Don’t be afraid to experiment!
Learn to Create Your Own Etsy Shop
You can learn how to create a top-selling Etsy shop in the UpFlip Academy. Vlad teaches how to open an Etsy store with two examples of stores in different markets.
You’ll also have the chance to learn about different sectors and business models. To learn more about print on demand, sign up for Ryan Hogue’s course. Ryan’s print-on-demand business now earns him almost $50K per month.
Etsy Shop Ideas FAQ
How do I choose what to sell on Etsy?
When choosing an Etsy shop idea, you should consider four factors:
- Will you enjoy doing it?: Starting an Etsy shop is hard work. If the shop content doesn’t interest you, you might not want to do it. Then again, Vlad started TagPup even though he doesn’t have a dog.
- Are there other Etsy sellers doing it?: It’s harder to create a popular Etsy shop idea than it is to satisfy an existing need. If nobody is doing it, there’s probably no money in it.
- How much search volume is there?: The more people search for the products your Etsy business is selling, the more you can make.
- What ancillary products could your Etsy store sell?: The best Etsy shop ideas give you the chance to expand your inventory. Make sure to choose a versatile Etsy shop idea that’s scalable.
You’d be surprised by some of the Etsy shop ideas that are highly successful. For instance, the Etsy store Carolina Leg Co sells furniture legs. They’ve sold over 17,000 items with prices between $50 and $1,100.
How to cross list products for maximum reach
Popular Etsy shop ideas don’t have to limit themselves to being exclusively an Etsy business. When you start your own Etsy shop, you can also sell on other marketplaces including:
- Your own website
- Social media (including Pinterest and Reddit)
- Amazon
- eBay
- Poshmark
- AliExpress
- Temu.com
- Walmart.com
- Zazzle.com
- Wayfair.com
- Target.com
- Mercari.com
I was surprised to find out that Pinterest, YouTube, and Reddit make up 72.7% of the social media traffic to Etsy. Make sure to include them in your marketing mix.
How to cross list to other marketplaces
When an Etsy store wants to cross-list, there are different ways to do it. Some software will use an application programming interface, while others will use spreadsheets. Here’s the basic process:
- Research the new marketplace to understand pricing and policies.
- Collect the data for the products you want to cross list.
- Make sure you don’t have to change pricing for any of the products.
- Add items to the new marketplace.
- Verify the information is correct and formatted properly.
- Publish to the new store.
Check out this blog on the best cross listing software to consider.
How can I research trending Etsy shop ideas?
Some of the best ways to find trending Etsy shop ideas include:
- Doing a Google search
- Using Etsy’s “Trending Now” section
- Monitoring Google Trends
- Using eRank and Everbee
What is the easiest thing to sell on Etsy?
Digital downloads are the easiest Etsy shop idea because they don’t require any inventory. Just create the templates, workbooks, graphics, or printables.
After that, all you need to do is market them. Your profit margin will increase with each sale on your Etsy shop.
Are there products I can’t sell in Etsy shops?
Etsy has rules and policies about what you can sell on their platform. They prohibit the sale of these items:
- Alcohol
- Illegal drugs
- Illegal items
- Pharmaceutical drugs
- Stolen products
- Tobacco
- Products that may be subject to complicated legal regulations
Read through Etsy’s policies to learn more.
How should I price products in my Etsy shop?
Calculating the price of products you sell in an Etsy shop includes:
- Materials and labor: Include your costs for craft supplies, time, shipping, and marketing to establish the price for your Etsy shop.
- Etsy fees: Add the fees for listing items and processing transactions. These can be up to 25% for Etsy shops according to the Etsy fee page.
- Competitor pricing: While you’re considering Etsy shop ideas, remember to analyze the market. Unless there’s something remarkably better than the existing products, you want to stay in the middle to high range.
- Profit margin: Figure out how much you want to earn for each sale. Given the Etsy fees, you may want to target between two and three times your costs.
Did you find the perfect Etsy shop idea?
Now that you’ve considered some Etsy small business ideas, it’s time to decide what you want to do with your online business. You’ll want to choose an Etsy shop name, do some market research, and start making things to sell.
Etsy buyers are looking for all kinds of unique items. If you’re ready to make your Etsy store ideas a reality, check out our blog about how to start selling on Etsy.
Which idea sounds the most appealing to you? Let us know in the comments below.
