How to Start an Etsy Shop (and Make $60K/Month)

  • by Brandon Boushy
  • 4 months ago
  • Blog
  • 0
Man holds a sowing machine
Cash is not king. Creativity is.

Have you ever wanted to start your own Etsy shop? Vlad Kuksenko started Tag Pup and, in 18 months, became the top pet product seller. You can do it too!

We sat down with Vlad and learned how he loved art but earning a living as an artist wasn’t an option until graphic design became a major field. Today, he creates personalized dog collars, leashes, and bandanas that fill the number one pet products shop on Etsy.

We’ll share the tips and strategies he used to become number one in his category, walk you through setting up an Etsy listing, answer some of the most common questions about Etsy, and share resources that will make your path to a successful business easier.

Get ready to become your own shop manager.

What is an Etsy shop?

An Etsy shop is an online store on Etsy’s marketplace where a shop owner can sell products to Etsy’s 82 million buyers looking for handmade and vintage products. Etsy listings fall into eight major categories:

  1. Jewelry & Accessories
  2. Clothing & Shoes
  3. Home & Living
  4. Wedding & Party
  5. Toys & Entertainment
  6. Art & Collectibles
  7. Craft Supplies
  8. Seasonal Offerings (Valentines Day, Veterans Day/Memorial Day/ Labor Day, 4th of July, Halloween, Thanksgiving, Christmas)

Keep reading for things to sell on Etsy.

What to sell on Etsy?

Pretty dog collars on display

If you’re wondering what sells best on Etsy, check out the Etsy best sellers list. The best performing segments according to Etsy’s 3rd Quarter 2021 Earnings Presentation are: 

  1. Homewares & Home Furnishings: $4.2 Billion 
  2. Jewelry and Personal Accessories: $2.1 Billion 
  3. Craft Supplies: $1.4 Billion
  4. Apparel: $1.4 Billion
  5. Paper & Party Supplies: $600 million
  6. Beauty & Personal Care: $300 million

Many of these are vintage items, handmade goods, or personalized items that do particularly well with Etsy shoppers. Vintage items are classified as over 20 years old, while handmade means that each is unique.

Vlad spent a lot of time talking about the decision-making process of what to sell in an Etsy shop. He explained:

Etsy is a want-based business. If you can personalize it, you can sell it.

He went on to explain:

You need a keyword to be able to sell it. If there is no keyword people are searching, you can’t sell it.

He suggests using eRank to help with your search engine optimization (SEO). eRank has various tools to help small business owners come up with product ideas, optimize their listings, and track their shop page against the best Etsy shops.

Vlad described his product development process as:

  1. Research what has a high search volume using eRank.
  2. Input the term you are targeting into the Etsy search bar.
  3. Look for products with at least one review per day because that means they are selling at least 5-10 per day.
  4. Review the listing to establish:
    1. What is frequently favorited?
    2. What do the favorited items have in common?
  5. Design based on the search.

Vlad gave two additional pieces of advice that small business owners should follow when wondering how to start an Etsy shop:

  • “You need multiple products that work well together. Carrying a single product doesn’t do as well.”
  • Be aware of seasonality. For instance, items like planners, weight loss tools, and wall hangings tend to do better at the beginning of the year.

Now that you understand how to decide what to sell on Etsy, you’ll want to know the differences between Etsy and other major players in the industry. Let’s take a look.

Is Etsy better than the competitors?

Etsy’s main competitors are Shopify, Amazon, and eBay. Each has different pros and cons, but Etsy is one of the best platforms for its niche. If your ideas align with products Etsy customers love, it can be a great platform, especially for low volume. 

Let’s look at how opening an Etsy shop compares to each of the competitors.

Which is better: Etsy or Shopify?

Shopify is the more commonly used online platform to start selling products, but it is more expensive than Etsy upfront. Ultimately, I would choose to start selling on Etsy if you sell vintage goods, prefer lower upfront costs (but higher as you grow), or don’t enjoy marketing. 

Read Style Factory’s comparison to decide which would work best for you. Watch our interview with Jazmin if you want to learn more about Shopify.

Once you get more comfortable with the sales and marketing process, you can integrate Etsy & Shopify to benefit from Etsy’s customer onboarding and Shopify’s advanced features. Keep reading to establish whether opening an Etsy or eBay store makes more sense.

Which is better: Etsy or eBay?

A small business can benefit from sales on either Etsy or eBay, and what you choose ultimately comes down to two considerations:

  1. Are you trying to sell vintage goods or mass-produced products?
  2. Are you a creative or marketer?

If you want a simplified business, go with Etsy. Go with eBay if you want to dig deep in marketing and sourcing. 

Which is better: Etsy or Amazon?

Etsy is a niche market, while Amazon sells everything. Nembol compares Etsy, Amazon, and eBay to help you decide which works best for you. Still, the differences are ultimately similar to opening an Etsy shop or an eBay store.

We’re slightly biased because we are a Shopify Partner, but honestly, you should create a Shopify store and integrate it with Etsy, Amazon, Facebook, Instagram, eBay, and more. 

Who are the major players on Etsy?

Etsy doesn’t share each company’s revenue, but they share the number of transactions for each Etsy shop and the number of followers. Some of the most prominent players are:

  • Planner Kate: An organization shop with 1.8 million transactions and 60K followers
  • Bead Boat: Craft supply shop with 1.4 million transactions and 57K followers
  • ModParty: A bridal shop with over 1.22 million transactions and 113K followers
  • Peggy Sue Leather: Leather supply shop with almost 790K transactions and 25K followers
  • See more top sellers on Practical eCommerce’s blog 20 Top selling shops on Etsy.

Etsy offers plenty of opportunities for shop owners to make a great living. Here are a few business owners that we’ve interviewed who run businesses similar to Etsy sellers:

Keep reading for the industry outlook.

What is the industry outlook?

According to eMarketer, US eCommerce sales are expected to grow by 10-15% per year and total over $1.6 Trillion by 2025. Most of the earnings will be from top players like Amazon and Walmart.

Etsy had an industry-leading 107% increase in Gross Merchandise Sales, which means if you meet the requirements to start an Etsy shop, it is the place to be. 

Now that you know where the industry is going, keep reading to learn how to start an Etsy shop.

How to start an Etsy shop

To start an Etsy shop, you should:

  1. Write a functional business plan for your Etsy shop.
  2. Establish how much it costs to start an Etsy shop.
  3. Provide the funding for your Etsy shop.
  4. Purchase inventory, materials, and tools for the Etsy shop.
  5. Create products to sell in your Etsy store.
    1. Get an Etsy account.
    2. Answer questions about shop preferences
    3. Name the Etsy shop
    4. Create Etsy Listings
  6. Follow government regulations.
  7. Sell on Etsy using marketing tools.

Step 1. Do you need a business plan for an Etsy shop?

You don’t need a business plan for an Etsy shop, but it will be much easier to start an Etsy shop if you start by writing a business plan. A business plan is something we recommend for every new business.

Your Etsy business plan should include:

  1. Your business name, idea, and goals
  2. Industry and competitor research
    1. Market research
    2. Size of market
    3. Gaps in market
    4. Whether Etsy is where to reach your market
  3. Financial estimates and budgeting
    1. Are there gaps between assets available and estimates? How will you solve them?
  4. How you’ll do marketing
  5. The path to achieving your set goals

Check out our interview with Mike Andes on how to write a business plan.

We’ve gathered some templates and resources for you to make creating a business plan for an Etsy shop easier. Check them out below.

Etsy Business Plan Templates

We’ve gathered templates to help you develop your business plan. Here are some of the best:

Etsy Business Plan Resources

It gets better! Here are some free and low-cost educational resources on writing business plans for an Etsy shop:

Step 2. How much does it cost to start an Etsy shop?

Starting an Etsy shop does not cost anything because an account is free. There are other costs to start a new shop that you should take into consideration, including:

  1. Etsy listing fee: $0.20 per item listed, charged when sold or after three months. They suggest at least ten products to start.
  2. Material costs for your products: $100-$10,000. Material costs will vary, but for the most commonly sold products, I would expect no more than $5 per product because $15 products perform well.
  3. Government business license fees: These are usually under $1,000.
  4. Etsy Plus: This includes $10 per month for 15 listings, $5 ad credits, and discounts on branding features for the Etsy seller.
  5. Marketing budget: An average might include $700 a month if you are trying to make $100K revenue, based on SBA 8% suggestion.

These are the primary costs associated with creating a successful business on Etsy.

How much does Etsy take per sale?

An image showing the percentage of how much Etsy marketplace takes per sale

Etsy will charge the following amounts on each sale:

  • $.20 item listed transaction fee, but they will also charge a relisting fee if it does not sell within three months.
  • Transaction fee of 5% of the sales price and the shipping
  • 15% of any purchases made from off-site Etsy Ads. Reduced to 12% after $10,000 in annual sales
  • 3% + $.25 for payment processing (additional for in-person payments)
  • Shipping label fees if utilized (pricing varies)

That means you’ll want to assume that 23% + $.45 will be taken from every purchase.

There are other Etsy Seller fees based on the location. Find fees for your location on the Etsy payment policy page

Now that you know how Etsy fees work, let’s look at the benefits of Etsy Plus.

How much does Etsy charge for Etsy Plus?

Etsy Plus is $10 per month and provides subscribers with:

  • 15 listing credits 
  • $5 Etsy ad credits
  • Customer restock requests
  • Custom shop banner and layout options
  • Discounts with partner apps

To learn more, check out the Etsy Plus help page. 

How to Start a Business on Etsy with No Money

You can open an Etsy shop without money, but the Etsy platform requires a $.20 per item listing fee that you’ll have to pay when the product sells. If your items are not made-to-order, Etsy shop owners can get started for free.

Now that you know how to start an Etsy shop, let’s look at how to get funding for your Etsy store.

Step 3. How to fund your Etsy business

When considering how to start an Etsy shop, you will need to consider how to fund it. Given the costs to start are limited to the material and equipment costs, Etsy sellers will normally use self-funding. Other common funding paths you can consider:

  • A loan from family or friends
  • Funds from a business partner
  • Government programs

The SBA offers help with financing options and funding programs. Check out this article from The Hartford for more on using personal funds to start a business.

Alternative sources of funding include:

A man drawing on a white sketch pad

ROBS is the most interesting method of starting a business if you have a 401K. You create a C-Corporation under IRS code C, rollover your current 401K to the corporation’s 401K, and buy your company’s shares. That gives you a way of providing your corporation funding through the new 401K. 

I used a similar strategy to start my first business. Check out our hub article on how to fund a business to learn more about business funding.

How much profit can Etsy sellers make?

Vlad didn’t give us an exact number, but based on his sales and the price of his products, it appears he made about $375K a year in sales. He also told us:

Margins are 50-60% if you don’t reinvest in the business, but we tend to reinvest in machinery.

Step 4. Where to buy materials and equipment for an Etsy store

Different materials in a blue container

You can purchase materials from a variety of places. Some of the places to buy when you first start are:

  • A brick-and-mortar store: Joann Fabric and Michaels are two that offer lots of selections for craft businesses.
  • Etsy Craft Supplies: Find craft supplies you know are selling well on Etsy.
  • Amazon: Craft supplies and tools can come directly to your home from the number one online retailer.
  • Alibaba: Get bulk orders from overseas (allow several months for shipping).

If you’re looking for equipment, Amazon and Alibaba might have them, but you can also check places like:

Vlad told us:

You can spend $200 bucks at Joann and customize mugs with vinyl. The materials and equipment costs depend on what you’re making and what machines you need.

He went on to tell us:

Inventory is such a big issue. Sometimes I spend $5,000 on shipping to get $10,000 of product. One of the ways to fix that is to pay half up front and half on delivery.

Get ready for a walkthrough of opening an Etsy shop.

Step 5. How to open an Etsy shop

Website of Etsy marketplace for sellers

Opening an Etsy shop is a reasonably quick process involving four steps:

  • Start an Etsy account and review the seller page.
  • Answer the shop preferences questions.
  • Choose your shop title.
  • How to create a listing

Step 5a. Get an Etsy account, review your seller page

To create an Etsy shop, you’ll need to go to the Etsy official site and create an account. You can use Etsy sign-in through Google or Facebook to make it easy. After you have created an Etsy account, you’ll want to go to Review everything and click “Open your Etsy Shop.”

Step 5b. Answer shop preferences

It will take you to a “shop preferences” page that asks for your shop language, shop country, and shop currency. You can change these with the drop-down menu.

It also asks, “Which of these best describes you?”:

  • Selling is my full-time job.
  • I sell part-time but hope to sell full-time.
  • I sell part-time, and that’s how I like it.
  • Other

All the answers on the shop preferences page have default answers already added. If you wish to change the answers, do so, then click “Save and Continue.”

Step 5c. Name your Etsy shop

In this step, you’ll create a shop name for your new Etsy shop. The shop name needs to meet the following guidelines:

  • Shop Name Length: Include a maximum of 20 characters, only Roman letters, and numbers, no spaces or punctuation.
  • Shop Name Availability: Push “Check availability” to verify if it’s available.
  • Descriptive: Does it describe what you do?
  • Memorable: Is it easy to remember?
  • Available in other places: Is the name available on social media, as a domain name, as a licensed business name, and as a trademark?
    • Use namechk to verify the name is available as a domain and social network.
    • Search “(your location) business license search” for availability in your location.
    • Use for trademark availability.

Click “Save and continue” to proceed to the next page, where you will create listings.

Step 5d. How to create listings for Etsy

Etsy seller dashboard showing how to add a product

On this page, you’ll want to add all your listings. You’ll click the blue box that says “+ Add Listing,” which will take you to the “Add a new listing” page. This page is relatively long, so we’ve broken it into sections to make it easier to follow.

  1. Photos
  2. Videos
  3. Listing Details
  4. Inventory and Pricing
  5. Variations
  6. Personalizations
  7. Shipping

How to make an Etsy shop with great shop photos

Colorful fabrics on display

Etsy allows you to add up to ten photos on the website. The following is a list that combines Etsy’s and the writer’s recommendations to create great product images:

  • Use natural light and no flash. Late afternoon works best.
  • Include a common object for scale, or use a ruler if needed.
  • Show the item being held, worn, or used.
  • Shoot against a clean, simple background. Most platforms require white backgrounds for the primary photo, so it’s best to have at least one that shows the image on a pure white background.
  • Add photos to your variations so buyers can see all their options.
  • Set the pixels per inch to 72 and 2000 x 2000 pixels.
  • Verify that the combined photo image sizing is no larger than 1 MB total. Otherwise, it slows pages on mobile devices not connected to WiFi.

After you add photos, remember to edit the meta description to help with search engines by hovering over the image and clicking on the pencil. You can also crop or delete the image in the hover menu. If you click and hold onto the image, you can change its order.

How to set up an Etsy shop video

Etsy recommends creating a product video. They give you instructions on how to take listing videos in the Etsy seller handbook. If you add product videos, they should meet the following qualifications:

  1. 1080p or higher resolution
  2. 5-15 seconds long
  3. Less than 100 MB file size
  4. 30 frames per second
  5. Don’t edit the video before loading it into Etsy. (If you edit the video from standard video sizing to a 1:1 height: width ratio, you may have issues uploading from an iPhone.) 

You can make a video with a 1:1 ratio after adding the video to Etsy by using the editing tools on their site.

Now that you know how to add a video to your Etsy listing page, let’s look at the information covered in Etsy listing details.

What should I include with my Etsy listing details?

You’ll want to include the following information in the listing details:

  • Title: What you call the product, no more than 140 characters 
    • Example from one of my hoodies: “Unisex Shaded Hands Heart Hoodie- Artwork by Daisy Gray”
  • About this Listing: Three questions 
    • Who made it? Me, member of my shop, or another company or person
    • What is it? Finished product or supplies and tools
    • When was it made? Made to order (use this for print-on-demand), Recent (choose dates between 2003 and today), Vintage (Pre-2003)
  • Category: Search for your type of product.
  • Sizes and Colors: Select the option that describes it best, or select “multiple” to create variations.
  • Optional classifications for Etsy search: Holiday, occasion, style, and graphic
    • There are a lot of attributes, and they change based on the category. Review them as they can help with search results.
  • Optional for hoodies: Sleeve length, closure, and clothing style
  • Renewal: Auto or manual
  • Type of Product: Physical or digital
  • Description: Describe your product, 1100 character maximum

Vlad told us:

Read your competitors’ descriptions. Use graphics as opposed to descriptions when possible. For instance, take the dog collars and a ruler to show the different sizes.
  • Production Partners: Asks for information about any outside partners, including the following:
    • Partner name
    • Location
    • Additional information
    • Why you work with them, your role, their role
  • Tags: Keywords you want your product to show up for, maximum of 13 tags

The tags are the key to getting your shop name in front of your target audience. Don’t forget to use E-rank to help with the tag selection.

We asked Vlad, “What Etsy tags should I use?”

Vlad told us:

 When creating tags, think about ‘Where should I show this product?
If you’re creating t-shirts, you don’t need the word t-shirt in each one. Just include it in the first three, and use other tags that will put it in front of other people.
  • Materials: Type of raw materials. For instance, cotton and polyester.

To do this section right, expect to spend an hour per product or more. I copied and pasted it because I will be attaching it to my Shopify, so it took less time.

How should I decide the inventory and pricing for an Etsy product?

A white sketch pad with colored pens on a desk

This section of the Etsy listing details page asks about the price, the number of items for sale, and the SKU. Let’s discuss each real quick.

I’m going to use an example of a hoodie I am selling. The pricing should be high enough to cover the following:

  • The cost of the goods: $30.90
  • Your time
  • Etsy’s $.20 listing fee
  • Etsy transaction fees of 5% of the product price plus shipping price
  • The Etsy payment processing fee of 3% + $.25 in the US (varies by country)
  • Etsy 15% off site marketing fee that is changed randomly when a buyer purchases your product through an off-site ad
  • Cost of shipping labels ($6.99). Learn about shipping labels in Etsy’s seller handbook.
  • Any other costs associated with your Etsy shop

That means you would need to charge at least $49 with the marketing fee or $39 without. Given you can’t know which items will be charged the marketing fee, you should charge at least $49, assuming that all will receive that fee. 

The screenshot below also shows the sections for variations and personalizations.

What are variations on Etsy?

Dog collars with different colors and sizes

Variations are used to sell multiple sizes or colors of the same item. You’ll want to include variations for things like clothes, dog collars, and other items. For instance, the hoodie has:

  • Three colors
  • Nine sizes
  • 27 total variations

As they are, the variations have some default options, or you can add custom options at the bottom of each dropdown.

It’s worth noting that each of these variations will incur the $.20 listing fee when you sell it.


If you are offering personalization, this is where you’ll enable it. The personalization section includes the following sections:

  • Instructions for buyers: Include something similar to “Enter the name you want on the item. The max character limit is X characters with no special characters or spaces.” Make sure it matches your equipment capabilities.
  • “Personalization is optional” checkbox: Mark this box if the personalization is not required.
  • Character limit: Must be a number between 1 and 1,024. This number should match the X in the first bullet point. It should be based on the product and your machine’s capabilities.


Etsy offers free shipping and highly recommends using it. While Vlad didn’t specifically mention offering free shipping, he offers it on many of his products and made some comments that suggest including the shipping in the price of the goods:

Be very clear in what they are buying to get better reviews.


Don’t trick people.
  • Additional shipping charges can be tricky at times, so I suggest using the free shipping feature. It is straightforward; they’ll ask you a couple of questions, including:
  • Origin zip code: Where it’s mailed from
  • Processing time: How long it takes from when the customer orders until when it ships
  • Where I’ll ship: continents or individual countries
  • Shipping services: Your offerings for shipping
  • Free shipping: Domestic or international. I would discourage free international shipping unless you are well-versed in shipping and pricing costs. 

Then, you’ll have an option to add it to the price of the product. It brought the hoodie up to $62. Review Etsy pricing strategies to include free shipping and learn how to include the pricing in the product cost. 

Remember to establish and post a very clear return policy that specifies:

  • When you accept returns (standardized product, under 90 days, not-made-to-order, manufacturer error)
  • When you don’t accept returns (damaged after shipping, custom made, after 90 days)
  • Time to return the products
  • Who pays for return shipping

Step 6. Do I need a business license to sell on Etsy?

A keyboard with licenses sign

Etsy does not require a business license to start an Etsy shop, but the government might if you make more than $600 from the Etsy shop. In addition, a business bank account, reseller’s license, and business credit card will all require a business license.

You’ve created a name, a business plan, and an Etsy shop. While it’s not necessary to run an Etsy shop as a business, you’ll likely want to so you can get some of the tax benefits that come with it being a business instead of a hobby. 

For best results, hire legal representation that knows how to start an Etsy shop. An attorney, accountant, or tax specialist will most likely be able to give you legally defensible advice. 

Each city, state, and country have different licenses, permits, and tax forms required. Refer to SBA License and Permits to identify what your Etsy shop needs. 

Want to look at different legal structures you can use?

Types of legal structures for Etsy sellers

There are four main business structures that an Etsy shop might use:

  1. Sole Proprietorship: Easiest way to start an Etsy business as long as it is a single owner, but the structure doesn’t protect the owner’s assets from legal issues.
  2. Limited Liability Company (LLC): Separates business assets and liabilities from personal assets and liabilities. View your state’s requirements.
  3. Partnerships: Three main types primarily used by professionals like lawyers or accountants:
    1. Standard Partnership: All Partners work in the business and share liability.
    2. Limited Partnership: At least one Partner is not actively involved in business but shares liability.
    3. Limited Liability Partnership: All Partners’ liabilities and assets are separate from the business.
  4. Corporations: Corporations are the only businesses that can sell shares. There are three types of corporations:
    1. C-Corporation: Operates under schedule C of IRS tax code. Corporate tax of 15% 
    2. S-Corporation: Operates under schedule S of IRS tax code, 100 member maximum. Taxed as personal income based on the percentage of shares
    3. Benefit Corporation: May be classified as a C or S corporation but has to file statements as to how it improves society.

Read our article How to Choose a Business Structure to learn about these and more. Once you’ve created a business structure, you’ll need to apply for an Employer Identification Number (EIN).

How to apply for an EIN

Every business operating in the United States should have an EIN, which is a number used to identify your business. Apply for it on the IRS website. It’s used on tax forms to tie employees’ pay to the proper employer.

Sales Tax Permit

An iPad, calculator, and notebook on a desk

Most states have a sales tax, and you need to adhere to their requirements. This blog isn’t the place to discuss the permits for all 50 states, but Avalara has a guide on Sales Taxes. Check it out.

If you intend to have employees, read this:

People who hire employees will have some special requirements, including:

  • Filing state and federal taxes for their employees 
  • Maintain employment tax records for at least four years, including special forms and accounting for state taxes
  • Follow the IRS guide for employers
  • Must display workplace posters
  • Employment Eligibility Verification (Form I-9)
  • State’s New Hire Program
  • Worker’s Compensation Insurance
  • Disability insurance (varies by state)
  • Occupational Safety and Health Administration (OSHA)
  • Pay $420 per employee on a federal level plus any state Unemployment Insurance. The U.S. Chamber of Commerce has a ton of information on unemployment. 

Now that you are familiar with the legal requirements of turning an Etsy shop into a business, let’s look at marketing a successful Etsy store. 

Step 7. How to sell on Etsy through marketing

Marketing is the trick to growing any business. You have to get your business and products in front of people to sell them. Fortunately, Etsy makes it pretty easy for a small business to sell on its marketplace.

If you don’t have much experience with marketing, it starts with market research. Mike Andes goes into great detail about market research, including identifying potential customers, target markets, and demographics. Check out our interview with him below:

Vlad had a lot of input about how to sell on Etsy. He emphasized the importance of the product design:

Art ought to communicate to them. If it doesn’t communicate, it’s not art and won’t sell.

He also communicated, “Price your products based on the middle of the pack.” because potential customers aren’t looking for items they need but that they want. They will go for the one that meets their desires the best. In other words:

Don’t race to the bottom” and “Satisfy the keyword.

His strategies for becoming one of the best Etsy shops for pet products appear to be borrowed by some retail giants. Some strategies he uses include:

  • Create a loss leader: This is a pricing strategy that intentionally takes a loss on a product to gain market share. He uses this with new products to gain traction on the Etsy website.
    • Vlad told us: “Underbid, rank, then raise the price.”
    • Use the Etsy promotional pricing.
  • Utilize Etsy free shipping: Everyone loves something free. With the growth of Amazon, online shoppers expect every online marketplace to offer free shipping.
  • Gather data and improve: While underbidding, he’s able to gather data.
I’ll take a loss to gather data and improve my knowledge about whether it performs, then introduce new keywords.

Vlad also suggested:

Use the sales and coupons. I’ll set the product to the original price, then discount it heavily. I also match products together to create packages people love. Always create sales for holidays.

He also said that he throws in a small gift for repeat customers occasionally, but he doesn’t do it all the time.

Keep reading for tips on using Etsy ads.

How to use Etsy Ads

Etsy has a built-in ad feature where you can specify your daily spending, and they promote your products. The Etsy Seller Handbook answers how Etsy Ads work in more detail, but you basically create a budget between $1 and $1,000/day. Vlad told us:

I typically spend between $300 and $1,000 per day on ads. Etsy really creates a level playing field, so going higher doesn’t mean it all gets spent.

He went on to tell us the best ways to use ads is:

Utilize keyword research. Find the most creative way to make it as quick as possible.

This makes it where the ad budget goes as far as possible.

Now that you know how Etsy ads work, let’s look at how to manage inventory.

How to manage inventory and workflow on Etsy

A group of people around a desk talking about product inventory

Vlad discusses his workflow at the 35-minute mark of the interview. If you haven’t already watched it, listen to the interview now

He told us: 

When I just started, it was just me who outsourced engraving. Now I use ShipStation.
Review your store and each item for week-over-week growth. If that section of the pie doesn’t grow, stop. If the reviews for it aren’t good, consider discontinuing the product.

He also warned us to be very clear about refunds and returns.

I work with customers on returns as long as they are less than 90 days. After that, we don’t. I just try to make them happy.

Top Influencers

Vlad suggested reading the book E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It. You can get it through Amazon. If you use the link below, it will help support UpFlip content creation.


We’ve explained the market outlook for eCommerce, how to start an Etsy shop, licensing requirements in case you want to make your shop a formal business, and marketing strategies to improve your business results. 

Etsy can be an extremely satisfying way to earn a living. What kind of products are you thinking about listing on Etsy?

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