Is selling on Etsy worth it?
How To Make Money Selling On Etsy
Have you ever made jewellery, sewn clothes for your tots, or knitted a scarf?
Can you take amazing photos, build a bench, or create a picture frame out of scrap wood?
If yes, you need to know that you can make money by selling your crafts online.
If youâ€™re good at crafts, thereâ€™s an online marketplace where you can sell your handmade items. Itâ€™s called Etsy. You can open your own Etsy store and start to earn some extra cash from your hobby today.
So, here are steps to follow if you want to know how to make money selling on Etsy
Pick a name and sign up
First of all, before you start thinking about making money on Etsy, choose a name. Write down some of your contact details before you sign up. Then name your shop. Check the name’s availability using the naming tool.
Etsy has a great naming guide, so read through some of its useful tips and hints.
Hereâ€™s a summary:
- Your name should be original and relevant to your business
- Choose a name that can stand the test of time
- Google the name, and check for its availability on Facebook, Twitter and other social networks
- Spell correctly and maintain consistency
Stock your shop
It pointless to know how to earn money on Etsy if you donâ€™t take action.
Firstly, add photos. Take several photos from different angles to give a proper representation of size, colour, shape and what the item really is.
You can use a camera phone, but make sure you use natural light. After uploading images, you can re-order them and change the thumbnail if you feel itâ€™s necessary. This is likely the first thing customers will see, so give it your best shot.
Photos-Add at least a photo.This is the first thing that connects a potential buyer to your product. Take as much time as possible to get the perfect shot. Use different photos to display various angles and detail.
Here are additional tips for taking perfect photos:
- Neutral backgrounds are always better than loud backgrounds
- Use props if necessary, but make sure you use good ones
- Study the photos of successful shops that sell similar items. Try to emulate their technique
- If you have a DSLR camera, increase the aperture so that your item is in focus and its background is blurred
Listing details –
Use several drop-down lists to choose suitable categories and give the right information.
Make sure you also include the price of the item. It can be difficult to price your item. To choose a price, you should take these points into consideration: the costs of making the product, the upfront costs, and the costs of listing the product.
Next, you have to create an informative description. Tell customers what youâ€™re selling, its use, who itâ€™s for, and any other valuable information. Always be helpful and honest.
Describe the item clearly in a manner that buyers would expect if they were reading about it. Get into the mindset of the buyer when crafting the message.
Then itâ€™s time to set your shipping. You have to do some research on this-no guessing! Check your courierâ€™s website so you donâ€™t end up grossly undercharging customers and not taking care of costs fully. Equally, donâ€™t overprice your shipping as this will put customers off.
Search terms –
Last but not least, pick a few search terms. You may pick up to 13 search terms for materials and general tags. Use all of them. You can tag phrases together, or tag them differently to get more customers if youâ€™re selling similar items.
Set payment and billing
Now itâ€™s time to enter your personal and bank information. The quickest and easiest way for customers to pay is to your bank account. However, you can set up payment mail (money order or check), PayPal, or any other means of purchase (such as meeting face to face and getting paid in cash).
You may pay your Etsy costs by PayPal, credit card, or Etsy account balance. Also, you can set automatic billing, or pay bills as they increase. Thereâ€™s no minimum payment as well.
Manage your account
Youâ€™re now in. Your shop is ready and you can now watch the cash rolling in. Click the account dashboard to view your account statistics-see what youâ€™re getting right, what you think you should change, and generally get a feel for your stuff.
On Etsy, you can also monitor things such as hourly activity, top keywords and traffic sources. You can also check the traffic map to find out what countries customers are browsing from. This can be really handy to help you adjust your listings and get more buyers.
In addition, there are tons of helpful tips and articles on Etsy, covering topics like photography, shipping, legal requirements etc.
Etsy fees and taxes
Setting an Etsy shop is absolutely free. You donâ€™t have to pay for membership or incur any other expenses to set up your store, but youâ€™ll incur these costs as default:
3.5% of the total selling price
$0.20 for listing one item (you can refer a friend to open a shop and earn 40 free listings)
Additional extras, which charge different fees, include promoted listings, automatic re-listing (at $0.20 each), shipping labels, deposit currency conversion for items listed in a different currency, multiple-quantity fee for the sale of more items, and direct checkout.
Income generated by your Etsy shop is deemed self-employment income, so youâ€™ll need to complete IRSâ€™s Schedule C form, irrespective of your form of business. Many people prefer a sole proprietorship when opening their online shops.
Thereâ€™s no legal requirement for forming a sole proprietorship, and you may hire contractors and employees. If you have to pay self-employment tax, youâ€™ll also need to complete a Schedule SE form.
Earning a decent income on Etsy is not that difficult. You can certainly set up a successful Etsy shop and start earning some cash from your hobby.
Whatâ€™s more, thereâ€™s good news to owning an eCommerce business. You can have fun making some extra cash on the side, or decide to grow it. And thereâ€™s even a vacation mode on Etsy, so you wonâ€™t need to worry about business when you get away.
What are you waiting for now that you know how to make money selling on Etsy? Get started now and list your first handmade item.
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