7 Quick Steps and Unique Ideas to Start Etsy Business

how to start a business on etsy

Are you thinking about starting an Etsy business like the other 7.5 million active Etsy sellers?  

It is undisputable fact that Etsy is a lucrative business avenue. However, the seller should approach their business in a strategic method. 

You can open an Etsy store from anywhere worldwide and start selling online. But bear in mind that product preference plays a key role in your Etsy business success. Plus, Etsy differentiates itself from other platforms primarily focusing on art, crafts, handmade, and vintage items. In other words, you can not sell every item on Etsy.

Therefore, if you are struggling with finding proper products to sell on Etsy, do not worry. This article will feature some profitable Etsy business ideas.

Make sure to read till the end and find the ideas and guidance you have been looking for.

Table of Contents

Etsy Business: Is it Worth Starting?

Most new online sellers are confused about the worth of Etsy business. They are asking whether they should start an Etsy business or not. Let's dive into Etsy statistics to give distinct points of view.

  • Etsy has over 90 Million active buyers according to the 2022 Mid-Year report
  • There are 36.3 million repeat buyers from those active buyers.
  • Etsy spent almost $600 million on marketing. Moreover, $204 million of the marketing budget was spent Between October and December 2021.
  • Etsy generates nearly $13.5 billion in gross merchandise sales. 

However, not everything is great on Etsy for online sellers. Besides these benefits, Etsy also has some drawbacks like fees, high competition, and narrowed product range.

  • Etsy has a limited selection of items that one can sell. You can not sell machine-made items. Plus, Any products sold in Etsy's Handmade category must be made and/or designed by the seller. So, Dropshipping on Etsy is not allowed.
  • Moreover, Etsy charges significant fees from sellers on sales. For instance, it charges $0.20 per listing. Etsy also charges a 6,5% transaction fee when an item sells. 
  • Furthermore, It is extremely competitive for new sellers. You are competing with over 7.5 million active users. 

In a nutshell, if you sell handmade, vintage, or craft items, there is no better marketplace than Etsy and it is worth starting an Etsy business. In addition, you can determine profitable prices compared to other platforms. Last but not least, It is a remarkably easy-to-learn and set-up platform. 

Decide What to Sell on Etsy

Product research is a game-changer factor on Etsy. It plays a crucial role in the success of your Etsy business. We recommend you take your time and explore what to sell on Etsy before you continue with how to create an Etsy business

Keep in mind that you cannot sell every item on Etsy. Etsy is strictly exclusive to handmade items, artwork, vintage items, etc. 

What Can I Sell on Etsy?

Here are allowed categories of items that you can sell on Etsy.

  • Handmade Items
  • Vintage products
  • Craft Supplies
  • Digital Products

Profitable Etsy Business Ideas

This article section will explore new and exciting Etsy business ideas with the assistance of the EtysHunt Product Research Tool.  We will focus on Etsy Picks (picked by experts at Etsy) products for the last 1 year. 

etsy business ideas

Make sure to compare and analyze the stats of the presented items. These items will give you an idea of what you can sell on Etsy. You will also find out what items have good sales and better reviews. 

If you click on the link icon on the right, you will navigate to the related Etsy store to view that product on Etsy.

1. Wooden Advent Calendar

The first item on our list is this amazing Wooden Advent Calendar. This item has a total of 7266 sales. It also has 374 reviews on Etsy. 

This Wooden Advent Calendar is a brilliant gift for kids and your loved ones. Shoppers can simply mount it on a wall, and a star, like one on top of a Christmas tree, marks the current day. Also, parents can hide gifts in small envelopes each day and surprise them. 

Therefore, such Etsy business ideas can be profitable.

2. Book Embosser 

This custom from the library book embosser is the second item on our list. This embosser has 9818 sales total, along with 2680 reviews on Etsy. 

This is a supremely useful personal and custom item for small home libraries. Buyers can utilize this item on their books and leave a custom mark on their belonging. The seller allows buyers to order it in different sizes and orientations. 

So, selling a customized book embosser is another lucrative Etsy business idea.

3. Personalized Tote Bag

The personalized script tote bag has 2802 sales and 1198 reviews on Etsy. This is a smart selling idea for new sellers.

This item is a multi-purpose tote bag that serves well on many occasions. Buyers can use it in several situations. This item is an adequate idea for gifts as well. Shoppers can get this bag with custom imprinting and designs. Hence, it will look good at bridal events. 

Here, you can use the product details features of EtsyHunt by simply clicking the product on the results. Then, you will discover product price, category, tags, shipping info, description, and product performance.

4. Halloween Family Portrait 

This creative Halloween family portrait item is number four on our Etsy business ideas list. This portrait has 1641 sales and 94 reviews over the previous 12 months.

This portrait is an example of a digital item sale on Etsy. The buyer can ask for personalizations and custom changes in the portrait, such as the order and theme of ghosts. The seller provides a printable portrait to the buyer, which they can print and frame themselves. 

You should also consider selling digital products on Etsy. Because digital downloads are always in top-selling products. Moreover, you will not struggle with packaging and shipping. 

5. Boho Coasters 

Boho coasters have 1551 total sales and 163 reviews on Etsy. If you are looking for straightforward products in terms of creating, designing and shipping then go for coasters.

These beautiful and artistic costers make an impression on your buyers and protect their tables simultaneously. Buyers can easily clean these coasters. These might also make for a spectacular gift for their loved ones. 

EtsyHunt also offers the Etsy Rank Tool Chrome extension for free. This tool offers you every detail about the product that you analyze on the Etsy webshop.

7 Steps to Discover How to Create an Etsy Business

You comprehend the importance of product research and analyzed the most profitable Etsy business ideas so far. Now, it is time to launch your Etsy store.

How to start a business on Etsy? Every new seller is often confused about getting started on Etsy. In this section, we will explain this step-by-step and offer ways that will allow you to create an Etsy business smoothly.

Step 1. Create an Etsy Account

Even though you want to be an Etsy seller, you must create an Etsy account like a shopper. This will be the first step to starting an Etsy business. 

  • To create an Etsy account, first, navigate to this link Etsy.com/sell
  • Click on Get started
  • Here you should provide the following information to create an account.
  • After setting up your account password, you will successfully register for an Etsy account.

Step 2. Determine Your Shop Preferences

The next step in creating an Etsy business is setting up your shop preferences. 

Here you can select a few basic settings such as language, location, and currency of your Etsy shop. 

Step 3. Pick Memorable and Catchy Shop Names

Your shop name should be memorable and catchy. If you are having trouble finding a unique shop name then you can use an Etsy store name generator . You can enter a few keywords to bring up more personalized and relevant ideas. 

Make sure that the name of your shop is outstanding and not a copy of some popular brand name. 

⚠️ Your shop name must be between 4-20 characters. In addition, you can not use special characters, spaces, and accented letters in your store name.

💡 If you do not have enough time to analyze name suggestions deeply and use a temporary name, then do not worry. How to Change Your Etsy Shop Name: A 100% Full-Proof Tutorial

Step 4. Use an Attractive Store Logo and Banner

Your store’s logo and banner are noteworthy to grab shoppers’ interest. You should choose a high-quality logo that suits the nature of the items you are selling. 

You can use free and paid templates from Canva, Placeit, Pixlr, and Design Wizard to create logos and banners. You can also hire a professional designer from Fiverr to make a logo for your shop. 

💡Are you a skilled logo maker or a beginner in graphic design tools? Then discover The Complete Guide to Designing an Etsy Logo.

Step 5. Create Your Listing

When creating your Etsy business, you must create at least one product listing. You need to pay 0.20 USD per listing which will last 4 months. 

Etsy requires you to add product details and images. Adding proper keywords to product descriptions has utmost importance for Etsy SEO

If you are not familiar with keyword research, EtsyHunt Keyword Tool will be your amazing assistance in this process. This tool enables you to explore Google trends for related keywords, country distribution, and similar keywords list.

Step 6. Set Up Your Payment And Billing Details

After listing your items, you need to add your payment details on Etsy. 

After adding your billing details, fill out information related to your bank. 

The next step is to add your billing information. This information allows Etsy to charge you. Users need to verify their bank details afterward. 

Step 7. Update Your Bio And Shop Policies

This is one of the most critical steps to becoming an Etsy seller. You want to address any issues buyers may have to help eliminate chat back and forth. The policy section will also help with disputes.

The essential elements of the store policy include:

  • Processing time
  • Shipping Policy (for example, you can only ship with USPS Priority Free Insurance)
  • Payment methods
  • Return and exchange policy

Final Words

Etsy is a very promising marketplace for creative sellers. The key to becoming successful on Etsy is to discover profitable products with low competition. Our article presents some new and out-of-the-box ideas for new sellers. 

Moreover, new Etsy business starters have trouble making an account and creating an Etsy business. In the last part of our article, we have added a detailed guide with images that will help you in your onboarding experience on Etsy. 

Best of luck, new Etsy seller; stay patient, focused, and consistent, and you will succeed! 


1. Is an Etsy business profitable?

Yes, Etsy is a profitable business. You can earn money by offering a highly demanded and low competition item.

2. Is it worth it to sell on Etsy?

Yes, Etsy is a competitive platform. However, it is the best online marketplace to sell handmade, vintage, and art-related items.

3. How much does it cost to set up an Etsy?

It is completely free to create an Etsy account. Afterward, Etsy charges 0.20 USD on each listing. If you have successful order then you are charged to pay a 6.5% transaction fee of the selling price.

4. Do you need an LLC for an Etsy shop?

If you are running your Etsy shop as a corporate business, then you do need an LLC. However, if your Etsy shop is a personal hobby, then you don’t need an LLC. 

5. Does Etsy allow dropshipping?

No,  Any products sold in Etsy's Handmade category must be made and/or designed by the seller. So, dropshipping on Etsy is not allowed.

Startup Your Etsy Business Now!

100K+ people have used this free Etsy seller tool. But they'll never tell you.

Start for Free

Etsy Rank Tools

Start Etsy products research, get the best shops, and boost your business growth!

Trusted by 200,000+ Etsy sellers