Step 1: Understand 'What Can I Sell on Etsy'
To become the best on Etsy, you first need to figure out the rules of the platform. Therefore, the first step is to understand what you can and can't sell on Etsy.
Please scroll down for a quick look at the relevant points explained in the Etsy seller policy.

Etsy supports THREE types of products for sale.
- Handmade creations
- Crafting supplies
- Vintage goods (at least 20 years old)
Besides, the following FOUR items are not allowed to be sold on Etsy.
- Prohibited items, especially those that promote, support or glorify hatred, those that promote, support or glorify violence, or are illegal.
- Services that don't produce a new tangible item that meets Etsy criteria. (For example, rentals are prohibited on Etsy.)
- Items that violate Etsy's intellectual property policies.
- Reselling is not allowed in the handmade category on Etsy.
Still in question?
Here's the complete Etsy category list, where you'll find 15 top categories and over 3,000 subcategories. Or, you can search for 'Is Selling XXX on Etsy Legal', as Tom did in Is Selling Fan Art on Etsy Legal.
In addition, if you are not familiar with Etsy, you must read How Etsy Search Algorithm Works
Step 2: Write Down Any Etsy Product Ideas You Find
Now, it's time to focus on the most important question —— What to sell on Etsy for your shop.
Consider that each person faces a different situation. Here, we will assume several situations. You can check them one by one. At the same time, we will not only give the best products but also tell you how to find them.

In the worst-case scenario, you don't even know what to sell.
Don't Worry. We have prepared the following top 10 Etsy shop ideas.
- Planners
- Personalized Jewelry
- Baby Clothes
- Fabric Supplies
- Wedding Invites
- Bows & Hair Accessories for Babies
- Sewing Supplies
- Jewelry Boxes or Cases
- Wedding Decor
- Party Items
Why are they a good fit for the new Etsy shop? See the complete analysis.
The most likely scenario is that you are hesitant to sell physical or digital products on Etsy.
The truth is that everyone is good at different things. Therefore, we have summarized the best-selling items in these two categories. You need to consider which one is the best for you on the Etsy marketplace.
Best Physical Things to Sell on Etsy:
- Accessories for Machines or Appliances
- Storage Solutions
- Earrings
- T-Shirts
- Custom Clothing
- Clothing Transfers
- Chocolate
- Honey
- Seeds
- Plants
- Rocks and Crystals
- Candy
- Cases and Covers
- Cards
- Wedding Favors
- Soap
- Candles
- Stickers and Car Decals
- Crocheted Goods
- Custom Mugs
- Hand Knitted Goods
- Baby Toys
- Pottery
Best Digital Things to Sell on Etsy:
- Prints
- Printable Activity Worksheets
- Workbooks
- Digital Planners
- Clipart
- SVG and DXF Files
- Knitting and Sewing Patterns
- Sheet Music
- Instructions
- Excel Templates
Obviously, they both have their pros and cons. View the detailed analysis here.
In the best-case scenario, you already have an idea and just need to validate it.
For example, suppose you decide to sell handmade soap on Etsy. You have found four types of soap:
- Essential Oil Soap
- Body Soap
- Charcoal Soap
- Lavender Soap
Which one sells best on Etsy? The conclusion is: lavender soap is the best choice. How will you validate your idea? Learn from the detailed analysis.
Or, you know the holiday season means big sales, but can't predict what will sell big.
Again, for example, you want to capture the next Father's Day to increase sales. Then we'll tell you the following Father's Day gifts are good choices.
- Wood Photo
- Docking Station
- Matching Shirts
- Personalized Photo Keyring
- Customized BBQ Tool Set
- Personalized Dad Mug
- Custom Best Dad Socks
Wondering how we find them? View the detailed analysis here.
Last but not least .......
Rankings can tell you more than rankings.
Visit Etsy.com, see Editors' hand-picked sections or search keywords that come to mind. These can truly help you get some initial shop ideas.
However, there are 15 top categories and over 3,000 subcategories on Etsy for sellers to choose from. It would help if you used a data-driven tool to save time and identify opportunities.
You will need the following guides:
Step 3: Having trouble making a final decision? Ask Yourself 5 Questions
Make sure you have completed Step 2 before proceeding to Step 3. In other words, you've written down some candidates.

Question 1: How long can you love it?
Meeting financial goals with your hobby is not a dream. But, only the person who is good at perseverance can finally achieve his/her purpose. So, before you choose a category on Etsy, consider whether you have enough enthusiasm to stick with it in the next months, or even years.
Question 2: Can you create it independently?
As you may know, Etsy is a unique marketplace where over 80% of the sellers are selling handmade goods. If you choose it, you have to be able to make it independently.
Question 3: Are there difficulties in sourcing its raw materials?
After finding what to sell on Etsy, the biggest question will be how to find suppliers of materials that are necessary for your craft supplies or handmade supplies.
Generally speaking, you have two options.
- Online stores. For example, Etsy itself is a great place to find craft materials. Also, don't forget Amazon, eBay, and AliExpress. (Tips: FindNiche can be your best AliExpress supplier finder).
- Local stores. It's not impossible to find cheap but good materials locally.
Question 4: How much can you really earn with it?
Based on market research, you have initially determined that it is profitable. How much money you will earn in the end will depend on your final sales results. But, the impact of pricing strategy cannot be ignored. Learn more by reading:
Question 5: Does it have growth potential?
High-demand, trending products are not set in stone. It would be best if you had Etsy Keyword Tool, where you can brainstorm product ideas and keyword tags, analyze actual search data, view buyer engagement, and see product seasonality.
💡Pro Tips: Log on to EtsyHunt every Monday for the latest Etsy trends. The daily updated Etsy product database can help you get ready for the next product idea.
The Bottom Line
Can't wait to try the above steps? Then get out a pen and paper and log into EtsyHunt, a tool that will tell you all the trends and what to sell.