How To Set Up An Etsy Shop In 7 Steps

Setting up an Etsy shop is an exciting opportunity to turn your creativity into a thriving business. 

Etsy is the perfect platform to begin your journey if you want to start an online business without significant upfront costs. 

Etsy offers a low-cost entry point for creative entrepreneurs. With minimal fees, high earning potential, and no need for advanced technical skills, starting an Etsy shop is accessible to anyone passionate about handmade, vintage, or unique items.

However, starting your Etsy journey requires more than listing your products—it involves thoughtful planning, setting up your shop properly, and optimizing it for success. While the process may initially seem overwhelming, it’s simpler than you might think. 

In this blog, we’ll walk you through each step of setting up your Etsy shop so you can get started confidently and share your creations with the world.

What is Needed to Start an Etsy Shop?

To list your products on Etsy, you must have a few essential things in place to ensure a smooth process for setting up your shop on Etsy.

You must have:

• Etsy seller account: You must register as a seller on Etsy. Visit Etsy.com/sell and create an account on Etsy.
• Shop Name: Have a list of shop names that are easy to remember and catchy.
• Banking Information: You must fill out your bank account details when listing your products. Hence, ensure you have your credit or debit card information on hand throughout the process.
• Product Photos & Videos: Uploading photos and videos is mandatory to showcase your products to the world. Capture high-quality images and videos and keep them ready when listing your products.    

With that, let’s look at setting up your Etsy shop.

How to Set Up an Etsy Shop Step by Step

This section will walk you through the 7 steps to opening an Etsy shop. 

Create a Shop on Etsy

To create an Etsy shop, visit Etsy.com/sell and select Get Started. 

STEP 1: Select your shop language, country, and currency. 

Pro Tip: Choose the language you will use for product descriptions and the currency you will use for pricing your items. Keep your country the same as in your payment account.

• Select ‘Save and continue.’

STEP 2: Name your shop

NOTE: The shop name should be between 4 and 20 characters and should not contain special characters, spaces, or accented letters. Remember that the shop name you use becomes the shop URL. Learn more about changing your Etsy shop name.

• After filling in the shop name, click ‘save and continue.’

Pro Tip: You can change your Etsy shop name anytime and as often as possible before opening the shop. After opening, you can change it 5 times.

STEP 3: Choose your business type: ‘Individual’ or ‘Business’

• Individual: You can join Etsy as an individual if you haven’t registered as a business.
• Business: If you’ve registered your business as a legal entity within your local jurisdiction, you can choose this option.

Don’t worry too much about this; you can change from individual to business and vice versa. 

NOTE: If your business is a registered legal entity within your local jurisdiction, which differs by country and state, and has registration documents, you should register as a business. For example, if you’re based in the US and your business is an LLC or a corporation, you should enroll as a business.

Identity Verification on Etsy

• Etsy requires verifying your identity to keep the community safe and reduce fraud.
• Etsy partners with Persona, a third-party company, to assist and verify sellers’ identities. To verify, you need a photo and a valid government ID. As part of the process, you must take a selfie and upload your ID, which can be a passport, license, etc.
• Visit this link for more information on the verification process.

Set up your payment and billing details

Here’s the exciting part – getting paid on Etsy. To receive payments from Etsy, you must connect your bank account. 

Here’s how to connect your bank account:

• Fill out your personal information on the How you’ll get paid page. At the bottom of the page, enter the location of your bank under “Where is your bank located?” 
• The process of connecting a bank account varies depending on the country. 

US sellers can update their bank details using a third-party service called Plaid. It allows them to verify their bank details to help ensure deposits go to the right place. Under your bank information, choose Connect your bank with Plaid and follow the steps to add and verify your bank details. For other countries, visit this link to understand the steps required to connect your bank account.

NOTE: For security purposes, funds in your payment account will be held for 5 days whenever you update your bank details.

Note that Etsy allows buyers to use credit cards, debit cards, Etsy gift cards, Apple Pay, Google Pay, and several international payment methods.

Setting up your billing

As you know, Etsy charges you a fee to sell your products on their platform. You must add a credit or debit card (which cannot be a non-reloadable prepaid debit card) to pay Etsy. Etsy fees are deducted from your earnings. If you’re not making enough sales on Etsy, Etsy will charge the fees to your credit or debit card. 

NOTE: You can enroll in auto-billing if you’re a US seller. In this case, Etsy will automatically charge your credit card for the selling fees you incur.

Enable Two-factor Authentication

Etsy requires you to enable two-factor authentication to protect your accounts from fraudulent activities. 

You will enter a password and a code sent to your phone when you enable two-factor authentication. When you sign in from an unrecognized browser or device, Etsy will send you a verification code to enter before accessing your account. You can receive this verification code through:

• An authenticator app
• An SMS
• A phone call

Stock Your Shop

To fill out the details in this section, you are expected to have finalized your product. What I mean is, if you’re selling a physical item such as a T-shirt, earrings, or digital downloads like a planner, you should have your mugs/jewelry and planner online templates ready. Or, if you’re collaborating with a print-on-demand partner, you should have finalized the deal with them and have the stock ready. 

Read Also: Best print-on-demand partners for your shop. Why Your Etsy Account Suspended and How to Recover it?

In this section, you will fill in the details, photos, digital files (of your digital products), and POD partners’ details.

If you’re ready with all these details, let’s get to the part!

• First, you must select the category of your product, whether digital downloads, footwear, or jewelry. Type your products into the category search bar and choose the most appropriate category from the dropdown.

• Next, select the type of your product: Physical or Digital.

• Fill out the other details that follow:
  • ‘Who made it?’ and ‘What is the product?’
  • Then, you will see the section ‘When was it made?’ Select the year. If you sell customized products, such as printed tees, coffee mugs, etc., that require you to personalize them based on your buyer’s input, then you must choose the ‘Made to Order.’

• At the bottom, you have an option to add production partners. Add the details of your production partners. You can also add this after opening your shop.
• Click ‘Save and continue.’

Then, you will be taken to a different page where you can list your products. Click here to move to the listing products section(JUMP LINK)

Let’s move on to the exciting part – setting up your Etsy shopfront.

NOTE: Etsy recommends adding at least 10 listings to increase visibility and sell faster.

Set up your Shopfront

Your shop’s home page is the first impression buyers get when they visit your shop. Therefore, having a shop with cohesive and attractive visuals is crucial to keep them returning for more. 

In this section, we will discuss setting up a shop icon, banner, profile photo, policies, and more. Having a shop icon increases your visibility on Etsy.

Source – Looka

Shop Icon

A good shop icon should: 

• Showcase your shop’s unique personality.  
• Ensure your design looks great at any size.  
• Use clean and simple graphics or illustrations.  
• Keep text short, clear, and easy to read.  
• Avoid overly complex words or cluttered backgrounds.  

Here’s how to edit or add a shop icon:

• Go to Shop Manager > select the pencil icon next to your shop name under Sales Channels > select the camera on your shop icon > select Choose a file > upload your file and select Choose.

Shop Profile Photo

Use a clear and close-up shot of yours as a profile photo.

Here’s how to upload it:

• Go to your Etsy Shop Manager > select the pencil icon next to your shop name under Sales Channels > select the camera icon under your name in the top right corner > select Choose a file > upload your file and select Choose.

Shop Banner

To add your shop banners:

Go to your Shop Manager > select the pencil icon next to your shop name under Sales Channels > choose the type of banner you want > choose done > You have two styles of banner to choose from: 

• Mini Banner: A narrow image with a minimum size of 1200 x 160 pixels.
• Big Banner: A large image with a minimum size of 1200 x 300 pixels.

To know more about the sizes, we have curated a detailed blog on Etsy banner size.

Shop Announcement

• Keep your announcement short and sweet. Use it to describe your shop briefly and include any time-sensitive updates, like vacation dates or shop closures.

To add or edit your shop announcement:

• Go to your Shop Manager > select the pencil icon next to your shop name under Sales Channels > scroll down below your listings to the Announcement section > select Add a shop announcement or Edit > Add your announcement > Choose Save.

NOTE: If your shop isn’t open to the public yet, you won’t be able to add an announcement until you open your shop.

Shop About: In the About section, include a video or photo to tell your brand story.

Shop Members: Introduce other shop members or people with whom you collaborate.

Shop Policies: Set up policies for returns, exchanges, payments, custom items, and any other guidelines you want your buyers to know. The following sections will cover more of this.

After this, we move on to the most critical step in setting up your shop: uploading listings on Etsy.

Create Listings for your Shop

Before listing your products on Etsy, let’s discuss a few essential things about product photos.

Product Photos

The crucial part of listing your products on Etsy is having good product photos. Follow the tips below to create some fantastic product photos:

• You can take pictures using your phone or a DSLR camera. Ensure you take clear, bright, and eye-catching photos. 
• The first photo in the listing should highlight your product and make buyers click on it.
• You can use 10 different types of photos for every listing.
• Ensure that the photo takes up 80% of the square footage on the listing photo.

But what type of pictures do you need for a product?

We recommend using the following types of photos for your listing:

1. Studio: Take a photo with a white background.

2. Lifestyle: Show the product in a real-world setting.

Pro Tip: Use a model to showcase photos; you can mix real-person and AI photos.

3. Scale: Use your hand or ruler to show how big or small the product is.

4. Detail: Take close-up shots showing every detail of the product from various angles.

5. Group: Show products clustered together.

6. Packaging: Show the item with its packaging.

7. Process: Show the product being made.

8. Video: Videos can be 5 to 15 seconds long. You can add 1 video per listing; the ideal resolution is 1080 pixels.

9. Product Mockups: for items such as wall art, home decor, etc, product mockups are essential to give a clear picture of how it looks in their home. You can use tools like Canva to create and include product mockups in your listing photos.

That’s all about product photos.

Now, let’s look at listing the product. You are required to fill in the following information to upload your products on Etsy.

About Section:

Create all the fields, including title and description, and optimize them for SEO. You can use Etsy keyword research tools to find highly profitable keywords to include in titles, descriptions, tags, etc.

Titles: 

• The product title on Etsy can only be 50 to 60 characters. Only the first 3 to 4 words are shown on Etsy or other platforms like Google. 
• The title should be easy to read and understand.
• Do not repeat keyword phrases. Keyword stuffing is strictly prohibited. 
• Use high-demand and low-competition keywords in your listing titles to help match shoppers’ queries whether they’re searching on Etsy or using Google. 
• Focus on writing short, clear, but descriptive titles.

Pro Tip: Do not use the vertical line ‘|’ in your titles, as Etsy considers this as one word. You can use commas to separate words.

Use keywords in the title, attributes, and tags. These fields work together to appear in search results when they match the buyer’s search query.

Descriptions: 

• Incorporate relevant keywords in the first few sentences of your listing descriptions.
• Craft a sentence or two that has a few of your top keywords in a way that sounds human and is written in your brand’s voice.
• Include important information in the rest of the description. 

Categories: Type a two- or three-word description of your item to get category suggestions and help more shoppers find it. Remember to add specific categories over generic ones. 

Attributes: Attributes are the extra details you add after creating the category. These include color, pattern, material, etc. If you do not find relevant attributes to add, do not worry; Etsy will keep adding them.

Tags: You can use 13 tags on Etsy to describe your product. Use descriptive and accurate tags. Each tag you add allows you to appear in search results. Therefore, carefully input the tags.

Price & Inventory

Price: When setting up prices, remember the labor costs, time, and other business expenses incurred in creating an item and price it accordingly. If you offer free shipping, include shipping as a business expense in the price.

Quantity: Put the highest possible amount so that Etsy sees it as having high revenue potential.

Variations: Variations are different options you offer on a single item. You can add up to 2 types of variations for each listing, such as size and color. You can also set up separate pricing for each variation.

Settings

Setting Return & Exchange Policy: Clearly state your return and exchange policies to reassure customers. Outline the return process, including any applicable restocking fees, and explain how exchanges are managed.

NOTE: You can select different return and exchange policies for each physical listing in your Etsy shop or set one specific policy across all your physical listings. Clearly state the items eligible for returns and the days you allow buyers to return the item.

Pro Tip: Etsy offers sellers a templated returns and exchanges policy. This policy allows buyers to return or exchange items within 30 days of receiving them but requires buyers to cover return shipping costs. If you prefer, you can create your custom return policy, including policies for specific items or types of items.

Shipping and Processing Times: Specify your estimated shipping and processing times so customers know when to expect their orders. This is particularly important for international buyers who may experience delays due to customs or other logistical factors.

Handling Delays and Fees: Be transparent about potential delays, such as those caused by weather, holidays, or customs. Keeping customers informed about these possibilities builds trust and reduces misunderstandings.

After setting up your shop policies, let’s add shop sections.

Shop Sections: These sections on the left-hand side of your shop’s homepage include the number of products in each category. You can use sections to group items by type, size, or category. 

Pro Tip: Categorize your products into up to 20 sections, making it easier for buyers to navigate your offerings. A section should contain at least 5 items.

Feature This Listing: You can toggle this option to set whether you wish to feature a listing at the top of your shop. This can be a top-performing product, and enabling this option improves its visibility.

Pro Tip: Highlight up to four items as “featured” to display them prominently on your shop’s homepage.

Renewal Options: You can renew products on Etsy either manually or automatically. When you enable the auto-renew option, Etsy will automatically renew the items for you every 4 months or when the item is sold. On the other hand, when you enable the manual option, you must manually renew the items. When starting, set the renewal option to manual, as you do not want to auto-renew items that are not selling. 

Choosing Shipping Options

Here’s how to create shipping profiles: 

After you have opened your shop, you can set up shipping profiles. Instead of adding shipping details each time for a listing, you can reuse the same shipping profiles for multiple listings, saving you time.

There are two options to put shipping prices for your shipping profile:

1. Calculate shipping: This option automatically generates the shipping cost. The shipping is calculated based on your location and your buyer’s location, along with the item’s size and weight.

2. Enter fixed prices manually: This option allows you to set the price buyers will pay for standard shipping, international shipping, shipping upgrades, and even shipping discounts for multi-item orders.

With this, we have completed the central part of setting up a shop on Etsy. It’s time to launch.

Opening Your Etsy Shop

Once you click “Open Your Shop,” your store will be live. Etsy shoppers will be able to see and purchase your listings.

The URL for your shop will be in one of two formats:

• https://www.etsy.com/shop/yourshopname.
• https://yourshopname.etsy.com.

Before we celebrate this accomplishment, let’s take some time to customize your shop according to your brand and products. This step is crucial to stand out and win loyal customers.

Customize Your Etsy Shopfront

Below are a few tips for tailor-making your Etsy shop to align with your brand and story.

• Highlight Featured Items: Showcase up to four featured items on your shop’s homepage. Select from your bestsellers, seasonal items, or new arrivals to feature the items.
• Group Products into Sections: Organize your items into categories or sections to make them easier for customers to browse. Use clear and specific section names, like “Wedding Accessories” or “Holiday Decor,” to guide buyers.
• Customize Banner: Use a big banner or the carousel display feature to link each image to a specific listing or an entire section of your shop. You can also edit the link text (e.g., “see more like this,” etc.) to guide buyers.
• Choose a Cohesive Visual Theme: Ensure consistency in your product photos, banner design, and logo. Stick to a color palette or style that reflects your brand’s aesthetic (e.g., rustic, modern, playful).
• Incorporate Seasonal Elements: Refresh your shopfront for holidays or special occasions. Add seasonal banners, update your featured products, and include festive announcements.
• Include Social Media Links: In the About section, add links to your shop’s social media accounts to connect with customers outside of Etsy and build a loyal following.
• Showcase Your Best Reviews: To build trust and credibility, highlight positive customer feedback in your shop’s About section or include it in product descriptions.
• Video Introduction: Create a short video welcoming visitors to your shop. Highlight your products, story, and what makes your shop unique. Videos add a dynamic and engaging touch to your storefront.
• Promote Bestselling Collections: Dedicate a section to popular collections or seasonal bestsellers to capture buyer interest quickly.
• Explore Advanced Customization: As your shop grows, consider upgrading to Etsy Plus, a subscription service that provides additional tools and features to enhance your shop’s customization and visibility.

How Much Does it Cost to Set Up an Etsy Shop?

Opening a shop on Etsy is free. However, Etsy charges fees when you sell on the platform. Let’s walk through the fees one by one:

1. Listing Fees ($0.20 per listing): When listing a product on Etsy, you must pay $0.20. The listing will be renewed every four months if it doesn’t sell. Renewal fees are $0.20. As a beginner, you can start with the manual renewal option and gradually switch to the auto-renewal option when you see sales.

Read Also: What is a good conversion rate on Etsy how to sell shirts on Etsy

2. Transaction Fees (6.5% of the total sale price): This fee applies to shipping and gift wrap for each transaction. 

3. Payment Processing Fees (3% + $0.25 per transaction (for U.S. sellers)): A payment processing fee is charged on the total sale amount and incurred on every sale in each shop.

4. Currency Conversion Fees: If you’re selling internationally, you might also incur a 2.5% currency conversion fee on the total sale amount.

5. Regulatory Operating Fee: For sellers in the UK, France, Italy, Spain, and Turkey, a percentage fee is charged on the total sale price.

These are the mandatory fees for Etsy when you set up an Etsy shop. Additionally, you might face other charges for promoting or customizing your shop. These include:

1. Etsy Ads: Onsite ads work on the PPC model, and the daily budget starts at $1. Offsite Ad fees cost 12-15% of the sale price of items. 

2. Etsy Plus Subscription: $10 per month per shop.

3. Shipping and Packaging Costs: Shipping label fees vary by courier, destination, and item weight. Each shop’s orders require additional packaging materials and shipping supplies.

4. Third-Party Tools: Costs vary based on the software or service used (e.g., inventory management, SEO tools, and customer service platforms).

5. Optional Marketing and Branding Costs: Additional expenses may include social media ads, professional photography, custom branding, and email marketing services.

How to Start an Etsy Shop With No Money

Starting an Etsy shop with no money is possible using the right strategies and resources. However, the listing fee is something we can’t avoid. You must pay $0.20 when you list a product. The only way you can get free listings is through a referral program. You can invite your friends to open a shop on Etsy, and you get 40 free listings when they create a shop through your referral link. Know more about Etsy’s free listings.

On that note, let’s understand how to set up an Etsy shop without money:

1. Selecting Products: Focus on products with minimal upfront costs, such as digital downloads or handmade goods you can create from inexpensive materials. Use print-on-demand services like Printful to sell custom items like t-shirts, mugs, and posters without holding inventory. You will only pay for these print-on-demand partners when you make a sale.

2. Choose Best-selling Items: Go to etsy and find the best-selling items in the digital downloads category. These include planners, invitations, checklists, and so on.  Identify the shops selling digital products and copy their URLs(we will need them later).

3. Create Your Product: Creating a digital product is easy when you use the right tools. Canva is a great tool that offers a wide variety of options to get started, and that too for free. To design a product, go to Canva and choose from one of their free templates. You can add elements or upload photos, customize the template, and create a unique digital product. You can also use Google Docs templates or Notion templates for free.

4. Etsy Keyword Research: SEO is necessary to increase the visibility of your products. And you can do so using free Etsy keyword research tools. Tools like eRank offer a few free features that you can use to implement SEO in your shop. 

Go to eRank and locate the compare listings option within the tool. This feature lets you input a shop URL (Paste the URL you copied from Etsy) and gives you the keywords these shops use. Then, pick the ones that relate to your product. 

Now go to the keyword explorer tab and search for these keywords. You will get a list of similar keywords, and you should pick the keywords with high search volume and low competition. 

5. Create an Etsy Shop for Free: Etsy has no setup fees, so you can create a shop without initial costs. Choose a unique and memorable shop name that reflects your brand. Fill out your shop’s “About” section to connect with buyers and build trust.

6. Marketing Your Shop: Now that we have optimized your shop for SEO, potential customers can find you through the Etsy search bar. You can also promote your Etsy shop on social media.

You can use platforms like Instagram, Pinterest, TikTok, and Facebook for free to showcase your products. You can use Canva to design posts for free and regularly post on your social media accounts to attract your target audience.

7. Evaluate Shop’s Performance: Monitor your shop’s performance through Etsy’s analytics tools and tweak your listings based on what works.

Conclusion

Remember, the key to standing out on Etsy is consistency, authenticity, and responsiveness to your audience’s needs. With your shop up and running, the possibilities for growth and achievement are endless—so get started today and watch your ideas come to life!

FAQs

What is needed to start an Etsy shop?

To set up an Etsy shop, you need an Etsy seller account, shop name, bank account details, and product photos and videos. 

How to set up an account on Etsy?

Go to Etsy.com/sell and click register. Fill in some personal information and sign up for an Etsy account.

How profitable is an Etsy shop?

A few successful sellers on Etsy earn around $43,000 to $46,000 annually; the top-most sellers earn more than $65,000 annually. 

How do you set up an Etsy shop as a minor?

Minors aged 13 to 18 can sell on Etsy only through an account registered by a parent. The parent assumes responsibility for all activity conducted on the account. Additionally, any financial details linked to the account, such as a credit card or PayPal account, must belong to the parent or guardian.

Minors must also indicate on their profile and “About” page that a parent supervises their Etsy account.

How long does it take to set up an Etsy shop?

You can set up an Etsy shop and open it the same day. To open an Etsy shop, follow the steps outlined in the blog.

How to set up an Etsy print-on-demand shop?

Follow these steps to set up an Etsy print-on-demand shop: Create an Etsy account, pick a niche, create designs, and connect Etsy to a print-on-demand service such as Printify, Printful, etc. Take product photos, add a video, optimize listings, price items correctly, customize your storefront, and market your Etsy shop through Etsy ads or social media.

How to set up an Etsy shop for digital downloads?

Setting up an etsy shop for physical and digital products/downloads differs slightly in the listing process. You must upload your designs for digital downloads as part of the process. Hence, you must select other options to successfully set up an etsy shop for digital downloads.