Etsy is a sales channel with a strong focus on handmade, vintage, and unique products. It's the go-to platform for crafty people wanting to earn an income from their one-of-kind creations. It's essentially a platform that's helped millions of people turn their hobbies and passions into income streams; some lucrative and others not so much.
If you're just starting out on Etsy, or you've hit a snag with its growth, you're not alone. Many sellers experience a slow start when it comes to selling on their Etsy Shop. But those successful Etsy sellers who've persevered are earning thousands of dollars of profit per month without having to stick to the dreaded 9-5 hours of traditional jobs.
Key Takeaways from this Post
There are plenty of reasons to open an Etsy shop, despite the increasing competition. It's an easy-to-use platform that allows you to launch a business with reasonably low start up costs. Etsy is the place to go for selling unique and handmade products.
Your Etsy seller journey begins when you're setting up your shop. You must be tactful with your name, shop profile, and About page. Beyond this, we've got tips here for optimising listings and growing your Etsy store with strategies like social media marketing and using the right tools.
Growing an Etsy business takes time. The right tools can free up your time, allowing you more time to spend on other, more sales-focused areas of your business. Link My Books, for example, lets you put your bookkeeping on autopilot.
If you're keen to boost your Etsy shop, read on for some top Etsy tips for growth. Whether you've not yet launched or you're struggling to get going, put these tips into action today.
Why Start an Etsy Business?
If you're still on the fence about whether launching, or continuing, an Etsy shop is right for you, take a look at these top reason why you might decide to go for it:
- Low start up costs: Opening an Etsy store is pretty cheap. Granted, you have to pay for your products and materials of course. But, the actual signing up, joining, and opening is completely free. Etsy works on a commission-based model where you pay payment processing fees. Etsy sellers automatically pay a percentage from each sale and Etsy also charges a flat rate to list items.
- A niche market: If you want to sell to a niche market, Etsy might be the ideal platform for you. You'll discover handmade cosmetics, jewellery, print-on-demand clothes, and digital downloadable products. It's a great place to sell things like gifts, for example, that the recipient wont find anywhere else. It's a place where you can showcase your creativity and gain some fans.
- Test ideas: If you've got an idea or two for some new products but you're not sure whether they'd be well-received from customers, Etsy can help. Before committing completely to your new business venture by investing in a website, PPC ads, and email marketing tools, you can test the waters out on Etsy beforehand. Gather feedback from customers and learn what they think about your products.
- Easy to use: Etsy is a sales platform known for its ease-of-use. There's no steep learning curve, lengthy tutorials, or complicated software to get to grips with. Much of the platform is self-explanatory and straightforward as it walks you through the process of setting up and selling your stuff.
- Trusted platform: Contrary to launching your own website without any reviews or testimonials from customers, Etsy is a platform that customers trust buying from. Of course, it's not ideal that fees decrease your Etsy profit margin. But, without a platform that's trusted by customers, you'll find it more difficult to sell, particularly at the beginning.
Setting up Your Etsy Shop
Let's first go through some tips for setting up your Etsy Shop in a way that's going to set you off on the right foot for success:
Picking the Right Name
Your shop name is a pretty important detail for your business and Etsy Shop. After all, it's how people will refer to you and remember you. It must also be completely unique and not one that's already been taken. You can begin this process with a brainstorming session. Here are some ideas to get you going:
- Descriptive: Having a descriptive name, you can incorporate your brand personality and create the feeling you want to achieve. For example, you might want to build a vibrant, zesty, and energetic brand, which could be reflected in your name. Equally, a descriptive name might indicate (or flat out state) what your business does or sells. Or, what makes it unique.
- Made up words: You can use words already in the English dictionary or you could take it further and create your own words. Again, this could be used to compliment or showcase a desired brand image or personality. You could mix multiple words together to create a brand new one. Or, make your Etsy Shop name a completely new word.
- Your name: Businesses have been adding their names to their brands for eons. It's a way to get recognition and ensure uniqueness. It also allows you flexibility in what you sell. The main issue with this name picking method is that it might not be easy to determine what you sell unless you pair it with a product name or category. However, doing this, mitigates that flexibility I spoke of above.
Writing a Winning About Page
OK, so you've honed in on your Etsy store name. Now it's time to write an About page that's going to be a hit with your audience. You need to use this opportunity to talk about who you are, your product design inspirations, and why you make your products. Now's also the time to articulate and write your brand's vision and mission statements, and to tell its unique story about coming into fruition.
An about page is supposed to give your audience an understanding of who you are. It should communicate your personality and win the trust of your audience. Consider who your target audience is and speak to them on their level. There are a lot of Etsy shops to compete with. Highlight your brand's USPs and describe what it brings to the table.
Optimise Your Etsy Shop Profile
Consider adding high quality images or a short video that highlights your expertise. You can add a photo of yourself so that the shop becomes more personable, relatable, and recognisable. Alternatively, you could add a clear, professional image that represents your brand and/or the products you sell. Plus, your shop icon.
Another way to optimise your Etsy store is to generate backlinks to it. This will increase its SEO. It involves getting links on relevant, high authority websites and blogs (through guest blogging, for example), that point to your store's profile.
You should also ensure you're active on social media channels. Use the likes of Instagram to promote each new listing. Include a link to your shop or listing, along with relevant tags.
Write an Etsy Shop Announcement
An Etsy Shop announcement is a designated space on your shop's homepage where you can share something with your audience. This could be a whole host of things but it's definitely worth using this space to your advantage. The first few sentences are the most important because these are the ones you can see without clicking on the 'More' option to expand it.
Here are some ideas for your shop announcements:
- Providing a warm welcome to your shop.
- Alerting your audience of sales.
- Letting them know you're away on holiday.
- Showing off achievements and awards.
- Providing a brand mission and vision.
Creating Winning Product Listings
OK, so you've got your Etsy store all set up. Now we're going to go through some Etsy tips for creating winning product listings:
High Quality Photos
When it comes to product photos of products you're selling online, image quality matters. A successful Etsy shop will showcase its products with professional looking photos from multiple angles. Ensure the lighting is natural if possible. And, consider adding text on the images concisely detailing the product's best features.
Write Compelling Descriptions
Descriptions are your opportunity to convey the benefits and features of your products within your product listings. Think about the language you use to describe your products. Include the following:
- Persuasive words: Write powerful words that persuade the reader that they want or need what you're selling. Use positive, affirmative language like 'Yes', 'Free', 'Now', and 'You'.
- CTA: Add a call to action at the end of the description to prompt an action from your audience.
- Product specifications: Let your audience know all the specifications of the product. For example, its size and weight, colour, and care instructions.
- Shipping: Detail the shipping time and costs, along with your returns policy. You can also include the type of packing the product will be sent in.
- Keywords: Use keywords in your product descriptions that accurately reflect your products.
Make Use of Tags
The Etsy search algorithm takes tags into consideration when it decides what to display to its shoppers when they type what they're looking for into the search bar. Tags are words or short phrases that describe the thing you're selling. They work in a similar way to keywords and are part of the overall Etsy SEO process.
Etsy sellers can choose up to 13 tags to include in their product listings. We recommend you make use of all 13 if possible. In addition to that, they need to be relevant and accurate representations of the product you're selling.
A few rules for tags:
- Each tag can contain up to 20 characters.
- It doesn't matter whether your tags are singular or plural.
- Multi-word phrases and long-tail keywords are more effective for targeting.
- Don't add tags that are not spelt correctly because of frequent consumer error.
- For English tags, you cannot use punctuation or special characters.
- You should review Etsy's seller policy, and terms and conditions before adding tags.
- Include tags that are synonyms of your product tags.
Tactful Titles
Another aspect of Etsy SEO is keywords in titles. They one of the ways Etsy's algorithm decides what products to show to whom. When you're coming up with your product titles, be sure to include a keyword that accurately reflects the product. These are words that customers will type into the search bar. Place these keywords at the beginning of your titles.
Additionally, be sure to keep your titles short and sweet. They should be concise. And while it's important they accurately describe the thing you're selling, it's not the place for a long-winded description. Save these for the description sections. Also double check your titles for typos and make sure everything is ordered by importance so the important bits can be seen clearly when they show up in search results.
Create Backlinks to Listings
Backlinks are another way of promoting your Etsy products to potential customers. They not only direct people to your products but they also help dramatically with your SEO. Ensure you're active on social media and are regularly posting content with backlinks to your listings. Visual platforms like Instagram and Pinterest are great for Etsy sellers promoting handmade and visually-appealing products.
Growing Your Etsy Business
Now we're getting down to the heart of the mission; growing your Etsy business. Go through these tips to maximise your growth potential:
Have More Listings
When you're selling on Etsy, the more listings you have, the more chance you'll have at selling. You'll cover more keywords and you'll have a higher chance at potential customers finding you. In turn, once you begin getting customers, you'll gather feedback and make your way up the ranks of Etsy sellers.
A good rule of thumb is to start with at least 20 products. Continuously add more to your shop. To make this a little easier, you could create separate listings for products that have a slight variation, like a different colour, rather than incorporating the variations into one listing.
Use Etsy Ads
If you're a serious Etsy seller, Etsy Ads is likely something you've considered. Etsy ad campaigns are relatively straightforward and work on a PPC basis. You bid on your keywords for your ads and you can adjust your budget as needed. Etsy Ads are displayed in search results, on the homepage, and in product category pages.
There are both onsite and offsite Etsy Ads. You'll automatically be enrolled in the offsite Etsy ads program if you choose to go down the Etsy ad route. However, you can choose to opt out if your shop has made under $10,000. Offsite ads are shown across social media platforms and Etsy's network of partners.
When you're figuring out whether running Etsy Ads is worth it, you need to take the costs into consideration plus the potential ROI. Higher-priced items will generate a higher return because the cost of the ad will take up a smaller chunk of the sale.
Create a Multi-Channel Business
One of the most effective ways of growing your business is to create a multi-channel business to cover multiple sales channel bases. Providing, of course, that you have the means and resources to manage all channels smoothly.
Increased exposure to more customers means more chance of selling your stuff. You could open a Shopify store, eBay store, TikTok Shop, or Walmart shop, for example. The right channels all depend on your target audience and the products you sell.
A multi-channel business will allow you to reach your customers wherever they are. You can, for example, place a leaflet with a coupon code in your parcel to your customers. It's essential though that you abide by Etsy's rules and regulations regarding moving customers away from the Etsy marketplace. You can't direct people to your website on your shop, for instance.
Use the Right Tools
The right tools can bring your whole operation together, streamlining your processes to boost efficiency. If you've got multiple eCommerce channels on the go, for example, you could use software that integrates your inventory levels. You could also use a social media scheduling tool to post content across multiple social media platforms at the same time. This would also be useful if you have multiple merchant services accounts.
Another option is to use a software like Link My Books to automate your bookkeeping and save you time every month. Link My Books transfers sales data from your various sales channels over to your accounting software, whether that's Xero or QuickBooks. It breaks down income and expenses so you can clearly see sales, Etsy fees, shipping, and taxes, amongst other metrics.
Enhance Your Social Media Presence
We've touched on this a little bit earlier. But, I think it's important to give it a section of its own. Social media is an essential component of your overall digital marketing strategy, regardless of the sales channel you're using. The 4 top social media platforms for Etsy are:
- Instagram: Best for building campaigns with strong visuals, telling stories, and targeting a specific audience.
- Pinterest: Best for jumping on trends, trendsetting, and sharing visually-appealing content.
- Facebook: Best for going live, targeting a broad demographic, and sharing news and blog posts.
- X: Best for generating interest, sharing promotions, and gathering insights via polls.
Although each social media platform is different, here are 8 general tips for promoting your Etsy business through social media channels:
- Build a community around your brand by maintaining a consistent brand image, asking your audience questions, and discussing relevant topics.
- Make your interactions two-way conversations by ensuring you reply promptly to questions and comments.
- Consider running social media ads to build brand awareness and drive traffic to your Etsy shop.
- Use high quality product photos and images to highlight your products' best bits.
- Don't go into social media marketing with a hard sell in mind. It's about building brand awareness and engagement.
- Consider running user-generated content campaigns where you ask customers to post images of themselves using your products.
- Ask customers to leave you fair and honest reviews.
- Analyse your social media data to hone in on your buyer profile and customer persona. Get to know your audience so you can better tailor your content.
Gather Feedback and Reviews
You'll notice that successful Etsy sellers have lots of reviews on their shop. Veteran Etsy sellers know just how important customer reviews are to potential customers. If there are two shops selling similar products at a similar cost, the customer is going to go with the one with the best customer reviews; no question. They may even be willing to pay a bit more for the peace of mind that comes with purchasing from a well-established and reputable seller.
Studies actually show that online reviews can boost conversion rates by a whopping 270%! They can also increase spending by an impressive 31%.
That said, customers very often do not take the time to leave reviews. Once they've got their stuff and are happy with it, customers can go quiet. Moral of the story; you make the first move by reaching out and asking your customers for a review. Ask if there's anything you can do to make their experience better and make sure you thank them for their custom soon after placing an order.
Make the Buying Process Quick
Consumers purchasing goods online have an increasingly narrow timeframe in which they expect their new thing to be delivered. Most veteran Etsy sellers who've successfully scaled their Etsy shop have made quick order processing amongst their top priorities. To do this, you need to make sure you always have stock on-hand ready to be shipped.
Give Away Coupons
This tip refers to your pricing strategy. In addition to keeping shipping costs low (or even free), you can offer regular give away coupons to your loyal customers. Research shows that repeat customers are easier and cheaper to market to than new customers. Aim to build a loyal customer base with happy customers who want to come back to you time and again.
To encourage repeat custom, make use of Etsy's features like:
- Promo codes
- Sales
- Targeted offers
These can all be set up in the Shop Manager page in your Etsy seller account.
Additionally, place coupon codes onto flyers and place these in your packaging. The flyers can direct customers to your website and give them a percentage off their first order with you. Or, give them a reward for referring a friend to your website.
P.S. Etsy's Seller Handbook offers more information about using discounts.
Analyse Data
Once you've got data coming in from different places, you can analyse that data. Look for the ways which drove the most conversions, got the most engagement, generated the most Etsy payments, and offered the greatest ROI. Through your analysis, you might notice that one or two marketing methods just didn't work and perhaps weren't really worth the time and effort you put into them.
Before abandoning the method completely though, try and tweak your campaigns, borrowing ideas from your successful methods. Keep analysing data, cash flow, and ROI to understand your audience and what marketing strategies work best for your Etsy shop. You might consider using business intelligence tools for this analytical process.
How Can Link My Books Help Your Etsy Business Grow?
Link My Books saves eCommerce businesses around six hours per month by allowing them to put their bookkeeping on autopilot. When you receive Etsy payments, Link My Books transfers the data across to your Etsy accounting software automatically. It clearly shows you information like sales, transaction fees, advertising fees, and shipping fees.
We've worked with thousands of Etsy sellers over the years and our customers appreciate the ease-of-use and multi-channel capabilities, in addition to the time-saving aspects of Link My Books.
Additionally, Link My Books accurately calculates your taxes on every item you sell. And, tracks your COGS (cost of goods sold).
More recently, we've built in some analytical tools to help businesses thrive. Link My Books Benchmarking will give your Etsy business a percentile ranking for metrics like sales growth percentage and advertising fee ratio, against industry averages. Profit & Loss by Channel, on the other hand, allows you to compare performance across your different sales channels.
Selling on Etsy: Making it Successful
If you're selling on Etsy, ensuring your customers have a smooth, positive experience is essential for making it successful. You need to carefully consider your pricing strategy, and whether you want to offer regular discounts and coupons. Furthermore, it's useful to have a shop name that people can remember and that makes it clear what your business is about.
Ensure product photos are clear and professional, with snapshots from multiple angles. Equally, Etsy shoppers appreciate descriptions that clearly explain what products are, there features, and the benefits of using them. Selling on Etsy is reasonably simple. However, growing your Etsy business requires time and patience. That's why using the right tools and software will help you out tremendously.
Link My Books affords you, as an Etsy seller, more time to work on growing your business and following the tips in this guide. Save yourself hours every month and ensure you keep compliant with the tax rules and regulations where you sell. You can get a two week trial of Link My Books for absolutely free. Sign up today and be ready to go in just 15 minutes.