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Starting an Etsy Shop: A Simple 9-Step Guide to Get You Ready for Selling.

Editorial Note: We generate a commission from partner links on Forbes Advisor. Commissions do not impact our editors’ viewpoints or assessments.

If you’ve ever produced artisan or handmade products, you’ve likely heard “you should sell these on Etsy” on more than one occasion. Acquiring the knowledge of how to establish an Etsy store is simple. Here are nine straightforward steps for you to have your shop prepared in just one day.

Prior to Getting Started


We’re going to assume that you already possess a viable product, but it’s worth noting that branding is essential when making your first Etsy sale. If this isn’t your area of expertise, consider hiring a graphic designer to design your product labels or purchase a template from Etsy. Then, you can either print these labels at home using a laser printer or order labels online.


You’ve put in so much effort to create and label your product—make sure that the photos highlight the dedication you’ve put into it. You don’t necessarily need to hire a professional photographer to capture product images. Instead, find a sunlit window and use portrait mode on your phone to capture images of your products against a white background (poster board works well for this). Alternatively, you can purchase a simple lightbox from Amazon.


To simplify your business tax filing process, establish a separate bank account to handle all of your Etsy expenses and transactions. This way, all of your business-related expenditures are in a single location and not mixed with your personal funds.

Packing Materials

Etsy buyers expect quick shipping, so make sure you have all of your packing materials in advance. This includes boxes, environmentally friendly packing peanuts, packing tape, and shipping labels. Once you start making regular sales, you may want to consider using branded boxes and a thermal label printer.

9 Steps To Set Up an Etsy Shop

1. Create Your Etsy Account

In order to create a seller account, you must first have a consumer Etsy account. Go to “Sign In” in the top right corner, and a dialogue box for your credentials will appear. If you don’t have an account, click on “Register.” You will receive an email requesting confirmation for your account.

After signing in, look for a gray circle with a silhouette on it next to the shopping cart in the top right corner. Click on the circle, and a drop-down menu will appear with the option to click on “Sell on Etsy.”

After landing on the “Sell on Etsy” page, you will see a black “Open Your Etsy Shop” button below the banner.

2. Enter Your Shop Preferences

Here, you will enter your shop preferences: language, shop country, shop currency, and whether your shop is your primary source of income or not. Once you’ve finished, click on “Save and continue” in the bottom right corner.

3. Name Your Shop

You can name your shop using 20 characters or less, and it must be unique from other shops. Your name may only consist of unaccented Roman letters and numbers, without spaces. Enter the desired name and click on “check availability.” If you’re unsure of what to name your shop, Etsy provides tips for choosing a shop name. Once set, you can only change your shop name once, so choose carefully. After deciding on a name, click on “save and continue.”

4. Create Your Listings

Now, you will create listings for your products. Etsy suggests having a minimum of ten different listings to increase your chances of visibility.

Your listing should include:

  • Pictures. At least one photograph is required, and you can add up to ten photographs. In addition to product images, upload an image of the product next to a ruler or a dollar bill (or similar) to help customers determine the size of an item. Despite listing the measurements in the listing details, a visual representation of the size is helpful.
  • Videos. While not mandatory, a video can distinguish your product from your competitors. Display the product being used and from various angles.
  • Listing information. Specify the title of the product, the creator, the date of creation, whether it is a physical or digital product, a detailed description, materials utilized, and tags. Additionally, you can include a section to categorize similar products together.
  • Inventory and pricing. What is the price of your item? Ensure that you consider the cost of materials, labor, shipping costs (if offering free shipping, incorporate it into the product price), and shipping materials. If you adhere to ideal manufacturing practices, this is also where you add a SKU.
  • Product variations. Does your product come in different sizes or colors? Specify them here.Personalization. If you offer personalization for your products, select “on.” Otherwise, leave it “off.”
  • Shipping. You can have Etsy calculate your shipping expenses based on your origin zip code. Input your processing time, the locations you are willing to ship to, the shipping services you offer, whether you provide free domestic or international shipping, and whether you want to include a handling fee in the shipping price. Additionally, provide the weight and size of the item.

You can preview each listing before saving it. Once you have added all your listings, select “save and continue.”

5. Enter Your Payment Settings

Etsy requires information about your tax filing status. Therefore, the first question under the payment settings is whether you are an individual or a sole proprietor or a registered legal entity. If you choose “individual or sole proprietorship,” provide your country, full name, date of birth, address, phone number, and the last four digits of your social security number.

Incorporated businesses will input the name of the legal entity, the legal business address, the state, the business registration number, and the EIN. Additionally, Etsy needs to know the primary contact for the business, so it asks for the shop owner’s details. You will provide the full name, address, date of birth, and the last four digits of their Social Security number.

After completing this section, the next section requires you to state the country where your bank is situated. Then, input your routing number and checking or savings account number, which you want your Etsy sales to be deposited into.

6. Fill in Your Credit Card Details

A credit card is necessary to pay for your Etsy fees. Input your credit card number, CCV, expiration date, and the complete name on the card. For peace of mind, sign up for auto-billing and Etsy will automatically charge your card on the first day of each month or when you reach your fee threshold. Alternatively, you can make payment anytime between the first and the 15th of the month.

As an Etsy seller, you will encounter three main types of fees:

  • Listing fees
  • Transaction fees
  • Payment processing fees (if using Etsy Payments)

7. Launch Your Shop

Once you have entered your credit card details, the button to “open your shop” will turn black, and you can click on it. Congratulations! Your shop is now open. You can now share your shop with your friends, family, and followers.

Your store URL comes in two different formats:

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

8. Update Your Biography

By incorporating a concise biography and image, you can showcase potential customers the skilled craftsman behind the store. This is a space where sellers like to divulge their sources of inspiration for their craft. For instance, if you initiated your store because you are fundraising for a cause or to assist in financing a journey (such as IVF or adoption), state it.

9. Establish Your Shop Policies

This is one of the most crucial steps in becoming an Etsy seller. You aim to predict any inquiries a buyer might have to minimize any lengthy communication via chat. A policy section will also aid in resolving any disputes.

Indispensable components of your shop policies include:

  • Lead time
  • Shipping guidelines (for instance, perhaps you exclusively ship via USPS Priority to take advantage of complimentary insurance)
  • Payment alternatives
  • Returns and exchanges policy

Final Verdict

You’ve heard it before—Etsy is the ideal platform for artisans to sell handcrafted goods. It’s where individuals go to discover exclusive, one-of-a-kind items that they can’t find elsewhere. Fortunately, it requires very little time to establish an Etsy shop, and the entry requirements are minimal. While creating an account is free, you only have to pay a nominal fee for listing your item and a fee upon its sale.

Frequently Asked Questions

Does Etsy report my shop revenue to the IRS?

Yes, Etsy is obligated by law to report your revenue to the IRS if you surpass $20,000 in sales and exceed 200 transactions. You will receive a 1099-K form to file your taxes.

How much do I pay in seller fees on Etsy?

There are three types of seller fees that you will encounter when utilizing Etsy to sell your products: listing fees, transaction fees, and payment processing fees (if you opt for Etsy Payments for processing your payments). Listing fees are minimal at 20 cents per listing and transaction fees amount to 5% of each sale, encompassing the item’s price and the shipping cost. The Etsy Payments processing fee is 3% of each sale plus 25 cents.

Can I purchase shipping labels through Etsy?

By procuring your shipping labels through Etsy, you can save up to 30% in comparison to USPS retail rates. You can also utilize a provider like Pirate Ship or Shippo.

How do I select a product to sell?

Even if you’re not a designer, there are numerous methods to create and sell products online. You can hire your own designer, install a dropshipping application, or acquire a new crafting skill.


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