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If you’re thinking about selling your Cricut projects, I’m sure you’ve thought about opening an Etsy shop. If you’re ready to move forward with that decision, I will walk you through how to start an Etsy shop, tell you what you need to know before you open your Etsy shop, and answer some frequently asked questions.
Etsy is an online marketplace where people sell handmade products. Etsy was founded in Brooklyn, New York in 2005 and has since transformed into a global company. As of 2019, there were more than 2.7 million Etsy sellers and more than 39 million active buyers on Etsy.
There are several reasons why you should start an Etsy shop which include:
- Generate income
- Test a product idea
- Create a customer base
- It’s easy and cheap to use
- You can receive your payout daily, once a week, once every 2 weeks or once a month
- You can sell digital or physical products
Take some time to consider your reasons for opening your Etsy shop. I have included a printable worksheet that you can fill in to help you get your Etsy shop up and running. Get the printable in my Free Resource Library.
Before opening your Etsy shop
Opening your Etsy shop can be exciting and overwhelming at the same time. To lessen the overwhelming part I have put together a list of things you should consider beforehand:
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Determine your shop name
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- Your shop name should be something that is short, memorable and describes the nature of your products. Don’t overthink the name of your shop. Other things to consider for your Etsy shop name:
- You can only change your Etsy shop name one time
- Your shop name can be between 4-20 characters
- You cannot use spaces or special characters in your shop name
- You cannot use profanity in your shop name
- You cannot use a shop name that is already in use
- Do not infringe on another company’s trademark
- Your shop name should be something that is short, memorable and describes the nature of your products. Don’t overthink the name of your shop. Other things to consider for your Etsy shop name:
Determine if you will sell physical or digital products
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- One of the coolest things about Etsy is that you can sell physical and digital products. You already know what a physical product is, but a digital product can be anything from a PDF file, Microsoft Word document, or a picture file. I sell both physical and digital products on Etsy and I must say that digital products are my favorite to sell. Reasons why I like selling digital products include:
- All the work is done up front by creating the product and after that you just advertise and promote your product, no shipping involved
- You don’t have to worry about shipping products if you’re on vacation
- You don’t have to worry about products getting lost in the mail
- One of the coolest things about Etsy is that you can sell physical and digital products. You already know what a physical product is, but a digital product can be anything from a PDF file, Microsoft Word document, or a picture file. I sell both physical and digital products on Etsy and I must say that digital products are my favorite to sell. Reasons why I like selling digital products include:
Get a logo made or design it yourself
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- Your logo is what people will essentially associate with your brand when they see it. Your logo should be clean and unique. You can use software like Canva for free or Adobe Illustrator to design your own logo or hire someone on sites like Fiverr or Upwork to create your logo. If you decide to go with the latter, remember to do some research before hiring someone to design your logo. Check out this post Finding A Logo For Your Cricut Business.
Write the description for your shop
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- Your shop description can consist of giving a little bit of information about who you are and why you’re selling the products that you are. Don’t overthink your shop description, because there likely won’t be a lot of people reading it to be honest.
Write your policies, returns, and refunds
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- Etsy provides templated and prepopulated information in the policies, returns and refund section of your site, but you can also write your own policies.
- If you are planning to sell physical products you need to take some time and determine what your return and refund policy will be. Obviously if you are selling digital products you won’t accept returns given the nature of the product. You also need to determine if you will refund money
Set up a bank account
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- You should set up a separate bank account for your Etsy shop so you can keep the funds you make separate. I recommend creating a personal account first and then converting it to a business account once you meet a certain income level.
Other things
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- Download the Sell on Etsy app and the Etsy app
- Join Facebook groups that are focused on selling on Etsy
- Find 3-5 good Etsy shops that sell items similar to yours and take note of things they do well
Frequently asked questions
Below are some answers to questions that are frequently asked questions about starting an Etsy shop.
How much does it cost to start an Etsy shop?
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- While it’s free to start an Etsy shop, there are fees associated with running your Etsy shop. It costs $0.20 for each listing (item that you sell) on Etsy. Etsy also charges a transaction fee that is based on a set percentage. If you ship products, you will be charged a shipping fee also. To learn more about the costs associated with running your Etsy shop, read here.
Is starting an Etsy shop worth it?
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- Starting an Etsy shop is worth it if you put in time to create listings, post on social media and run some ads. Initially, it will take time for customers to find your Etsy shop. It can take months. But you have to be persistent and do what it takes to make your shop successful. Part of that success comes from doing your research on what sells on Etsy, creating product photos that are nice and show what the product is, and using keywords and tags throughout your listing. If you have time to dedicate to your Etsy shop, it will be a success, if you don’t have the time, you should probably reconsider starting an Etsy shop.
Is selling on Etsy a bad idea?
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- I personally think that if you’re considering selling your Cricut products online, you should consider Etsy first. Selling on Etsy is cheap, flexible and allows you to customize your shop some. There are things that you will have to learn, like how to maximize keywords and how to make custom listings. The best part about Etsy is that people are already using the platform to search for items that may be similar to yours.
Do you pay taxes on your Etsy shop?
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- Etsy sellers are responsible for collecting taxes on the items that they sell on the platform. Etsy will issue you a 1099-K form if you meet certain profit and sales thresholds. To read more detail about paying taxes on your Etsy shop check out this article.
What are tools to help me navigate selling on Etsy?
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- eRank and Marmalead are two great tools to help you excel at selling on Etsy. eRank has a free plan, a plan for $5.99 per month and a plan for $9.99 per month. Marmalead costs $19.99 per month.
What sells most on Etsy?
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- You can use tools mentioned above like Marmalead and eRank to determine what some of the most popular things are that are selling on Etsy. You can also use the Etsy search box to see what people are searching for the most.
How many items do I need to sell on Etsy?
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- You can start an Etsy shop with at least one item in your shop. It’s best to have many items in your shop so that customers can have a variety of options to choose from and so that your shop will be found amongst your competitors.
How do I get my items noticed on Etsy?
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- There are many factors that play into your items getting found on Etsy some of which include using the right keywords and tags, taking great photos of your products, using ads, and promoting your products.
Starting an Etsy shop can be very rewarding, but it can also be very time consuming. To make your Etsy shop successful you’re going to have to have a lot of patience and be willing to learn. Again, I believe that if you want to sell your Cricut projects online, Etsy is the first place you should consider. Etsy will get you prepared to move into having your own website which comes with its own pros and cons. So for now, learn all that you can about Etsy and get your shop up and running!
Be sure to download the free How to Start an Etsy Shop printable in my Free Resource Library.
