How to Start an Etsy Shop, Sell Art, and Attract New Customers in One Year
One of my friends has always been a trendsetter. In high school, she had her own jewelry business, creating custom pieces for friends and family. I can still remember the day in school (circa 2006) that she slid a piece of paper across my desk. She had written a note telling me to try “Etsy,” and that day, I discovered where the cool kids sold their creations.
At the time, I could barely remember the word. I had no idea that less than two decades later, Etsy would be the massive online storefront it is today. And I definitely didn’t know I’d start an Etsy shop with my sister in our thirties.
After all these years, Etsy’s still the most unique online marketplace for creative people. Unlike eBay or Amazon, it’s known for its community of artists, clothing makers, and crafters. (We even featured our favorite stationery stores in this write-up.)
As we at Julian//West approach the anniversary of our own Etsy account, I thought it would be fun to share some of the things we’ve learned along the way, as well as how you can get selling within the year.
How to start an Etsy shop
One thing I neglected to mention before: Our current Etsy store isn’t my first rodeo. I did actually have another Etsy shop in college, which I used to sell miniature top hats. I had a whopping single sale, and I’m pretty sure I lost money when that hat got lost in the mail. After that, I didn’t sell on Etsy for several years.
My original Etsy store from 2011
So, why am I telling you this? For one thing, Etsy has improved so much for sellers over the years. Secondly, you have to love what you sell, and back then, I didn’t.
Love what you sell
Even though those tiny top hats were relatively fun, easy, and inexpensive to make, my heart really wasn’t in it. It took hours to create the inventory and shoot photos; I had to beg my friends to model the hats.
What’s more, I had to figure out shipping, and I was worried customers wouldn’t like what I had to offer. In a way, I didn’t really believe in my product.
Luckily, I believe in what we’re selling now. Most of the time, shooting photos and doing store-related tasks is fun rather than stressful, because we have a portfolio of work we’re proud of. Sure, work will always be work, but your store should fill you with excitement, not dread.
Create an account
Creating an account with Etsy is probably easier than it’s ever been. With their Apple, Facebook, and Google integrations, you can connect your other accounts and start an Etsy shop relatively faster than making an eCommerce site from scratch.
Visit the sell page and set up your info
When you’re ready to sell, you’ll head over to the sell page. You’ll start by choosing your country, currency, language, etc. If you’re selling as a one-person business, you can easily connect your bank with Etsy and start earning.
Now, there’s been some drama of late with the way Etsy takes payments. Sellers had to re-verify their banking information to reduce laundering risk, but Etsy’s using a third party, Plaid, to complete verification. As you can imagine, sellers aren’t happy about entering their bank usernames and passwords into a third party platform.
Luckily, you can skip this step with a more manual process; Etsy explains it here. This manual process takes longer, but it’s simple and only takes a few days.
How to start selling on Etsy as a business or partnership
To be clear: you do not need an LLC or established business to start an Etsy shop or sell products, which is great for individuals with side-hustles and hobbies. However, because we have an established partnership, there were a few more hoops we had to jump through.
While these steps do take longer, they’re essential steps for a business—Etsy-based or otherwise. Plus, with some patience and focus, we got it done!
Control number
When we formed our company, we worked with a lawyer to establish an LLC. You don’t have to work with a lawyer, but we found it helpful. This process can take weeks, so do it first!
While I can’t speak for all regions, forming our company helped us get our control number: a unique number assigned to businesses formed in Tennessee. The fees for this process can range, so having a bit of money to invest is a good idea.
And in the case of Tennessee, the control number is also different from the state account number. I got my state account number by calling my state’s department of revenue, talking with an employee, and asking them to walk me through the process. I believe there was a small fee, and I did everything from home.
EIN
An EIN is basically a social security number for your business. It’s how the federal government recognizes and taxes you. As an established business, you’ll need this number.
Image source: Truic
While I’m sure there are ways to secure an EIN on your own, we did it through our accountant. She walked us through all the steps to get our EIN number. This process is actually free of charge, although an accountant’s services will cost money (but it’s worth it in my opinion). As the government will tell you, beware of websites on the Internet that charge for this free service.
Business bank account
Your business bank account is how Etsy will charge you and pay you, so it’s important to have! And with a $0.20 charge for every listing, you’ll want at least a few dollars in the account. (Most banks require some money to open an account but not all.)
For Etsy specifically, the name on your business bank account needs to match the name or business entity you provided. This can be a bit tricky for businesses with odd characters in the name (e.g. Julian//West), but you can still make it work.
What to sell on Etsy
You can sell any number of things on Etsy: paintings, digital art, crafts, vintage finds—the list goes on! There are even third-party sites that allow you to upload your art and sell it on mugs, tshirts, and more.
Pros of using a third-party site to sell on Etsy
Third-party sites can be a great way to sell items you don’t have the tools to manufacture, like mugs or blankets. These distributors make establishing a store fast and easy, especially if you’re ready to start selling right away.
Another pro of using a third-party is this: Artists can sell their art in multiple ways. People who were once limited to selling art prints and digital downloads can now see their art on a variety of products.
Cons of using a third-party site to sell on Etsy
While it’s exciting to sell merchandise, it’s not free. If you’re selling with a third-party site, you may be disappointed with the amount of money you give up with each purchase. If you want to price items fairly, your profit margins may be smaller; if you want to charge higher, people may not buy your products.
The loss of personalization and quality control are other cons when it comes to third-party websites. You can’t see your items before they’re shipped; you can’t control how quickly they ship; finally, you can’t add the touch of personalization Etsy is known for.
How to create what people want
Once you’ve decided what kinds of items you want to sell and how you want to manufacture them, it’s time to design. At first, there might be some trial and error in terms of what people are looking for.
Check your search data
If you already have products listed, you can see what searches brought people to your store by going here. At the top of the page, you can adjust the period of time during which people were searching for your products.
Use the auto-predict feature on the search bar
Like Google, Etsy tries to predict what you’re searching for before you type it in. You can use this process as a way to make lists of potential items and ideas. Simply type a few letters, and discover what’s being searched.
Use Etsy write-ups and external blogs
Etsy has a ton of helpful information for sellers. By consistently looking at Etsy’s content, you can keep up with trends, best practices, and more. Alternatively, you can use external blogs like eRank or Neil Patel to form a plan.
Work backward
Pay attention to trends outside of Etsy and apply them to your products. For instance, if you notice that a lot of influencers hang their plants, maybe hanging macrame planters could be something you sell. Is your Facebook friend is struggling to find Corgi art? They’re probably not alone.
There may even be a product people don’t yet know they want. I recently bought wall decals where this was the case.
Growing up, my friend and her mom used wall decals as a budget alternative to wallpaper, so I’ve always known about them. But when I did it for my bathroom refresh, my TikTok exploded.
Many viewers had never seen wall decals and wanted to know where they could find some of their own. I happily pointed them to the Etsy shop where I bought my products.
As you can see, if your inventory is interesting and valuable, people will organically spread the word about your shop. I had a great experience and was excited to share my experience with others.
P.S. Here is the store where I bought my star decals.
Etsy selling best practices: How to attract customers and start selling this year
In addition to selling items you love (that people want to buy), there are other things you can do to improve your sales after you start your Etsy store.
Post multiple high-quality photos
Include short videos of the products
Use discounts and promos
Spread the word about your business - Friends and family will want to support you!
Provide quality customer service
Conclusion
If you want to start an Etsy shop, you absolutely can! Whether you have a side-hustle or you’re trying to get a full-scale remote business going, Etsy can be a platform that works for you.
If you’re starting a business from scratch, remember, you got this. Just make sure you have everything you need—or a plan to get there.
And if that plan includes branding, our company can help. Contact us here for your free consultation, and we can form a custom plan for you.
