How to Make Money on Etsy: 5 Tips + 3 Big Mistakes (2026)

Saving money on make money etsy tips does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.

Key Takeaways

• Share This content is for educational purposes only and does not constitute financial advice, advisory, or brokerage services.
• We may earn compensation from some links on this page.
• While the COVID-19 pandemic has been hard on many businesses, others have thrived.

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This content is for educational purposes only and does not constitute financial advice, advisory, or brokerage services. We may earn compensation from some links on this page. Learn more.

While the COVID-19 pandemic has been hard on numerous businesses, others have thrived. Etsy, for example , which was already one of the leading e-commerce platforms , experienced monumental growth in 2020.

As a result, there’s been a surge in entrepreneurs looking for ways to set up shop on the platform.

In this article, we’ll explore exactly how to make money on Etsy , whether you’re looking to bring in extra cash on the side or grow an Etsy store into a full-time business.

Table of Contents

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• How Etsy Works
• How to Start Selling on Etsy
  • Etsy Costs and Fees
  • The Skills You Need to Succeed on Etsy
  • Etsy Capital Requirements
• How Much You Can Make on Etsy
• What Sells Best on Etsy
  • How to Do Etsy Market Research
    • 1. Use Etsy’s Public Details 
    • 2. Use eRank for Thorough Market Research. 
    • 3. Use Your Own Internal Data
• Five Tips For Making Money on Etsy
  • Tip #1: Optimize Your Listings for Etsy’s Search Engine
  • Tip #2: Use Etsy Ads
  • Tip #3: Take a Personal approach
  • Tip #4: Drive Traffic to Your Shop from Other Sources
  • Tip #5: Provide Detailed Listings
• The Three Biggest Etsy Mistakes
  • Mistake #1: Inconsistent Activity
  • Mistake #2: Bad Photos/Images
  • Mistake #3: Not Researching
• How to Make Money on Etsy: Wrap-Up

How Etsy Works

While there are numerous major e-commerce websites that sell just about everything under the sun, Etsy takes a much different approach. Although you can find a wide variety of products for sale on the site, almost everything has a handmade, crafty or vintage feel to it. 

Shoppers have come to recognize Etsy as the go-to marketplace for these types of items. Instead of doing a Google search or heading to Amazon, shoppers go directly to Etsy because they know it’s the best place to purchase the type of product they’re after.

The products for sale at Etsy are offered by third-party sellers, mostly individuals and small businesses. According to Seeking Alpha, 80% of Etsy sellers are individuals. 

Shopping on Etsy presents a much different experience than shopping on some other sites, like Amazon. Although most of the products listed on Amazon are also sold by third-party sellers, the sellers there generally have no face or personality; Amazon shoppers aren’t choosing a product because of the seller, and Amazon doesn’t give them much space to brand themselves.

Etsy is different and has a much more personal feel. Shop owners are able to create a profile, and since numerous of the sellers are individuals or small businesses, shoppers are more personally connected to the sellers they’re buying from. In some cases, that connection plays a big role in the products the customer chooses to purchase.

As an Etsy shop owner, you can benefit from the site’s reputation and the way it stands out from other e-commerce websites. If you create and sell the types of products that are a good fit for the platform, it’s possible to get your items in front of a massive audience.

The items you can sell on Etsy include:

• Handmade items produced by you or an approved outside manufacturer who complies with Etsy’s ethical manufacturing process and handmade policy.
• Personalized handmade items, which includes custom orders for one-of-a-kind products.
• Vintage collectibles (an item must be at least 20 years old to qualify as vintage on Etsy).
• Art and photography
• Beauty and personal care items
• Digital downloads and printables
• Craft supplies
• Clothing and accessories
• Home decor
• Jewelry

Learn more about these and other options in our list of the best things to sell online.

How to Start Selling on Etsy

If you’ve decided to pursue selling on Etsy, you’ll want to understand the basics of how the platform works and what you need to get started.

Etsy Costs and Fees

There is no cost to create an Etsy shop. But like other popular selling platforms, there are some fees related to selling your products. 

• Listing fee: 20 cents per listing. You’ll pay this fee for each item you list, whether it sells or not. Listings expire after four months, and if you want to re-list an item that didn’t sell, you’ll pay the fee again. If you list multiple quantities of the same item (including digital downloads), you’ll pay the initial 20-cent listing fee and the listing will be automatically renewed at a fee of 20 cents for each sale.
• Transaction fee: 5% of the selling cost, including the cost of shipping and gift wrapping (if applicable). 
• Payment processing fee: 3% + 25 cents. This applies only if you’re using Etsy Payments to process transactions. This is the fee for sellers in the U.S., but the fee varies for sellers in other countries (Final Thoughts

  Before you check out, double-check make money etsy tips against current offers and any coupons you can stack. Small habits like this add up to real savings over a year.

  Originally published at thewaystowealth.com.