Starting an Etsy Shop - A Step By Step Guide

If you're passionate about crafts or you are an aspiring artist, starting an Etsy shop could be a great way to combine your passions with the way you make your living. Etsy, which is an online marketplace for handmade and unique items, gives you the perfect platform from which to launch a home business.

Before you jump right in, it’s important to recognise that success on Etsy means more than just great ideas and the ability to make products your customers are looking for. This guide will lead you through thel first steps to starting an Etsy shop that people will want to buy from.

Is Starting an Etsy Shop a Good Idea?

Etsy has become a great place to go for buyers seeking handmade/one-of-a-kind items for gifts, or for themselves. If you can create unique products that fill a gap in the market, there are customers already on the platform waiting for your products.

• Handmade craft boxes
• Letterbox gifts
• Artwork
• Vintage/restored items
• Customised jewellery
• Personalised or quirky T-shirts, hoodies or hats
• Digital prints

Before you get started with setting up your account and starting your Etsy business, it is really important to consider your skills and see if there is a demand for your products. Identifying your target customers is essentiall if you want your business to be a success.

Starting an Etsy Business - Write Your Business Plan

It’s important before you jump in to begin your Etsy business with a well-researched business plan. Identify your brand and how it connects to your and target market, then you can plan your short and long-term goals, including sales targets and plans for future growth. For example, will you diversify into other products, or will you eventually take your business to craft fairs as well as selling on Etsy? Your business plan is a roadmap that you can follow throughout your business journey. It can help guide your decisions and keep you focused on what you want to achieve.

What’s In A Name?

Choose a shop name that reflects your brand and resonates with your target audience. Ensure the name is unique and not already in use on Etsy and make it memorable and quirky so people know where to return to once they’ve made their first purchase. Consulting with professionals, such as those at Your Company Formations, can help you establish your shop correctly and avoid the pitfalls of choosing a name that is not appropriate.

Understand Your Market

Understanding the market is really important when starting an Etsy shop. You should consider taking on some market research and analysing your competitors, which could involve:

• Looking for successful Etsy shops that sell similar products.
• Viewing (and maybe ordering) their products, to obtain information on types of products, categories and quality they sell.
• Looking at competitors’ pricing
• Reading some of their customer reviews to see what they do well, and not so well.
• Customised jewellery
• Completing some keyword research into what search terms buyers use to find products like yours.

By conducting thorough research, you can make your shop stand out amongst the competition by offering unique products that really resonate with your customer base. Knowing your competition means you can learn from them, and adapt your offerings to meet your customer’s needs.

Costing Your Products

Setting up an Etsy shop involves various costs and these should be included within your prices. Therefore, it’s important to consider the following when setting your pricing:

• Material costs
• Labour costs
• Etsy fees
• Shipping and packaging costs
• Marketing expenses

Competitive pricing is essential. However, you will need to ensure your prices cover all of your costs and leave you with a reasonable profit. Consider bundling up on shipping costs for multiple items to help customers who buy more from save money on postage, which hopefully won’t eat into your profit margin!

Things To Consider When Starting An Etsy Shop

Running an Etsy shop involves more than just creating great products and listing them. It’s essential you take a look at what others do well on the marketplace to ensure your listings don’t get lost, and that you don’t upset your customers. For example:

• Taxes - Starting an Etsy shop may not feel like a business, but it is, and as such you will need to set up a business account and ensure you register with HMRC. Your Company Formations can help ensure your business entity is set up for success.
• Accounts - You will also need to keep company accounts for tax purposes. These can be complicated so it might be worth investing in an accounts software solution, or getting a small business accountant to make sure you get it right.
• Etsy fees
• Photography - High-quality photos can really enhance your product listings. Take your time and create visually beautiful images. That way, you can showcase your products in their best light.
• Inventory - Keep track of your inventory to avoid overselling and letting customers down. Etsy provides some tools to help you manage your stock.
• Customer Service - It’s vital that you respond to customer enquiries quickly and address any problems in a professional manner. That way, you can avoid negative reviews left by angry customers.
• Shipping - Highlight shipping options, but make sure you give some room for delays, as sometimes things can go wrong with the postal service. Make sure you message individually with buyers if there are delays.

Marketing Tips

Marketing your Etsy shop is vital for attracting customers. You can have the most beautiful products, but without the traffic, your products will not sell. Here are just some ways to make sure you’re marketing your products correctly

• Optimising product listing - This is vital to ensure your customers find you. Use relevant keywords and clear product descriptions. This improves your chance of being found in Etsy search results.
• Social media - The power of social media can help to showcase your products. Instagram, Pinterest, TikTok and Facebook are popular choices for Etsy business owners and customers alike.
• Etsy promotions - You can use these to attract new buyers. Etsy often promotes shops offering discounts.
• Engaging with your audience post-sales - After all, positive reviews can help build trust and credibility.

Final Words On Starting An Etsy Shop

Starting an Etsy shop gives you a great chance to turn your creative talents into a business on a platform that people visit often. With a well-defined business plan, your Etsy shop can stand out in a place where people gather to look at (and buy) beautiful things.

If you need assistance in setting up your Etsy shop correctly as a business entity, consider seeking guidance from the professionals at Your Company Formations. You can then have the best starting point to launch your unique products to customers around the world.