Is it Hard to Make Money on Etsy?

Last Updated on December 13, 2022

Selling products on Etsy is one of the most popular side hustles right now. It’s an online marketplace for selling one-of-a-kind items. All possibilities are handmade items, vintage items, craft supplies, and digital goods. Independent sellers, not large corporations, run Etsy stores. Almost anyone can open their own Etsy shop and begin selling right away. 

Making money on Etsy entails developing a profitable idea, selling enough to be able to cover your costs and time, establishing an Etsy store, and marketing your store to attract buyers. Then, keep up with the times by constantly updating your inventory and finding new ways to reach out to customers.


What is Etsy?

Etsy is a website where independent crafters and artists can sell their wares. Etsy is best known for its handcrafted toys, collectibles, art, home goods, vintage furniture, jewelry, clothing, and holiday items, as well as crafts and craft supplies.

Unlike Amazon and Walmart, the site’s sellers create, curate, collect and sell everything on the site. These self-employed entrepreneurs manufacture their products and manage their inventory and orders. Etsy acts as a middleman website, providing a platform for smaller, independent sellers and creators to find and attract customers.

How to Earn a Living on Etsy

Creating Profitable Concepts

Anyone can create items to sell on Etsy. The trick is to create something profitable. How do you go about doing that? Start with a brainstorming session to generate as many ideas as possible, then weed out the good ones.

It is critical to spend time on Etsy conducting market research. Examine similar items. Examine various shop pages. How many sales have they made since they first opened? If they have a large number of sales, it indicates that there is a market for those types of products.

Throughout the ideation process, ask yourself questions. Who is my target audience? Why do they require what I’m offering? How will it benefit them?

Calculate Your Costs

Once you have some solid ideas, you must determine whether or not you can actually make a profit logistically. Begin by calculating your expenses. How much will it cost to manufacture my products? Determine the cost of making one item after obtaining pricing for the necessary supplies.

Another factor to consider is the time required to create your products. If your products require a lot of labor, there might be a better way to spend your time.

There may be no cost of goods when creating digital products, but you will need time to create them. However, if you create something that people enjoy, you can earn passive income from it long after you’ve created it.

Fees and taxes are also important factors to consider when determining profitability. Every listing and sale on Etsy incurs fees. You will also have to pay taxes on your Etsy earnings as a business.

Not every idea you have will turn out to be profitable. It is critical to evaluate and be honest with yourself. Allow the numbers to tell you whether or not you can make money with a particular product.

How Much Can You Earn on Etsy?

This is a bit of a trick question. There are popular Etsy shops that generate millions of dollars in revenue each year. There are also Etsy shops that will lose money this year. It’s difficult to predict where you’ll fall on that scale.

What I can say is that with the right products and some hard work, the market is there.

  • Is your Etsy shop a side hustle or a full-time job?
  • How much time do you have to devote to making products and selling them on Etsy?
  • Where do you promote your Etsy shop and products?
  • Is it difficult to make your products?

All of this can affect how much money you make when selling. If we’re being honest, some luck is probably involved.

The right person appears and makes the right purchase of a product at the right time. You share a product on your social media, and it quickly becomes popular. It’s completely hard to determine the future when starting an Etsy business.

How to Make Money on Etsy

How do you get started on Etsy? Follow the steps outlined below.

Register as an Etsy seller.

It is simple to become an Etsy seller. Simply click “Sell on Etsy” and fill out your email address, name, and password. You are now ready to open your own Etsy shop after you have confirmed your email address.

Create an Etsy Shop

You can open your own Etsy shop in just a matter of minutes. What is involved in getting it up and running? Once you’ve created a seller account, Etsy will walk you through the following steps:

Configure your preferences: Choose your location, language, and currency.

Etsy Shop name

Choose a name for your shop: Follow the on-screen instructions to create your own shop name. Choose a name that is both creative and practical. It’s entirely up to you as long as the name is still available.

Create your very first listing: This is where you will sell your first product. Hopefully, you have a finished product. Fill out the listing form with information about the product you’re selling, a photo, a price, and shipping information.

Set your payment method: This is where you will specify how you want to be paid. You’ll also need to choose a billing method for paying Etsy seller fees.

You’re done when you click “save.” You now have your own Etsy shop. If necessary, you can return and add more products to sell. You’re on your way to becoming a successful Etsy seller.

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Seller Fees on Etsy

Selling on Etsy incurs fees, just like selling on other online marketplaces. It is free to open an Etsy account. Following that, you’ll notice three different selling fees.

Listing fee: $0.20 per published listing. Listings are valid for up to four months or until your product sells.

If your product sells, you will be charged 5% of the product’s sale price (including shipping).

Payment processing fee: If you accept Etsy payments, you will be charged a 3% plus an additional $0.25 fee when your product sells.

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Tips for Making More Money as an Etsy Seller

The more you learn and grow as an Etsy seller, the better you’ll become at selling. Etsy has a learning curve, but you’ll be on your way once you figure it out.

You may find the following tools useful before and after opening your Etsy store.

The Etsy Seller Handbook

The Seller Handbook is a section of the Etsy website. It’s jam-packed with useful articles for sellers to read. Many of the articles are written by well-known Etsy sellers. Topics covered include:

  • Getting found
  • Photography
  • Branding & Marketing
  • Shipping
  • Productivity
  • Legal
  • Pricing
  • Growth strategies

The Seller Handbook is an excellent place to start if you want to learn the ins and outs and tips of selling on Etsy.

Profit Calculator for Etsy

A quick Google search will yield links to several profit calculators that can assist you in determining your profit levels for a specific product.

This is a great way to double-check whether you’ll make a profit on an item. The product can then be adjusted or scrapped as needed. You can use this simple Etsy Profit Calculator.

Why Should You Start A Personal Blog


Many Etsy merchants are also bloggers. This is optional but could be an excellent way to market your products. You’ll have a dedicated online space to promote your store. You can also create content about your products.

The Internet of Things

You could use social media for marketing your Etsy store and posting photos of your vacations and children. This could be on your own social media accounts, those associated with your blog, or accounts dedicated to your Etsy shop. This is an excellent way to get your products in front of a larger audience.

Etsy Printables Training

Check out the Etsy Printables Course if you want to learn how to make and sell printable products on Etsy.

This Etsy course, created by Julie Berninger and Cody Berman, will walk you through the entire process, from product creation to effective marketing.

The course is divided into six modules, each with video lessons and readable content. There are also 13 bonuses from printables experts thrown in. There are printable lesson plans available to assist you in creating printable products that will sell.

The Etsy Printables Course is intended to be completed over the course of four weeks. In addition to the course, you will have free access to the course’s VIP Facebook group for 30 days.

You’ll be able to accelerate your learning by asking questions as you progress through the course.

Final Thoughts

Starting an Etsy shop can be a very rewarding and profitable new venture. It is also a lot of effort. But you know it’s worth it when you get an alert that you made another sale and a customer tells you how much they love what you’re making.


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