If you are interested to make thousands of dollars per month then here is your chance, actually, if you follow the steps correctly and give your best, it’s easy to make more than a thousand per month. Today, e-comers platforms are very popular and they provide features to sell our items/products/services on their platforms. So why are we waiting for? Don’t miss any opportunity that offers to your front. Let’s see how to make money on Etsy within simple steps.
What Is Etsy?
It is an American website that connects buyers to vendors. If we talk about a marketplace that is recognized globally and the best way to approach creative, handmade, and unique goods, then Etsy is surely the best option. It’s a complete universe of extraordinary and remarkable products, from unique craftsmanship to antique valuables. It is a free platform where any artist can sell its products independently all over the world without any difficulty or hassle. Following is a list of products that mainly sold on Etsy: –
- Clothing and accessories
- Crafts and Home Decors
- Antique Jewelry
- Paper Products
- Artisan Goods
- Handmade Items For Personal Care
- Arts Like Paintings, Wooden Work, Digital and Graphic Designs.
In order to make good gains from an online platform, one should know about the terms and conditions of that platform. However, the most essential thing for a beginner is, having a piece of good and reliable knowledge about the working terminologies of that platform. So, now we’ll talk about, how it actually works?
How Does Etsy Works?
Although trading on Etsy is a very simple process but it may seem like a complicated prospect if you don’t have any experience with an e-commerce platform. A beginner may feel difficulty in doing so. Let’s go for a quick guide. The most important thing that commonly provides a key role in every business is regularity and hard work. Now, come to Etsy, it needs attention on the part of the seller to create listings that provide good customer service as well as easily searchable and appealing. Following are the seven steps that show, how one can start work on the online platform as a beginner:
1. Deciding Which Product To Sell
We can say it is the hardest part of the game but if you pay attention and point out sensibly, who knows? this could be the start of a whole new business scenario. If you have already decided about which item/product you are going to sell on Etsy, then it is good. But, if you’re not sure, you should choose something simple and snappy. You can search Etsy to observe the creative and unique goods being sold. It is not necessary to sell a physical item. I mean many sellers sell their custom design and arts. You can start with that if you have good quality supplies. After that, you can make a pleasant start. To do easier marketing, try to start with a single item. Your offerings can grow as your business grows.
2. Register on Etsy
Create an Etsy account by choosing a username, write a nice bio that completely describes you, select a decent profile picture and fill in all the data required. Read all the terms and services carefully. Don’t make the choice of username difficult for you as it does not have much impact on buyers and Etsy also gives you a chance to rename it in case of a change of mind.
3. Setting Shop Preferences
Once the profile is created, navigate to open a shop. Select your home country, language in which you’ll describe your items and an attractive shop name. After that, you can choose the currency in which you’d like to list your products. Choosing your Etsy shop name is a point where you can start to get creative. Your shop name should be easy to remember, representative of your values and products as well as intriguing. You can leave a good impression on your customers by having a professional logo or a shop banner.
4. Research Work
Mainly the buyers use search options to approach shops, stores, and listings, so you can take advantage of SEO here, to be in search results. This can be done by using appropriate keywords for your shop description, listing titles, and product descriptions. Make sure that the descriptions will cover each aspect of your product. You should inform about how you price your items by researching price points for similar listings.
Once your shop is up on Etsy, it’s time for listings. You should include high-resolution photos that present your product with it minor details. Must create optimized descriptions and listings by putting your research to good use. At the start, you should keep prices as low as to cover the cost of your time, supplies, and shipping fees.
Constantly monitor your account to find out the type of traffic visiting your store. You should change the listing keyword if customers are not approaching your offerings. To drive traffic to your listings you might want to consider ads for specific keywords. Check out Etsy’s seller handbook and consider joining a team to help you learn the basics from other shop owners, once your shop is online. such as how to take great photos of your items or write your shop description.
Like other online platforms, Etsy buyers can also leave reviews about the quality of the product and you as a seller. For achieving the highest ratings, you can provide professional customer service that includes information about a way for the customer to get in touch with you in case of any problem and how quickly the item is shipped.
How Much Etsy Cost On Sellings?
Here in this field, Etsy has a little different policy. Where other websites charge registration fees, Etsy has no setup fees to open an Etsy shop. Despite this, sellers are charged fees for selling and listings their products or items on Etsy shop. Sellers should pay a $0.20 per item listing fee, in conjunction with a 5% dealings fee once the item sells. This can be 5% of the listing’s worth and any shipping, personalization, and gift-wrapping charges you add on once the item is purchased. The transaction fee is not applied to sales tax, GST (Goods and Services Tax), or HST (Harmonized Sales Tax) if you are selling from Canada or the United States. Sales tax should be included in the price of your item, if you are selling from a location other than the U.S. or Canada, and will be counted for the 5% transaction fee.
You can also choose to use additional services that come with fees, including:
Etsy Payments: Etsy payments come with a processing fee, which changes based on, where your bank is located.
Etsy Ads: These are the ads that are placed automatically depending upon your daily ad budget and an “auction price”. Actually, these are pay-per-click ads. The daily ad budget and an “auction price” are determined by the count of listings that fit the same search criteria.
Shipping fees: This is an option to purchase shipping labels through Etsy, fees vary based on add-ons (like tracking and insurance) as well as the carrier.
Currency conversion: As its name shows it is a service for dealing in different currencies, only charged if your listings are in a different currency as compared to your payment account.
How We Can Make Good Profit Out Of It?
The first thing that I want to say here is just to be patient. You cannot make a good profit from Etsy not even from any business in one night. You have to wait and work hard. It’s very important to sell a product you care about if you want to make a profit by selling goods. But make sure it’ll actually sell, before taking a deep dive. By using the application of Etsy’s search bar you can do some quick market research. To see the number of sales made since opening, click through to the different shop pages and be as specific in your query as possible. If it looks like that there’s good profit in your product idea, then you can move a step forward. Just make sure that your product will return you acceptable profit. Here’s how to do the math to achieve a good interest.
1. Figure Out Making Cost For Each Item
First, calculate the production cost of a product like raw material, labor work, transportation, and distribution expenses. If you want to sell handmade items, such as wooden art, just take it as an example. Figure out the cost of wood you are using, the time you are investing in it, and workers’ pay. Then add these figures and find out the cost of a single item.
2. Research The Competition In The Market
The best thing you can do against your market competition is to offer the same quality products and goods at a relatively low cost, without affecting the quality of the product. This can boost up your sales rate. At the start try to save as little as possible as a profit. This will bring value to your craft. For doing that search out the price of similar products and compare their prices and quality with your products. To increase your chances of selling, it’s also a good idea to consider prices on other marketplaces, such as Amazon or local stores.
3. Factor In Etsy’s Fees
As we discussed earlier, trading on Etsy is not free. Keep that in mind. It is a key factor. They cast 20% to list an item so when you are going to calculate the total cost of your product do not forget to add this factor in it, otherwise, you may have to bear a little loss. There is also a transaction fee of 5% of the price you display for each listing adding the amount you charge for shipping and gift wrapping when you make a sale.
You should probably set aside money for estimated quarterly tax payments if you expect to owe more than $500 in taxes on your earnings. Most of the time some specific products have extra taxes on them in particular countries or regions. Just make sure that the product or item, you are choosing does not have extra assessments or duties on it. There might be state, local, or other taxes. To determine an accurate figure to save estimate your tax liability.
4. Evaluate The Numbers By Subtracting The Taxes
Just take the cost per product and subtract the costs like fees, taxes, production expenses, country-wise taxes, and international custom taxes. After doing all that you can estimate your profit. It’s not necessary that first plan hit highest sales, one may have to move on other options. If you are not able to maintain a reasonable profit while maintaining a competitive price, you might want to try another sales venue or a different product.
5. Marketing And Advertisement Of Etsy Shop
The last thing, that is the base of any business is its advertisement. Nowadays there are various methods of promoting business. One can use many social media platforms to do that. No doubt marketing your product is the most challenging part of being an online entrepreneur. No need for paid promotions at the start. In beginning one can go with free methods such as social media platforms, creating a Facebook page or Instagram account for your shop is a good place to start. Find relevant hashtags and ideas for posts by checking out similar accounts. You can maximize your reach by posting regularly and interacting with followers.
Starting a blog about a topic that’s relevant to your buyers might be a useful idea. For instance, you could write about how to style clothes or repair older pieces, if you have a vintage clothing shop. When your business starts running and it starts giving you a good interest, you can move on to paid promotions. You can showcase your products or items by using services like Etsy’s Promoted Listing product or Google’s Shopping ads tool if you can afford to invest some money. One can also take advantage of Etsy’s web analytics tool, as the business grows by setting goals. In this way, you can gauge that whether your marketing tactics are working or not. If results are positive, then it’s time to try something new.