How to Start an Etsy shop

If you are wondering how to start an Etsy shop: Wonder no more. This article will take you through the steps involved in starting and customizing your new Etsy store.

Opening a digital product Etsy store is one of the most pivotal moments in my life. Etsy has given me the freedom to work at my own pace, whenever best suits me. Here is a list of Equipment I use to run my Etsy store and other digital product businesses, and my guide for choosing the right printer for Etsy.

As detailed in my 2022 income report, I make more money in my two Etsy stores than I ever would have in my previous career as a graphic designer (which is amazing because the flexibility allows for a lot more ‘me’ time).

Please note: I am a digital download seller, however this guide should be relevant for physical product sellers as well. Images inside this article are taken from inside my Planprintland Etsy Shop.

What to do before opening an Etsy shop

Live in an eligible country

In order to become a seller on Etsy, you must live in an eligible country. An eligible country is one where Etsy payments is available. You can check the list of eligible countries allowed to sell on Etsy.

Have at least one product to sell

It goes without saying, that you need to have something to sell, in order to become an Etsy seller. You may add and delete products as you go. As a digital product seller myself, I truly believe that selling on Etsy is one of the best ways of making a living. Etsy allows you to list a wide range of filetypes, so be creative with your product ideas.

Bank account and Debit or Credit Card in your name

When signing up for Etsy, you must provide your legal information, including name and address. You must have a bank account and payment method that uses the exact same legal information. Any attempt to use another bank account (such as your partners) will get you banned from selling on Etsy.

You will be required to verify your bank account using plaid or manually once you start receiving payments.

If possible, I recommend setting up a separate bank account for your business. It is much easier to separate transactions from your everyday life, and work out your tax information come tax time.

Listing Images or product photos

You must have at least one listing image for each product. You may use Placeit or Adobe Express to create your listing images. Alternatively, if you sell digital products, you can also take high quality photos of your products in their printed format.

How to Start an Etsy shop

If you are yet to open your shop, you can use the link below for 40 Free listings.

Each listing will cost you 20c USD, including a further 20c each time your product sells and is re-listed. (Please note, if you use this link – I also get 40 Free listings).

If you want to know more about Etsy’s fees, you can read my breakdown for digital product sellers. Alternatively, you can use Etsys Fees & Payments Policy. In order to start an Etsy shop, you must create an Etsy seller account.

At this stage, you may use your own personal email address – or create a new email account for your shop. As your brand begins to grow, you may wish to register your own domain name and get your own business email ([email protected]). This is not always necessary, especially for a new shop and is something you can worry about later.

If you do not wish to use this link, you can open your Etsy shop by scrolling all the way down to the bottom of your Etsy page and clicking ‘Sell on Etsy’.

Enter your Etsy shop preferences

Following your account setup, you will be taken to the ‘Shop Preferences’ screen where you can configure the basic settings for your shop. 

It is crucial that you use your full, legal names, addresses etc when setting up your Etsy store. Your bank account must match your legal name provided to Etsy. Any false information can and will lead to permanent suspension and a lifetime ban of selling on Etsy. 

Importantly, you should always ensure your shop currency matches the currency of your bank, to avoid a 2.5% currency conversion fee with each sale.

Name your shop

It’s time to come up with a shop name! It is a good idea to check whether there are any websites or brands using this name, to help you avoid any troubles in the future over copyright claims. You may also wish to claim any social media handles for your store as you go.

Your shop name can range from 4 to 20 characters and must not contain spaces or special characters. Etsy will ensure that the name is not in use, or has been used in the past. In case you attempt to use a name that has already been taken, Etsy will suggest some alternative shop names.

Stock your shop with your first product

Etsy will prompt you to upload your first listing. Setting up your listings is one of the most important tasks you will do as an Etsy seller. I have written a guide about how to list a digital download on Etsy.

Your first listing does not have to be perfect. The bare minimum for a listing to be posted is at least one image, creation information (about this listing), category, renewal options, description, price, and quantity. You can always come back and edit this listing later.

Opening an Etsy shop without listing is not possible. However you may decide to set up a placeholder listing in the meantime while you customize the rest of your shop.

Just make sure to price the placeholder listing extremely high, so that no one actually purchases the listing. It will still require the basic information required on any listing, in order to be accepted.

How you’ll get paid

Next it’s time to enter your banking information (the bank you will be paid into). Remember that these details must be exactly the same as the legal information you provide to Etsy. Any differences will lead to a suspended store and potential ban – so be very careful when setting up your personal information. 

Almost all sellers will be required to enroll in Etsy payments, which allows your store to accept all forms of payments on Etsy (Credit and debit cards, gift cards, store credit, PayPal and apple pay). Etsy will handle these payments and deposit them into your allocated bank account.

As you do not need a business licence to sell on Etsy, almost all new sellers will be registering as an individual or sole proprietorship.

Enter your billing information

Enter your credit or debit card billing information. Many countries will have the option to enroll in auto-billing, so that Etsy automatically charges your card at the end of the month. As you begin to make profit in your shop, your fees will automatically come out of your shop balance, rather than be charged to your card.

Opening Your Shop

Click ‘Open your shop’ and your Etsy store will be open for business.

How to Customize your Etsy store

Now comes the fun part – customizing your Etsy store. An essential aspect of establishing a successful store on Etsy is to fully customize your shop in using the available options provided by the platform. The better optimised your store is, the higher your conversion rate will be.

This will enhance the professionalism of your shop and set it apart from others. When setting up your Etsy shop, you should always make sure you are using Etsy’s recommended image sizes. Here are the ways that you should be editing your shop:

Branding your Etsy store with your shop icon and Cover Images

Establishing a recognizable brand, in the form of a Logo and shop cover image is one of the best things you can do to enhance the professionalism of your shop. There should be a clear connection between your logo, cover photo, listing images and brand colors.

The more cohesive your shop, the better. You can use free design software, such as Placit or Adobe Express to create your logos, listing images. Make sure you get it right – A professional looking store is one of the best things you can do to encourage sales as a new seller.

How to add an Etsy store icon

Your shop icon is your the logo that will appear on your shop on Etsy. It is a small, but important graphic that will show up on multiple elements across your Etsy store. It should be a logo that represents your shop, and will become a big part of your shops brand identity.

To add or change your Etsy store icon:

1. Head to your Etsy shop manager
2. Click on Settings
3. Click on Info and Appearance
4. Click on Upload your shop Icon

How to customize your Etsy shop banner

Your Etsy store banner will appear at the top of your homepage. It is the largest graphic that buyers will see when visiting your Etsy store. You have two choices of banner size (Mini and Big) which you can select depending on your preference.

In my opinion, the Big banner almost always looks nicer than the small banner. If you subscribe to Etsy plus, you will have two more banner options included, which are carousel and collage.

To add your Etsy shop banners:

1. Head to your Etsy shop manager
2. Click the pencil icon located next to your shop name under Sales Channels.
3. Select the banner. If you already have a banner uploaded, you can use the pencil icon found on the banner. 
4. Choose the type of banner you want and upload. Again, please note that not all options pictured will be available, unless you have subscribed to Etsy Plus.

How to add or Edit your Etsy order receipt banner

Every time you make a sale, your customer will be sent an order receipt banner. You can customize and upload your own banner, to match the branding of your Etsy store.

To manage your order receipt banner:

1. Go to your Shop Manager.
2. Click Settings.
3. Click Info & Appearance.
4. Select Choose file next to Order receipt banner.

Set up your or edit your Etsy shop policy settings

It is crucial to have clear and comprehensive shop policies on Etsy to gain customer trust and confidence in your business. Detailed policies help to communicate expectations, return policies, and ensure compliance with legal requirements such as privacy, and refund policies.

The policies involved with running an Etsy shop include:

• Returns and Exchanges (Note that by default, customers who purchase digital items aren’t eligible for returns or exchanges on Etsy. It is not possible to edit this policy, however, if a buyer reaches out, you’re still free to resolve it by providing a refund or Exchange.
• Cancellations
• Privacy Policy

To set up your Etsy policies 

1. Go to your shop manager
2. Click on settings
3. Click on policy settings
4. Use the top navigation bar to switch between policies

Upload your Personal Bio and Photo

Your public profile acts as the primary representation of you as both a business owner and shop owner to customers on Etsy. By including a personal bio and photo, you humanize your shop, making it feel more approachable to customers. If customers need to reach out to you, they will be able to do so by name.

To Edit your public profile on Etsy:

1. Go to your shop manager
2. Click on your profile picture / name, right down the bottom of the navigation bar
3. Click on Account information
4. Add a photo and choose the information you prefer to share
5. Save your changes

Edit your Etsy shops about section

Another space to open up about you, your shop and your plans with Etsy. You have a lot of space to tell customers about your business and your journey so far. This information will appear right down the bottom of the page when shopping in your store.

You can add information about you or members of your shop – with space for a quick bio and another image. In the ‘stories’ tab, you can add images, videos and links to your social media.

To edit your shops about section

1. Go to your shop manager
2. Click on settings
3. Click about your shop
4. Add your information
5. Click save

Set up your automatic message for buyers

I have written an article about creating your automatic Etsy message to buyer, and included some example messages for digital sellers. This message can be used to add a thank you message to buyers, outline the process for downloading the files (especially when files are too big to be uploaded to Etsy), and encourage reviews. It is often overlooked with new sellers.

To add your message to buyers on Etsy:

1. Go to shop manager,
2. Click Settings, then
3. Click info & Appearance
4. Scroll down the very bottom to the section that says ‘Message to buyers for digital items’

Create your thank you coupons

Last but not least – adding thankyou coupons. Thank you coupons are a great way to encourage returning customers. You can set up thank you coupons for buyers, which Etsy will automatically send to customers after a purchase.

You can choose a percentage discount that suits you. The beauty with digital products, is that you have no production costs, besides the creation cost. Technically, you should be making money with every sale, no matter what size discount you give your customer.

You can also create Etsy coupons for Abandoned carts and Added to favourites, which again will be sent automatically if either of these actions are done by the customer.

To set up a thankyou coupon on Etsy

1. Go to your shop manager
2. Click on Marketing
3. Click on the ‘Bring customers Back’ tab under the ‘Automatically send offers to interested shoppers’ section.
4. Set up your code with your code and the percentage discount you would like to offer.
5. Click on create offer.

Decide What Software You Would Like To Use

There is a lot of software out there, that will help speed up product creation, help with keyword research and improve your business practices. I have a full list of software I use in my business, which may be a good place to start!

Wrapping Up

If you’ve made it this far: Congratulations! You now know exactly how to start an Etsy shop, and how to customize your Etsy store. If you have completed each step outlined above, you can now sell on Etsy, knowing your shop is ready to go. You are now ready for your next challenge: Creating, uploading and selling your products on Etsy!

Frequently asked questions when opening an Etsy store