How to Sell on Etsy 2026: Setup, Fees & First Listing

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Who this is for

First-time Etsy sellers who want a clear, step-by-step guide to opening a shop and making their first sale. Whether you're a crafter, artist, vintage collector, or someone with a side hustle idea, this guide covers everything from account setup to shipping your first order.

The goal

By the end of this guide, you'll have a fully set up Etsy shop, understand exactly what fees you'll pay, know how to create listings that get found in search, and be ready to ship your first sale. No fluff—just the practical steps that actually matter.

What you need to start selling on Etsy

Before creating your shop, gather these essentials:

• Email address — For account verification and buyer communication
• Phone number — Required for two-factor authentication
• Bank account — Where Etsy deposits your earnings (checking account required)
• Credit or debit card — For paying Etsy fees (charged monthly)
• Government ID — May be required for identity verification
• Tax ID (SSN or EIN) — Required for US sellers for tax reporting

You must be at least 18 years old to sell on Etsy. If you're younger, a parent or guardian must open the shop in their name.

What can you sell on Etsy?

Etsy allows three categories of items:

Etsy prohibits reselling mass-produced items you didn't make, dropshipping without disclosure, and items that violate their prohibited items policy.

How much does it cost to sell on Etsy?

Etsy charges multiple fees on each sale. Here's the complete breakdown:

For a typical sale without Offsite Ads, expect Etsy to take approximately 10-11% of your total.

Example: Selling a $40 item with $5 shipping

• Listing fee: $0.20
• Transaction fee (6.5% of $45): $2.93
• Payment processing (3% of $45 + $0.25): $1.60
• Total fees: $4.73
• Your payout: $40.27 (before product costs)

Use our Etsy Fee Calculator to see your exact fees for any sale price.

For a deeper dive into every fee type, see our complete Etsy fees explained guide.

New seller setup fee

Etsy charges a one-time $15 setup fee for new shops. This is charged when you open your shop, not when you create your account.

Offsite Ads: The fee you can't opt out of

If your shop makes more than $10,000 in a rolling 12-month period, Etsy automatically enrolls you in Offsite Ads. When a buyer clicks an Etsy ad on Google, Facebook, or Pinterest and purchases from your shop within 30 days, you pay a 12% fee (15% for shops under $10k that opt in).

Shops under $10,000/year can opt out. Shops over $10,000/year cannot opt out—it's mandatory.

How do I set up my Etsy shop?

Setting up your shop takes about 30 minutes. Here's the step-by-step process:

Step 1: Create an Etsy account

1. Go to etsy.com and click "Sign in"
2. Click "Register" to create a new account
3. Enter your email, name, and password (or sign up with Google/Facebook/Apple)
4. Verify your email address

Step 2: Open your shop

1. Click the person icon → "Sell on Etsy"
2. Click "Open your Etsy shop"
3. Select your shop language (can't be changed later)
4. Select your country and currency
5. Click "Save and continue"

Step 3: Choose your shop name

Your shop name must be:

• 4-20 characters long
• Letters and numbers only (no spaces or special characters)
• Unique (not already taken)
• Not trademarked by someone else

Tips for choosing a name:

• Make it memorable and easy to spell
• Avoid numbers that look like letters (e.g., "Cr8tive")
• Consider including what you sell if possible
• You can change it once, so don't stress too much

Step 4: Add your first listing

Etsy requires at least one listing to open your shop. You can save it as a draft and come back later, but the shop won't go live until you have an active listing.

Step 5: Set up Etsy Payments

Etsy Payments is required for all sellers. You'll need to:

1. Enter your bank account details for deposits
2. Add a credit/debit card for fee payments
3. Verify your identity (may require ID upload)

Payouts are deposited to your bank account on a schedule you choose: daily, weekly, biweekly, or monthly. Most sellers choose daily deposits with a 3-day processing time.

Step 6: Set up billing

Your monthly Etsy fees are charged to the card on file. Make sure this card stays active to avoid shop suspension.

Step 7: Complete your shop profile

• Add a shop icon (logo) — 500x500 pixels recommended
• Add a shop banner — 1200x300 pixels for desktop, 1200x160 for mobile
• Write your shop announcement (appears at the top of your shop)
• Complete your About section with your story
• Add shop policies (returns, exchanges, shipping times)

What should I sell on Etsy?

The most successful Etsy shops sell items in these categories:

Top-selling categories

1. Jewelry & accessories — Handmade earrings, necklaces, rings
2. Home & living — Candles, wall art, personalized signs
3. Craft supplies — Beads, fabric, patterns, digital downloads
4. Clothing — T-shirts (often print-on-demand), vintage clothing
5. Art & collectibles — Prints, original artwork, vintage items
6. Wedding & party — Invitations, decorations, favors
7. Digital products — Printables, planners, SVG files, Canva templates

What sells best: Physical vs digital

Digital products have exploded on Etsy. If you can create templates, printables, or design files, the margins are excellent—no shipping, no inventory, unlimited sales from one listing.

Finding your niche

Don't try to sell everything. Successful Etsy shops focus on a specific niche:

• Instead of "jewelry," sell "minimalist gold-filled jewelry for everyday wear"
• Instead of "home decor," sell "personalized farmhouse wood signs"
• Instead of "digital downloads," sell "Canva templates for wedding invitations"

The more specific, the easier it is to rank in search and build a loyal customer base.

How do I create my first listing?

Creating a listing that sells requires attention to four key areas: photos, title, description, and tags.

Photos: Your most important asset

Etsy allows up to 10 photos per listing. Use them all.

Photo requirements:

• Minimum: 2000x2000 pixels (for zoom functionality)
• Format: JPG, PNG, or GIF
• Aspect ratio: Square works best in search results

What to include:

1. Main photo — Clean, well-lit product shot (this is your search thumbnail)
2. Scale photo — Product next to a common object for size reference
3. Detail shots — Close-ups of textures, materials, craftsmanship
4. Lifestyle photos — Product in use or in context
5. Packaging photo — If you have nice packaging, show it
6. Size/measurement photo — Dimensions overlaid on image

For detailed photo tips, see our Etsy listing photos guide.

Photography Gear That Makes a Difference

Good photos sell products. These tools help you take professional-looking shots without a professional budget:

Neewer Photo Studio Lightbox — Foldable, portable, and includes LED lighting. Gives you consistent, shadow-free product photos every time. Check price on Amazon →

Selens White/Black Backdrop Kit — Seamless backgrounds for clean product shots. The white side works for most items; black creates drama for jewelry. View on Amazon →

UBeesize Phone Tripod — Keeps your camera steady for sharp images. Works with any smartphone and fits on your desk. Check current price →

Title: Front-load your keywords

Etsy gives you 140 characters for your title. Use them strategically:

Formula: Primary keyword + secondary keywords + attributes

Example: "Personalized Name Necklace, Custom Gold Nameplate Jewelry, Dainty Initial Pendant, Gift for Her, Birthday Present"

Title tips:

• Put your most important keyword first
• Include what the item IS, not just what it's for
• Add attributes: color, material, size, occasion
• Avoid filler words like "beautiful," "amazing," "best"
• Don't repeat the same word multiple times

Use our Etsy Title Generator to create optimized titles, or check your existing title with the Listing Grader.

Description: Sell the benefits

Your description should answer every question a buyer might have:

Structure:

1. Opening hook — What makes this item special (2-3 sentences)
2. Details — Materials, dimensions, colors, variations
3. How it's made — Your process (buyers love this on Etsy)
4. Care instructions — How to clean/maintain
5. Shipping info — Processing time, packaging
6. Call to action — "Add to cart" or "Message me with questions"

Use our Etsy Description Rewriter to improve existing descriptions.

Tags: Use all 13

Etsy gives you 13 tags per listing. Use every single one.

Tag strategy:

• Mix broad and specific terms
• Include multi-word phrases (long-tail keywords)
• Think about what buyers search for, not how you'd describe it
• Include occasions: "birthday gift," "anniversary present"
• Include recipient: "gift for mom," "gift for girlfriend"

For tag optimization strategies, see our Etsy tags that rank guide, or use our Etsy Tags Generator.

Pricing your listing

Set your price to cover:

1. Material costs — Everything that goes into the product
2. Labor — Pay yourself a fair hourly rate
3. Etsy fees — Approximately 10-11% of sale price
4. Shipping materials — Boxes, mailers, tissue paper, tape
5. Profit margin — Aim for at least 20-30%

Formula: (Materials + Labor + Overhead) ÷ (1 - 0.30) = Minimum price

This gives you a 30% margin after costs. Adjust based on what the market will bear.

Use our Etsy Profit Calculator to see your actual margins.

How does Etsy SEO work?

Etsy search determines which listings appear when buyers search. Understanding the algorithm helps your products get found.

Etsy search ranking factors

1. Relevancy — Does your listing match the search query? (title, tags, categories, attributes)
2. Listing quality score — How well does your listing convert? (views → favorites → purchases)
3. Recency — Newer and recently renewed listings get a temporary boost
4. Shop quality — Your overall shop reviews, policies, and completeness
5. Shipping price — Free shipping listings rank higher in US searches

SEO quick wins

• Use all 13 tags — Each tag is a chance to match a search
• Front-load titles — Put important keywords in the first 40 characters
• Complete all attributes — Color, size, material, occasion, recipient
• Offer free shipping — Or build shipping into your price for US buyers
• Encourage reviews — Higher-rated shops rank better
• Research keywords — Tools like eRank show which terms buyers actually search for

For a deeper dive into Etsy titles, see our Etsy title formula guide.

How do I price my products?

Pricing on Etsy requires balancing profitability with competitiveness.

Research competitor pricing

1. Search for similar items on Etsy
2. Note the price range (low, median, high)
3. Check their reviews and sales to see what's actually selling
4. Identify what makes higher-priced listings command a premium

Cost-based pricing

Calculate your true costs:

Don't underprice. Etsy buyers expect to pay more for handmade—that's why they're on Etsy instead of Amazon.

For detailed pricing strategies, see our Etsy pricing and shipping guide.

How do I ship Etsy orders?

Shipping can make or break your Etsy business. Here's how to handle it.

Shipping options

Etsy's shipping labels are integrated into the platform and automatically update tracking. Most new sellers should start here.

Calculated vs. flat rate vs. free shipping

• Calculated shipping — Etsy estimates based on weight, dimensions, and destination
• Flat rate — You set one price regardless of destination (easiest)
• Free shipping — You build shipping into your product price (best for SEO)

Etsy prioritizes free shipping listings in US search results. If you sell primarily to US buyers, consider offering free shipping and adjusting your prices accordingly.

Packaging tips

• Use appropriate box sizes to minimize dimensional weight charges
• Include a thank-you note or small freebie to encourage reviews
• Protect fragile items with bubble wrap or packing paper
• Consider branded packaging if it fits your shop aesthetic
• Print packing slips from Etsy to include order details

Shipping Supplies That Pay for Themselves

Once orders start coming in, the right equipment saves hours every week:

DYMO 4XL Label Printer — Prints 4x6 shipping labels directly from Etsy. No more cutting and taping paper labels. The standard for Etsy sellers. Check price on Amazon →

Accuteck ShipPro Scale — Accurate to 0.1 oz for calculating exact postage. Prevents overpaying on shipping, which adds up fast. View on Amazon →

RUSPEPA Poly Mailers — Professional-looking, waterproof, and lighter than boxes. Available in multiple sizes and colors. Check current price →

Thank You Cards (Pack of 100) — A small touch that encourages 5-star reviews. Include one in every order. View on Amazon →

Setting handling time

Be realistic about how long it takes you to prepare orders:

• 1-3 business days — Ready-to-ship items
• 3-5 business days — Made-to-order items
• 1-2 weeks — Custom or personalized items

Always ship by your promised date. Late shipments hurt your shop score and can lead to cases opened against you.

How do I get my first sale?

Your first sale is the hardest. Here's how to get momentum.

Optimize for Etsy search first

Before spending money on ads, make sure your listings are optimized:

• All 10 photo slots used
• Title uses 100+ characters with keywords
• All 13 tags filled with relevant terms
• Description is detailed and keyword-rich
• All attributes completed
• Competitive pricing
• Clear shipping times

Share on social media

Etsy rewards external traffic. When you bring buyers from outside Etsy, it signals that your products are desirable.

• Pinterest — Ideal for visual products (home decor, fashion, crafts)
• Instagram — Great for behind-the-scenes content and building community
• TikTok — Product videos and maker content can go viral
• Facebook — Local selling groups and marketplace

Consider Etsy Ads

Etsy Ads put your listings at the top of search results. Start small:

1. Set a daily budget of $1-5
2. Let ads run for 2 weeks before judging results
3. Check which listings get clicks vs. sales
4. Pause underperforming listings
5. Increase budget on winners

Don't rely on ads to fix bad listings. If a listing doesn't convert with organic traffic, ads won't help. See our Etsy Ads guide for detailed setup instructions and ROI tracking.

Ask friends and family

Your first few sales and reviews create momentum. Ask people you know to:

• Purchase something they actually want
• Leave an honest review
• Share your shop on social media

Just don't fake reviews or create fake orders—Etsy detects this and will suspend your shop.

What are Etsy's seller policies?

Breaking Etsy's rules can get your shop suspended or permanently banned. Know the key policies.

Prohibited items

Etsy prohibits:

• Weapons and dangerous items
• Hate speech or discriminatory items
• Drugs and drug paraphernalia
• Recalled items
• Tobacco, alcohol, and related items
• Certain animal products
• Resold mass-produced items marketed as handmade

Handmade policy

If you sell handmade items, you must:

• Make them yourself, or
• Design them yourself and use disclosed production partners, or
• Create them with team members disclosed in your shop

You cannot buy items wholesale and resell them as handmade.

Intellectual property

Don't use:

• Trademarked names, logos, or characters without permission
• Copyrighted images, designs, or artwork you didn't create
• Fan art of copyrighted characters (legally risky)

Etsy removes listings and suspends shops that receive IP complaints.

Responding to negative reviews

Bad reviews happen. When they do:

1. Respond professionally and offer a solution
2. Never argue or attack the buyer publicly
3. If the review violates Etsy policies, report it
4. Focus on getting more positive reviews to balance it out

Use our Review Response Generator to craft professional responses to difficult reviews.

FAQ

How do I sell on Etsy?

Create an Etsy account, pay the $15 setup fee, choose a shop name, set up Etsy Payments, and create your first listing with photos, an optimized title, all 13 tags, and a detailed description. Etsy handles payment processing and provides shipping labels. Your listing goes live in Etsy search as soon as you publish. For the full step-by-step process, follow our guide above.

How can I sell on Etsy successfully?

Success on Etsy comes down to three things: product-market fit, SEO optimization, and consistency. Choose a niche with demand (check what's selling in your category), optimize every listing with keyword-rich titles and all 13 tags, and list at least 10-20 products to give the algorithm enough data. Improve photos, respond to messages quickly, and ship on time. Read our Etsy SEO guide for the full optimization playbook.

How much does it cost to open an Etsy shop?

Opening an Etsy shop costs $15 (one-time setup fee) plus $0.20 to list your first item. You'll need $15.20 minimum to get started, plus any costs for your actual products.

How long does it take to make your first sale on Etsy?

Most new shops make their first sale within 1-3 months. Shops with optimized listings, good photos, and competitive pricing often sell within the first few weeks. Niche and price point significantly impact this timeline.

Is selling on Etsy worth it in 2026?

Yes, for the right products. Etsy works best for handmade items, vintage goods, and craft supplies. If you're selling mass-produced items or competing purely on price, other platforms like eBay or Amazon may be better fits.

Can I sell on Etsy without making the products myself?

Yes, with conditions. You can use production partners (manufacturers) if you design the product and disclose the partnership. You can also sell vintage items (20+ years old) and craft supplies without making them yourself.

How much do Etsy sellers make?

Income varies dramatically. According to Etsy's data, the average active seller makes about $1,800-2,000 per year. Top sellers make six figures. Most sellers treat it as a side income rather than a full-time job.

Do I need a business license to sell on Etsy?

Requirements vary by location. In the US, you generally don't need a license to start, but you may need one as you grow. Check your local and state regulations. You will need to report income on your taxes regardless.

How do I get more views on my Etsy listings?

Focus on SEO: use all 13 tags, write keyword-rich titles, complete all attributes, and offer free shipping. After optimization, drive external traffic from Pinterest, Instagram, and social media. Etsy rewards shops that bring in outside buyers.

What happens if I get a bad review on Etsy?

Respond professionally within a few days. Offer a solution (refund, replacement, etc.). One bad review won't sink your shop—focus on getting more positive reviews to maintain your overall rating. If the review violates Etsy's policies, report it for potential removal.

Next steps

You now have everything you need to start selling on Etsy. Here's your action plan:

1. Calculate your fees — Use our Etsy Fee Calculator to understand your costs
2. Create your first listing — Follow the guidelines above, then check it with the Listing Grader
3. Optimize your title and tags — Use the Etsy Title Generator and Etsy Tags Generator
4. Set profitable prices — Check your margins with the Etsy Profit Calculator
5. Learn advanced SEO — Read our Etsy title formula and Etsy tags that rank guides

For a complete breakdown of every fee, see our Etsy fees explained guide.

Comparing Etsy to other platforms? Check out our Amazon vs Etsy comparison to see which platform fits your products best.