Etsy Shop Setup Checklist 2026: 25 Steps to Launch

Setting up an Etsy shop feels overwhelming when you're staring at a blank dashboard. You know you need photos, policies, and products, but where do you start?

This Etsy shop checklist breaks down everything into 25 manageable steps. Follow them in order, and you'll launch a professional shop that's ready for sales, not one that looks half-finished.

Quick Checklist Overview

This checklist covers five phases: account setup, branding, policies, your first listings, and launch prep. Plan for 2-3 days if you're working full-time, or a weekend if you're focusing exclusively on setup.

Most sellers skip critical steps and wonder why their shop sits empty. This checklist ensures you don't miss anything.

Phase 1: Account & Legal Setup

Get the foundation right before you worry about aesthetics.

Step 1: Create Your Etsy Account

Use a dedicated business email, not your personal inbox. You'll receive order notifications, customer messages, and policy updates. Keeping them separate makes tax time and bookkeeping easier.

Step 2: Choose Your Shop Name

You get 20 characters. Make it memorable, easy to spell, and ideally related to what you sell.

Good examples:

• ThreadAndTimber (woodwork + textiles)
• CozyCornerPrints (clear niche)
• LunaBeadsShop (simple, searchable)

Avoid:

• xXCraftyCreations2024Xx (unprofessional)
• GenericHandmadeStuff (too vague)
• MadeByKaitlynMarie (hard to remember)

You can change your shop name later, but it breaks existing links and confuses returning customers.

Step 3: Set Up Payment Method

Etsy deposits your earnings (minus fees) to your bank account or PayPal. Bank account deposits are faster and have no additional fees. PayPal adds another transaction fee on top of Etsy's cut.

Step 4: Add Billing Information

You'll pay listing fees ($0.20 per item) and transaction fees (6.5% of sale price). Etsy charges your card monthly for accumulated fees.

Step 5: Consider Your Business Structure

Most new sellers start as sole proprietors. It's automatic, requires no paperwork, and works fine for side hustles.

Consider an LLC if:

• You're investing significant money upfront
• You're worried about liability (candles, skincare, children's items)
• You plan to scale beyond hobby income

Talk to an accountant before making this decision. The wrong structure complicates taxes.

Phase 2: Shop Identity & Branding

First impressions matter. Buyers decide whether to browse your shop in about three seconds.

Step 6: Upload Shop Icon

Your icon appears next to every listing and in search results. Use a 500×500 pixel square image.

Best options:

• Your logo (if you have one)
• Hero product photo
• Simple graphic that represents your niche

Keep it clean. Intricate details disappear at thumbnail size.

Step 7: Create Shop Banner

The banner spans the top of your shop page at 1200×300 pixels. Show your best work, not a cluttered collage of everything you sell.

Banner ideas:

• Lifestyle shot of products in use
• Flat lay of your top sellers
• Simple text overlay with your shop tagline

Canva has free Etsy banner templates. Use them.

Step 8: Write Your Shop Announcement

This text appears at the top of your shop page. Tell customers what you're selling right now and what makes you different.

Example: "Handmade leather journals with recycled paper. Each one ships within 3 days. Currently offering free gift wrapping through February."

Skip the fluffy "welcome to my creative journey" intro. Get to the point.

Step 9: Complete Your About Section

Buyers want to know who's making their purchase. Share:

• What you make and why you started
• Your process or materials
• Where you're based
• A photo of yourself or your workspace

Keep it conversational. You're talking to a potential customer, not writing a resume.

Step 10: Add Shop Members

If you run your shop with a partner or assistant, add them as shop members. It builds trust and shows you're a real operation.

Phase 3: Policies & Settings

Clear policies prevent disputes and set customer expectations.

Step 11: Set Shipping Profiles

Create profiles for different product types. Heavy items cost more to ship than lightweight prints.

Profile examples:

• Prints (First Class Mail)
• Home decor (Priority Mail)
• International orders (separate pricing)

Use calculated shipping based on buyer location. "Free shipping" sounds nice but eats your profit if someone orders from Alaska.

Step 12: Write Return/Exchange Policy

Etsy requires a clear statement. Even if you don't accept returns, you need to say so.

Sample policy: "Custom orders are final sale. Ready-to-ship items can be returned within 14 days for store credit. Buyer pays return shipping."

Be specific about timeframes and who covers shipping costs.

Step 13: Set Processing Times

This is how long you need to make/ship the item. Not when it arrives.

New sellers often promise 1-2 day processing, then burn out trying to keep up. Start with 3-5 business days. You can always ship early and delight customers.

Processing time affects search ranking. Consistent late shipments tank your placement.

Step 14: Configure Shop Sections

Sections organize your listings into categories. Think of them as your shop's navigation menu.

Example sections:

• Necklaces
• Earrings
• Bracelets
• Sale Items

Keep it simple. Too many sections with 1-2 items each looks sparse.

Step 15: Set Up Shop FAQs

Answer the questions you'll get asked repeatedly. Common ones:

• Do you do custom orders?
• What materials do you use?
• How long will shipping take?
• Do you offer wholesale?

Every question you answer upfront is one less customer message you'll need to respond to.

Phase 4: First Listing Prep

Your listings make or break sales. Spend time here.

Step 16: Photograph Your Products

Etsy allows 10 photos per listing. Use all of them.

Photo lineup:

1. Main product on white background
2. Scale reference (show size)
3. Detail shots (texture, stitching, finish)
4. Lifestyle/in-use shot
5. Packaging photo 6-10. Variations, angles, close-ups

Natural light beats fancy equipment. Shoot near a window. Use a white poster board as a backdrop.

Step 17: Write SEO-Optimized Titles

You get 140 characters. Front-load your main keywords.

Good title: "Personalized Leather Journal | Custom Name Notebook | Refillable Travel Diary | Handmade Gift"

Bad title: "Beautiful Handcrafted Journal Made With Love For Your Creative Adventures"

The second one sounds nice but won't show up in search results.

Step 18: Research and Add 13 Tags

Tags tell Etsy what your product is. You get 13 tags at 20 characters each.

Think like a buyer:

• What would they search for?
• What's the specific item? (leather journal, not just journal)
• What's it used for? (travel diary, wedding guest book)
• What style is it? (rustic, minimalist, boho)

eRank is a free tool that shows you actual search volumes for Etsy keywords. It takes the guesswork out of tag research. Check it out here.

Step 19: Write Compelling Descriptions

The first 160 characters appear in Google search results. Make them count.

Start with:

• What the item is
• Key features or benefits
• What makes it special

Then add:

• Dimensions and materials
• Care instructions
• Customization options
• Shipping timeline

Break it into scannable sections with headers. Nobody reads walls of text.

Want to check if your listing hits all the right notes? Run it through our Listing Grader to catch common mistakes.

Step 20: Set Competitive Pricing

Calculate your actual costs:

• Materials
• Labor (pay yourself, even if it's a side hustle)
• Etsy listing fee ($0.20)
• Etsy transaction fee (6.5% of sale price)
• Payment processing (3% + $0.25)
• Shipping supplies
• Overhead (10-15% for misc costs)

If you're not making at least 30-40% profit, your price is too low. Competing on price alone is a race to the bottom.

Phase 5: Launch Prep

Almost there. These final steps set you up for actual sales.

Step 21: Add At Least 10 Listings

One or two listings make your shop look abandoned. Aim for 10 minimum, 20+ ideally.

More listings mean:

• More chances to appear in search
• Social proof (looks like a real business)
• Variety for buyers to browse

If you only have a few products, photograph them multiple ways or offer variations (colors, sizes).

Step 22: Enable Etsy Payments

This is required to sell. It allows buyers to pay with credit cards, debit cards, Etsy gift cards, and some country-specific methods.

Setup takes a few minutes. Etsy verifies your bank account with small test deposits.

Step 23: Set Up Shipping Labels

Etsy partners with USPS, UPS, and FedEx for discounted shipping labels. You buy them directly through Etsy when an order comes in.

The discount is significant (30-40% off retail rates). Don't waste money buying full-price labels at the post office.

Step 24: Prepare Packaging Supplies

You'll need:

• Boxes or mailers (buy in bulk on Amazon or Uline)
• Tissue paper or filler
• Thank you cards (Canva has free templates)
• Tape, labels, printer

Branded packaging isn't required for your first sales, but a simple thank you card goes a long way.

Step 25: Announce Your Shop Opening

Tell people you're open:

• Post on personal social media
• Email friends and family
• Share in relevant Facebook groups (if allowed)
• Post in local community groups

Your first few sales often come from people who know you. That's fine. You need those initial reviews to build credibility.

Common Setup Mistakes to Avoid

Rushing to launch with 1-2 listings. It signals "hobby," not "business." Buyers scroll through and find nothing else to purchase.

Skipping the About section. People buy from people. A blank About page feels like a dropshipper or reseller, even if you're making everything by hand.

Using stock photos or poor lighting. Grainy, dark photos kill conversions. Buyers can't tell what they're getting. Shoot in natural light near a window.

Pricing without calculating fees. Etsy takes roughly 10% of every sale (transaction fee + payment processing). If you don't account for it, you're working for free.

Setting unrealistic processing times. Life happens. Kid gets sick, material shipment delays, holiday rush. Pad your processing time. Ship early when you can.

After Your Shop Opens

Get your first five reviews. Reviews build trust. Follow up with buyers, deliver on time, and include a small note thanking them and inviting feedback.

Respond to messages within 24 hours. Etsy tracks this. Slow response times hurt your search ranking.

Renew listings strategically. Renewed listings get a temporary search boost. Renew your best-performing items when they're not getting traffic.

Want more details on running your shop? Check out our complete Etsy Selling Guide.

Frequently Asked Questions

How long does it take to set up an Etsy shop?

If you already have products and photos, you can complete the basic setup in 2-3 hours. Creating quality listings with optimized titles, tags, and descriptions takes longer. Plan for a full weekend to launch a polished shop with 10+ listings.

Do I need a business license to sell on Etsy?

It depends on your location. Some cities and states require a business license or seller's permit for any retail sales. Check your local regulations. Most hobby sellers start without one, but consult a tax professional if you're unsure.

How many listings should I start with?

Minimum 10, ideally 20+. More listings increase your chances of appearing in search results. Shops with 50+ listings typically perform better than shops with just a handful.

Should I offer free shipping?

Only if you build shipping costs into your product price. "Free shipping" is never actually free. Buyers like seeing it, but you need to do the math. If your item costs $8 to ship, your product price needs to be $8 higher.

When should I start Etsy Ads?

Wait until you have at least 20 listings and a few organic sales. Ads won't fix bad photos, weak titles, or uncompetitive pricing. Get your fundamentals right first, then experiment with a small daily ad budget ($1-2/day).

How do I get my first sale on Etsy?

Tell everyone you know about your shop. Share on social media, text family and friends, post in local groups. Your first few sales usually come from your existing network. After that, focus on SEO (titles, tags, descriptions) to get found in search.

Next Steps

Your shop is live. Now what?

Start by mastering the fundamentals in our Complete Etsy Selling Guide. It covers everything from pricing strategies to handling difficult customers.

Need help writing better listing titles? Use our Etsy Title Generator to create SEO-optimized titles that actually get clicks.

Wondering what you'll actually take home after fees? Run your numbers through our Etsy Fee Calculator before you set prices.

And if you're still confused about title structure, read our breakdown of the Etsy Title Formula that high-ranking sellers use.

You've got this. One step at a time.