How to Start an Etsy Shop: 6-Step Setup Guide (2026)

Want to know how to start an Etsy shop? Here's the process: 1) Create an account and enable 2FA, 2) Choose your language, country, and currency, 3) Pick a shop name (4-20 characters, no spaces), 4) Customize with an icon, banner, and About section, 5) Create your first listing, 6) Set up Etsy Payments. Total cost to open an Etsy shop: $15 setup fee + $0.20 for your first listing.

This guide walks through every step of how to set up an Etsy shop, from creating your account to receiving your first payment. Follow it in order and you'll have a professional, fully configured shop ready for sales -- not a half-finished storefront that scares off buyers.

What do you need to set up an Etsy shop?

Before you click "Open Your Etsy Shop," gather everything you'll need. Nothing kills momentum like stopping mid-setup to hunt for bank account numbers.

Account requirements

You need three things to create a seller account:

• A valid email address -- Use a dedicated business email if possible. Order notifications, customer messages, and Etsy policy updates will flood your inbox.
• You must be 18 or older -- Minors can't open an Etsy shop. If you're under 18, a parent or legal guardian must create the account in their name.
• A valid payment method -- Credit card or debit card to pay Etsy's seller fees (listing fees, transaction fees, etc.).

You'll also need a phone number for two-factor authentication, which Etsy requires for all seller accounts.

Payment information needed

To receive payouts and pay fees, have these ready:

• Bank account details -- Routing number and account number for a checking account. This is where Etsy deposits your earnings.
• Credit or debit card -- For paying accumulated seller fees. Etsy charges your card on the first of each month for the previous month's fees.
• Tax identification -- US sellers need an SSN or EIN for 1099-K reporting. International sellers may need equivalent tax IDs.

Etsy Payments is the only payout method for most countries. PayPal-only payouts are being phased out.

Products ready to list

Don't open your shop with zero listings. Have at least your first product ready to go:

• Product photos -- At least 3-5 high-quality images per listing. Natural lighting and a clean background go a long way, even with a phone camera.
• Written descriptions -- Clear, detailed product descriptions including dimensions, materials, and care instructions.
• Pricing figured out -- Know your costs, factor in Etsy's fees (~10-12% per sale), and set prices that leave room for profit. Use our Etsy profit calculator to run the numbers before you list.

Step 1: Create Your Etsy Account

Account creation takes about 5 minutes.

1. Go to etsy.com and click "Sign in"
2. Click "Register" to create a new account
3. Sign up with your email address, or use Google or Apple sign-in
4. Enter your first name, last name, and create a password
5. Verify your email address by clicking the link Etsy sends

Enable two-factor authentication immediately. Etsy requires 2FA for all seller accounts. Go to Account Settings > Security and enable it using an authenticator app or SMS. Without 2FA, you won't be able to access certain seller features and your shop is vulnerable to unauthorized access.

Add a profile photo and short bio while you're in account settings. Buyers can see your profile, and a real photo builds trust. This isn't your shop branding -- it's your personal seller profile that appears when customers click your name.

Step 2: Configure Basic Shop Settings

After creating your account, click the person icon and select "Sell on Etsy" to begin shop setup. Etsy walks you through a wizard, but here's what matters.

Choose your shop language. This determines the default language for your listings and shop pages. You cannot change this after setup, so choose carefully. If you sell to English-speaking markets, select English.

Select your country. This affects tax requirements, shipping options, and which payment methods are available. Etsy uses your country to calculate applicable taxes and determine your payout currency options.

Choose your currency. Your currency selection determines how prices display to buyers in your home market and affects how Etsy calculates fees. If you select USD, your fees are calculated in USD. If you select GBP, fees are in GBP.

Why does currency matter? Etsy converts currencies at their own exchange rate (which isn't always favorable). If most of your customers are in the US, pricing in USD avoids conversion surprises for both you and your buyers.

Step 3: Choose Your Shop Name (4-20 characters)

Your shop name is your brand identity on Etsy. It becomes your URL (etsy.com/shop/YourName), appears on every listing, and shows up in search results.

Character limits and restrictions:

• 4 to 20 characters long
• Letters and numbers only -- no spaces, hyphens, or special characters
• Must not already be taken by another shop
• Cannot contain profanity or trademarked terms

Good shop name examples:

• ThreadAndTimber (clear niche, memorable)
• CozyCornerPrints (descriptive, easy to spell)
• WildMeadowCo (professional, brandable)

Names to avoid:

• Names that are hard to spell or remember
• Super generic names like "HandmadeStuff" or "CraftShop123"
• Names tied to a single product (limits future expansion)
• Names that are too similar to established brands

You can change your shop name, but only once. After that, you're locked in. Changing your name also breaks any existing links or bookmarks customers have saved, so choose something you can grow into. Check that the name isn't trademarked and that the matching .com domain is available if you plan to build a standalone website later.

Step 4: Customize Your Shop Appearance

A professional-looking shop converts browsers into buyers. Etsy gives you several branding touchpoints -- use all of them.

Upload your shop icon/logo

Your shop icon appears next to your shop name in search results and on your shop page. It's the first visual impression buyers get.

• Recommended size: 500 x 500 pixels
• Format: JPG or PNG
• Keep it simple -- Your icon displays small, so avoid tiny text or complex designs. A clean logo mark or stylized initial works best.

Add a shop banner

Your banner stretches across the top of your shop page. It's prime real estate for showcasing your brand aesthetic.

• Recommended size: 3360 x 840 pixels (displays at 1680 x 420)
• Use it to show your products, your workspace, or a lifestyle image that represents your brand
• Include your shop name in the banner for reinforcement, but don't rely on it as the only place your name appears

Write your shop story and About section

Buyers on Etsy care about the person behind the products. Your About section is where you build that connection.

• Start with what you make and why -- not your life story
• Include photos of your workspace or process
• Mention your materials, techniques, or inspiration
• Keep it genuine -- Etsy buyers respond to authenticity, not corporate speak

Need help writing your About section? See our Etsy About page template for a fill-in-the-blank framework.

Set up shop policies

Shop policies set buyer expectations and protect you from disputes. Configure these before you list anything:

• Shipping policies -- Processing time, shipping methods, estimated delivery windows
• Return and exchange policy -- What you accept, timeframe, who pays return shipping
• FAQs -- Common questions about custom orders, sizing, materials, etc.

Shops without clear policies get more refund requests and case escalations. Buyers assume the worst when policies are missing.

Step 5: Create Your First Listing

This is where most new sellers stall. Your first listing doesn't need to be perfect -- it needs to exist. You can optimize later.

Photo requirements

Etsy allows up to 10 images per listing, plus one video. Your first image is the thumbnail that appears in search results, so make it count.

• Minimum: 1 image (but aim for 5-10)
• Recommended resolution: 2000 x 2000 pixels minimum
• Aspect ratio: Square thumbnails display best in search
• First image = your thumbnail. Use a clean product shot on a simple background.
• Remaining images: Show different angles, scale/size reference, packaging, and lifestyle shots of the product in use

Writing titles that rank

Your title is the single most important SEO factor on Etsy. You get 140 characters -- use them wisely.

Front-load your most important keywords. Etsy's search algorithm weights the beginning of your title more heavily than the end. Write for search engines first, humans second.

Example:

• Weak: "Cute Coffee Mug"
• Strong: "Handmade Ceramic Coffee Mug - Speckled Stoneware Cup, 12oz Pottery Mug, Minimalist Kitchen Gift"

For the complete title optimization strategy, read our Etsy title formula guide. Check Etsy character limits to make sure you're using all available space.

Using all 13 tags

Etsy gives you 13 tags per listing. Use every single one. Tags are how Etsy matches your listing to buyer searches.

• Each tag can be up to 20 characters
• Use multi-word phrases, not single words ("ceramic coffee mug" not "ceramic")
• Don't repeat words already in your title -- tags add additional keyword coverage
• Mix broad and specific terms

Use our Etsy Tags Generator to find high-traffic, low-competition tags for your product category.

Pricing your products

Price too low and you lose money after fees. Price too high and you don't sell. Find the sweet spot by calculating your actual costs.

For every sale, Etsy takes approximately 10-12% in combined fees: $0.20 listing fee + 6.5% transaction fee + 3% + $0.25 payment processing. Run your numbers through the Etsy Fee Calculator or Etsy Profit Calculator before setting prices.

Basic pricing formula: Materials + Labor + Shipping + Etsy Fees (12%) + Profit Margin (20-30%) = Listing Price

Generate listings with AI

If you're listing multiple products and want to speed up the process, use our AI listing generator to create optimized titles, descriptions, and tags based on your product details.

Step 6: Set Up Payment and Billing

You won't receive any money until Etsy Payments is configured.

Etsy Payments setup

Etsy Payments is the platform's integrated payment system. It handles credit cards, debit cards, Etsy gift cards, Apple Pay, Google Pay, and more on your behalf.

To set it up:

1. Go to Shop Manager > Finances > Payment settings
2. Enter your bank account information (routing and account number)
3. Verify your identity (Etsy may request a government ID or tax documents)
4. Confirm your details

Etsy deposits your earnings on a regular schedule -- typically weekly. Your first deposit may take longer as Etsy verifies your account.

Credit/debit card for seller fees

Separately from your bank account (which receives payouts), you need a credit or debit card on file to pay seller fees. Etsy charges accumulated fees to this card monthly.

If your card is declined, Etsy may suspend your shop until fees are paid. Keep your billing information current.

Understanding the payment schedule

Etsy deposits your earnings weekly by default (every Monday for the previous week's sales). You can also request a manual deposit at any time from your Payment account.

Deposits take 1-3 business days to reach your bank account after Etsy initiates them. New shops may have a longer hold period initially.

For a detailed breakdown of how Etsy processes payments and what gets deducted before your deposit, read our Etsy payment processing fees guide.

How much does it cost to open an Etsy shop?

Opening an Etsy shop has minimal upfront costs compared to other platforms. Here's the full cost picture.

One-time costs

The $15 setup fee is charged when you open your shop. This is a relatively new fee -- Etsy previously let sellers open shops for free.

Ongoing costs per sale

Total ongoing fees: approximately 10-12% per sale without Offsite Ads. With Offsite Ads, it can reach 22-27% on those specific sales.

Real example

On a $30 item with $5 free shipping (you absorb shipping cost):

• Listing fee: $0.20
• Transaction fee (6.5% of $30): $1.95
• Payment processing (3% of $30 + $0.25): $1.15
• Total Etsy fees: $3.30 (11% of sale)

For complete fee breakdowns at different price points, see our Etsy fees explained guide. For a full startup budget analysis, read Etsy startup costs.

After Launch: First 30 Days Checklist

Opening your shop is step one. The first month determines whether your shop gains traction or sits empty.

Week 1: Build your catalog

• List 10-20 products minimum. More listings = more chances to appear in search. One or two listings won't give Etsy's algorithm enough data to show your shop to relevant buyers.
• Optimize every title and tag. Don't rush this -- your listing optimization checklist should be your reference for every product you add.

Week 2: Drive initial traffic

• Share your shop on social media (Instagram, Pinterest, TikTok)
• Tell friends and family -- early sales and reviews build social proof
• Join relevant Etsy teams and communities

Week 3: Analyze and adjust

• Check your Shop Stats daily. Look at views, visits, and search terms buyers use to find you.
• If listings aren't getting views, revisit your titles and tags
• Run your listings through our Listing Grader to identify weak spots

Week 4: Build toward Star Seller

• Respond to all messages within 24 hours (Star Seller requires 95%+ response rate)
• Ship orders on time or early
• Provide tracking on every shipment
• Learn the full Star Seller requirements and start tracking your progress

Consistency matters more than perfection. Shops that add new listings regularly and respond quickly to customers outperform shops with "perfect" branding but infrequent activity.

Common Etsy shop setup mistakes to avoid

These mistakes cost new sellers time, money, and early momentum.

Choosing a name you can't rebrand. If your shop name references a specific product ("SarahsCandles") and you later expand into pottery, your name works against you. Pick something broader that allows growth.

Skipping shop policies. Buyers look at policies before purchasing. Missing or vague policies lead to more refund requests, more Etsy cases opened against you, and lower trust. Write clear return, shipping, and exchange policies before your first listing goes live.

Using low-quality photos. Etsy is a visual marketplace. Blurry, dark, or cluttered product photos kill conversions. You don't need a professional camera -- a smartphone with natural lighting and a clean background produces great results. But you do need to put effort into your images.

Not understanding fees before pricing. If you price a $20 item thinking you'll pocket $20, you'll be disappointed when Etsy takes $2-3 in fees. Always calculate your actual take-home using the Etsy Fee Calculator before setting prices. Pricing without accounting for fees is the fastest way to lose money.

Listing only 1-2 products. A shop with two listings looks like an afterthought, not a business. Aim for 10-20 listings at launch. This gives buyers options and gives Etsy's algorithm more data to work with.

For more pitfalls to watch out for, read our full guide on Etsy beginner mistakes.

FAQ

How do I start an Etsy shop?

Go to etsy.com, create an account, and click "Open Your Etsy Shop." Choose your language, country, and currency. Pick a shop name (4-20 characters, no spaces). Add your bank account for payouts and a credit card for fees. Pay the $15 setup fee. Create your first listing with photos, a keyword-optimized title, all 13 tags, and a detailed description. Set your shipping profiles and shop policies. Use our AI Listing Generator to create your first optimized listing in seconds.

How do I open an Etsy shop?

Opening an Etsy shop takes 15-30 minutes if you have your information ready. You need an email address, bank account details, a credit/debit card, and at least one product with photos. Etsy charges a one-time $15 setup fee plus $0.20 per listing. Follow our 6-step guide above for the complete process.

How do I create an Etsy shop?

Creating an Etsy shop starts at etsy.com — click "Sell on Etsy" in the top navigation. Etsy walks you through account creation, shop naming, payment setup, and your first listing. The entire shop creation process takes under 30 minutes. The key to success isn't the setup — it's launching with at least 10-20 optimized listings and building from there.

How to start an Etsy shop with no money?

You can't start completely free — Etsy charges a $15 setup fee and $0.20 per listing. But the total to open a shop with 10 listings is only $17. To minimize costs: sell digital downloads (no material or shipping costs), use free design tools like Canva, photograph products with your phone using natural light, and skip paid advertising until you have sales data. Read our full guide on Etsy startup costs for a complete budget breakdown.

Can I open an Etsy shop for free?

Not entirely. Etsy charges a one-time setup fee of $15 when you open your shop, plus $0.20 for each listing you create. There's no monthly subscription required, but you can't sell without paying the setup fee and at least one listing fee. Total minimum cost to open and list one item: $15.20.

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

The account and shop creation process takes 15-30 minutes if you have all your information ready (email, bank details, product photos). However, creating a professional shop with optimized listings, complete policies, and proper branding takes most sellers 2-3 days of focused work. Don't rush it.

Do I need a business license to sell on Etsy?

Etsy doesn't require a business license to open a shop. However, your local or state government might. Requirements vary by location and what you sell. Most hobby sellers and small-scale operations can start as sole proprietors without a license. Check your local regulations, especially if you sell food, cosmetics, or children's products, which often have additional requirements.

Can I change my Etsy shop name after setup?

Yes, but only once. Go to Shop Manager > Settings > Info & Appearance to change your name. The same rules apply: 4-20 characters, no spaces or special characters, and it can't already be taken. Keep in mind that changing your name changes your shop URL, which breaks any existing links or bookmarks pointing to your old shop address.

What is the Etsy shop setup fee and can I avoid it?

The setup fee is $15 (up to $29 in certain regions outside the US). It's charged when you open your shop and is non-negotiable -- there's no way to avoid or waive it. Etsy introduced this fee to reduce spam shops and inactive storefronts. It's a one-time charge, not recurring.

Do I need two-factor authentication to sell on Etsy?

Yes. Etsy requires two-factor authentication (2FA) for all seller accounts. You can set it up using an authenticator app (recommended) or SMS text messages. Enable 2FA during account creation or immediately after in your security settings. Without it, you'll have limited access to seller tools and your account is more vulnerable to unauthorized access.

How many listings do I need to open my Etsy shop?

Technically, you need just one listing to open your shop. But one listing won't generate meaningful traffic or sales. Most successful sellers recommend launching with 10-20 listings minimum. More listings mean more keywords indexed in Etsy search, more chances for buyers to find your shop, and a more professional appearance.

Can I use a personal bank account for Etsy Payments?

Yes. Most new Etsy sellers use a personal checking account for payouts. You don't need a business bank account to get started. However, as your shop grows, a separate business account makes bookkeeping and tax preparation significantly easier. Etsy deposits directly to whatever checking account you provide during setup.

Further reading

For a comprehensive overview of selling on Etsy, start with our complete Etsy selling guide.

Sources:

• How to Open an Etsy Shop - Etsy Help
• 7 Quick-Start Checklist - Etsy
• How to Make Your Account More Secure - Etsy Help