How to make money on Etsy

Article #59

Table of Contents

Introduction

Etsy is the largest global online marketplace for crafters, collectors, and independent artists who want to sell vintage items, handmade goods, art, and craft. If you are talented in making any of the above mentioned items then you can make good money on Etsy. Several studies have shown that a beginner can make between $10,000 and 50,000 in their first year while experienced sellers can make up to $70,000 per month. Currently, this global marketplace has more than 4.3 million sellers who make an average of $12,500 per year. This clearly indicates that Etsy is a great platform and a great way for talented arts, crafters, and collectors to make extra money.

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Just like any other online marketplace, some sellers have recorded huge success on Etsy while others have launched their shops and failed miserably. So, It is a great idea to create and activate your own Etsy account or Etsy shop to sell digital products or handmade products or similar products or any other physical item. The difference between success and failure is the strategy used by the seller. If you use good strategies, then you will make money on this platform and if you don’t, then you will definitely fail. If you are planning to open your own shop at Etsy and wondering how to make money, or you want to increase the profit margins as an existing esty shop owner, today you have come to the right place. In this article, we will give you proven tips on how to make money on Etsy.

1. Identify a profitable niche

If you want to make money on Etsy then the first important thing that you must do is to identify a profitable niche. If you get it wrong at this stage, then making money on this online marketplace will be an uphill task. Research shows that 42% of online businesses fail because of a failure to identify profitable niches. Etsy has several niches including handmade, jewelry, art and craft, print on demand, digital downloads, and much more. You need to sit down and carefully analyze each niche to identify those that are profitable and with the most potential buyers.

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Why it is important to choose a niche

Of course you may wonder why it is important to choose a niche. Below are the main benefits of choosing a niche

It will allow you to put all your effort into one particular area thus increasing the chances of being successful
It will help you connect with your target audience easily, thus increasing the chances of converting them to paying clients
It helps to give your business a clear direction
It helps to simplify your marketing by providing a clear message of what your business stands for
It makes it easy to identify your customer base

Three things should come into your mind when choosing a niche on Etsy. They include skill, passion, and demand.

Passion

When choosing a niche, you need to choose one that you are passionate about. The mistake that most sellers on Etsy make is using money as their primary motivator. Of course, the reason why you want to open a shop is that you want to make money. However, if your focus is only on money, then you are destined to fail. Instead of focusing on money when choosing a niche, think about something that you are genuinely passionate about. Choosing a niche that you are passionate about will give you success in the long run. Brainstorm a list of niches you are passionate about, then narrow down the list gradually until you settle on one.

Skill

Besides passion, another very important thing to consider when choosing a niche on Etsy is your skill. Passion without skill will amount to nothing. The reason why customers will come to your shop and buy your products is that they have been impressed with your skills. So, take time to determine the unique skill that you have that you can sell to your target customer and make money. You don’t have to be an expert, just have the skill to make something good that will help other people.

Demand

souvenirs – bottles with colored sand and shapes of desert and camels

The third very important thing to consider when choosing a niche is the demand for the product. Regardless of how good your products are, if they are not in demand, then you will not make money. So, when choosing a niche, you need to settle on one that is in demand and profitable.

Indicators of a profitable niche

One of the things that indicate if a niche is profitable is if it is trending upwards in the market. Find a niche that is still new in the market but gaining popularity fast and capitalizes on it. If not, then choose a niche that is on an upward trend when it comes to sales. This way, you are guaranteed of making money on Etsy. Choosing a niche that is on a downward trend can spell disaster for your business.

The niche should have a consistent sale volume

Another indicator of a good niche is the number of sales that the seller makes each day. The only way to make money on Etsy is if your sales are consistent. So, when searching for a niche, look for one that has proven to be reliable by generating consistent sales over time. The niche should also have the potential to grow in the sale even further. In fact, you should not worry much about the popularity of the niche if it generates consistent sales.

It has less competition

Another indicator of a good niche to venture into is if it has less competition. Although some competition is good, too much competition may hurt your business. If there is too much competition, you may be forced to use a lot of money to make your business visible and competitive. You will also have to lower your price in order to remain competitive and that will hurt your business. If you want to make money on Etsy, you should choose a niche that has little competition.

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2. Research the product

Once you have identified the right niche to focus on Etsy, the next important thing to do is research the product. For instance, if you are planning to sell jewelry on this online marketplace, you should research to know who your competitors are, their product prices, and also how they market their products. The research will also help you know your customer’s expectations about the product.

The product research will also help to prevent you from making a misguided decision that could hurt your business in the long run. Good research is crucial because it will help you identify potential issues that your products have and how to correct them. Also, research will help you to come up with a well-thought-out plan that will help you create a product that your target customers will love. So, once you settle on a particular niche and product, don’t just launch it before you do thorough market research. The product research will help you deliver a good product to the end customers, which will in turn translate to more sales.

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3. Research on competition

If you want to make money on Etsy, then you need to know what your competitors are up to and strive to stay ahead of them. Etsy has more than 7.5 million sellers. This means that the chances of having no competition are minimal.

The fact that you will have competition means you need to research to know what they are doing. Competitive research will help you know your competitor’s pricing, and the quality of their products. Another very important thing about competitive research is that it will help you to identify gaps in the market that you can capitalize on.

If you don’t research to know what your competitors are up to, then making money on Etsy will be a daunting task. Remember that your competitors have been there before you and they understand many things that don’t. When you research, you will get valuable insights about them that will give you an edge. A thorough competitor analysis will help you understand your competitor’s strengths and weaknesses, strategy, and customer behavior.

With competition on Etsy getting stiffer by the day, the only way to survive and thrive is by keeping a close eye on your competitors. Conduct thorough research to know what they are up to, the strategies that they are using, their pricing, and existing gaps that you can take advantage of.

Why competitor analysis is important

It helps you know how you can improve your business strategy
It helps you know what to do to outshine your competitors and attract more customers to your store
It will help you know your competitor’s strategy which you can use to ensure that you are always a step ahead of them.
It helps you understand the market better
It helps you to create a good plan for your business

Step to follow when conducting competitor analysis

-Identify your competitors

– Determine the products they offer and whether you are in direct competition with them

-Analyze the marketing and sales strategy and determine whether they are achieving great results with those strategies.

-Find out how they are marketing their products

-Determine the price of their products

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4. Market your products

You can only make money if your target customers know about your Etsy store and the products that you sell. That is why it is important to market your product once you launch your store. Some sellers usually assume that customers will automatically know their store on Etsy. However, that is not true. If you don’t market your shop on this platform then you are not going to make sales. Yes, it is that simple.

Successful shop owners on Etsy will tell you that creating high-quality and unique products and posting them on your store is not enough. This online marketplace has more than 7.5 active merchants and all of them compete for the same customers. So, if you want to make money on Etsy, you have to put more effort to make your business stand out and attract customers or potential customers. Fortunately, there are easy ways to market your store on Etsy to boost its visibility and sales without a lot of hard work, as discussed below.

Post High-quality photos / images for your products

One of the best ways to market your products on Etsy is by posting high-quality images on your store. The quality of images posted in your store will play a big role in influencing the buyer’s decision. Research shows that the attention span of most internet shoppers is about 2 seconds. So, if the product image is not top-notch, then the customer will lose interest and move to the next store.

Most customers don’t read product descriptions unless they are really interested in the product. So, if you don’t post quality images, then you will not attract customers to your shop, meaning you will not make money. Any experienced seller on Etsy will tell you that a quality image is a great marketing tool that can work for or against you. Ensure that your photos are professional looking, crisp, and clearly focused. A good product image will help the buyer imagine the product in their own world and this will greatly influence their buying decision.

Tag items with relevant keywords

Most sellers usually overlook the importance of usually relevant keyword taps when describing their products and that is usually a big mistake. When a buyer is interested in buying a product on Etsy, the first thing they will do is use the search bar to search for products that they are looking for. With millions of sellers on this platform, the easiest way for a buyer to find a seller who offers the product that he/she is looking for is by using the search bar.

Now, just like Google, Etsy has its own search algorithm that determines the order in which products will show when a buyer searches for something. And just like Google, buyers are likely to choose your product if it appears on the first page. As a seller, you need to strive to ensure that your products show up on top of the first page.

However, your products will only appear on top of the first page if you tag items with relevant keywords. Using relevant keywords that buyers use when searching for products will boost your product ranking thus boosting your chances of making more sales. When writing product descriptions, make sure they adhere to search engine optimization requirements which include writing a keyword-rich title and including search terms in your product tag.

With more than 2.5 billion people using social media on a daily basis, social media has become a powerful marketing platform that online businesses cannot ignore anymore. Statistics show that more than 61% of Etsy sales come from the mobile internet, which makes social media an integral marketing platform for your business.

All social media platforms have their strengths, so you should utilize as many social media platforms as possible to market your products and create awareness. But out of all social media platforms, you should spend more time marketing your products on Instagram. Instagram is a powerful marketing tool for Etsy sellers because of its visual nature. If you post high-quality images of your products on this social media platform, then you will definitely attract buyers. Don’t forget to add your Etsy store link to your Instagram profile so that buyers are directed to your Etsy store. And if you have money, you can make your work easier by paying for ads on Facebook and Instagram to reach out to more clients with ease.

Social media is an extremely powerful marketing tool that can help attract more clients to your Etsy store with ease. The good thing about social media platforms is that they allow you to engage with your target customers which makes it easy to convert them into loyal customers. The secret to being successful in marketing your Etsy products on social media platforms is being consistent in posting, and engaging with your audience regularly. Also when marketing your product, don’t sound too salesy, instead focus on giving your customer quality and valuable information about the products. This way, you will establish yourself as an expert and this will help you earn customer trust.

Leverage email marketing

Email marketing is one of the oldest forms of marketing. But despite being around for a while, it still holds one of the most reliable marketing tools for businesses. Of course, you may wonder how you will get customer emails. Getting your customer’s email address is easy. All you need to do is ask them to subscribe to free newsletters.

Email marketing will allow you to regularly stay in touch with your customers. Buyers will also appreciate it when you keep them up to date on what you have in store for them and will most likely come back and even refer their friends, family, and colleagues to your Etsy store. Email marketing is highly recommended for new sellers because it is affordable, easy to manage, and also easy to measure.

Build your own affiliate team

Another great marketing strategy that will help you to drive sales and make money on Etsy is by building your own affiliate team. Research shows that 88% of consumers trust referrals and online reviews when shopping online. You can take advantage of that by enrolling in the Etsy affiliate program. This affiliate program allows other Etsy sellers to promote your store in their shop and in return earn a commission for every successful sale.

Affiliate marketing is a billion-dollar industry and is regarded as one of the most effective ways of marketing an online business. Besides attracting qualified customers to your store, it also helps to build a positive brand identity which is crucial in earning customers’ trust. Because another registered Etsy shop owner has recommended your product on their platform, customers are more likely to visit your shop and make a purchase because it has been recommended by someone they trust. If you want to attract quality leads that guarantee a high conversion rate, then you need to build an affiliate team.

Use Etsy selling tools & Etsy Ads

Etsy provides sellers with a variety of marketing tools to help them create brand awareness and drive more customers to their shops. Some of these selling tools include; a forum seller handbook, an annual community education program, and the Etsy summit. They also provide newsletters and valuable insights into selling trends. Leveraging these tools will help propel your business to success thus allowing you to make more money.

You can also market your Etsy store by seeking the services of social media influencers. Social media influencers are simply individuals with a high following on social media platforms. The reason why they are called influencers is that they play a big role in influencing the buying decision of their followers. As mentioned earlier, one of the best ways to get loyal customers is through referrals. Influencers are trusted by their followers. So when they recommend your products, their followers will visit your store and purchase your products. However, to get the best outcome, use influencers who promote products within your niche.

Final thoughts

If you are looking for ways to make extra income to supplement your main income, then you won’t go wrong if you become a seller on Etsy. If you come up with a good plan, you can make up to $10,000 per year by selling items on this online marketplace. And with time as you gain more experience, you can make up to $70,000 per month. Many sellers have quit their 9-5 jobs to focus on selling items on Etsy because it is profitable and sustainable.

However, making money on Etsy is not guaranteed. As much as many sellers have recorded huge success, thousands of sellers have failed. The strategy that you use will determine whether you will make money on Etsy or not. The tips that we have shared above have been tested and proven to work. If you follow them to the latter then you will most definitely make money on Etsy.

How to make money on Etsy

Introduction