How to Make Money on Etsy
Wendy Conklin didn’t have grand plans to start an Etsy business when she joined the site in 2012. All the Texas resident wanted was to put her newfound upholstery skills to work and recoup the cost of a recent class she took.
“I didn’t know what would happen,” Conklin says.
What did happen was a quick sale, followed by another, and another. Four months after opening her Etsy shop, ChairWhimsy, custom orders began rolling in for brightly colored, reupholstered chairs. Four years later, Conklin quit her job to run ChairWhimsy full time, and today, she makes six figures a year on her business venture.
Etsy was founded in 2005 as an online marketplace for handcrafted goods. Over the years, it has evolved to include vintage items, craft supplies and digital items as well, but it remains one of the most popular places on the web to sell unique artisan goods.
In the first quarter of 2025, it had 88.5 million active buyers.
“The beauty of Etsy’s platform is that anyone with a creative mindset can find success on our marketplace,” according to a statement from Etsy. “The sky’s the limit in terms of who can turn their side hustle, passion or hobby into a financially viable small business.”
However, the website can be overwhelming to first-time sellers. If you are new to the world of Etsy, here are tips to help you be successful:
— Select the right product.
— Post great photographs.
— Tell a story.
— Leverage the power of social media.
— Tag items with relevant keywords.
— Consider advertising and free shipping.
— Use Etsy-selling tools.
[Related13 Items That Sell on eBay, Craigslist and Facebook Marketplace]
Select the Right Product
Before you open an Etsy shop, be sure your items fall into one of the website’s allowable categories:
— Handmade goods
— Vintage items that are at least 20 years old
— Craft supplies
— Digital items made or designed by the seller
Traditionally, top categories on the site have been homewares and home furnishings, jewelry and personal accessories and craft supplies, according to Etsy.
Personalized items also appear to be hot, according to a list of top-selling items by Alura, a product-research platform for Etsy sellers. Customizable bracelets, rings, coasters and wine cork keepers are among the bestsellers.
Before wading into a particular niche, research the going price for similar items at other Etsy stores to determine if your business venture can be profitable.
As you calculate your costs, don’t forget to include Etsy’s fees, which include a 20-cent charge for a four-month listing, a 6.5% transaction fee based on the sale price and a variable payment processing fee.
Post Great Photographs
Since Etsy is an online marketplace, good images are vital to sales, according to experienced sellers. There’s no need to invest in expensive photography equipment though, since most smartphones are capable of taking quality photos.
“Photography is everything,” says Joni Morgan, whose Etsy shop Fact + Fiction Toys in Big Rapids, Michigan, is currently on hiatus. She sold handcrafted wooden toys on Etsy for nearly a decade and watched as some new sellers floundered because their photos weren’t appealing or engaging.
While some sellers may use filters or photography boxes, Morgan had success with a simpler approach.
“I just use a white table from Ikea, and I put it near a window for natural light,” she says. To hone her technique, she watched YouTube videos to glean photography tips.
Tell a Story
For buyers, Etsy promises the opportunity to buy artisan goods unavailable elsewhere. “People love a story,” Morgan says. “They want to hear your background and how things are made.”
Being transparent about who is making your products — whether it’s you or a team member — and what materials are used can help encourage sales from those seeking to support small business owners.
[READ: Why You Should Frequent Small Businesses – And Pay With Cash]
“Women and Etsy consumers today are more socially conscious and aware of sustainability, environmental impact and natural alternatives,” says Suzanne Sachs, whose Etsy shop ArtDecoDiamonds sells vintage engagement rings and jewelry. Stressing the use of sustainable materials and business practices can be another way to draw in customers.
Leverage the Power of Social Media
Once you’ve listed an item in your Etsy shop, don’t leave it to chance that a buyer will stumble upon it. Instead, use social media channels to promote your items and store.
Each social media site has its own strengths and weaknesses when it comes to promoting listings. Facebook is ideal for video content, connecting with a broad audience and providing customer service, according to Etsy’s Seller Handbook. But don’t expect to reach younger audiences there. For that, you should head to Instagram.
And don’t forget about Pinterest, the social media site that allows people to save — or “pin” — images to virtual boards they create. Other users can follow specific boards or people on the site. They can also search for images of interest to them.
Many Etsy sellers overlook the power of Pinterest to drive sales, Conklin says. “For a while, 50% of my traffic was coming from Pinterest,” she says.
In many cases, Conklin found that people would be following her photos long before they made a purchase. Since ChairWhimsy offers custom chairs, the photos serve the dual purpose of sparking the imagination of potential customers and helping them envision their own chair.
Tag Items With Relevant Keywords
Both Conklin and Morgan agree that skipping keyword tags on product listings is a common mistake.
“The keywords you set up for your listings drives traffic,” Conklin says. However, she adds that many people overthink the keywords. “You have to think like a regular person.”
When tagging a listing, Morgan tried to envision what people might type in when searching for her products, such as “wooden toy,” “handcrafted” and “organic.” She also started almost all her product titles with the term “wood toy” to help her listings jump to the top of the search results.
Consider Advertising and Free Shipping
To help customers find her listings, Morgan used both Etsy advertising and offered free shipping.
With Etsy Ads, sellers can set a daily budget that will help their products be highlighted in search results. A dollar a day seems to be a sweet spot, Morgan says. She tried bumping up her advertising budget to $5 a day at one point but didn’t see significantly more sales as a result.
Free shipping is another way to stand out in search results and encourage sales.
“If you offer free shipping on orders of $35 or more, people love that,” Morgan says. Sellers offering free shipping should incorporate that cost into their prices to remain profitable.
[Read: 12 Small Business Apps to Try This Year]
Use Etsy Selling Tools
Etsy provides sellers with a variety of tools to help them be successful. These include a forum, a seller handbook and newsletters with seasonal tips and insight into selling trends.
For instance, the company’s 2025 Spring and Summer Trends guide provides an outline of upcoming gifting occasions and associated items that are expected to be popular.
It notes that “literary girl” items are particularly popular right now, with searches for blind book date boxes having doubled in the last year and book club item searches up 20%.
Travel accessories are also popular, especially island-themed attire. According to the website, travel accessories are the top Etsy search this year, with searches for products like fruit necklaces skyrocketing nearly 500%.
In the years since Conklin opened her shop on Etsy, she has watched as the company has grown. While that means more competition, it also signifies more customers and more opportunities.
“I did try selling some things locally, but what I found was that there just weren’t enough eyes on my chairs,” she says. “Because (Etsy) has gotten so big, that’s made it better.”
More from U.S. News
These 3 People Turned Their Side Gigs Into $100K+ Incomes
How to Get Free Money as a Student
12 Great Side Hustles for Retirees
How to Make Money on Etsy originally appeared on usnews.com
Update 07/18/25: This story was published at an early date and has been updated with new information.