Are you looking for some Etsy shop ideas that don’t require huge capital? If yes, look no further because I’ll share dozens of profitable business propositions for your online store.
Don’t worry if you’re not an artisan. Contrary to popular belief, you don’t need to be a craft artist to sell on Etsy. With my list of great Etsy shop ideas, you’ll likely find something that fits your interests, budget, and skill set.
Let’s get started!
What Is the Etsy Marketplace?
Etsy is an e-commerce marketplace, connecting buyers and sellers. While its business model is similar to eBay and Amazon, what makes it unique is that it exclusively sells handmade goods, vintage products, and craft supplies.
Consequently, the e-commerce platform is popular among shoppers looking for unique and customized products instead of mass-produced items.
Etsy sells a wide range of handcrafted products, including jewelry, toys, bags, clothes, home decor, furniture, artwork, and craft supplies. It also carries vintage items and digital products like printable stickers and planners.
Is Selling on Etsy Profitable?
How much you can make on this marketplace is up to you. Note that some Etsy store owners earn less than $500 a month, while others generate thousands in monthly sales.
Your earnings will vary based on products, industry, marketing and advertising strategy, and other factors.
In terms of profit margin, 30% is a healthy number to start with before slowly increasing it to at least 40%, which is the average rate of Etsy listing.
For Etsy stores that can scale their production, they can enjoy a profit margin of up to 65%.
Why Sell on Etsy?
There are a number of reasons why Etsy is a great marketplace to sell your handmade products and craft supplies.
Lower Overhead Cost
Etsy’s 6.5% transaction fee per sale is lower than other platforms like Amazon Handmade (15%) and eBay (13.4%). In addition, it does not charge sellers a monthly fee to maintain their shops.
Easier Than Building and Maintaining Your Website
Building and maintaining your own online store takes a lot of effort and money. Plus, you need to build your website traffic from scratch, which could take months or even years.
By contrast, finding your target market is relatively easy when you own Etsy shop.
Profitable Platform
Selling on Etsy means you can reach out to over 92 million active shoppers. Experts suggest this number will continue growing in the coming years as more people look for handcrafted and unique items.
If you have low-profit margins, it’s also less risky to sell on Etsy than build a brick-and-mortar store or join a craft show.
Easy To Validate and Scale Products
It’s easy to test out your Etsy business ideas and see what resonates with your target market. And if they are successful, you can scale them up with the platform’s built-in marketing tools.
15 Profitable Etsy Shop Ideas You Can Try
If you want to enter the marketplace but have no ideas on what to sell on Etsy, check out these popular Etsy shop ideas.
1- Art Prints
Selling art prints is a great Etsy shop idea for someone looking to make a decent profit without a significant investment. And the best part of setting up an Etsy stationery shop? You can sell digital downloads, hard copies, or even both.
2- Planners and Journals
Selling planners and journals is one of the best Etsy shop ideas out there because it doesn’t require huge start-up capital.
It’s also a versatile Etsy shop idea because you can sell them as hard copies or digital files.
3- Vintage Clothes
Designer vintage clothing usually increases in value as it ages. Plus, your target audience generally won’t mind paying a premium just to get their hands on fashionable clothes in good condition.
Selling vintage clothing has high profit margins, but the inventory can be challenging
To establish yourself as one of the go-to Etsy sellers of vintage clothes, you must invest a ton of money to build up your inventory.
4- Skin Care Products
If you want to sell skin care products, note that as an Etsy shop owner, it’s your responsibility to make sure they are safe and comply with the Food and Drug Administration’s requirements.
5- Handmade Clothing
You can differentiate your Etsy shop by catering to a specific audience. For example, you may consider selling handmade baby clothes with quirky designs or natural fibers.
6- Personalized Jewelry
If you enjoy working with your hands, then one of the best Etsy shop ideas is personalized jewelry to leverage the popularity of personalized gifts. Of course, it requires some skills and knowledge.
If you like clay, try offering polymer clay jewelry. You can also use other materials like beads and gems.
7- Home Decor
Some bestselling home decor items on Etsy include decorative pillows, frames and displays, bookends, lamps, candles, mirrors, clocks, wall decor, vases and pots, and rugs.
8- Baby Products
You can almost never go wrong if you sell baby items on Etsy. They include diaper bags, burp cloths, clothes, nursing pillows, toys, shoes, homemade lotions and creams, hair clips and bows, and nursery decor.
9- Phone Cases
Selling phone cases is one of the most lucrative Etsy shop ideas out there. However, you’ll face some challenges like market saturation and high production cost.
To stand out from the competition, your Etsy shop should continuously churn out new designs and prioritize digital marketing.
10- Sustainable and Natural Craft
Crafts made from natural fibers, reclaimed wood, recycled materials, and plant-derived ingredients are popular on Etsy. Also, consider using sustainable packaging for your products to attract more environmentally-conscious Etsy buyers.
11- Printables
Some of the bestselling printables on Etsy include:
Office and school printables
Invitation cards
Printable games and entertainment
Planners and journals
Knitting patterns
With this type of item, you only have to deliver the product as a digital download. The buyer can then print the file themselves.
12- Craft Supplies
Listing craft supplies, tools, and ingredients is a perfect Etsy shop idea for non-artisans who want to tap the platform’s curated market.
One way to increase your profit margin is to buy craft supplies in bulk and package them in smaller quantities. However, it’s ideal to get sample products first so you can inspect their quality.
13- Custom Projects
Instead of buying mass-produced items, Etsy shoppers prefer personalized items as gifts for birthdays, holidays, or other special occasions. Additionally, many of them have no qualms about paying a premium for these things.
Some examples are custom necklaces, personalized cards, monogrammed mugs, and more.
14- Print-on-Demand
An Etsy print-on-demand business is all the rage right now. It eliminates inventory and fulfillment hassles along with the costs associated with these processes.
You can add your custom designs to a wide variety of products, depending on the provider’s product catalog. Some examples are:
Apparel
Home decor
Stationery
Kitchenware
Drinkware
With a POD solution, you can start your own Etsy business with minimal upfront costs.
15- Personalized Pet Gifts
Did you know that more than 40% of US pet owners spend $100-$299 monthly on their household pets?
Since many fur parents are willing to splurge despite the rising inflation, it doesn’t come as a surprise that personalized pet gifts such as name tags, beds, leashes, bowls, dog clothes, and toys are popular items on Etsy.
What You Can and Can’t Sell on Etsy
Etsy has strict product regulations to ensure all listings align with the platform’s values and goals. Here are some rules you must keep in mind regarding its main three categories.
Handmade Items
If you want to start selling items in this category, you must ensure you’re involved in creating the product. If you work with production partners, you must also disclose it in your product listing.Vintage Products
If you sell vintage items, they must be at least 20 years old. Otherwise, Etsy doesn’t consider it as vintage.
This doesn’t include retro items, which are new items that imitate old designs.Craft Supplies
Selling craft supplies is ideal for small business owners who don’t have artistic skills. You can sell party supplies, jewelry supplies, fabric supplies, or other types of tools and materials that creative Etsy users might need in their projects.
On the other hand, you cannot sell these prohibited items:
Tobacco products
Medical drugs
Alcohol
Certain animal products
Dangerous items and weapons
Pornography and mature content
Items that promote hate and violence
Recalled products
How To Choose What To Sell on Etsy
Overwhelmed with all these Etsy product ideas?
I’ll help you choose which one to sell online in your own shop.
Before that, remember the allowed products I mentioned earlier. If you’re thinking about reselling mass-produced products, you’re better off using Amazon and eBay instead.
Check out these tips on finding the right product to sell on Etsy.
Consider Your Interests and Skills.
Look at your skills, interests, and passion. After all, it’s nice to profit from something you’re good at or love doing.
However, ensure there’s market demand for the product you want to sell. What you want is less important than what your target audience wants if you aim to make a profitable online business.
Explore Popular Products and Identify Your USP.
Explore other Etsy shops for ideas on products that are doing well. I’m not saying that you ride on the coattails of the most successful Etsy sellers.
However, browsing the Etsy marketplace can help you generate unique ideas.
Selling unique or handcrafted products doesn’t mean you have to reinvent the wheel. You can create a unique business in an already successful business model.
What can you do better? Which niche lacks high-quality Etsy sellers?
Think of the footwear industry. There are different types of shoes to suit all kinds of needs, personal tastes, foot types, and budget. The key here is to find your niche market and excel in whatever you’re selling.
Perform Product Research.
Use Etsy SEO tools to help you research product ideas and gauge market demand. EtsyHunt, for example, provides valuable information like sales volume, profit margin, etc.
It also has a keyword research tool. You can use it to determine how many Etsy users are searching for a particular product, helping you assess the level of demand for your idea.
A high search volume equals a high demand. However, it may also come with high competition.
Evaluate the Competition.
A highly competitive niche can make it harder to stand out. However, this also means it has a lot of opportunities to make money online.
Conversely, low competition might mean there are few buyers. Still, it might only be because the existing sellers aren’t fulfilling the market’s needs.
When searching for a product, evaluate these two considerations carefully.
How To Start Your Own Etsy Store
Setting up your Etsy store is a relatively simple process. Follow this quick guide to start an Etsy shop.
1- Create Your Etsy Shop.
Go to Etsy.com/sell and click Get started, then sign into your existing Etsy account or create a new one.
2- Enter Your Shop’s Details.
Next, follow the prompts to complete your shop’s details. Enter the following information:
Shop Preferences – your shop country, currency, and language
Shop Name – maximum of 20 characters (you can change your shop name later)
Your First Product Listing – it’s a requirement, but you can choose not to publish it and delete it later. You can also create more Etsy listings later.
Your Payment Settings – your tax information, whether as an individual or a business
Billing Details – credit card information for paying Etsy fees and charges
After entering all these details, the Open your shop button will turn black. Click it to open your Etsy store.
3- Fill Out Your Bio.
Add a short bio and a profile photo to show customers the seller-artisan behind the shop.
4- Enter Your Shop Policies.
Having a policy section minimizes back-and-forth questions via chat and helps you in the event of disputes. Thus, you need to include these critical details:
Payment options
Processing time
Shipping policies
Returns and exchanges policy
What Are the Costs of Selling on Etsy?
Starting an Etsy shop is free, although you must consider these Etsy charges when selling on the platform:
Listing fee – $0.20 per upload or renewal
Transaction fee – 6.5% from every sale, including shipping and gift-wrapping costs
Payment processing fee – 3% plus $0.25 for US sellers, other rates might apply
Advertising and promotional fees – vary (optional)
Other than these basic selling expenses, here are some other costs you might incur on Etsy:
Etsy Plus
Consider starting off with Etsy Standard, which is the free basic plan, before upgrading to Etsy Plus, which costs $10 a month.
Etsy Plus is a paid membership that gives you special features and services like restock alerts, free promotional materials, discounts on domain customization, and listing and ads credits.
Branding
To set up a professional-looking shop, you must add a logo, shop banner, and other branding elements. You can design them yourself, or you can outsource the designing to a graphic designer.
If you’re on a tight budget, consider purchasing a pre-made branding package (templates or semi-custom branding kits) on Etsy.
The only caveat with buying a pre-made branding kit is that your logo and other visual identities are not as unique as you would like them to be.
Packaging and Shipping Costs
You must also invest in packaging and shipping materials for your Etsy shop. These include materials like boxes and bubble wrap in your start-up cost.
If you’re running an Etsy dropshipping business or a print-on-demand shop, you don’t have any packaging and shipping-related expenses.
Production and Inventory
You need at least one to 20 items to get your Etsy shop running. This means you must consider expenses for:
Product materials
Production tools
Equipment
Initial inventory
However, you won’t need a lot of start-up capital if you’re only selling digital products like printable art, invitations, and t-shirt designs.
You might only need to invest in a Photoshop or Canva Pro subscription. However, there are free options you can try to minimize your initial investment.
6 Essential Tips for New Etsy Shop Owners
A good business idea doesn’t guarantee success. You must manage and market your Etsy shop effectively to increase sales and drive growth.
Turn your great idea into a profitable Etsy business with these tips:
1- Choose a Unique Name.
Choose an Etsy shop name that’s unique and catchy. It should reflect your brand or product, allowing customers to get a quick idea of what you sell.
For example, if you sell handmade crafts, you can use a name like HandcraftedSoap.
Follow this quick guide to come up with Etsy shop name ideas.
Make a list of words related to your brand and product. If applicable, you can also use abstract names.
Next, do a word association for each word.
Combine the words to come up with a descriptive store name.
Alternatively, use a name that tells the story of your brand. For example, if you make knitted clothes for kids, consider naming your store after your little one.
Search for that shop name, making sure no seller is currently using it and it doesn’t sound similar to another Etsy store, which might create confusion.
2- Use Etsy Search Engine Optimization.
SEO, which stands for search engine optimization, is one of the most important but commonly ignored aspects of running an Etsy shop.
As a seller, you need to know how the Etsy search algorithm works. To rank high on search results, use keywords and key phrases that shoppers use to find your products.
For example, when pet owners are looking for a personalized dog collar, they may use phrases like customized collars, leather, and engraved tag.
Think like your target audience to determine which keywords your Etsy customers will most likely use to find your item. Alternatively, you can use Etsy SEO tools like EtsyHunt, EverBee, and eRank.
These tools help you identify popular search terms, other related keywords, and what your competitors use. They will also provide information like the search volume and competition level.
3- Create an Optimized Item Listing.
Once you’ve identified the best keywords for your products, incorporate them into your product listings. This process is known as Etsy SEO.
Make sure to include these relevant words and phrases in these places:
Product titles
Tags
Product Description
Image alt text
Ensure the keyword placements don’t affect readability. Although you’re optimizing for the search engine, remember that your customers will read your product listing.
If it’s incomplete or doesn’t make sense, it will affect your Etsy conversion rate.
4- Use High-Quality Photos.
The vast majority of online shoppers say the quality of product photos is an important factor that determines whether they click the buy button or move on to another product listing.
While you don’t need expensive equipment, you must put product photography at the top of your priority list.
Here are some additional tips:
Add different angles of the product.
Highlight special product features.
Show your product in use and in real-world settings.
5- Provide Excellent Etsy Customers Care Service.
Customer service can go a long way in encouraging repeat purchases, attracting new customers, and improving your brand’s reputation.
Here are some tips:
Develop a clear set of shop policies to help inform your customers about what to expect when purchasing from your store.
Stick to your promises. Make sure your product descriptions leave no room for confusion. If you promise to ship your item within three to five business days, do it.
Respond to inquiries and concerns promptly.
Always thank your customers every time they purchase from your Etsy shop.
When dealing with your customers, be polite and avoid negative words. For instance, use I’ll try more often instead of saying I can’t.
6- Promote Your Etsy Shop.
These are some of the tools and techniques to help you promote your Etsy shop to customers onsite and offsite.
Etsy Ads Campaigns
You can expand your reach through Etsy Ads, which include market insights and recommendations. This paid advertisement also helps you identify the right time and space to show your ads on Etsy, resulting in higher visits and conversions.
Social Media
Etsy has social media tools that allow shop owners to share important updates and promote products on Facebook, Instagram, Twitter, and Pinterest.
Offsite Ads
The marketplace advertises product listings offsite, including social media apps and search engine results.
Most Profitable Etsy Shops: What Products Do They Sell?
If you look at the top 100 most successful Etsy shops, most of them sell products that fall under the following categories:
Art prints
Craft supplies
Home decor
Accessories
Personalized and wedding gifts
Jewelry
Clothes
Here are some examples of Etsy’s top sellers.
Caitlyn Minimalist
Caitlyn Minimalist is one of the top Etsy sellers in the jewelry category. Since 2013, the shop has been selling hyper-personalized jewelry pieces like bracelets with secret messages, necklaces with the handwriting of a relative who passed ,and rings with fingerprints.
Mod Party
Mod Party is another top-selling Etsy shop. The company sells wedding-themed gifts and products like bridesmaid robes, hanging pom moms, custom bride stocks, proposal gifts, bachelorette swimsuits, and party favors.
Mod Party taps into the lucrative wedding supply and decoration industry.
ThinkPinkBows
Personalized and handcrafted accessories rank high on the list of Etsy bestsellers. That’s why ThinkPinkBows has been one of the most profitable Etsy shops in recent years, selling girls’ accessories like headbands, hair clips, bows, bags, hats, and flower crowns.
Frequently Asked Questions (FAQs)
What Are Some Examples of Easy Etsy Business Ideas?
If you’re looking for some easy Etsy shop ideas, you may want to consider your hobbies or the skills you’ve already acquired throughout the years.
For example, if you’re a graphic artist, selling digital art downloads and stickers would be an easy side gig because you already have the required skills and knowledge to make it work.
What Are Some of the Best Etsy Business Ideas for Beginners?
To get started, consider trying these easy, low-risk Etsy shop ideas.
Custom mugs
Custom-made t-shirts
Art pieces
Digital downloads
Stickers and personalized cards
Paintings
Handmade jewelry
Handmade knickknacks like ref magnets, coasters, hair clips, pocket mirrors, etc.
What Are Some Profitable Etsy Niche Ideas That You Can Sell as Digital Products?
You don’t have to be a professional graphic designer to sell digital products. You can make stunning designs thanks to user-friendly tools like Canva, Picmonkey, Inkscape, Apple Keynote, and Procreate.
Try listing these unique Etsy shop ideas that work great for digital products.
Cosmetic labels
Sewing patterns
Printable planners
Printable calendars
Cafe/Restaurant Printable
Invitation cards
Business cards
Logo
Excel templates
What Are Some Etsy Small Business Ideas for Non-Creatives?
If you’re a non-artist, consider these Etsy small business ideas that don’t have a steep learning curve or a huge investment.
Digital printables like nursery wall art, planners, journals, planner stickers, etc.
Vintage jewelry, furniture, clothes, and other items
Craft supplies, like baking supplies, equipment, tools, and ingredients
Generic but creative products, like party favors, baby accessories, and more
How Can I Strengthen My Own Brand on Etsy?
Contrary to popular belief, a brand is not just a logo or a visual identity. Remember, branding is all about creating a unique identity for your own business. Here are important things to remember:
Your customer service, packaging, logo, website, color scheme, social media accounts, marketing strategies, and products influence your brand.
To strengthen your brand, make sure all your visual identities (logo, icon, etc.) are consistent across all media platforms.
The same rule applies to your packaging and brand voice.
If your brand voice is friendly and informal, ensure it’s consistent with how you interact with your audience.
What Should I Know Before Selling on Etsy?
Before you set up your Etsy store, learn about the level of competition, market demand, and other aspects that can affect your business.
Competition
Etsy has a low barrier to entry, which means you don’t have to worry about large investment costs. Nevertheless, it comes with a caveat: newcomers and competitors may easily replicate certain aspects of your business that make you successful or profitable.
Market Demand
To increase your chance of success, consider selling products under top product categories, which get the most number of potential customers. It also makes sense to learn the market trends and customer sentiments.
Product Niche
Having a well-established niche allows you to focus on the quality of your products, improve your customer service, and identify your brand and target market.
Without a niche market, you may find yourself trying to appeal to everyone, resulting in expensive marketing, missed opportunities, and a low returning customer rate.
Etsy Rules and Regulations
Make sure you understand and strictly follow the seller policy and term section. Etsy has the right to take down your listing or suspend and terminate your account if you violate its rules and regulations
The Bottom Line
Now that you know everything about the most profitable Etsy store ideas, you can turn your artistic hobby and skills into a side hustle or even a lucrative, full-scale business.
If you think selling physical products is not a viable option for you (because you have limited space at home or don’t have enough money to buy equipment and supplies), one option is to sell Canva templates on Etsy.
