9 Ways to Make Money on Etsy

How it works: Attract more traffic and sales for your store by running an Etsy Ads campaign. You can promote your shop or individual listings as Etsy Ads, which ensures that they are prominently displayed in search results and on other pages on the Etsy website and mobile app. The boosted visibility for your brand or products will hopefully lead to increased sales.
Tools or investments required: Ad spend varies depending on your budget. Ad fees are charged on a cost-per-click basis, with a minimum daily budget of US$1.
Beginner-friendly: Yes.
Completely online: Yes.

• Tips to grow

  • Get everything ready. Make sure your shop is up and running with a wide range of products and professional listings before you start spending any money on ads.
  • Take your time. Etsy recommends running your ad campaign for at least 30 days to give the Etsy Ads tool sufficient time to collect campaign data and optimize your ads based on performance results for different placements.
  • Time your campaigns. Target increased ad spend for periods when there is increased seasonal demand for your products. For example, promote your store’s ugly Christmas sweaters in the lead-up to the holidays, or your Halloween-themed home decor in the weeks leading up to October 31.

What are the best things to sell on Etsy to make money?

Etsy’s list of best-selling items includes digital products like colouring pages, handmade jewellery, gift boxes and clothing items.

If you’re looking to maximize your profits, consider items that you can sell with low startup costs and minimal inventory requirements. Digital products offer the potential for large profit margins, while personalized items (like jewellery and custom clothing) are often in high demand because they are unique gift ideas.

It’s also worth checking back in regularly with Etsy’s Trending Now page. This will give you a good idea of what’s hot right now and provide inspiration for future projects and creations.

How much does it cost to sell on Etsy?

There are a few different fees you need to be aware of when selling on Etsy:

• Listing fee: US$0.20 per item.
• Transaction fee: 6.5% of the total sale price (including shipping).
• Payment processing fee: 3% + CA$0.25 (for US and Canadian orders) or 4% + CA$0.25 for international orders).
• Currency conversion fee: 2.5% (if you list items in a different currency than your payment account).
• Offsite ads fee: 12% – 15% when you sell an item that Etsy advertises on other platforms.

Other charges may apply in different circumstances. For example, you’ll need to factor advertising costs into your calculations if you run Etsy Ads campaigns, or a US$10 per month Etsy Plus subscription fee if you want to access additional branding and marketing tools.

Success story: MJ’s Off The Hook Designs

Michelle Moore’s first introduction to crocheting was in 2013, when her daughter came home from school with knitting needles and a crochet hook. The Lakefield, Ontario-based artist taught herself the basics of crochet and was soon obsessed. She started out selling handmade hats and accessories through Facebook and to a local boutique, then launched two crochet patterns in 2015 that went viral.MJ’s Off The Hook Designs was born, offering a wide range of modern, colourful and fun crochet designs. Michelle’s Etsy store has also taken off, racking up over 495,000 sales in eight years on the platform. This has seen MJ’s Off The Hook Designs become a top 0.01% seller on Etsy, with an average store rating of 4.9/5 based on close to 40,000 reviews. It also boasts hundreds of thousands of followers across multiple social media platforms, and
Michelle’s goal is to continue inspiring others and sharing her love for crochet.

Bottom line

Selling handmade goods is far from the only way to make money on Etsy. From digital products to print-on-demand, vintage items to affiliate marketing, Etsy provides lots of options if you want to earn extra income. If you’re ready to get started, set up your own Etsy shop today.

Frequently asked questions

• Can you make money on Etsy?

  Yes, there are several ways to make money on Etsy. The site is best known as a platform for selling handmade goods, but you can also make money by selling craft supplies and vintage items. Other ways to make money on Etsy include selling digital products, selling print-on-demand products and earning commissions through affiliate marketing.

• How can I make money on Etsy without making anything?

  If you don't have the skills or the passion to produce handmade arts and crafts, there are still a few ways to make money on Etsy. For example, you could design and sell digital products like planners and templates, sell custom designs on apparel and other merch with help from a print-on-demand platform, sell craft supplies or vintage items, or even earn commissions by sharing affiliate links.

• How does Etsy make money?

  The main way Etsy makes money is by charging fees to sellers. Sellers pay a listing fee for every item they list on Etsy, while transaction and payment processing fees apply when buyers make purchases. Etsy also makes money from advertising fees on products that are sold after being advertised on other platforms, while Etsy Ads and Etsy Plus subscriptions also provide revenue.

• What is the downside of selling on Etsy?

  The main downside of selling on Etsy is that the platform charges multiple fees. You pay a fee for every item you list for sale on Etsy, while transaction and payment processing fees apply when someone purchases from your store. Another drawback to be aware of is that there is plenty of competition, so it can be difficult to ensure that your products stand out.

• Can you sell things on Etsy that you didn't make?

  Yes, it is possible to sell things on Etsy that you didn't make. For example, you could sell vintage items that are at least 20 years old under the "Handpicked by a seller" category, or items such as craft supplies under the "Sourced by a seller" category.