Etsy is a thriving marketplace for crafts, arts, vintage products, and everything aesthetic. While passion and creativity are some factors that help to reel in money from Etsy, you need to dig deeper to leverage your passion and make money. Want to know more? Read on.
Ensure the profitability of your idea
To sell a product online, you need to be compassionate about it and find the comfort zone in your side hustle. However, before that step comes market assessment, which helps to determine if your product has demand in the market. The Etsy search bar is a tool to conduct a search itself. You can type in keywords and analyze the sales of different shops since their opening day. Once you feel the product idea is feasible enough, move to the next step.
Find per unit cost
You need to find the cost of making one unit of your product by comparing labor, cost, materials, and other paraphernalia involved. For example, to sell necklaces, look for the cost of pearls or gems and find out how much it would cost to make one.
Competitor research
You can use Etsy stores to find the prices of similar products and have a look at the products in places like local stores or Amazon.
Include the Etsy fee
Etsy charges 20 cents for listing an item, and a 5% commission when you make the sale. Additionally, there will be charges for packaging and shipping. Go through the Etsy fee before selling. If you make more than $1,000 sales, set a sum or quarterly tax payments. Save the money by estimating a figure so there are no implications in the future.
Assess the money
Once you have got your per-unit cost, remove the manufacturing/productions and associated charges, the amount that you are left with is the profit amount. If you are not getting a profit due to the competition, try selling a different product, or use another selling place.
How to set up your shop?
It takes little effort to create a shop on Etsy. All you have to do is sign up, go to the ‘sell on Etsy’ option, fill in the required details such as name and bank account, and your shop will go online. The next step is to go through the seller handbook. Join a team where you can learn the basics from other owners. For example, how to take aesthetic pictures, how to price or write descriptions, and more. The next part is the most tedious one, marketing your product.
You can start with social media platforms like Facebook and Instagram, and create a business account for your product. Check related accounts and their posts, then engage, post, and stay consistent to gain traction from your ideal audience.
You can consider starting a blog on topics related to your products and buyers. For example, if you sell jewelry, you can talk about how one can retain, polish, or clean the jewelry. You can also set some money aside for marketing and use the paid promotion tool on Etsy and Google ads tool.
