How To Make Money On Etsy: What You Need To Prepare Before You Start Selling To Make Money On Etsy

selling on etsy

How to make money on Etsy. Trading on Etsy is the way you can make money online as passive income.

But wait, What do you need to prepare before you can start selling on Etsy to make money. 

Etsy is an online market place that allows sellers and buyers from all over the world to sell and buy items.

It is important to do your research before you start this journey of selling because you want to do things right from the beginning and make good money from selling.

Think about it, skipping some steps and rushing to make and list your item on Etsy, could mean that you are relying on fate to get your items noticed and bought. 

Do not get me wrong, your idea or what you are selling might be great and wonderful, but wait ,do you think your potential customers are looking to buy what you are selling? 

Etsy is such a large shopping center and you need the items you list to be seen by your potential customers.

This article is packed with relevant information that will help you make money on Etsy. You will and can make money, trust yourself and the process.

Many people have made and are making money from trading in this marketplace called Etsy and it is not too late to start to trade either. You need to prepare and have a plan before you open your store. 

There is more to the preparation than just creating a product and listing it to sell. Remember that if you fail to plan, you plan to fail. You need to be strategic , if not , you will be selling items and no body will be buying.

Lets dive into the things you need to know and prepare for before you create your account or store on Etsy in order to make some cash.

This post contains affiliate links, I get a commission when you use my links with no extra cost to you . Thank you . 

Survey Junkie 

Do you want to make some extra money?

Take surveys with survey junkie and get paid $3-$7

Available in USA, Canada and Australia.

Join survey Junkie for free today

STEP 1. What do you want to sell on Etsy

ecommerce, shopping, cart

You have decided to start to sell on Etsy but how do you actually make the money?

 I am asking this question because some people sell on Etsy but never get their listings found or they sell so little and so they end up not making any or enough money.

 The first thing to think about is what exactly you want to sell on this global market place. 

Do you want to sell digital products, vintage products or crafts?.

In order to start right, You need to go on the Etsy site and look at ITEMS THAT ARE SELLING WELL. Better still just browse around the app. Your aim of browsing is kind of similar to window shopping in a physical market. 

You are looking for what is selling well, that way you can decide if what you intend to sell will do well when you finally open your store and start to sell. 

You can also make the decision to sell something else if after browsing, you notice that what you intend to sell, there is no one who is actually selling that on Etsy and there is a demand for it after you have done your SEO research.

You should also be looking at how other sellers who are selling similar products you intend to sell have displayed their items on the app as well as the prices of the items. 

The intention is not to copy what they have done. You should never copy or steal some one´s idea. Get inspired instead and do better than what they have done.

Do not get overwhelmed, intimidated or discouraged because there are so many sellers. 

Never think you might not do well. Remember that, there is enough space for everyone in this world and there is enough money for everyone to make. 

The Universe is big enough to accommodate and provide for us all. You are about to do something great and a bad force is trying to stop you. Don´t let this force win.

Decide what products you want to start with

Once you are done browsing the app, you should have made a decision or have some sort of idea of what exactly you want to sell. 

Write down the items you want to start with. Writing is down will make it look more realistic. You are not just thinking about selling, you are planning now . 

Seeing it written down makes you one step closer to making and listing the product .

Now that you are knowledgeable about the fact that, what you are about to produce is in demand, you need to ask yourself if you are passionate and dedicated to making the product and can you meet the demand.

 How much time can you allocate to making the product?

You need to answer these questions sincerely.

Decide what you want to sell in the future

Etsy loves active shops, shops that keep updating their listings regularly.

Click here to read about countries eligible for Etsy payments

You want to be sure you can sell from and get payments in your country of residence.

Step 2. who is your target audience

target audience,

I love the fact that, I can target just a group of people to sell my items to. Have you heard that common saying “riches in the niches”?

Well this basically means that , you do not have to try to sell to everybody. You might fail if you try to do that. Targeting a specific group of people helps you to design your product to meet their needs.

According to Statista Etsy had about 81.9 million active buyers as of 2020.

So how will you be making your money from Etsy? The answer is simple , you need to put your items in front of the right audience from this 81.9 million people. 


Due to Etsy being such a large online mall like I said earlier you want to bring the right people who will make purchases into your shop. Defining who you are selling your product to is very important .

Its a great contributor to if you will make money or not selling online.

You can go further to use social media platforms to introduce your product to your target audience when you are certain who they are. 

For example if you are selling a product meant for young adults, tik tok is a good social media tool to use since most of your buyers can be found on this platform.

How will you be marketing your product, will it be through dance or comedy?. This will be an easy decision to make since you know what your target audience love to watch on the social media platform they are signed up on.

What other social media platform can you find them on ?

How can you promote or market your product to them?

step 3. SEO research phase

I like to call SEO the king of the internet.

Seo means Search Engine Optimization. If you will succeed or fail on Etsy is will depend on how good you are with SEO. 

If you are able to optimize your listings well with SEO, customers will easily find you and this means that you will be making money when they purchase your item.

As result of the large number of people selling on the same platform, and only one page being shown to the customer at a time, you need to get what you are selling on the first page that the potential customer will be seeing as this increases your chances of making a sale.

Click here to learn how to apply Etsy SEO to help increase your chance of being found. The aim is to make good money selling. Learning SEO the right way will help you a great deal.

Learning and applying SEO takes a little practice and time. It will take a lot of patience to get it right.

 You need to apply it a couple of times to become a master at it. Your success with SEO is based mainly of how much time and effort you put into mastering it.

Marmalead and keywords everywhere are good Etsy SEO tools to use. 

Step 4. Pricing and planning the product the right way

Now that you have chosen the items you want to sell, you have to decide how much you will sell it for . 

I will walk you through a simple way to estimate the cost per product you are about to sell.


1.First write down the cost of the supplies required to make the product.

2.Then write down the cost of the supplies you need to ship the item(packaging, eg cardboard boxes, sellotape etc.)

3.How many hours does it take you to make the item

a. Do you want to make a lot of it at once or you want to make when the customer orders the product?

4.Consider Etsy fees( 20% from your product price)

Based on the above information

(Total cost of what you paid for the products you made) divided by (the number of items you got) = (your cost per product).

To determine your profit

(If you sell one item at $XX ) minus (cost per product) minus (Etsy fees)=Net profit



Remember to be fair to your self as well as the customer. You might have to at some point sell discounted products or have items on sale. Consider those too in your pricing. 

At some point of your selling career, you might have to pay taxes.


Step 5. Designing the shop on paper before opening an account on the internet

concept planning

When it comes to shop name ideas, would you want to name your shop based on the products you want to sell or would you want to give your shop a general name? 

There should be a good reason why you choose a particular name for your shop.

The shop you create should have keywords. There is a section you have to fill for keywords while creating the shop. 

If you are selling reflective clothes, some of your keywords could be holographic reflective clothes, adidas reflective clothes, flash reflective clothes etc.

Decide the shop logo. Do you want to make it yourself or you would rather pay to have it made. There are lots of freelancers on fiverr who can make the design for you.

You can also design your logo by yourself and buy it only if you like it .

You also need a shop banner, Canva allows you to design for free.

Displaying product in shop

Based on what you want to sell and based on similar items other shops are selling, did you find any flaws in those shops?

 Did they have enough pictures and information for the buyer concerning the product?

This will be an advantage to you if they did not. You can beat the competition by solving this problem. 

Put more pictures and write a good description of your product with long tail keywords.

Best practices to display photos of your product

The photo of your products should have a t least 10 photos per listing

There could be a video 5-10 sec with no audio

Show size of product by using a commom object beside the product

show different angles of the product

show product in use by a real person

Edit picture if possible

Take picture with natural or very good lighting

There should be a close up image of your product

Survey Junkie 

Do you want to make some extra money?

Take surveys with survey junkie and make $3-$7

Available in USA, Canada and Australia

Sign up for free today with Survey Junkie

Shipping your product

delivery, girl, courier

When it comes to shipping, you need to consider the processing time of the product, how long does it take to make and when can you ship to the customer?. 

Indicate that information in your shop. Will you be shipping for free? Is the customer paying for shipping ? 

Does your product even need to be shipped or your customer can just download the product? How much are other shops similar to yours charging for shipping?

If you are shipping a physical product, what is the weight of it and what other one time cost will go into this business?. 

For example: If you are printing art on t shirts, and you buy a printer and ink and also the cost involved in getting storage space for your products.  Consider how to distribute these costs into your product that way you get profit from these too.

You also have to consider if you want to advertise your product, what budget have you allocated to it?

KEEP RECORD OF ALL YOUR EXPENSES- This is very important for a successful business.

Have goals for your shop, what do you want to improve, how often do you want to update the shop, how much money do you want to make per month, which platforms do you want to use to advertise your shop on  and how often do you want to advertise?

Final thoughts on making money on Etsy

It is very possible to make money from Etsy. How to make the money? The key lies in good preparation before you set up the store. 

Researching and having a laid down plan will enable you make good sales and that only means more money for you. 

Best of luck on your Etsy store, I sincerely hope this article is useful to you and cheers to making good money.

Spread the love

Leave a Comment

Your email address will not be published. Required fields are marked *