Among the interesting marketplaces for sellers, Etsy is in the top ranking. But how to sell on Etsy? This is the question that many young entrepreneurs and designers ask themselves.
In this article, we explain how the designer marketplace works, who can sell on Etsy, under which status and which products are allowed.
We also show you how to open an Etsy store.
Etsy or Shopify? If you ask yourself this question, no need to answer it, you can do both and sell the products of your Shopify store on Etsy and vice versa. We also explain how.
And finally, we share our tips to make your shop known and sell well on Etsy.
Why sell on Etsy?
After all, you can sell on many marketplaces, so why on Etsy?
First of all, a small and motivating figure: 1.3 billion dollars. This is the amount of revenue of the Etsy marketplace in 2020, which has doubled in the year. Not bad, right?
So this is probably the first reason to sell your creations on Etsy: because people buy.
Selling on a marketplace is ideal for businesses that are just starting out. When you don’t have a customer base, you can take advantage of the huge loyal customer base of a selling platform like Etsy.
But Etsy is not made to sell just any product. Indeed, it is the marketplace for designers and collectors. We explain…
What to sell on Etsy?
Etsy is a creative marketplace, where you can find unique and handmade products. At least that is the basic concept. In its general conditions, Etsy specifies what can be sold:
1. Etsy: selling handmade items
Items made and/or designed by yourself. If your products are made by others, you must indicate this partner in the product sheet.
Each person involved in the production of the item must be mentioned.
The photos used must be yours.
2. Etsy: selling vintage
You can also sell vintage items (at least 20 years old) on Etsy.
3. Etsy: sell creative items
Creative supplies or party items.
If you’re looking for an online business idea, this gives you quite a bit of room. For example, you could launch your clothing or home decor brand through Print on Demand.
Unlike dropshipping products, which are not accepted on Etsy, POD allows you to sell products that are simple to make.
With sites like Printful or T-Pop, you can have your designs printed on clothing or objects, then sell them on Etsy.
There are many printable materials: t-shirts, baby bodies, mugs, phone covers… here are some examples to inspire you.
Who can sell on Etsy?
Anyone can register on Etsy. If your products match the marketplace’s criteria, you will only need an account and a credit card to register. The first fee will be charged the following month.
Can I sell on Etsy as an individual?
No. Whether you are selling your own creations or reupholstered vintage furniture, you cannot sell on Etsy without a legal framework. The ideal status to sell on Etsy France is the auto-entrepreneur. It only takes a few minutes to register.
Etsy, how does it work?
To sell on Etsy, you must open an Etsy store, which in itself is very fast. On the other hand, you have to create product files, which is the most time-consuming part.
Registration is free, but Etsy earns money on commissions.
Selling on Etsy : fees
It’s not easy to understand the Etsy commission system. The reason? Everything is based on the US model, without taking into account the French VAT. You have to add this to the fees announced by Etsy.
Here are the details of the commissions announced by Etsy on your sales and your store:
0,17 € of fees of setting on line by product (valid 4 months)
5 % transaction fee
4 % + 0,30 € of payment processing fees
And here’s what it looks like on Etsy France commissions:
0.20 fee per product listing. Yes, so it changes depending on the rate of the dollar. The Etsy France site is up to date, but to know if you notice any changes. So it is currently 0.17 €.
To this, you must add 20% VAT, so 0.03 €. So your product sheet costs €0.20.
So when you create your Etsy store, 0.17 € per product will be added to your invoice, which you will pay the following month. The cards expire and must be renewed every 4 months. You must also renew a listing after each sale of an existing product in multiple copies.
5% transaction fee on the sale, delivery and gift wrapping.
On this percentage, you must also add 20% VAT.
Example: the customer pays 15 € of articles, 2 € of delivery and 2 € of gift wrapping. Total: 19%. 5 % of 19 € = 0,95 € + 20 % VAT =0,19 €.
Total Etsy commission: €1.14
4 % payment fee + 0,30 %, on the total amount paid by the customer. On this amount, we add another 20 % VAT.
How does a sale happen on Etsy?
Very simply, the customer puts an item in his cart and pays. The Etsy seller receives an alert and must send the order as soon as possible. It is up to you to keep the buyer informed of the status of his order.
The day after receiving the package, the customer can leave a review on your Etsy store, which will be visible to everyone. The payment is made according to the method chosen by the customer.