A guide to sell

A Guide To Sell On Etsy USA

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Imagine a platform that empowers artists, crafters, and collectors to turn their passion into a thriving business. Etsy USA gives you that freedom—allowing you to build a brand, cultivate a loyal customer base, and make a living from what you love. Whether you’re a seasoned seller or just starting, creating a memorable brand identity is crucial. Listing products is only the beginning; scaling up requires strategies to reach a global audience.

This guide will take you through each step to launch and grow a successful Etsy shop, providing valuable tips to stand out and capture more customers.

Etsy USA: A Marketplace with Limitless Potential

Etsy homepage
Source: Etsy USA

With over five million sellers and nearly 90 million active buyers, Etsy USA is one of the largest e-commerce platforms. It offers a unique ecosystem where independent entrepreneurs—many running solo businesses—can thrive. The platform is popular among users aged 25-44 and has a strong customer base of older buyers, making Etsy a standout platform in the e-commerce space.

7 steps to start

1. Setting up a Shop on ETSY

To start, visit Etsy’s homepage and select ‘Sell on Etsy’. Sign in using your email, Google, Facebook, or Apple account, and click Get Started. Remember, Etsy charges a $0.20 listing fee per item you post, so be prepared to invest a small amount for each product.

2. Customization

Customise your shop by setting language, currency, and location preferences. This foundational information helps Etsy understand your shop’s basics, allowing you to manage it from anywhere while retaining complete control.

3. Creative Selection/ Naming your shop

Your shop name is the face of your brand on Etsy. Take inspiration from top sellers like PlannerKate or Bead Boat to create a name that’s memorable and represents your products. The name should be between 4-20 characters, without special symbols or spaces.

4. Start your listing

Listing your products is the core aspect of your sign-up process. Here are the elements you need to keep in mind:

  • Add Photos: Include at least five high-quality photos from different angles to give buyers a complete view of the product. Professional images help to enhance buyer trust and engagement.
  • Adjust Thumbnails: The thumbnail is the first image shoppers see. Choose a compelling image that aligns with your brand aesthetic to increase click-through rates.
  • Add Listing Information: Provide a detailed title, description, and up to 13 tags. These details improve your product’s visibility on Etsy.
  • Set Inventory and Price: Price competitively while covering costs. Include stock quantities and variations like colour, size, and material.
  • Shipping Details: Add shipping fees, processing times, and dimensions. This transparency builds trust with customers.
  • Final Preview: Before listing, review your shop as a customer would to ensure everything looks appealing.

5. Choose a payment method

When it comes to choosing how you receive payments on Etsy, you have multiple electronic payment options at your end. You can choose between Etsy Payments or PayPal for a convenient and efficient money transfer experience.

Contact the support team if you have any queries or worries about payment options, so that you can select the most suitable options for your business.

6. Add billing information

The billing information depends on your business country of origin. Etsy may request credit card authorisation or identification to complete the billing information.

You must also provide a card where the platform can charge you commission or fees to help you increase your business sales.

Once done, you’ll complete the primary shop setup on Etsy, and now it’s time to promote and optimise your products on the platform.

7. Shop optimisation

Etsy offers multiple ways to optimise your shop and increase your business revenue and profits using the platform. Look at the few result-orientated methods:

Enhance your shop’s visibility and revenue with these strategies:

  • Create a Seller Profile: Add a bio and photo to foster trust. Customers appreciate knowing there’s a person behind the brand.
  • Shop Policies: Address FAQs, shipping times, and return policies to keep buyers informed and reassured.
  • Store Bio: Craft a short bio showcasing your unique selling points, mission, and social media links to build brand authority.
  • Utilise Etsy Marketing Tools: Share products on social media and apply Etsy’s SEO techniques to increase discoverability. Focus on unique keywords to ensure your products align with popular search terms.

Following these steps can help you sell your products on Etsy USA and help you stand out from the rest.

Fees Associated with Starting an Etsy USA Store/How Much It Costs to Sell on Etsy USA?

As of September 2024, here are the fees associated with selling on Etsy:

  • Listing Fee: $0.20 per product, active for four months or until sold.
  • Transaction Fee: 6.5% of the sale price, including shipping.
  • Payment Processing Fees: A variable rate (typically 3% + $0.25) based on buyer payment methods.

For a full breakdown of fees, refer to Etsy’s dedicated FAQ page.

A Quick Guide to ETSY ADS

Etsy ads can significantly boost the visibility of your products within the Etsy marketplace, making it easier for shoppers to find your listings. Here’s a comprehensive guide on how Etsy Ads work, including the types of ads, budget allocation, and key insights to maximise your ad performance:

  1. Types of Etsy Ads

Etsy offers a straightforward advertising system, primarily based on promoting your listings within the platform. There are two main advertising options:

a) Etsy Search Ads

These ads appear in Etsy search results when buyers search for relevant keywords. Your listings will be shown in the “Sponsored” section at the top of search results, increasing the chance of being seen by potential customers.

  • Keyword Matching: Etsy automatically selects relevant keywords from your listing titles, descriptions, and tags to match buyers’ search queries.
  • Placement: Your ad appears prominently on the first page, which can be valuable, especially for highly competitive search terms.

b) Offsite Ads

These ads promote your listings outside of Etsy on platforms like Google, Facebook, Instagram, Pinterest, and Bing. Etsy manages these ads and charges a fee only when they lead to a sale.

  • Compulsory for High-Earning Shops: Shops that make over $10,000 in sales annually are automatically enrolled in Offsite Ads, and the fee per sale is lower (12%).
  • Optional for Smaller Shops: Shops that make less than $10,000 annually can opt into offsite ads, with a fee of 15% per sale generated from the ad.
  1. Budget Allocation

The way you allocate your budget will determine the extent and frequency of your ad visibility. Here’s how budgeting works:

a) Daily Budget for Etsy Search Ads

  • Set a Daily Budget: You determine the amount you’re willing to spend each day on Etsy Ads. The minimum daily budget is $1, but you can set it higher depending on your business goals.
  • Bid Automatically: Etsy uses your budget to automatically place bids on your behalf. The platform calculates the cost per click (CPC) based on competition for the keyword and your budget.
  • Spending Efficiency: Etsy optimises your daily budget by spreading it out across the day and selecting the best-performing listings for promotion.
  • Unused Budget: If your daily budget isn’t fully spent, the leftover amount won’t roll over to the next day.

b) Budget Allocation Tips

  • Start Small: When you’re new to Etsy Ads, start with a lower budget (e.g., $3–$5/day) to test performance. Gradually increase your budget as you see what works.
  • Track ROI: Keep an eye on the “return on ad spend” (ROAS). For example, if you spend $10 on ads and make $50 in sales, your ROAS is 5x. Adjust your budget based on these insights.
  • Allocate for Peak Times: During busy shopping seasons (e.g., Black Friday, Cyber Monday, Christmas), consider increasing your daily budget to take advantage of higher demand.
  1. How Etsy Ads Work

a) Cost Per Click (CPC) Model

Etsy Ads run on a cost-per-click basis. You only pay when someone clicks on your ad, not for the number of times it’s shown (impressions). Here’s how it works:

  • Bidding: Etsy automatically bids for ad space based on your listing’s relevance and the competition for the keywords associated with it.
  • CPC Varies: The cost per click can vary based on how competitive a keyword is. More popular searches might have higher CPC rates.

b) Automatic Ad Placement

Etsy’s algorithm determines which of your listings to promote based on the keywords used, listing quality, and relevance to a shopper’s search query. You don’t need to manually select listings to advertise, but you can pause certain listings if you don’t want them to be promoted.

  1. Key Factors for Ad Success

To get the most out of Etsy ads, focus on the following factors:

a) Listing Quality Score

Etsy’s algorithm prioritises high-quality listings for ads, so make sure your listings are optimised:

  • Relevant Keywords: Ensure your titles, tags, and descriptions are keyword-rich and align with buyer searches.
  • High-Quality Images: Use professional and clear images that showcase your products from multiple angles.
  • Competitive Pricing: Ensure your prices are competitive within your niche.
  • Complete Descriptions: Provide detailed and helpful product descriptions that answer customer questions and build trust.

b) Product Relevance and Popularity

Listings with a high conversion rate (views to sales) are more likely to be prioritised for Etsy Ads. You can improve relevance by:

  • Targeting niche keywords: Focus on specific, less competitive keywords to boost visibility in your niche.
  • Regularly updating listings: Keep your listings fresh by updating descriptions, images, and titles.

c) Ad Testing and Analytics

Etsy provides analytics for your ads, including:

  • Views and Clicks: How many people saw and clicked on your ad?
  • Revenue Generated: How much revenue each ad has generated.
  • Conversion Rate: The percentage of clicks that turned into sales.
  • Adjusting Ads: Use this data to tweak your ads, such as pausing underperforming listings or allocating more budget to high-performing ones.
  1. How to Monitor and Improve Ad Performance

Etsy Ads Dashboard: Keep track of your ad performance through Etsy’s advertising dashboard. Monitor metrics like clicks, sales, and cost to ensure you’re getting a decent return on investment (ROI).

A/B Testing: Experiment with different listing titles, images, and price points. Try promoting different products at different times to see what works best.

Seasonal Adjustments: Scale up your ads during peak shopping periods (e.g., holidays) and dial them down during slower periods to optimise spending.

  1. Offsite Ads Fee Structure

If a shopper clicks on your offsite ad and makes a purchase within 30 days, you’ll be charged a fee based on your shop’s revenue.

  • 12% Fee: For shops earning more than $10,000 annually.
  • 15% Fee: For shops earning less than $10,000 annually.

This fee applies only when a sale is made from an offsite ad, making it a relatively risk-free option if you’re targeting growth beyond Etsy.

  1. Important Considerations
  • Budget Cap: Unlike traditional pay-per-click (PPC) advertising, you set a daily budget rather than bidding directly on keywords.
  • Ad Spend ROI: Constantly evaluate whether your ad spend is driving sufficient revenue. If an ad listing isn’t converting, consider updating the product description, images, or even keywords to increase relevance.

By mastering Etsy ads and using data to refine your approach, you can significantly scale your shop’s growth.

Quick Tips on how to boost your Etsy shop’s sales

Tips to boost your Etsy

  • Pricing Strategy: Conduct thorough market research to analyse competitors’ pricing and establish a pricing strategy that balances your products’ competitiveness and profitability.
  • Customer Engagement: Ensure timely responses to customer enquiries and reviews. Providing excellent customer service has the potential to foster customer loyalty and encourage repeat purchases.
  • Discounts: Run occasional offers or promotions to attract consumers looking for a deal.
  • Stay informed: Stay updated on Etsy’s policies and any changes that may occur to ensure compliance.

Summing It Up

Etsy offers a low-barrier platform where independent entrepreneurs can reach millions of buyers, with many managing their shops solo. But as you scale, complexities such as VAT, fulfilment, and effective shipping arise. This is where Paxcom can be a crucial partner. Our services span everything from content creation and optimised product listings to advertising strategy, promotion management, brand store building, and advanced analytics, helping you drive engagement and boost sales on Etsy.

At Paxcom, we’re committed to supporting your eCommerce journey. 

For more resources, check out our guide on “Navigating Global E-commerce: Challenges Faced by Brands Selling Internationally.” 

Whether you’re just starting or ready to expand, our team is here to help you succeed.

For expert guidance tailored to your business, reach out at info@paxcom.net for more information. 

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