Business Idea

Start An Etsy Business

About

Starting an etsy business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell esty, or selling esty online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an etsy business ➜

Key stats

market size
$330B
starting costs
$37.4K
gross margin
73%
avg product price
$0
time to build
6 months

About

Starting an etsy business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell esty, or selling esty online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start an etsy business ➜

Key stats

market size
$330B
starting costs
$37.4K
gross margin
73%

 

avg product price
$0
time to build
6 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $500 $5,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
App Creation Costs $1,000 $20,000
Software Expenses $150 $3,044
Advertising & Marketing Costs $0 $2,750
Other Expenses $0 $800
Total Startup Costs $7,517 $67,244

Successful Businesses

Business URL Rank
eRank erank.com #4,432
Reporter Cyprus reporter.com.cy #53,557
Aurora Designer auroradesigner.com #356,444
Seller Tools seller-tools.com #402,321
Essity essity.com #430,828
eShop Marketer eshopmarketer.com #501,729
Workers' Compensation Insurance texasmutual.com #604,593
Easy Fashion easyfashion.com.bd #678,307
Rochester Brainery rochesterbrainery.com #1,015,110
eBusiness ebusiness.go.ke #1,060,931
VectoriaDesigns vectoriadesigns.com #1,356,433

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A etsy business gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet as a etsy business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A etsy business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Taxes As a etsy business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)
Difficult to build trust with your customer With starting an etsy business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

Marketing Ideas

  • 1

    Affiliate program

    An affiliate program is a way to reward people outside your organization to share your product.

  • 2

    Word of mouth

    The most tried and true way to grow a etsy business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Partnerships

    Starting a etsy business is all about building relationships and becoming an integral part of your community.

    Many entrepreneurs make the mistake of thinking they can do everything on their own. In reality, other businesses (even your competition) and members of your community can be a huge piece of your growth strategy.

    When forming any type of partnership, a lot of energy and time can go into this.