How to set up an Etsy shop

If you’ve got a creative hobby, make handmade products or have a knack for finding unique vintage items, starting an Etsy shop could be a great way to turn your passion into extra income, or even a full-time business.

The good news is that it’s never been easier to start selling on Etsy. You don’t need your own website, technical skills or a huge upfront investment to get started. But with millions of sellers already on the platform, creating a successful Etsy shop takes more than simply uploading a few products.

In this guide, we’ll walk you through how to start an Etsy shop, from creating your account and choosing a memorable shop name to pricing your products, writing listings that get found in search and opening your shop with confidence.

In this article

• How to start an Etsy shop in 8 easy steps
• How much does it cost to start an Etsy shop?
• What are the best Etsy shops to start?
• Can I start an Etsy shop with no inventory?
• Easy bookkeeping for Etsy sellers
  

Setting up an Etsy shop is relatively straightforward, but spending a little extra time getting the basics right can make a big difference once you start selling.

Before you begin, make sure you’ve read Etsy’s Seller Policy to check that your products meet its marketplace rules. Handmade items, vintage products (at least 20 years old) and craft supplies are all allowed, but some products are prohibited.

Once you’re ready, follow these eight steps.

First, you’ll need an Etsy account.

Head to Etsy and select Sell on Etsy, then follow the prompts to create your seller account. You can register using your email address or sign in with your Google, Apple or Facebook account.

Once you’ve created your account, Etsy will guide you through the process of setting up your shop.

Next, you’ll be asked to choose a few basic settings for your shop, including:

• Shop language
• Country
• Currency
• Whether you’re selling full-time or part-time

Most of these settings can be updated later, but it’s worth taking a few minutes to choose the right options from the start.

Your shop currency should usually match the currency of your business bank account. For UK sellers, this will normally be pounds sterling (£). Choosing a different currency may result in additional currency conversion fees.

Your shop name is one of the first things customers will notice, so it’s worth putting some thought into it.

A good Etsy shop name should be:

• Easy to remember
• Relevant to your products or brand
• Simple to spell
• Unique

Etsy requires shop names to be between 4 and 20 characters long and they can’t contain spaces or special characters.

Before settling on a name, it’s worth checking that it isn’t already being used elsewhere online, especially if you think you might eventually launch your own website. Our company name availability checker can help you see whether your preferred business name is available before you commit.

For example: Rather than calling your shop Sarah’s Crafts, something more specific like Oak & Thread Studio or The Candle Nook by Sarah is likely to be more memorable and easier to build into a recognisable brand.

Once you’ve named your shop, it’s time to add your first products.

This is one of the most important parts of starting an Etsy shop. Your product listings help customers decide whether to buy—and they also help Etsy understand what you’re selling so it can show your products in search results.

Your photos are often the first thing shoppers notice.

Try to include several images showing your product:

• From different angles
• In natural lighting
• In use where possible
• Against a clean, uncluttered background

Lifestyle photos can also help customers imagine owning your product.

For example: If you’re selling handmade mugs, include one photo showing the mug on a kitchen table with a cup of coffee, rather than only plain product shots.

Think about what your customers are actually searching for.

Instead of: Blue Mug
Try: Handmade Blue Ceramic Coffee Mug | Stoneware Tea Cup

This gives Etsy (and Google) much more information about your product.

Your product description should answer any questions a buyer might have before purchasing.

Include details such as:

• Dimensions
• Materials
• Colours
• Personalisation options
• Processing time
• Care instructions

The more information you provide, the more confident customers will feel about buying from you.

Pricing your products can be one of the trickiest parts of starting an Etsy shop. Charge too little and you risk making very little profit. Charge too much and you could put off potential customers.

A good starting point is to calculate exactly what it costs to make each product, including:

• Materials
• Packaging
• Postage
• Etsy fees
• Payment processing fees
• The time it takes to make the product

Then add a profit margin that reflects the value of your work.

Let’s look at an example. Imagine you sell handmade candles, your costs could look something like this:

Cost	Amount
Wax, fragrance and container	£8
Packaging	£2
Postage	£4
Etsy fees	£2
Total costs	£16

If you want to make a £14 profit on each candle, you’d need to sell it for around £30.

Before you can start selling, you’ll need to set up how you’ll get paid and how Etsy will charge your seller fees.

Most UK sellers use Etsy Payments, which allows customers to pay using a range of payment methods, including debit and credit cards, Apple Pay and Google Pay.

You’ll also need to add:

• Your bank account details
• A debit or credit card for billing
• Your identity verification details, if requested

Etsy may place a temporary authorisation charge on your payment card while verifying your account. This isn’t a permanent charge and will usually disappear once the verification process is complete.

Need to set up a business current account? Countingup is great for new businesses as it combines banking, accounting and tax in one smart app. You can receive Etsy payments directly into your account, categorise spending automatically and save for your tax bill every time you’re paid.

Before opening your shop, take a few minutes to think about your customer experience.

Clear shop policies help set expectations and can reduce the number of customer queries you’ll receive.

Consider including information about:

• Returns and exchanges
• Delivery times
• Personalised orders
• Damaged or lost items
• Cancellations

For example: if you make personalised products, you may choose not to accept returns unless an item arrives damaged or faulty. Explaining this clearly before customers place an order can help avoid misunderstandings later.

If you’re selling to UK consumers, make sure your policies comply with consumer rights legislation.

Once you’ve completed the steps above, you’re ready to launch! Exciting times.

But before clicking the Open your shop button, it’s worth double-checking that:

• Your listings have clear photos
• Your titles and descriptions are complete
• Your pricing is accurate
• Your shop policies are in place
• Your payment details are correct

Remember, opening your shop is just the beginning. You can continue improving your listings, adding new products and refining your branding as your business grows.

One of the biggest advantages of Etsy is that you don’t need a huge upfront investment to get started. However, it’s worth budgeting for a few costs before you launch.

Typical startup costs include:

Cost	Typical cost (2026)
Etsy listing fee	Around $0.20 (approx. 15p) per listing*
Transaction fee	6.5% of the item price (including delivery and gift wrapping, where applicable)
Payment processing fee	Varies by country (UK sellers currently pay a percentage of the sale plus a small fixed fee)
Materials	From £20–£500+, depending on what you’re making
Packaging	Around 50p–£3 per order
Postage	Varies by product size, weight and courier
Branding (optional)	Around £0–£200+ for things like a logo, product photography or marketing

*Etsy fees are subject to change, so it’s worth checking Etsy’s latest seller fees before opening your shop.

The total cost of starting an Etsy shop depends largely on what you’re selling.

For example: if you’re selling digital downloads, you could get started for less than £20. On the other hand, if you’re making handmade jewellery or ceramics, you might need to invest £300–£1,000 or more in tools, materials and stock before making your first sale.

There’s no single “best” Etsy business. The most successful shops are usually those that combine a product people want with great branding, clear photography and excellent customer service.

Some consistently popular categories include:

• Handmade jewellery
• Wedding stationery
• Home décor
• Candles
• Personalised gifts
• Digital planners and templates
• Printable wall art
• Craft supplies

Rather than chasing trends, think about where your own skills or interests lie. It’s much easier to build a successful Etsy shop if you’re creating products you genuinely enjoy making.

Yes. You don’t need shelves full of stock before starting an Etsy shop.

Depending on the type of business you want to run, there are three main ways to sell on Etsy:

Option	How it works	Pros	Cons
Handmade products	You make and dispatch each order yourself	Greater control over quality, unique products, higher perceived value	Time-consuming to produce, requires materials and inventory
Print-on-demand	A third-party company prints and ships your designs after each order	Low upfront costs, no inventory to store, easy to scale	Lower profit margins and less control over product quality and delivery
Digital downloads	Customers purchase and instantly download digital files, such as planners, templates or artwork	No inventory, low running costs and products can be sold repeatedly	Highly competitive, and your products can be copied or shared without permission

The best option depends on your skills, budget and business goals.

For example: if you’re an illustrator or graphic designer, digital downloads or print-on-demand products can be a low-cost way to start an Etsy shop. If you enjoy making handmade products, selling physical items can help you build a strong brand and loyal customer base, although you’ll need to factor in the time and cost of producing each order.

Running an Etsy shop means more than creating great products—you’ll also need to keep track of your income and expenses.

A dedicated business current account can make this much easier by separating your business and personal finances from day one. You’ll have a clearer picture of your cash flow, making it easier to manage your money and prepare for tax time.

If you’re turning your Etsy shop into a full-time business, it may also be worth exploring company registration to see whether operating as a limited company is the right option for you.

Whatever stage you’re at, keeping accurate financial records from the start will save you time and make running your business much easier as your shop grows.

You may be able to start an Etsy shop with very little upfront investment if you sell digital downloads or use a print-on-demand service. However, you’ll still need to budget for Etsy’s seller fees and any marketing costs.

Setting up an Etsy shop is relatively straightforward and can usually be done in a few hours. The bigger challenge is creating products people want to buy and making your listings stand out in a competitive marketplace.

It depends on your goals. Etsy gives you access to millions of potential customers without needing your own e-commerce website, making it a great option for many creatives and small business owners. However, success takes time, consistent effort and high-quality products.