Starting an Etsy shop is simple and straightforward, but there are a few steps to take before you open your Etsy shop and take the plunge.

In this blog post, I will talk about 9 Things You Need to do Before Opening Etsy Shop. But don’t take it too seriously; just do the bare minimum and open your Etsy shop as soon as possible because your first sale could be tomorrow. 

Opening an Etsy shop can be a great way make passive income and sell both physical products (such as handmade, vintage, or one-of-a-kind items) and digital products (such as printables, Canva templates, and spreadsheets) to a large worldwide audience.

Here are a 10 things on what to know before starting an Etsy shop. 

If you still doing research, hopefully these 9 Things You Need to do Before Opening Etsy Shop give all the information you can get.

Without further ado, let’s get started.

STEP 1: Get 40 Free Listing

Did you know you can get 40 free listings and save $8 on your listing fee?Opening a shop directly from the referral link gives you 40 free listings, which is equivalent to saving US$8 (Normally, listings fees on Etsy are currently $0.20C per listing). Awesome right?

This promotion only works for new shop owners and the recommended account must be a new or buyer-only account before the code can be redeemed.

To claim the 40 free Etsy listings, click on the link above to sign up for Etsy and register your shop. Then click on the “Sell on Etsy” button. From there, you will be taken to a page where you can setup your Etsy shop details and payment information. Once you have completed this step, you will be able to list up to 40 items for free

Make sure to open your shop directly from the provided link in order to receive the free listings.

STEP 2: Create a separate business account to open an Etsy shop.

To open an Etsy shop, it is not compulsory to create a business account but it is generally a good idea to separate your personal and business finances by opening a separate business bank account. 

This can make it easier to track your Etsy business income and expenses, and can help you to maintain accurate financial records for tax purposes.

When setting up your Etsy shop, you will need to provide your personal or business information, including your name and contact details. 

You will also need to provide payment information, such as a credit or debit card or a PayPal account, to process transactions.

It is important to keep in mind that even if you do not have a separate business bank account, you will still need to report your business income and expenses on your personal tax returns. 

Keeping accurate financial records and documentation can help you to do this accurately and efficiently.

Commonly asked question: Do you need a credit card to open a shop on Etsy? The answer is no. You do not need a credit card to open an Etsy shop. You only need a debit card that allows international online transactions.

STEP 3: Determine what to sell and conduct market research.

Before you starting an Etsy shop, you must decide what products to sell on Etsy and do market research. The reason you should do market research before opening an Etsy shop is to make sure there is demand for the type of items you want to sell. 

Look at similar products on Etsy and see what is already available. Just browse on Etsy and see what are products that are proven selling, what are the total sales, what are the bestsellers and how they structure their product cover, title and description.

If you are interested to sit back, relax, and watch videos that I uncover 300 digital products ideas that are proven selling on Etsy, click here. I covered a lot of common niches for digital products that you can start selling today.

STEP 4 : Research on Competitors and Pricing on Etsy

Once you’ve decided what to sell on Etsy, it is also important for you to research your competitors and the product pricing on etsy.

Why do you need to do Research for Competitor and Pricing before you open an Etsy shop and publish a listing?

1. Understand the market demand and price

Researching your competitors and pricing on Etsy is important because it can help you to understand the market and determine how to price your products.

By looking at similar products on Etsy, you can get a sense of the demand for your type of products, as well as how they are priced and what features they offer. 

This can help you to determine the right price point for your products and ensure that you are competitive in the market.

2. Ideas for uniqueness

Researching your competitors can also give you ideas for how to differentiate your products and make them unique and stand out from the competition. 

For example, you may find that offering a unique and different feature or a higher quality product can help you to command a higher price.

Overall, researching your competitors and pricing on Etsy can help you to make informed decisions about your products and give you a better chance of success in the market.

To be organized, create a spreadsheet of your competitor list. List their shop’s name, link, and total sales.

STEP 5: Determine your business model 

Before you even create your first product , you need to determine your business model. 

Your business model on Etsy could be B2B or B2C. 

i) What is B2C (Business to Customer) 

This is where you provide end products to your customers for them to use in their life. 

ii) What is B2B (Business to Business) 

This is where you provide resellable products to your customers so that they can use commercially and also for themself.

Also consider whether you will be selling items you make yourself, selling vintage items, or looking for a supplier to sell products on Etsy. 

Similarly, if you sell digital products, consider you will either create the digital products or printables by yourself or outsource the product creation.This will impact the way you set up and run your shop.

STEP 6: Choose a unique and memorable name

Thing you should do before starting an Etsy shop, includes picking a name that reflects the theme and style of your shop. Keep in mind that this name will appear on all of your listings and marketing materials.

Why need to choose a good name for my Etsy shop?

Choosing a good name for your Etsy shop is important for a few reasons:

1)First impressions

 Your shop name is often the first thing potential customers will see, so it’s important to make a good impression. A catchy, memorable name can help to grab attention and make your shop stand out.

2) Brand identity

 Your shop name can help to establish the tone and personality of your brand. It should reflect the theme and style of your products and give customers an idea of what they can expect from your shop.

3) SEO

A well-chosen shop name can also help with search engine optimization (SEO). If your shop name includes relevant keywords, it can help to improve your visibility on Etsy and other search engines.

4) Consistency

Your shop name will appear on all of your listings, marketing materials, and social media profiles, so it’s important to choose a name that you are happy with and can use consistently.

When choosing a name for your Etsy shop, consider the theme and style of your products, and think about what sets your shop apart from others. 

Keep it simple and easy to remember, and try to avoid using overly long or complicated names.

STEP 7: Create Etsy Shop banner

Before starting your Etsy shop, get your shop banner ready. Uploading aprofessional Etsy shop banner will help to showcase your brand and helps to make a good impression on potential customers.

To create a banner for your Etsy shop, follow these steps:

  1. Choose an image: Select an image that represents your brand and the products you sell. You can use a photo of one of your products, a logo, or an image that reflects the style and theme of your shop.
  2. Edit the image: Use a photo editing tool such as Canva, Adobe Photoshop, or GIMP to adjust the size and crop of the image as needed to fit the banner dimensions.
  3. Add text: If desired, you can add text to your banner to include your shop name or a tagline. Choose a font and color that matches the style of your shop and is easy to read.
  4. Save and upload: Save the final banner image as a .jpg or .png file and then upload it to your Etsy shop. To do this, go to Your Shop > Info & Appearance > Banner in your Etsy dashboard, and click the “Change Banner” button. Select the image file from your computer and click “Save.”

The dimensions for the banner image on Etsy are 1200 pixels wide by 300 pixels tall. You may need to resize or crop your image to fit these dimensions.

STEP 8 : Upload Etsy Shop Logo Icons and your Profile Picture

Aside from that, you need to set your profile picture as soon as you start your Etsy shop.

Just follow similar steps as above to set your Etsy shop profile picture. 

  1. Go to Your Shop > Info & Appearance > Profile Picture
  2. Click the “Change Profile Picture” button. 
  3. Select the image file from your computer and click “Save.” 

The profile picture dimensions for Etsy are 500 pixels by 500 pixels.

Same goes with uploading your shop logo icon, 

  1. Go to Your Shop > Info & Appearance > Icon in your Etsy dashboard
  2. Click the “Change Icon” button.
  3. Select the image file from your computer and click “Save.”

The icon dimensions for Etsy are 500 pixels by 500 pixels.

STEP 9 : Create your first product

It’s time to list your first product on Etsy! You’re officially in business once you add your first product on Etsy.

 To create a good product listing on Etsy that sells, here are a few tips to keep in mind:

1) Use a clear , straightforward and SEO optimized title

Title of your product listing will make or break your product listing. Use a title that accurately and concisely describes your product. Include relevant keywords to make it easier for shoppers to find your product. You can do organic research or research on Etsy keyword tools like Erank, Alura,Marmalead, Sale Samurai for a good SEO optimized keyword. 

2) Write a detailed and informative description

Etsy announced in mid-2022 that description plays a role in Etsy SEO. The first 100 words of the description are the most important. 

As a result, fill out the description field with more information about your product, such as its materials, dimensions, how to use it, what to expect, and any special features.

3) Use high-quality photos

Take clear, well-lit photos of your product from multiple angles to give shoppers a good sense of what they are buying. Use the zoom feature to show close-up details of your product.

4)Price your product appropriately

Determine a price that reflects the value of your product, taking into account the cost of materials, your time, and the demand for similar products.

5)Use correct tags and categories

Tags and categories also play a big role in Etsy SEO. Choose relevant tags and categories for your product to make it easier for Etsy to recognize your shop and for shoppers to find your product.

Offer multiple variations: If you have multiple variations of your product, such as different sizes or colors, consider offering them as separate listings or as variations within a single listing.

By following these tips, you can create a product listing that is informative, attractive, and easy to find, which can help to increase your chances of making a sale on Etsy.

STEP 10 : Promote your shop

Finally, spread the word about your Etsy shop through social media, networking, and other marketing channels. 

Also consider offering discounts or promotions as your Etsy shop launch strategy to attract new customers including your friends and followers to purchase in your shop.

These are things on what to know before starting an Etsy shop. 

Hopefully you’ve gained a lot of knowledge from this blog post and are now able to make some  preparations before starting your Etsy shop. 

By putting in the time and effort on Etsy, you can successfully launch and grow your Etsy shop even without money.

Good luck! I am rooting for you 🙂