How To Open an Etsy Store to Start a Handmade Business


How To Open an Etsy Store to Start a Handmade Business

How To Open an Etsy Store to Start a Handmade Business

Whether you spend your free time knitting blankets, bedazzling jean jackets, pouring candles, mixing essential oils or woodworking, Etsy could be a great marketplace to turn your hobby into an income.

If you are looking to take the leap and open your Etsy store to share your unique handcrafted items but don’t know where to start, we have you covered. Below you will find the steps you will need to open your handmade business and learn how to sell on Etsy.

Step 1: Review the Fees & Service Agreements

Before you officially decide to set up your Etsy store, you should do your research and get a clear understanding of all the fees and taxes associated with selling on Etsy. According to Etsy, “When you sell on Etsy, you’ll incur fees for using If you make any sales through Etsy Payments, your fees will automatically be deducted.” However, if your current balance is negative at the end of the month, you’ll have an amount due on the first of the next month. When your outstanding balance is due, you’ll receive an email from Etsy.

You may pay only $0.20 per listing, but there are also shipping label fees, a 5 percent transaction fee, VAT and other additional fees you may be responsible for paying.

Also, be sure to review the service agreements of using Etsy marketplace for selling your goods. Set aside time for a deep dive into the terms of use, or the “House Rules” as Etsy likes to call them.

Step 2: Lay the Foundation

Once you are comfortable with the fees and terms of use, it’s time to decide on all the fun stuff and lay the foundation for your success:

  • Choosing a name for your shop
  • Narrowing down what you are going to sell
  • Figuring out how to price your goods
  • Gathering or making all your merchandise
  • Setting specific but attainable goals
  • Taking beautiful product photos

Gathering all of these details now will help you seamlessly launch your shop so you can start selling your fabulous handcrafts right away.

Step 3: Open Your Etsy Shop

Now that you have the shop name chosen, your materials ready and your photos taken, it’s time to take the leap and finally open the Etsy shop you have been dreaming about. To do so, follow the below steps:

  1. Click Sell on Etsy at the top right of
  2. Click Open your Etsy shop
  3. Select your shop language, country and currency; click Save and continue
  4. Insert shop name; click Save and continue

Step 4: Post-Shop Launch To-Dos

After you launch your shop, the next steps would be to enhance your shop and the buyer's experience by focusing on marketing, branding, promotions and review-gathering. These are all essential components to turn your customers into repeat buyers and constantly drive new business to your shop.

how to start an etsy store for handmade business

Consider Forming Your LLC Before Opening

Before taking the leap and opening an Etsy store for your handmade business, you may want to consider forming a Limited Liability Company (LLC) to protect your business and your personal assets. Incfile can help you easily and quickly form your LLC so you can spend less time worrying about the small business details and more time crafting and selling. Get started today!

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