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How to sell on Etsy, step by step

By Nation 11 min read

Quick answer

To sell on Etsy, open a shop from your Etsy account in a desktop web browser, connect a bank account and a billing card, pay the set-up fee, pass an ID check and turn on two-factor sign-in, then add your first listing. For a US seller, the listing fee is $0.20 per listing, and each sale pays a 6.5% transaction fee plus 3% + $0.25 for payment processing. On a $30 sale with free shipping, those fees come to $3.30.

Nation, an AI store builder, publishes this page. It is pre-launch, with a waitlist on withnation.ai, so it is not in the fee comparison. See where Nation fits.

What you need to sell on Etsy

To sell on Etsy, you open a shop inside Etsy's marketplace, list items that fit Etsy's rules, ship each order and get paid through Etsy Payments.

Before a shop can open, Etsy asks for a bank account, a billing card, an ID check, two-factor sign-in, the set-up fee and a first listing. The steps below cover each one; the table shows who can open a shop at all.

Who can open an Etsy shop
RequirementWhat Etsy asks for
AccountYou need an existing Etsy account before creating a shop
AgeYou must be 18 years or older
Where you liveA shop can open only in a country where Etsy Payments is available
DeviceSet up the shop in a desktop web browser; after that you can manage your shop on the Etsy Seller app
Business licenseEtsy does not require sellers to have a business license, but sellers must follow any laws that apply to them as a small business selling online

How to open an Etsy shop, step by step

The steps follow Etsy's own help article on opening a shop, for a seller with a US bank account.

  1. Start from Etsy's sell page

    Sign in to your Etsy account, or create one. Then, in a desktop browser, visit Etsy.com/sell and select Get started.

  2. Set your shop preferences

    Choose the shop's language, country and currency. List in the same currency as your payment account: otherwise Etsy charges a 2.5% currency conversion fee on the sale amount.

  3. Choose a shop name

    Shop names can be up to 20 characters, with no spaces or punctuation. The name becomes part of your shop URL. Once the shop is open, you can change the name up to 5 times; after that, a change needs approval from Etsy Support.

  4. Connect a bank account and a card

    Add the bank account your sales are paid into. US sellers add and verify bank details through Plaid. Then add a debit or credit card on your account to pay your Etsy bills.

  5. Pay the shop set-up fee

    Next comes a one-time, non-refundable shop set-up fee, paid once billing details are added. Where the fee applies, it is displayed and charged as part of the shop set-up process.

  6. Verify your identity

    Etsy uses third-party company Persona to run identity and fraud-prevention checks. You need a photo of your government ID and a clear selfie, and you can continue to set up your shop while the ID and selfie are reviewed.

  7. Turn on two-factor authentication

    Etsy's rule is that two-factor authentication is required for sellers. Turn it on before the shop opens.

  8. Add your first listing

    Etsy's rule is that your first listing must be added before the shop can open. The listing fee is $0.20 per listing.

  9. Open the shop and set up the storefront

    Once the shop is open, add a logo and shop banners. In the About section, Etsy's Seller Policy asks for an accurate description of any shop members who are involved in making your items or running your business.

What you can sell on Etsy

Etsy says it is a place for items made, designed, handpicked or sourced by a seller, and its Creativity Standards define those four groups.

Etsy's four groups of items, from its Creativity Standards
GroupWhat it coversExamples Etsy gives
Made by a sellerPhysical items made by the seller by hand or with personal or computerized toolsFor example, a handcrafted bowl, a hand-altered t-shirt or wooden decor made with a laser cutter
Designed by a sellerThe seller's original designs, produced or printed by a third party or offered as a digital downloadFor example, wedding invitations sold as a digital download, or a seller's original design printed onto a blanket by a production partner
Handpicked by a sellerVintage items, items from nature and certain collections the seller selected and curated; vintage means at least 20 years oldFor example, a vintage jacket, a geode found in nature or a unique assortment of dried flowers
Sourced by a sellerCraft and party supplies, and items personalized with a buyer's own text or imageFor example, an indigo dyeing kit, balloon frames or a buyer-personalized t-shirt printed on demand

Etsy's Seller Policy says dropshipping and reselling are not allowed, except in specific cases such as craft supplies.

If another business makes or prints your design, Etsy's rule is that sellers must disclose when an item is made by a production partner. The Seller Policy adds that if an item is created through the use of artificial intelligence, you must disclose this in your relevant listings. Whatever the group, items must follow Etsy's Prohibited Items Policy.

How to write an Etsy listing buyers can find

A listing is one product page in your shop. Etsy's listing form has 7 tabs to fill out before you can publish; these are the fields that matter most.

  • Photos and video: add up to 20 photos and 2 videos of 5 to 15 seconds. Etsy recommends images at least 2000 pixels wide, and its Seller Policy asks for your own photographs or video, not stock photos or other sellers' photos, with limited exceptions.
  • Title: up to 140 characters. Etsy's advice is to clearly state what the item is and any key details, and to avoid repetition and subjective words such as “perfect”. There is no need to add price or shipping to the title.
  • Tags: up to 13 tags. Etsy's advice is to include keywords buyers would use when searching for an item like this.
  • Price: when you enter a price, a profit estimate appears.
  • Processing and shipping: pick a processing profile, Made to order or Ready to ship, and a shipping profile. For calculated shipping, you must enter the item weight and item size when packed.
  • Digital items: instead of shipping, add up to 5 files for buyers to download.

A new listing can take up to 48 hours to show up in Etsy search. The listing fee is $0.20 per listing, and a listing expires after 4 months. There is no cost to edit a listing.

What it costs to sell on Etsy

There is no subscription fee on Etsy Standard, so you pay for each listing and for each sale. The example is one $30 item, paid by card in US dollars, with free shipping. Two other marketplaces are shown for scale, using each one's published rates.

Fees on one $30 card sale, US seller Fees on the sale, plus Etsy's listing fee for the one listing sold. Monthly plans are noted next to each amount.
  1. Etsy baseline $3.30 no monthly plan Listing $0.20, Transaction 6.5% $1.95, Processing 3% + $0.25 $1.15
  2. eBay $4.48 no monthly plan Final value 13.6% $4.08, Per order $0.40
  3. Amazon Handmade $4.50 plan $39.99 a month, then waived once approved Referral 15% $4.50

Assumes a seller with a US bank account, a $30 item, free shipping, no tax, no ads and no currency conversion. eBay uses its most-categories rate and assumes the listing is within its 250 free listings a month.

Other Etsy costs: ads, Offsite Ads and Etsy Plus

Etsy Ads show your listings in Etsy search results and other pages on Etsy. A new shop has a 15 day waiting period after opening before it can start a campaign. You set a daily budget, the minimum is $1.00 a day, and you are charged only when someone clicks an ad.

Offsite Ads are separate. Etsy buys offsite advertising from a network of participating partners, such as social networks and search engines, and all sellers are automatically enrolled. When a buyer clicks one of those ads and then orders from your shop within 30 days of that click, you pay an Offsite Ads fee on that order, capped at $100 per order.

The Offsite Ads rate depends on your shop's sales: shops under $10,000 in sales over the past 365 days can opt out, and their rate is 15%. A shop that reaches that threshold pays 12%, mandatory for the lifetime of the shop.

Etsy Plus is an optional $10 a month subscription.

Shipping Etsy orders

Each physical listing gets a processing profile and a shipping profile. The processing time shows how long you need to get an order ready and handed off to your shipping carrier. It starts the day after the item is purchased, and the order's "ship by" date is the date at the end of the longest processing time for an order.

You can buy postage inside Etsy with Etsy Shipping Labels, from a variety of US and international carriers. Labels bought on Etsy automatically add tracking to your orders. If you buy postage elsewhere, enter the tracking number yourself: for US sellers, tracking information is required to complete an order.

Free shipping does not remove fees. The transaction fee is charged on the item price plus shipping and gift wrapping, so postage built into the item price pays the same fee.

How Etsy pays you

Through Etsy Payments, your shop accepts credit and debit cards, some bank transfers, PayPal (where available), Apple Pay and Google Pay. When you make a sale, the funds are first added to your Payment account on Etsy. Etsy automatically deducts the fees you owe from your payment account, except the set-up fee, which is charged to your card. What is left goes to your bank account on a deposit schedule.

  • Default schedule for new sellers: weekly, every Monday.
  • Schedule options: daily, weekly, biweekly or monthly, chosen in Payments Settings.
  • Daily deposit minimum for a US dollar bank account: USD 25.00. If less than that is available, there is no deposit that day.
  • Arrival: once a deposit is sent, funds may take up to 1-5 business days to appear in your bank account, depending on your bank.
  • Changing your bank details: a 5-day hold on funds applies before the next deposit.
  • Reserves: Etsy may apply a Payment account reserve to a shop that is new to selling on Etsy and has no track record yet.

Sales tax and licenses when you sell on Etsy

On US orders, Etsy calculates, collects and remits US sales tax under state marketplace facilitator laws in the states where Etsy is a registered sales tax vendor. The sales tax settings in Shop Manager are used for states where Etsy doesn't automatically collect sales tax.

Etsy does not require sellers to have a business license, but your state, county or city may require one. The US Small Business Administration says most small businesses need a combination of licenses and permits from federal and state agencies, and that state, county and city licenses depend on your business activities and location. Rules vary by state and city, so check with your local government. This page is general information, not legal or tax advice.

Where Nation fits

Nation

Category: an AI store builder

Not ranked

Nation says one description of what you make builds the store, then agents handle orders, customers and delivery and run ads, content and social posts, with you approving the work. Because pricing is not announced yet, it is not in the fee comparison.

Limits today

  • Status: pre-launch, with a waitlist on withnation.ai.
  • Pricing and fees: not announced yet.
  • Shopper marketplace: no shopper marketplace has been announced.
  • Track record: no independent reviews or public stores yet.

Nation publishes this page. Nation is not in the fee comparison until signup is public and pricing is published.

Describe what you make

Questions about selling on Etsy

How much does it cost to sell on Etsy?

Selling on Etsy costs a listing fee of $0.20 per listing, then, for a US seller, a 6.5% transaction fee and 3% + $0.25 for payment processing on each sale. A new shop may also pay a one-time, non-refundable shop set-up fee, paid once billing details are added. On a $30 sale with free shipping, the listing, transaction and processing fees come to $3.30.

Do you need a business license to sell on Etsy?

Etsy does not require sellers to have a business license, but sellers must follow any laws that apply to them as a small business selling online. Your state, county or city may require a license: the SBA says state, county and city licenses depend on your business activities and location. Rules vary by state and city. This answer is general information, not legal advice.

How old do you have to be to sell on Etsy?

To sell on Etsy you must be 18 years or older, and Etsy Payments is only open to sellers at least 18 years old. Etsy's Terms of Use allow minors under 18 and at least 13 years old to use Etsy only through an account owned by a parent or legal guardian.

Can you sell things you did not make on Etsy?

Selling things you did not make on Etsy is allowed only in set cases. Etsy's Seller Policy says dropshipping and reselling are not allowed, except in specific cases such as craft supplies. Under the Creativity Standards, handpicked items such as a vintage jacket, a geode found in nature or a unique assortment of dried flowers qualify. Vintage items must be at least 20 years old.

When do you get paid on Etsy?

Etsy pays sellers from the Payment account on a deposit schedule. For a new seller the default is weekly, every Monday, and you can switch to daily, weekly, biweekly or monthly deposits. Once a deposit is sent, funds may take up to 1-5 business days to appear in your bank account. Changing bank details puts a 5-day hold on funds before the next deposit.

Can you sell on Etsy from your phone?

You can sell on Etsy from your phone once the shop is set up: from then on you can manage your shop on the Etsy Seller app. The first shop setup has to be done in a desktop web browser, so start on a computer, then run the shop from the app.

Describe what you make

Nation is an AI store builder. It is pre-launch, with a waitlist on withnation.ai: leave a description of what you make and your email to join the waitlist.