Quick answer
To start an Etsy shop, sign in to an Etsy account on a desktop web browser, go to Etsy.com/sell and work through Etsy's setup screens: shop language, country and currency, shop name, first listing, bank account, billing card, identity check and two-factor authentication. Etsy may charge a one-time, non-refundable shop setup fee, shown during setup where it applies, plus $0.20 per listing, and there is no subscription fee on Etsy Standard. When an item sells, Etsy takes a 6.5% transaction fee and 3% + $0.25 for processing, which with the listing fee comes to $3.30 on an example $30 sale.
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.
How to start an Etsy shop, step by step
These steps come from Etsy's help article on opening a shop. Etsy asks you to use a desktop web browser for setup, and once your shop is set up, you can manage it on the Etsy Seller app.
Sign in and select Get started
Etsy says you must have an existing Etsy account before creating a shop, so sign in or create one. Then go to Etsy.com/sell, select Get started and answer a few questions about your business experience.
Set your shop preferences
Choose the shop language, the country you sell from and the currency you price in. Pick the language with care: the shop language cannot be changed later. If your listing currency differs from your bank's currency, sales pay a 2.5% conversion fee.
Choose a shop name
Shop names must be 4-20 characters long, with no spaces or special characters. A name cannot be already in use by an existing Etsy member or infringe on another's trademark. Etsy says the name is held for you while you open your shop; after you open your shop, you can change the name from Your shop under the Shop Name tab.
Add your first listing
Etsy says you need to add your first listing before you can open your shop. A listing needs photos, a category, a title, a description, a price, a quantity and shipping details; the section on your first listing below covers each one. The listing fee is $0.20 per listing.
Connect your bank account
Select the country where your bank is, then choose your seller type for tax purposes: an individual or sole proprietorship, or an incorporated business. US sellers add and verify bank details through Plaid. Etsy also lists countries where sellers sign up for Etsy Payments with a Payoneer Payment Account.
Add a card and pay any setup fee
Etsy asks for a debit or credit card to pay your bills from Etsy. After that you may be asked to authorize a one-time, non-refundable shop setup fee. Etsy's fee policy says the fee is charged to your card when you complete onboarding, and it may be waived in certain circumstances or promotional periods.
Verify your identity
Etsy partners with Persona, a third-party company, to run identity and fraud-prevention checks. The check needs a photo of your government ID and a clear selfie. The rule for the ID: the ID must not be expired and must match the name on the bank account you added. Etsy says you can continue to set up your shop while the ID and selfies you submitted are reviewed.
Turn on two-factor authentication and open
Two-factor authentication is required for new shops: when you sign in from an unrecognized browser or device, Etsy sends a verification code to enter. Etsy recommends getting the code from an authenticator app on your Android or iOS device. When this step is done, select Open your shop.
What you need before you open an Etsy shop
Have these ready before you start, so the setup does not stall halfway.
- Age: Etsy account owners must be at least 18 years of age. The FAQ below covers Etsy's rule for teenage sellers.
- Items Etsy allows: items made, designed, handpicked or sourced by the seller. Vintage items must be at least 20 years old, and items sold on Etsy must also follow Etsy's Prohibited Items Policy.
- A bank in a supported country: you can only open an Etsy shop in a country where Etsy Payments is available.
- A card: a debit or credit card to pay your bills from Etsy.
- An ID: the ID must not be expired and must match the name on the bank account you added. You also need a device with a camera for the selfie.
- A phone number or an authenticator app for the two-factor codes.
- Photos, a description, a price and shipping details for at least one item.
How much does it cost to start an Etsy shop?
Starting an Etsy shop can cost a one-time, non-refundable shop setup fee when you open it, plus $0.20 per listing. Etsy's fee pages give no single setup fee amount: the help center says the cost varies by location, and that, if applicable, the set-up fee is displayed and charged as part of the shop set-up process. There is no subscription fee on Etsy Standard, so you pay no monthly fee unless you choose Etsy Plus.
The table lists the main Etsy costs for a new US shop, as Etsy's fee policy states them. It leaves out optional purchases: Etsy Ads, where fees for ads vary, and Etsy Shipping Labels, whose cost is dependent on your selections when you buy them.
Offsite Ads can be switched off while a shop is small: shops under $10,000 in sales over the past 365 days can opt out. The transaction and processing fees apply to every order.
Two choices keep opening costs down. List the items you are most sure of first, because every listing is charged whether or not it sells. And price in the same currency as your bank account, so sales avoid the 2.5% conversion fee.
What Etsy keeps from your first sale
Once the shop is open, Etsy's sale fees come out of each order. Example: one $30 item. Two other marketplaces where a new maker could start are shown with their own published rates.
- Etsy baseline $3.30 no monthly plan Listing $0.20, Transaction 6.5% $1.95, Processing 3% + $0.25 $1.15
- eBay $4.48 no monthly plan Final value 13.6% $4.08, Per order $0.40
- Amazon Handmade $4.50 plan $39.99 a month, then waived once approved Referral 15% $4.50
Assumes a $30 item, free shipping, no tax, a standard US card, no ads and no currency conversion. eBay uses its most-categories rate and assumes the listing is within its 250 free listings a month.
What to put in your first Etsy listing
Your first listing is part of opening the shop. Etsy's listing form has 7 tabs to fill out before you can publish: photo and video, category, item details, item options, pricing and shipping, how it's made, and settings.
Etsy's help center gives these limits and recommendations for each listing.
- Photos and video: up to 20 photos and 2 videos of 5-15 seconds. Etsy recommends images at least 2000 pixels wide, and sellers of handmade items must use their own photographs in their listings.
- Title: up to 140 characters. Etsy's advice is to clearly state what the item is and any key details, and it says there's no need to add information about price or shipping to your title.
- Tags: up to 13 tags, using words a buyer would type when searching for the item.
- Attributes: details such as color, material and size. On Etsy, the attributes listed change depending on the category you selected.
- Price, quantity and shipping: set the price, how many you have, a processing time and a shipping profile.
A new listing may take up to 48 hours to appear in Etsy search results and categories.
How you get paid from a new Etsy shop
When an item sells through Etsy Payments, the funds are first added to your Payment account on Etsy. Etsy will automatically deduct all fees owed from your payment account, with the exception of the set-up fee, which is charged to your card. By default, a new seller's deposits go to the bank weekly, every Monday. You can choose daily, weekly, biweekly, or monthly deposits, and a standard deposit can take up to 1-5 business days to reach your bank.
Etsy may apply a payment account reserve to your shop if you're new to selling on Etsy, and its list of reasons for a reserve includes making your first sale on Etsy. With a reserve, a percentage of funds from each new sale of a physical item will be held. Held funds are released once the seller adds tracking to the order and Etsy can verify the tracking shows the order is in transit, or once a default holding period of time has passed, if the seller has provided no tracking, so adding tracking to each order gets the money out sooner. Etsy says that for most sellers, the reserve will be removed within 90 days.
Business licenses and taxes for a new Etsy shop
Etsy does not require a business license to sell on Etsy. Its help center adds that you're required to follow any laws that apply to you as a small business selling online. The U.S. Small Business Administration says the licenses and permits you need from the state, county, or city will depend on your business activities and business location, so a local license or a seller's permit depends on what you sell and where you sell from.
On sales tax, Etsy calculates, collects and remits US sales tax under state marketplace facilitator laws, for orders that meet its criteria. On income tax, payment apps and online marketplaces must send you a Form 1099-K if your payments for goods or services total over $20,000 in more than 200 transactions, and the IRS notes that they may send you a Form 1099-K with lower amounts and/or transactions. With or without the form, the IRS says that you must report all income on your tax return.
Rules vary by state and city. This page is general information, not legal or tax advice; check with your state, your city or a tax professional before you rely on it.
Where Nation fits
Nation
Category: an AI store builder
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 makeQuestions about starting an Etsy shop
How much does it cost to start an Etsy shop?
Starting an Etsy shop can cost a one-time, non-refundable shop setup fee, which Etsy shows during setup where it applies, plus $0.20 per listing. There is no subscription fee on Etsy Standard. When something sells, Etsy takes a 6.5% transaction fee and 3% + $0.25 for payment processing, so those per-sale fees start only once you make sales.
Is it free to open an Etsy shop?
Opening an Etsy shop is not always free. Etsy's fee policy says you may be required to pay a one-time set-up fee, and that the fee may be waived in certain circumstances or promotional periods. Listing an item costs $0.20 per listing. There is no subscription fee on Etsy Standard, so there is no monthly fee unless you add Etsy Plus at $10 a month.
How old do you have to be to open an Etsy shop?
To open an Etsy shop in your own name, you must be at least 18 years of age, as every Etsy account owner must be. For younger sellers, Etsy says minors between the ages of 13 and 17 can buy and sell with the permission and direct supervision of a parent or legal guardian. In that case, the parent or legal guardian must be the shop owner.
Do you need a business license to start an Etsy shop?
Etsy's help center says Etsy does not require a business license to sell on Etsy, but it also says you're required to follow any laws that apply to you as a small business selling online. Whether that means a local license or permit depends on your state, county and city, so check with them before you start selling.
Can you change your Etsy shop name later?
Etsy lets you rename an Etsy shop: after you open your shop, you can change the name from Your shop under the Shop Name tab. Shop names must be 4-20 characters, with no spaces or special characters, and a name cannot be already in use by an existing Etsy member. The shop language works differently: the shop language cannot be changed later.
Do you need a credit card to open an Etsy shop?
To open an Etsy shop, you need a debit or credit card to pay your bills from Etsy, so a debit card works in place of a credit card. Any setup fee goes on that card, since it is charged to your card when you complete onboarding. If fees your sales do not cover become past due, Etsy may charge your card on file.