From its humble beginnings, Etsy has grown to be one of the largest global marketplaces for crafts, handmade goods, vintage finds, and unique gifts. With over $1.7 billion in annual revenue and just under 3 million active sellers, the platform represents a unique opportunity for creators in over 200 countries to give visibility to their creations and enjoy an added revenue stream.
A glance at those stats will tell you that, yes, it is possible to make over $10k a month – or a 6-figures annual salary – on Etsy. However, as the platform continues to expand the competition is becoming fiercer by the minute. Below, you can find all of your Etsy FAQs answered and unmissable tips to create a successful shop.
How Much Do Etsy Sellers Make a Month? Let’s Start by Setting the Right Expectations
As we have seen, it is possible to achieve a stellar salary by selling your creations on Etsy. But let’s be real – most sellers fail when launching their shop on Etsy! While the platform’s potential is there and accessible, there is no easy way to make $10k a month!
So, how can I make $10000 a month on Etsy? Let’s start by setting the right expectations.
Side Hustle vs Full-Time Etsy Sellers
If you are wondering “how much do Etsy sellers make per hour?” you are certainly not the only one. After all, before opening your shop and spending time and effort creating your handmade products, you would want to know if it’s worth it.
Well, the answer is yes – but it is still not easy to pinpoint how much sellers make on Etsy. This is because every seller is unique. For example, a survey conducted on Etsy sellers shows us that 75% of them consider their shop to be a side hustle, while only 25% of creators use their Etsy shop as their primary income stream.
Almost half of Etsy sellers indeed make around $7.25 per hour through their shops – but over a quarter of them make over $1,000 per month!
The average seller on Etsy makes around $534.00. However, it all truly depends on what you are selling, the number of listings you have, and how many sales you complete per year. It is perfectly possible to make over 10,000 a month! So, you should look for the answer to “how much does the average Etsy seller make a month?” but keep in mind that success looks different from a seller to another.
How To Make 6 Figures on Etsy: 15 Tips To Maximise Your Earnings
Launching an Etsy shop can be an exciting but intimidating experience. Especially if you have noticed how fierce the competition is! However, as we have seen, it is undoubtedly possible to make a 6-figure salary out of your creations – and there are thousands of success stories out there to convince you.
In the video below, you can find a quick overview to get started – or learn more with the 15, professional tips below!
Pick a Niche – But Not Randomly!
A quick Google search will tell you that the most successful categories on Etsy are Crafts & Supplies, Jewellery, and Handmade items. And it is not by chance that the best performing Etsy sellers – including CaitlynMinimalist and PlannerKate1 operate in these exact categories.
When picking a niche for your Etsy shop, you will need to consider your talent, interest, and abilities – especially if you wish to use this as a side hustle to give space to your passions. But, don’t ignore what the audience wants!
Analyze Your Audience
Once you know the niche you will be operating in, you will need to decide what your target audience is. This is a step that most sellers overlook – but can make a difference between selling items that are appealing to your audience and losing your consumers’ loyalty!
For this step, creating a customer persona is an exercise that can help you better understand the nuances of your ideal customer. Make sure to describe the problems you wish to solve through your creations, their pain points, their budget, and their interest.
Yes, online marketplaces have streamlined the way people shop. But customers are looking for the human touch like never before. On your shop’s “About Us” page, you have the unique chance to humanize your brand and create a meaningful connection with your customers.
Tell the story behind your creations and don’t be afraid to share with them the challenges you have met along the way!
Study Your Competitors
If you are looking for growth, expansion, and greater profits, you should look at those Etsy creators that are already successful. Remember, the platform is growing and acquiring new buyers, so there is plenty of business for all creators!
So, don’t be afraid to get in touch directly with sellers you trust and ask them what their best tips are. They might even be able to look at your shop and tell you how to improve it! While you should not copy their work, looking at a successful competitor can be the key to understanding what you are doing wrong.
When looking at the average cost of items on Etsy, you will find that it is around $22. However, your pricing strategy should not just be to match your competitors. Indeed, if you are creating handmade goods, you know better than anyone the cost of supplies and labor! However, don’t forget that your business should be profitable, and the price your consumers pay should include hidden costs such as:
- Etsy commissions
- Shipping (if included)
- Labor and time
- Customization (if applicable)
- Overhead costs
Keep in mind that if your business is still small, you could start with a lower price to entice your customers. And, don’t forget to always run a sale! Who could say no to a 20% discount or two-for-one as the holiday season approaches?!
Grow Your Listings and Offer More Items
When your Etsy shop is still small, you might be able to offer a limited range of options. However, over 40% of Etsy buyers are repeat customers. Therefore, if you can catch their attention, you might be able to win over their loyalty! But the next time they land in your shop, the more options you have, the more likely you are to complete a sale.
While each shop is unique, you should aim to have between 100 and 130 listings in your shop.
If you have opened an Etsy shop, the chances are that you have done so because of your love for crafts and supplies. However, remember that you can only produce a certain amount of high-quality items per day. Depending on your craft, it can take over a month to stock up your shop!
Luckily, you can increase your sales by tapping into the potential of digital prints and downloadable products. Once these products are created, they generate passive income – a great way to bulk up your earnings while dedicating your focus to improving your Etsy shop and perfecting your creations.
Encourage Reviews and Feedback
Just under 90% of customers worldwide take time to read reviews before buying a product or service. However, many Etsy sellers don’t ask for reviews or feedback, which can severely impact their chances of success. Some options to ask for reviews include adding a business card to your order or asking directly via email after the purchase. You can find some more options in the video below:
Consider Paid Ads
Expert sellers, such as Etsy Seller Mastermind – today is known as The Handmade Mastermind -, will tell you a lot about how potential customers need to see a product multiple times to finally move down the sales funnel.
Paid ads on Etsy can be an excellent way to increase the visibility of your shop and products, which, in turn, will help you increase sales. And, as your sales increase, it is more likely for your shop to appear at the top of the result page.
You can use diverse channels to bring more traffic to your Etsy shop from external sources. For example, investing in a blog and mailing list can be an excellent way to build stronger relationships with your customers and gain more visibility on search engines.
Over 75% of customers today expect free shipping options. While you might not be able to always offer this alternative, you should do your best to make available more than one shopping and payment option.
Be Consistent and Work on Your Shop Every Day
While some Etsy sellers manage to grow their business within short timeframes, it can take months for shops to build popularity, trust, and a community of loyal customers. So, consistency is key! Don’t expect your shop to be a success overnight and continue to improve your categories, shopping experience, product descriptions, and the products you sell.
Almost all of the Etsy sellers ask “How do I make 10k a month on Etsy?” – but not many use a structured approach to improving their revenue. One of the best ways to do so and methodically enhance your revenue streams begins with checking your Etsy Stats.
In this guide, you can find out how to use Etsy stats, views information, and visit data.
Once you know how many shoppers have found your shop and where they come from, you can create better product descriptions, more precise categories, and an overall more streamlined shopping experience.
Analyzing the market will tell you a lot about how the competition changes and what trends are emerging. By evaluating your industry, you can better understand what products are leading the market on Etsy, what the price range of the items sold on the platform is, and what consumers are after.
Just like in any other industry, trends, and fads on Etsy can come and go quickly, but it does not mean that they are not essential for leveling up the success of your shop.
Always Look for Areas of Improvement
Whether you are satisfied with how your Etsy shop is growing or not, you should not stop investing time and effort in it. Over time, you will find that there are plenty of aspects that need to be optimized.
Here are just a few that can breathe new life into your Etsy shop and make it far more appealing, trustworthy, and discoverable for customers:
- Tags and titles should be accurate but enticing and SEO-friendly
- Categories can improve a user’s experience on your site and make it easier to find the needed product.
- Add product descriptions that are precise and informative
- Complete your profile by adding more about you and your story, selecting an inspiring name, and highlighting the reviews you have obtained.
- Keep your shop rules easy to follow and accessible
- Let photography sell the products for you! No matter how good your photos and images might seem today, there is a lot more you can do – start experimenting today!
The Inspiration Corner: 5 Etsy Creators Prove That Making 10k a Month Is Possible
So, how much does an average person make on Etsy? As we have seen above, there is no limit to how much you can make on Etsy. It is true – at the beginning of your journey as an Etsy seller, it is easy to feel discouraged.
After all, success doesn’t bless everyone overnight! But here are a few success stories of sellers that have successfully driven their shop to far above $10k per month to renew your motivation and inspiration. And no, you don’t have to be as popular as Beadboat1 ($35k per week!) to be successful!
- Orinda’s Ornaments – creating personalized house ornaments and theme decorations, this US-based household decor shop completes over 13,200 sales per month and has passed the 100,000 sales mark!
- Hooray Days – this UK-based shop aims to transform every party and event into a unique experience. Whether you wish to decorate your garden for an upcoming wedding, Bachelorette party, or baby shower, you can be sure to find all of your needed supplies here. With over 338,698 completed sales and over 11,676 completed monthly sales.
- NewMoonBeginnings – interested in healing crystals? Look no further than this US-based shop that today completes just under 12,000 sales a month.
- FabricUtopia – completing over 10,839 sales a month, FabricUtopia focuses on creating one-of-a-kind quilts and fabrics. Check it out!
- Spoonflower – Spoonflower focuses on bringing to life fabrics and wallpaper models that are unique! The shop has become so famous that today it completes over 17,450 a month and has passed the 742,700-sales mark (with a five-star average!).
Never Stop Learning With Crafts & Dollars
Whether you have just launched your Etsy shop or you are looking to grow the shop you have had for a while, the key is to have a dynamic approach to your sales. Here at Crafts and Dollars, we believe in helping small business entrepreneurs keep up to date with the latest changes in the industry. Keep learning!