The goal of every crafter and artist in the world is to make money doing what they love. It is through Etsy that they can achieve that goal. Set up a shop on Etsy to sell your creations if you’re obsessed with making things.
As an alternative online marketplace for art, handmade crafts, and vintage items, Etsy was founded in 2005. As all items on the site cannot be mass-produced, customers are given a unique shopping experience where they can choose from millions of handmade items from millions of artists and creatives. The company has grown into a publicly-traded company on NASDAQ, with over 60 million products for sale and now manufactured products can also be sold.
While some people operate a side business selling on Etsy, many artisans generate a great income from online sales. Interested in learning how to get started with Etsy? You can get started so easily! We discuss how to legally establish your e-commerce business and what you need to consider.
Can You Sell on Etsy if You Have These Skills?
You can sell the things you make on Etsy. It’s an easy way for artists, designers, craftsmen, and hobbyists to make money. To make products, there is no question that you must have the skills, but will people want to buy what you make? This is the most important question. Do you offer creative and unique products? Does the product fulfill a need or provide the perfect gift? You should research other shops doing well and identify your potential competitors before opening your own. What are you going to do to make your product better or different from five other shops selling the same thing? Or maybe you want to come up with something totally new.
Starting an Etsy business: Step-by-Step Instructions
If you are considering selling online as your sole source of income, instead of just as a hobby or side gig, you’ll need a business plan. Taking the time and effort to Start an Etsy Shop can be daunting, so you may find it is not worth it for just a few items. There are a few things to consider before you begin selling online if you want to get serious about it and make a decent income.
- What is the brand name of your company?
- What does the design of your Start an Etsy Shop and brand look like?
- Can you describe your unique selling point (USP) and niche?
- Are there any startup costs or expenses involved?
- At what price will you sell your products?
- What is your business structure and legal structure?
- Are there any rules or regulations you must follow?
- What about hiring an accountant or an assistant?
- What marketing plan do you have and how are you going to develop your online presence?
The only way to have a successful e-commerce business is to put the time into planning out how things will work so that nothing will surprise you later. You need to set yourself apart from the competition and be one step ahead of your competitors on Etsy since millions of products are sold there. Make sure you don’t miss this step.
Shop on Etsy: How to Get Started
Start an Etsy Shop is free to start, so there’s no reason not to start one. Every listing you make on Etsy for your items costs a small fee, and Etsy takes a 5% commission on each sale. A processing fee is applied to each transaction when using Etsy’s payment system. As the seller sets the price, you should consider the fees and commission you have to pay when determining the price. Creating an Start an Etsy Shop is simple – create an account at etsy.com, create your shop and preferences, make sure you have a great name for your shop, then list your items with really great photos and descriptive text.
However, the work doesn’t end when you hit publish. Running an Etsy business is never easy because you have to do things like optimize your shop for searches, market your shop across social media, package and ship products, constantly come up with new products, come up with creative sales and discounts to reward shoppers, and take care of administrative tasks. Remember to save your receipts for your materials, equipment, advertising costs, business travel costs, and insurance coverage. Don’t forget to keep track of any business expenses as you may be able to deduct them from your taxes.
Etsy Shops: Do You Need to Pay Taxes?
The short answer is yes, if you sell more than £1000 in a year on Etsy, you will need to register as a self-employed business and pay tax on your income. Please consult your country’s accountancy agency regarding the taxes you must pay on income from an e-commerce enterprise. Each country has different rules and regulations regarding taxes.
When you begin your Etsy business in the UK you have to register with HMRC. Creating a limited company might be a good option if you plan to use selling online for a large enterprise. You can set up a sole-trader business if it’s more of a side gig. A successful business is dependent on the decision and completion of company formation. Etsy tax set up can be done fast and easily with our help.
Have you ever considered Start an Etsy Shop? Here at Best Bizz, we help you form your own limited company or self-employed business and take away all the stress that comes with starting a business. Getting your brand registered and your company registered quickly will allow you to start doing what you love.