There are 9 million Etsy sellers, and thousands of people open a new Etsy store daily. But how do you make money on Etsy?
In this blog post, I, Rachel Jimenez, a top .1% Etsy seller, will spill the beans and share the secrets no one else is talking about regarding how you make money on Etsy.
1. Figure Out What People Are Looking For
Understanding what potential customers are searching for on Etsy is critical to building a successful shop.
You can increase your visibility and sales by aligning your product offerings with buyer demand.
So, before you start creating or posting items, one of the most effective ways to ensure you make money on Etsy is to discover what people are looking for by using keyword research tools like eRank.
For example, let’s say you want to sell jewelry on Etsy.
Rather than creating a bunch of jewelry you like, it is important to do market research and assess what your customers like and are looking for on the platform.
You can do this by logging into eRank and typing in a keyword like “jewelry.” Your search results will probably look something like this:
Interpreting eRank Data
Understanding how to interpret the data provided by eRank is crucial for making informed decisions. Here are some key metrics to pay attention to:
- Search Volume: Shows how often a keyword is searched on Etsy. Higher search volume suggests higher demand.
- Competition: Shows how many other listings are using the same keyword. Lower competition means ranking for that keyword and showing up in the organic search results may be easier.
- Click-Through Rate (CTR): Shows the percentage of people who click on a listing after searching for a keyword. A high CTR indicates that the keyword is driving traffic.
From the search above, you’ll notice that, yes, there’s a lot of demand, but if you see all that red, there’s also a lot of competition. Unless you already have people’s attention (i.e., you’re an influencer or are BFFs with Taylor Swift), then I wouldn’t recommend trying to compete in a space with a lot of competition.
2. Figure Out What People Are Having Trouble Finding
So, what do you do if there’s too much competition?
Keep it simple, baby!
Find a space with less competition.
You see, jewelry is very broad, but we can niche down and find specific types of jewelry that have decent demand and are lacking in supply.
For example, I can sort the search by competition and do lowest competition to highest competition.
From my newly sorted search, I can discover interesting opportunities that I may not have considered. For example, “scrotum jewelry” receives 710 searches a month, and there are only 128 listings competing in that space.
This is news to me.
I couldn’t have made this up if I tried, folks.
“Altay jewelry” and “taraz jewelry” also have some interesting stats. I have no clue what those are, but if I’m a jewelry entrepreneur, you bet your booty, I will do some research and figure it out.
3. How Do You Make Money on Etsy? Don’t Make What You Want, Make What Your Customers Want
You can explore those ideas now that you have some clues about what people are looking for. I researched Atlay Jewelry and found it is a specific brand sold on Etsy. So, I can’t use their brand name, so that opportunity is out.
However, I found that Taraz jewelry is, according to Google, “a key part of Armenian traditional dress, and often includes silver pieces,”- so that is an area I could decide to pursue since it has very low competition and some search volume.
I could (and would) also go through many of the pages of the eRank search data to find the sweet spot between a search that has “lowish” competition and “high enough” search volume.
Ideally, I would find a sweet spot that matches my abilities, interests, and values and aligns with what people are looking for.
Ultimately, if you want to know how to make money on Etsy, my biggest tip is to start with what customers want, not what you want to make.
You could make the most beautiful product and post it on Etsy, but if no one is looking for it, no one will buy it.
You may want to read that ^^ sentence again.
I can also tell you that if you make a half-assed thing that people are looking for that no one else has made, you have a good chance of making sales on Etsy. And your chances are even better if you make something amazing!
The key point here is that demand and visibility are vital to making money on Etsy and in business in general.
4. Create Great Products
Once you’ve figured out what you’ll sell (based on finding a sweet spot between demand and competition), you need to create a great product.
The most important thing is to think about your target customer. What does “great” mean to them?
Are they looking for the most unique item?
Or would they prefer something that is super inexpensive?
Do they want something fast?
Do they want it customizable?
Think about why they want the product and then design it with the end user in mind.
You can also look at the competition and consider ways you can make your product better than theirs.
5. Optimize Your Listings for Search
Once you’ve found a good niche and created a killer product, it’s pretty straightforward from there.
That being said, you want to ensure you’re optimizing your listing using those awesome keyword opportunities that informed your product creation.
Optimizing your listings for search is very important to increasing your shop’s visibility and attracting potential buyers on Etsy.
By using effective SEO strategies, you can ensure that your products appear in the right searches and reach a broader audience.
Here are the key steps to optimize your Etsy listings for search:
Use Relevant Keywords
Conduct thorough keyword research to determing the terms potential customers use to search for products like yours. Tools like eRank, Etsy’s search bar suggestions, and Google Trends can help you find high-traffic keywords.
- Title: Make sure you place your primary keyword at the beginning of your product title. Make sure the title is descriptive and incorporates relevant keywords naturally.
- Tags: Utilize all 13 tag slots with a mix of broad and specific keywords. Think about variations and synonyms that buyers might use.
- Descriptions: Naturally incorporate keywords into your product descriptions. Focus on creating a detailed and engaging description that stresses the features and benefits of your product.
Utilize Attributes and Categories
Etsy provides various attributes and categories to help classify your products. Make sure you select the most accurate and relevant options available.
- Categories: Choose the category that best describes your product. This helps Etsy’s algorithm place your listing in front of the right audience.
- Attributes: Fill out all applicable attributes, such as color, size, material, and occasion. These details help improve your listing’s searchability.
High-Quality Photos
While not a direct SEO factor, high-quality photos can significantly impact your listing’s performance. Clear, professional images can improve your click-through rate (CTR) and conversion rate, indirectly boosting your search ranking.
- Multiple Angles: Add photos from different angles to give buyers a complete view of your product.
- Lifestyle Shots: Include images of your product in use to help buyers visualize how it fits into their lives.
- Zoom Capability: Ensure your photos are high resolution so buyers can zoom in for a closer look.
Maintain Consistent Updates
Regularly updating your listings can signal to Etsy’s algorithm that your shop is active and engaged. Make it a habit to:
- Revise Descriptions: Periodically review and update your product descriptions with new keywords and information.
- Refresh Tags: Update your tags to include trending keywords and seasonal variations.
- Add New Photos: Refresh your listings with new images to keep them current and appealing.
Monitor Performance and Adjust
Use Etsy’s analytics tools to track the performance of your listings. Use metrics such as views, favorites, and conversion rates to identify which listings are performing well and which need improvement.
- A/B Testing: Experiment with different titles, descriptions, and photos to see what resonates best with your audience.
- Analyze Competitors: Look at top-performing competitors to understand their strategies and identify opportunities for your listings.
6. Understand and Follow Etsy’s Rules
Etsy is an amazing platform because the site has so much traffic. It’s like setting up a storefront in a busy mall- you’re bound to get some traffic. However, because you are building a business on someone else’s land, it’s important to understand and follow Etsy’s rules to maintain a successful shop. Here are the primary guidelines to keep in mind:
- Handmade Policy: If you list your items as handmade, you must create them or be directly involved in their production. This means you can’t resell items you bought wholesale as handmade. If you use production partners, be transparent about their involvement.
- Vintage Policy: Ensure that any items listed as vintage genuinely meet the 20-year age requirement. Misrepresenting newer items as vintage can lead to penalties or account suspension.
- Prohibited Items: Etsy lists prohibited items, including hazardous materials, illegal items, and anything that promotes discrimination or violence. Review this list carefully to ensure your products comply.
- Intellectual Property: Make sure you respect intellectual property rights. Do this by avoiding selling items that infringe on trademarks, copyrights, or patents. This includes using images, logos, or designs you do not have the right to use.
Why Following the Rules Matters
- Building Trust: Adhering to Etsy’s guidelines helps build customer trust. Shoppers on Etsy are often looking for a unique and trustworthy shopping experience, and following the rules shows that you are a reliable and honest seller.
- Avoiding Penalties: Violating Etsy’s policies can lead to warnings, penalties, or account suspension. Maintaining compliance ensures your shop remains active and visible to potential buyers.
- Enhancing Visibility: Etsy’s algorithms favor shops that comply with its policies. Following the rules increases your chances of appearing in search results and gaining more traffic.
- Community Reputation: Etsy has a strong community of sellers and buyers. Being known as a reputable seller can lead to word-of-mouth referrals and repeat business.
Practical Steps to Compliance
- Read the Policies: Review Etsy’s seller policies, which can be found on the Etsy Seller Handbook and the Etsy website. Familiarize yourself with the details to ensure full compliance.
- Regular Updates: Etsy’s policies can change, so make a habit of regularly checking for updates. This will help you adapt your business practices as needed.
- Accurate Listings: Ensure that your product listings are accurate and truthful. Use high-quality photos, detailed descriptions, and correct tags to represent your items honestly.
- Stay Educated: Participate in Etsy forums, webinars, and seller groups to stay updated on best practices and policy changes. Staying informed and up to date with the community can provide valuable insights and support.
7. How Do You Make Money on Etsy? Think Like Etsy
To succeed on Etsy, it’s essential to understand how the platform operates and what it prioritizes. Etsy aims to keep commerce human by enabling creative entrepreneurs to sell unique, handmade, and vintage items. It is also a business, not a non-profit, so it is always going to be looking at ways to increase its bottom line.
By aligning your strategies with Etsy’s goals and thinking like Etsy, you can optimize your shop for better visibility and sales.
Here are some key things to consider:
Prioritize Quality and Uniqueness
Etsy thrives on offering special and distinct products. Buyers come to Etsy looking for items they can’t find anywhere else. Ensure your products reflect this by focusing on quality craftsmanship and unique designs.
If your products are handmade, emphasize the artisanal quality and personal touch that go into each item.
For vintage items, verify their authenticity and provide detailed descriptions highlighting their history and uniqueness.
If you sell craft supplies, offer high-quality, innovative materials that inspire creativity in your customers.
Foster a Strong Community
Etsy values its community of sellers and buyers. Engage with this community by providing excellent customer service. Respond to customer inquiries promptly and courteously. Personalize your communications to build a strong rapport with your buyers. This will make your shop look good, making Etsy look good.
Embrace Transparency
Etsy encourages transparency in business practices. Be open about your processes, materials, and production methods. This builds trust with your customers and aligns with Etsy’s values.
Use the About section of your shop to tell your story. Share your inspiration, the creation process, and what makes your products unique.
Also, if you work with production partners, be transparent about their role. Explain how they help bring your designs to life.
Optimize for Mobile Shopping
A significant portion of Etsy’s traffic comes from mobile users. To provide a seamless shopping experience, ensure your shop is optimized for mobile devices.
Ensure your shop and product listings look great on desktop and mobile devices. Test your shop on various screen sizes to ensure usability. You also want to use high-quality images that load quickly and look good on smaller screens.
Keep in mind that mobile shoppers often rely on photos more than descriptions.
Leverage Etsy’s Tools and Features
Etsy offers a range of tools and features designed to help sellers succeed (and help them make more money). Make the most of these resources to enhance your shop’s performance.
For example, once you have a proven profitable product, you can use Etsy Ads to increase your listings’ visibility in search results.
You can also regularly review Etsy’s analytics to understand your shop’s performance. Track metrics like traffic sources, conversion rates, and popular listings to inform your strategy.
Stay Updated with Etsy’s Policies
Etsy’s policies and guidelines are designed to maintain a fair and trustworthy marketplace. Stay informed about any updates to these policies.
- Seller Handbook: Regularly review the Etsy Seller Handbook for tips, updates, and best practices.
- Policy Updates: Watch for announcements regarding policy changes. Adapting to new rules quickly ensures your shop remains in good standing.
How Do You Make Money on Etsy? Don’t Do It Alone
One of the hardest parts of making money on Etsy is staying consistent and staying persistent before you get a break. It’s also challenging not to have a coworker help you when you get stuck like you would at a normal job.
When I started my Etsy journey, I took a course that taught me all about selling digital products on Etsy. Being part of a community of people working toward a similar goal helped me stay motivated, get help when needed, and not feel alone.
If you’re interested in learning about the course I took and recommend, you can check out my course review here.
Still here? Check out this Blueprint for Creating a Passive Income Side Hustle on Etsy
Want to learn my secret to making your first sale on Etsy and eventually making thousands a month online passively? Check out The Shockingly Simple Guide to Selling Passive Income Products on Etsy. This free, in-depth guide is a deeper blueprint for passive income that will help you learn exactly how to start a side hustle and create digital products on Etsy!
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