How to Make Money on Etsy: A Step-by-Step Guide [2025]

Etsy is an online marketplace full of potential buyers and a ready-made audience looking for exactly the type of products you make. 

For experienced small business owners and those selling your creations for the first time, starting an Etsy shop is an exciting step in turning your hobby or creative passion into a money-making endeavor. 

In this step-by-step guide, we’ll teach you everything you need to know about how to make money on Etsy—whether you’re looking for a side hustle to your day job or trying to turn your craft into a full-time career.

Why Etsy? Understanding its earning potential

Source: Etsy

Etsy is booming. In 2024 alone, the platform hit $12.6B in sales and $2.81B in revenue, connecting 8M sellers with 96M buyers. That’s a massive existing audience! Instead of starting a shop from scratch, tap into a marketplace where people are already looking for what you sell. 

And the growth isn’t slowing down. Active sellers jumped 15.7% in 2024, and active buyers increased by 12.3%. More sellers mean more traffic to the platform, bringing in more potential shoppers for your store. 

Selling on Etsy is also cheaper and easier than running your own site. No need to worry about setting up payments or paying for hosting—just list your products, and you’re in business. Plus, you can use Etsy in tandem with your own website or other sales channels to reach even more customers.

And it works. Taylor Posada made $48K in just 4 months selling wedding signs. Emily Winfield Martin famously turned her Etsy art shop into a career as an author-illustrator of children’s books. Ted’s Vintage Art, a vintage map and art print seller, is another great example. The shop successfully uses Printful’s print-on-demand services to make money on Etsy without holding inventory. 

Source: Etsy

Etsy also helps sellers stay ahead of trends. For instance, the platform named “Lime Cream” its 2025 color of the year, predicting a surge in products featuring the fresh, versatile hue. 

Long story short? Etsy gives you the tools to encourage sales. You just have to use them.

Read also: Is Etsy Print-on-Demand Profitable in 2025?

How to make money on Etsy

Etsy is a goldmine for creative entrepreneurs, but only if you know how to navigate it. From choosing a niche to selecting the right products, every decision impacts your success.

Let’s break down exactly what sells, how to set up your Etsy account for success, and ways to market your products.

Choose a profitable Etsy niche

Not all Etsy niches are created equal. To build a profitable shop, you need to sell products people actually want. That means understanding current demand and focusing on smart product selection.

Find low-competition, high-demand items

Start by exploring trending Etsy niches—what’s currently selling well on the platform? Top-selling items often include handmade goods, custom clothing, vintage products, artwork, and unique home decor. Reviewing trends provides insight into what buyers are actively looking for. 

Use tools like Etsy’s search results, Google Trends, and social media to gauge interest in different niches and avoid oversaturated categories. This’ll help you identify gaps in the market where your products could stand out.

Finally, analyze customer feedback and reviews on existing products to spot potential improvements or variations that’ll meet buyer demands. Offering something original yet desired ensures your Etsy shop captures and retains customer interest.

Best-selling Etsy products right now

If you want to make money on Etsy, you must sell what’s already in demand. Here are the top-selling products that shoppers are searching for in 2025. 

1. Jewelry

Source: CaitlynMinimalist

Jewelry is one of Etsy’s best-selling categories, and the numbers prove it. In December 2024, jewelry sales on Etsy grew by 16% compared to November, dominating the busiest sales season of the year. Shoppers actively seek out personalized and handmade jewelry, driving steady demand for original designs crafted with high-quality materials.

CaitlynMinimalist, a jewelry shop with 3.3M+ sales, shows how trendy, well-branded pieces can lead to massive success. Pared back ring designs, birthstone necklaces, and custom name jewelry are Etsy favorites, especially for gifts and special occasions.

Jewelry sellers also benefit from repeat customers. Buyers often return to spend money on matching pieces, holiday gifts, or new trends. The best part? Jewelry has low shipping costs, making it an ideal product to sell worldwide. To stand out, focus on personalization, quality, and unique designs.

2. Art and digital art

Source: Etsy

The global arts and crafts market hit a whopping $50.9B in 2024, proof that people love cool, creative stuff. Whether it’s a hand-painted masterpiece or a digital download for an instant home decor glow-up, art is a hot seller on Etsy. 

If you’re an artist looking to sell on Etsy, you’ll need to decide what type of artwork you want to sell. When you spend hours creating single pieces, you can charge more as they’re one-of-a-kind. But you’ll ultimately only be able to sell it to one buyer. 

Digital art, in particular, has surged in popularity as more shoppers look for instant downloads they can print at home. Selling digital products on Etsy, like printable artwork and graphic design elements, offers artists a way to generate Etsy passive income by selling the same design repeatedly. This approach allows you to reach a broader audience and maximize your earnings.

Successful shops like The Printable Concept, with over 28K in sales, showcase how artists can scale their business without the constraints of physical inventory. Whether selling one-of-a-kind paintings or high-quality digital products, artists on Etsy have multiple opportunities to turn their creativity into a steady revenue stream.

And no matter what kind of art you sell, monitoring trends will help you reach more buyers. Get this: searches for things like “mystical medieval wall art” or “goth wall art” spiked 24% during the 2024 holiday season. Another fun fact? “Wildflower art” had a 105% YoY increase in searches on Etsy last year. Turns out everyone wants their living room to have a little more main character energy.

Learn more: How to Sell Art on Etsy: Tips and Tricks for Success

3. Prints and photos

Source: CreateYourOwnGift

It’s clear from the popularity of Etsy’s art category that home decor is having a moment. And Etsy shoppers are all in: searches for “cozy home items” shot up 351% YoY in 2024.

With more buyers looking to personalize their space with quirky artwork, selling high-quality prints, framed photography, or instant digital downloads is a great opportunity. Tapping into trending aesthetics—like vintage film photography or minimalist line art—will help your online store stand out in a competitive market.

If you’re a photographer or designer, selling your work on Etsy is a smart way to showcase and monetize your creative talents. Just like digital art, prints and photos can be sold repeatedly. You’ll need to decide whether to sell physical products (like custom wall art or stationery) or if digital downloads are the best way to go. 

4. Stickers

Source: Etsy

Stickers are big business—the market was valued at $4.3B in 2023 and is projected to hit $7.1B by 2030. On Etsy, they’re a bestseller, with customers looking for everything from custom logos to trendy designs. Stickers also nourish customer loyalty, with buyers frequently returning for new designs to match trends, hobbies, or personal aesthetics.

Plus, they’re versatile! Whether used for branding, decorating laptops and water bottles, or adding personality to packaging, stickers offer endless creative and commercial potential for Etsy sellers.

Logos, bumper stickers, and kiss-cut stickers are the most popular sticker types that Etsy customers buy. Offering stickers is one of the fastest ways to sell lots of products with low manufacturing and shipping costs, and, just like artwork and photography, the designs can be resold.

5. T-shirts

Source: GloryTribeUS

Custom apparel is a booming business on Etsy, especially as shoppers increasingly look for one-of-a-kind pieces. In fact, searches for custom or personalized gifts jumped 175% YoY in 2024—and t-shirts remain a top pick.

If you’re thinking about launching an Etsy side hustle, selling t-shirts is a strong starting point. With the right designs and smart Etsy shop success tips, you can build a brand that stands out and keeps customers coming back.

How can you do it? Using a print-on-demand (POD) service like Printful helps you avoid having to create and stock hundreds of products at home. Instead, whenever your customer places an order, your products will be automatically printed and prepped for shipping by Printful.

If you learn how to make money on Etsy with t-shirts, you’ll be well on your way to starting a clothing brand, which you can easily expand later with custom hoodies and other apparel. The best designs usually feature funny sayings and memes or are customizable for bridal and baby showers.

Read also: POD Expert Tips on Creating Viral T-Shirt Designs

Set up your Etsy shop for success

Etsy is incredibly user-friendly for sellers, and they’ve made launching a store as easy as possible.

Head to the “Sell on Etsy” page, then log into your existing account or create one. Etsy will walk you through all the steps you need to take to become a seller on the marketplace.

Here’s a video guide on how to set up an Etsy store when you’re using Printful.

Once your shop is up and running, it’s time to make it a success.

Establish your Etsy store name and branding

Your Etsy shop name and branding set the tone for your business, so choose wisely. Your name should be memorable, easy to spell, and relevant to what you sell. Avoid generic names—your brand should stand out, not blend in.

Before committing, check Etsy to ensure your name isn’t already taken. Secure matching social media handles and a domain if you plan to expand beyond Etsy.

Next, focus on branding. Your logo, banner, and product photos should be cohesive and high-quality. A strong brand builds trust and makes your shop look professional.

Write a compelling shop bio clearly stating what you sell and why your products matter. Be concise—potential customers should understand your brand at a glance.

Master SEO for Etsy listings

If you want to drive sales on Etsy, mastering SEO is key. The right strategy helps your products get discovered by more buyers. Here’s how to optimize your listings for maximum sales.

1. Find relevant keywords

Think like a buyer: what would someone search for to find your product? Use Etsy keyword tools like Marmalead or eRank to research high-traffic, low-competition search terms. Prioritize long-tail keywords (phrases with 3 or more words) since they match specific buyer intent.

2. Optimize your listing components

To boost your Etsy shop rankings, every part of your listing (from the title to the tags) must be optimized for search visibility and buyer appeal. Here’s how to make each element work in your favor.

• Titles: Place the most important relevant keywords at the beginning of your title, and remember to keep it clear and descriptive

• Tags: Use all 13 tags, mixing broad and specific keywords to capture different searches

• Attributes and categories: Select the most relevant options to increase visibility

Read more: Etsy SEO: 7 Strategies Every Etsy Store Needs for Top Rankings 

3. Write descriptions that sell

While Etsy’s algorithm doesn’t scan descriptions, they do influence conversions. Lead with key product details, make text scannable, and add links to other listings in your shop.

4. Use high-quality images

Strong photos and videos improve engagement and boost rankings. Show multiple angles and include lifestyle images to help buyers better visualize your product.

By leveraging SEO for Etsy listings, you’ll increase your visibility and attract more sales.

Calculate Etsy fees

Another factor in running a successful Etsy store is pricing your products strategically. Before setting your prices, understand Etsy’s fees to maintain healthy profit margins. Here’s what you’ll need to calculate:

• Listing fees—Each product listing incurs a $0.20 fee, valid for 4 months or until the item sells.
  
  

• Transaction fees—Etsy charges a 6.5% fee on an item’s total sale price, including shipping and gift wrapping.
  
  

• Payment processing fees—This varies by country. For US sellers, each transaction processed through Etsy Payments has a fee of 3% of the total sale amount plus a flat $0.25 per order.

Understanding these fees is key to pricing your products effectively and maintaining profitability on Etsy.

Come up with a pricing strategy

To become a successful Etsy seller, you need to figure out how to price your product listings so that your item is affordable, but you’re also making money. When setting up your prices, do proper market research and study your niche, including how much your target audience is ready to pay for your products.

1. Expenses

While there’s no single method to calculate the prices you should set, remember to include all the expenses of creating, marketing, and selling your products. Otherwise, you’ll wind up losing money.

In addition to Etsy’s fees for using their service, consider production costs, shipping, and advertising expenses.

Finally, factor in taxes, as these are significant expenses that will impact your profitability. Tax regulations vary by state and country, so find out what applies to your business or hire a professional to ensure you’re abiding by all rules. 

Read also: How to Start a Business in the US: Taxes and Legal Requirements Handbook

By carefully considering all these costs, you can set prices that cover your expenses and provide a healthy profit margin. Proper pricing ensures that your business remains sustainable and competitive in the Etsy marketplace.

2. Shipping fees

While shipping fees are often paid by the customer, it’s important to consider them when setting your prices. Offering free shipping is a crucial strategy for success on Etsy, as 66% of customers expect it on all online orders. Many Etsy sellers use free shipping as a selling point, but it can significantly cut into your profits if not managed carefully.

Source: loveforquotes.com

One way to handle free shipping is to include the shipping fees in the product price. Compare local and long-distance shipping costs to set fair prices for all customers.

We don’t recommend providing free shipping to international customers, as those costs can add up quickly. Since customers cover the shipping costs, offer them a small discount on multiple items to offset higher fees and encourage overseas shoppers.

An important point to note: only stores with free US shipping receive priority in the Etsy search algorithm, so it’s really only worth offering it to US-based customers.

To simplify calculations, use an Etsy fee calculator that factors in fees and production expenses. It’s a great way to estimate your potential earnings.

Learn more: Etsy Calculator—predict your Etsy fees and profit 

Source: Printful

Valuable read: Is Selling on Etsy Worth It: Pros, Cons, and Tips for Success

Market and drive traffic to your Etsy store

Without traffic, you can’t make sales. You’ll need effective marketing efforts to get your products in front of the right buyers. 

Leverage Pinterest and Instagram for Etsy sales

Pinterest and Instagram are visual platforms perfect for showcasing your products. Pin listings with SEO-friendly descriptions and link them to your shop.

Source: Pinterest 

On Instagram, use Reels and Stories to engage your audience. Hashtags, influencer collaborations, and shoppable posts will boost visibility and drive more traffic to your Etsy store.

Run Etsy Ads 

Etsy Ads will increase product visibility, but they work best for high-margin items. For example, if you sell custom embroidered sweatshirts for $60 with a $35 profit, spending $5 per sale on ads makes sense. But if you’re selling $3 stickers, and ads cost $2 per sale, profits disappear fast. 

Start small, monitor performance, and adjust bids based on results. If your ads bring in more revenue than they cost, keep them running. If not, test different products or focus on organic marketing strategies.

Use email marketing for repeat customers

Email is a low-cost way to keep customers coming back. Offer discounts, showcase new arrivals, or send personalized recommendations. Use Etsy’s messaging system or an email marketing tool to build a list and nurture customer retention with valuable targeted content.

Omnisend and Mailchimp are great email marketing tools for Etsy sellers. These platforms help you collect emails, automate follow-ups, and run targeted campaigns to boost repeat sales. You can also set up abandoned cart reminders, exclusive offers for past buyers, and product updates to keep your audience engaged.

Embrace your creativity (and make some money too)

With the basics out of the way, you’re ready to launch your Etsy business and start earning some income from your creative endeavor. How long it takes to make money on Etsy really depends on your effort, your brand niche, and a bit of luck.

Whether you’re trying to become a full-time creator or earn extra cash, selling your products on Etsy is the perfect way to build a business. 

Learn more:

• How to Make Money from Home: 35 Viable Ways
• 12 Common Hobbies That Make Money

As with anything, there’s a little bit of trial and error involved (and that’s half the fun of trying something new). The key to how to make money on Etsy? Stay consistent—optimize your listings, market your products, and refine your approach as you go. Keep testing different strategies until you find the ones that work for you, and you’ll soon start to see your Etsy shop pulling a profit.

Read next: 

• How to Sell Printful Products on Etsy
• How to Start an Etsy Shop with No Money: A Beginner’s Guide
• Is Print-on-Demand Good for Beginners: The Ultimate Guide