Etsy is one of the best places for creative people to start a side hustle and earn money. The powerful algorithm and thriving community make it easy for sellers to set up shop and start making money from their craft – especially if they spend a little time studying how to earn money on Etsy before they launch!
However, some sellers might get discouraged if they open up shop and the sales don’t immediately start rolling in. To avoid disappointment, it’s important to approach your Etsy shop with a business mindset. If you want to turn your hobby into a successful money-making enterprise, you need to be organized, and you need to have a strategy.
Read on to learn how to make money on Etsy!
How To Choose A Product To Sell On Etsy
There are many ways to make money on Etsy, but the most important thing for new Etsy sellers is to do careful research and select a popular Etsy product. If you have a high-quality product in a high-demand category, it makes every other aspect of your business flow more smoothly.
While you can sell pretty much anything on Etsy, some items sell better than others. Here are some of the most popular items to sell on Etsy:
- Mugs and water bottles
- Paintings and prints
- Greeting cards
- Hand-sewn crafts
- Enamel pins and buttons
- Magnets, keychains, and other small trinkets
- Art supplies
- Digital art downloads
For many of these items, you can either handle production and fulfillment yourself, or you can partner with an artist or a Print On Demand (POD) company to make things easier (for a price). As you explore how to make money with an Etsy shop, deciding on your production and fulfillment plan is mission-critical, so don’t make this decision lightly.
As you explore your options to make money on Etsy, consider what creative skills you have, what desires and needs Etsy consumers have, and how much time and physical space you have to create and store merchandise.
The best product to sell on Etsy is going to be an item that you enjoy making, you have the means to produce affordably, and that a large proportion of Etsy customers are looking for.
How To Stay Organized As An Etsy Seller
One of the keys to making money on Etsy is getting organized. Since you won’t have a team, and you won’t have cutting-edge retail technology, you’ll need to handle customer service and manage your inventory on your own.
Fortunately, there is a simple way to make inventory management easier for a single person to handle. Best of all, it’s free!
If you sell a wide variety of items of designs, you might want to organize your products numerically with a Stock Keeping Unit (SKU) system. SKUs are a retail industry operation standard to track large inventories, and they’re essential for sellers who will offer more than a few dozen items.
Etsy has robust SKU integration, and by using a simple spreadsheet (Google Sheets is free!), you can develop a scaleable SKU database that makes inventory management a breeze.
Let’s look at an example of a SKU system in action. Imagine you sell shirts and stickers in a variety of designs and colorways. You’ll want to devise a numbering system that allows you to identify key item characteristics at a glance and gives you room to expand.
For this, we’ll use a hyphenated numbering system [CATEGORY-ITEM-STYLE].
- For a 5-centimeter sticker with a red octopus design, we will assign this number: 10-0001-001
- For a 7.5-centimeter sticker with a red octopus design, we will assign this number: 10-0001-002
- For a black t-shirt with a red octopus design in size Small, we will assign this number: 11-0001-001
- For a white t-shirt with a red octopus design in size Large, we will assign this number: 11-0002-003
A well-devised SKU system makes it simple to track inventory across a wide variety of items and styles and allows plenty of room for you to grow your product offerings by adding new categories, designs, and styles.
How To Build A Marketing Strategy For Etsy
When you’re building your Etsy store, your marketing strategy will be your key differentiator from your competition. In the digital age, you have a vast selection of powerful tools available to hello you grow your brand:
- Social media posts
- Paid ads
- Influencer marketing
- Email lists
- Direct messages
However, one mistake many small brands make is that they exclusively explore digital marketing tools to grow their business. However, print marketing is still a powerful way to get noticed and increase brand awareness to drive more conversions once customers finally explore your products.
- Use stamps and stickers to customize your packaging, or go all-out and order fully customized packaging to represent your brand wherever your products go
- Add print pack-ins and handwritten thank-you notes into every physical shipment that encourage people to leave reviews or recommend your products to their friends
- Collect physical addresses with a merchandise giveaway and use a service like Mailchimp to run direct mail campaigns during major holidays.
By integrating a digital and physical marketing strategy to provide value to customers, leave impressions on prospects, and incentivize repeat business, it’s easy to make your shop stand out and to make more money on Etsy.
How To Make More Money On Etsy With AI Tools
Last but not least, one of the best ways to supercharge the growth of your Etsy store is to optimize your operations with artificial intelligence. Roketfy’s powerful AI tools empower Etsy sellers to analyze consumer and competitor data and make adjustments to their listings all from a single screen.
The most valuable resource for business owners is time. Roketfy helps Etsy sellers save time and make more money by simplifying their customer service, compiling critical consumer data into actionable insights, and amplifying their reach with automated tools for content creation.
If you’re ready to make money on Etsy, explore Roketfy today!