Things to keep in mind before opening a shop on Etsy

Posted On: May 11, 2022

Posted By: appsrhino

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Introduction

Do you want to open a shop on Etsy? Do you know all the things you need to take care of to guarantee a successful business on the platform? If you are toying with the idea of becoming an Etsy store owner, you are at the right place. Every field has certain things that one should do before venturing into it, so does Etsy. And no one is born a genius; you need to research well and take help.

Did you know the most successful Etsy shops make $10,000 per year or more? And around 69% of people who open an Etsy store consider it a business? With such stiff competition around, you need to follow a few things. 

Summary

The idea to open an Etsy shop is exciting as it provides you with a medium to showcase your passion to people through your products. But, opening a store on the platform requires more than just passion. There are cases wherein people shut up shop because of the lack of plan. If you want to ensure that your Etsy store makes it big, stick around until the end.

Key takeaway points:

  1. Why open an Etsy shop?
  2. How to start a business on Etsy?
  • Separate bank account- To prevent mixing up other capital and Etsy generated income.

  • Choose a Name- Your Etsy shop should have a name that reflects your goals and the shop’s aim.

  • Consider Keywords- Put keywords into descriptions and attributes that are most likely to be used by Customers to search for products. It helps rank your products better.

  • Think Like a Brick-and-Mortar Store- Offer your products in different colors, and designs to attract your customers.

  • Product Prices- Price your items in a way that makes people come to your shop.

  • Spread the word- Promote your products as much as possible.

  • Be flexible- If your current strategy is not working, be flexible to change it.

  • Product testing- Price your products keeping in mind your rival’s pricing and your hard work.

  • Research third-party Etsy software- It helps you market your products and improve customer relationships.

  • Investing in branding elements- It includes building a social media presence, logo, and color story of your shop.

Why open an Etsy shop?

If you are good at making things with your hands, Etsy is your place to sell your handmade items. Are you into art and craft? Etsy provides you with a platform to sell your works.

Besides these, you can also sell jewelry, bags, clothing, home décor and furniture, toys, art, and craft supplies and tools. Millions of people interested in buying such stuff are present on Etsy.

Etsy has become one of the most famous eCommerce names. It hosts millions of sellers, from new creators to well-established retailers.

Though it is a good marketplace, you can only benefit from it if you follow a few things before opening a store on Etsy.

How to start a business on Etsy?

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Separate bank account

You should open a separate bank account for your Etsy store business to deposit your income into with an attached card to use for business expenses; the reason for it is to separate your money from business finances. It often gets clumsy for sellers to keep track of their income if their income and other capital get mixed up. A separate account helps you see how much money you spend and make.

Choose a Name

When naming your Etsy store, make sure you do it after giving it a good amount of thinking. Etsy allows users to change it only once after getting registered. Your store name should reflect your product, mission, and you. It is necessary to have a name that reflects your products, missions, and you to make you appear relatable to your audience.

Another thing to pay attention to is the future of your Etsy Store; this means name your store in a way that might be useful when you decide to go beyond this platform.

After you have come up with a name for your Etsy online store, you would need to check for its availability. For availability, you need to check off all the following areas:

  1. The name is available on Etsy
  2. Whether the name is available for a website
  3. The name is available for social media handles.

Consider Keywords

Buyers usually begin shopping by typing words and phrases into the search bar for the product they want. The phrases that people use play a huge factor as Etsy marks your products based on the way users search and then react to the results those products get.

Therefore, as a seller, it is crucial to think like a shopper to determine which descriptive keywords your prospective customers will incline towards to find your items.

You should make a list of such keywords by brainstorming. Once you have gathered keywords, go into the listings editor and put those keywords and phrases into your product tags and item titles and at the beginning of your item descriptions.

To see how it performs, check your Shop Stats to see which keywords work and replace those that do not.

Think Like a Brick-and-Mortar Store

To increase your sales, keep related items in your store; this makes buyers buy things as they seem to belong together. You should keep the prices varied as it attracts a variety of shoppers, encourages multiple purchases, and attracts repeat customers. If you sell only one item type, offer various colors and materials. You could also give a group of products to appeal to gift-givers.

Once you do all this, get a banner for your Etsy store, preferably that matches your brand and complements your product design.

Product Prices

Prices play a pivotal role, so ensure pricing your items correctly. Buyers usually like to purchase items that are not too high or too low. If your prices are high, the chances are that they will go to your rivals. If your prices are way too low, they might doubt the reliability of your products. Therefore, keep the following things in mind while deciding on rates: 

  1. The money that you use for product-making.
  2. The profit you want to enjoy.

Spread the word

You can opt for numerous ways to advertise your Etsy products. One of them is word of mouth. You can get a famous personality or an influencer to promote your product. Influencers are experts in driving up interest in a particular product. It increases sales. 

Positive reviews from customers also help boost your sales, so ensure your products live up to their expectations to get positive reviews. A good search engine optimization (SEO) strategy also helps buyers find your shop online. 

Be flexible 

Your business is bound to change, so you should be prepared. Whether it’s working with the platform’s changing algorithm, keeping up with market trends, or examining shopper feedback. You should be ready, willing, and able to adapt or try something new altogether.

Keep an eye on seasonal trends, ask your friends and family for honest feedback on your products/services. Determine what’s selling and what’s not in your shop so that you can make sure you’re giving your consumers what they want.

Product testing

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It is a necessary step that most Etsy sellers ignore. You should always test your products before launching them; it helps create trust and reliability amongst buyers. It also keeps customer services chats at bay.

You can ask your family and friends for reviews on items and seek third-party opinions. Also, test the quality and endurance of your items.

Research third-party Etsy software

Every business needs engagement and return on investment in order to thrive. Engaging in community involvement on a regular basis promotes a positive workplace culture. In addition to it, regular engagement activities also build strong relationships with your customer base. Every high-earning Etsy seller makes sure to keep track of their engagement and return on investment. You can also track these things by using third-party Etsy software and use them to increase your engagement and return on investment. A few of such tools are:

  1. Etsy business tools
  2. Photo testing tools
  3. Etsy pricing tools
  4. Digital marketing tools
  5. Promotion tools

Investing in branding elements 

Branding involves many things, and a few of them are as follows:

  1. A logo
  2. Color story
  3. Social media presence
  4. Store presence, etc.

The appearance of your Etsy store is crucial; you can not be inconsistent with the color of your online Etsy store. This factor leads to you keeping one color story throughout your Etsy store.

Hence you need to first decide on a theme and also be consistent with it throughout other promotion channels. Besides it, you can create a Pinterest board for inspiration; your Etsy profile will attract buyers when it is relatable. To make your profile relatable and attractive, you can write about your goals and explain them well. It creates a sense of familiarity for your customers, which might lure your potential customers into buying from you. You can also mention your missions and values on your Etsy profile.

The other thing to pay attention to is your logo and its usage. Etsy sellers should also take care of their logo usage consistency. If you notice well, many successful Etsy sellers use their logos everywhere. All their posts, product packaging, and even products flaunt their logos. Any successful Etsy seller would never compromise on the color of your logo, and the best way to go about your logo color is to get them printed in both black and white and color.

Apart from these things, you can also do the following to ensure a successful Etsy online store:

  1. You can print business cards for your business and hand them out whenever the opportunity shows up.
  2. The other crucial thing on the list is the packaging. All successful Etsy sellers would choose custom packaging that fits the theme of their Etsy online stores for their products.
  3.  A picture is indeed worth a thousand words; therefore Etsy sellers emphasize using the same filter for all their photos.

Conclusion

These are the things you need to take care of before opening a shop on Etsy. Besides these things, getting in touch with a professional to set up your Etsy shop is also crucial whether or not you want to make your Etsy online store your main business. If you want to seek professional help, get in touch with AppsRhino today!

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