The Etsy Starter Checklist That Will Jumpstart Your Side Hustle

Aug 06, 2025

By Dominique A. Harroch and Richard D. Harroch

Starting an Etsy shop can be one of the most rewarding and creative ways to turn your hobby into a thriving side hustle. Whether you're a crafter, baker, vintage treasure hunter, or digital product creator, Etsy offers a built-in audience and user-friendly platform for new entrepreneurs.

But launching your business successfully takes more than just uploading a few items and waiting for sales to roll in. With competition fierce and customer expectations high, the key to standing out and making money is preparation.

Here’s your complete Etsy starter checklist—created with insights and research assistance from ChatGPT—to help you launch your shop the right way and jumpstart your side hustle with confidence.

1. Define Your Niche and Product Offering

Before you even set up shop, spend time clarifying:

What you’ll sell: Handmade items, vintage goods (20+ years old), craft supplies, or digital downloads?
Who your audience is: Be specific about your ideal customer. Knowing their age, lifestyle, values, and shopping preferences will shape your branding and marketing.
What makes your product unique: What’s your differentiator? Consider style, materials, story, or functionality.

Tip: Avoid trying to sell everything. Focus on a specific niche to build trust and brand clarity.

2. Research the Market and Keywords

Etsy is a search-driven platform, so understanding what customers are searching for is essential.

Use Etsy’s search bar to explore autocomplete suggestions.
Check out top sellers in your niche. What keywords are they using?
Use free or low-cost tools like eRank or Marmalead for keyword research.
Identify trending tags and categories that apply to your product.

SEO Tip: Choose keywords based on what buyers would type when searching for your product, not just how you describe it.

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3. Set Up a Professional Etsy Account

Create your Etsy seller account and set up your shop:

Choose a shop name (max 20 characters). It should be memorable, easy to spell, and reflect your brand.
Upload a logo and banner to make your storefront visually appealing.
Fill out the "About" section to tell your story—why you started the shop, what you make, and what sets you apart.
Set up shop policies (shipping, returns, FAQs). This builds buyer confidence and reduces post-sale issues.

Note: Make your shop mobile-friendly. Most Etsy shoppers browse and buy from mobile devices.

4. Create High-Quality Product Listings on Etsy

Your listings are your virtual storefront—make them shine. Each listing should include:

Clear product titles: Use SEO-rich keywords, not just creative names.
Professional photos: At least 5 images per product. Include different angles, lifestyle shots, and size references.
Detailed descriptions: Cover size, materials, care instructions, usage ideas, and what the product includes.
Accurate tags and categories: Choose 13 relevant tags per listing to improve search visibility.
Competitive pricing: Research what similar products sell for and factor in your time, materials, fees, and shipping.

Pro Tip: Use natural light and simple backgrounds to make your photos pop.

5. Plan for Production and Inventory

Even small shops need systems. Decide if you’ll:

Make to order or hold inventory? Each has pros and cons depending on time and storage capacity.
Track inventory manually or with software? As orders grow, tools like Craftybase or QuickBooks Commerce can help.
Source materials in bulk? Buying in volume can cut costs and ensure consistency.

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6. Handle Logistics: Shipping and Fulfillment

Shipping can make or break your reviews.

Offer clear shipping timelines and stick to them.
Use Etsy’s shipping labels feature for discounted rates and convenience.
Offer free shipping if possible—Etsy promotes free shipping in search results.
Choose sturdy, branded, and eco-friendly packaging to enhance the unboxing experience.
Test your download files thoroughly if you’re selling digital products.

Tip: Consider shipping insurance for valuable or international orders.

7. Launch Etsy Shop With a Marketing Plan

Don’t rely solely on Etsy traffic. Spread the word:

Use social media (Instagram, Pinterest, TikTok) to show off products and process.
Offer a launch discount or freebie to incentivize early buyers.
Create an email list (using a free tool like Mailchimp) to build repeat customers.
Engage with the Etsy community—join forums, teams, and promote through Etsy ads.

Bonus: Consider starting a blog or YouTube channel for your niche. Content marketing builds authority and drives traffic.

8. Understand Etsy Fees and Profit Margins

You need to know your numbers to run a profitable side hustle. Here are the core Etsy fees you’ll encounter:

Listing fee: $0.20 per item (charged when you list and renewed every 4 months)
Transaction fee: 6.5% of the item price plus shipping
Payment processing fee: 3% + $0.25 (U.S. rate)

Example: Selling a $20 item in the U.S. with $5 shipping

Let’s break it down:

Item price: $20.00
Shipping charged to buyer: $5.00
Total sale amount: $25.00

Now apply the fees:

Listing fee: $0.20
Transaction fee (6.5%): 6.5% of $25 = $1.63
Payment processing fee: 3% of $25 = $0.75 + $0.25 = $1.00

Total Etsy fees: $0.20 + $1.63 + $1.00 = $2.83

So your net revenue is: $25.00 - $2.83 = $22.17

From that, you still need to subtract:

Your cost of goods (materials or production)
Shipping cost (what you pay to ship the item)
Packaging costs (boxes, labels, tape, etc.)

Let’s say it costs you $2.50 to make the item and $4.00 to ship it:

Total costs: $2.83 (fees) + $2.50 (materials) + $4.00 (shipping) = $9.33
Profit: $25.00 - $9.33 = $15.67 gross profit

This example shows how important it is to factor in every fee and cost before setting your prices. A $20 item might sound profitable, but understanding your true margins will protect your business as it grows.

9. Optimize and Evolve your Etsy Shop

Once your shop is live, keep improving:

Monitor analytics: See which listings perform best, where traffic comes from, and your conversion rate.
Request reviews: Etsy allows follow-up messages. A simple “Thanks for your order!” can encourage feedback.
Test and iterate: Update photos, experiment with keywords, and refresh your listings seasonally.
Add new products regularly: This helps with search visibility and keeps your shop fresh.

Final Thoughts on Starting an Etsy Shop

Starting your Etsy shop may feel overwhelming at first, but breaking it down into clear steps will help you launch with clarity and purpose. With consistent effort, quality craftsmanship, and smart marketing, your side hustle can grow into a profitable and fulfilling venture.

Remember: Success on Etsy doesn’t happen overnight—but with the right foundation, you will be well on your way.

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About the Authors

Dominique A. Harroch is the Chief of Staff at AllBusiness.com. She has been the Chief of Staff or Operations Leader for multiple companies where she leveraged her extensive experience in operations management, strategic planning, and team leadership to drive organizational success. With a background that spans over two decades in operations leadership, event planning at her own start-up and marketing at various financial and retail companies. Dominique is known for her ability to optimize processes, manage complex projects and lead high-performing teams. She holds a BA in English and Psychology from U.C. Berkeley and an MBA from the University of San Francisco. She can be reached via LinkedIn.

Richard D. Harroch is a Senior Advisor to CEOs, management teams, and Boards of Directors. He is an expert on M&A, venture capital, startups, and business contracts. He was the Managing Director and Global Head of M&A at VantagePoint Capital Partners, a venture capital fund in the San Francisco area. His focus is on internet, digital media, AI and technology companies. He was the founder of several Internet companies. His articles have appeared online in Forbes, Fortune, TIME, MSN, Yahoo, Fox Business and AllBusiness.com. Richard is the author of several books on startups and entrepreneurship as well as the co-author of Poker for Dummies and a Wall Street Journal-bestselling book on small business. He is the co-author of a 1,500-page book published by Bloomberg on mergers and acquisitions of privately held companies. He was also a corporate and M&A partner at the international law firm of Orrick, Herrington & Sutcliffe. He has been involved in over 200 M&A transactions and 250 startup financings. He can be reached through LinkedIn.