Setting Up an Etsy in 2021: Everything You Need to Know

Many businesses have struggled to deal with the limitations and uncertainties of the COVID-19 pandemic, but one impressive success story comes from Etsy. The online marketplace has seen its stock increase by 39% in the past month alone, an all-time high for the company. And as well as offering shoppers the chance to purchase unique handmade items, vintage goods and craft supplies, Etsy has also provided a lifeline for those dealing with serious financial issues. The popular website has allowed the creative-minded among us to start their own home-grown side hustles.

The pandemic means there’s still a lot of economic uncertainty, and if you have an idea for products that would be at home on Etsy, now could be a great time to consider setting up your own shop. It’s an exciting route to pursue, and our tips will ensure you have a strong foundation to build upon.

1. Set up your shop

To set up your shop, all you need to do is create an Etsy account, click the ‘sell on Etsy’ option, and then select ‘open your Etsy shop’. As well as picking your language, currency and country, you’ll also need to choose a shop name. This will be very important for your branding so take some time to play around with different ideas. Etsy has lots of naming tips here that will help. For instance, a descriptive one which “You can think of […] like a formula: a word or phrase that expresses the vibe or feeling you want your brand to evoke added to descriptive words that make it clear what you sell.” Urban Cheesecraft and Morning Ritual Jewelry are examples of this.

Check that your chosen name isn’t already being used on Etsy, and perhaps Google it as it will be harder to associate your business with names already in existence. Finally, make sure it isn’t trademarked, otherwise you risk potential legal conflict later.

Now you just need to bring your new shop to life. Upload an attention-grabbing banner and logo, and add a friendly shop announcement to welcome visitors and explain what your business does. Your ‘about’ section is also important, allowing your customers to discover your history, values and goals, thereby helping you stand out from competitors.

2. Start marketing it

A solid marketing strategy is crucial for ensuring people can find you, and also for growing and maintaining your relationship with your customers. You’ll have to continually adapt your plan as your business develops, but in the early stages, your main focus should be establishing a presence.

Social media is a good place to start and it doesn’t require you to spend any money either. You can post about your new shop using your personal accounts if you have a decent following, but it’s usually better to set up new business profiles as this looks more professional and means the content will be consistent. Instagram is ideal for visually presenting your products in attractive ways, and you can use relevant hashtags to attract users searching the same terms. Facebook is also worth considering as means of obtaining customer reviews, while you can also provide instant customer service using Facebook Messenger.

Whatever platform you choose, it’s easy to share content directly from your shop via its social media section. Etsy will also suggest what you should post and offer tips and advice tailored to each social media channel. If you’re willing to spend a little money on your marketing, you could also use Etsy Ads. This means ads of your chosen listings will appear in Etsy search results according to your daily budget. You also have the option to have ads placed on offsite platforms like search engine results pages and social media sites.

3. Consider shipping options

With a solid market strategy in place, hopefully it won’t be too long until you secure your first customers. Now you need to think about how you plan to deliver your products to them. The most common method is through the Royal Mail, in which case you’ll need to calculate your postage costs and charge customers accordingly. These depend on the size and weight of your package, so it’s a good idea to measure a range of your products to give you a rough estimation. The costs are also affected by the length of delivery time and whether you want to track the parcels, which means you need to consider what delivery options you’ll offer customers before setting prices.

However, the postal service isn’t the best option for everyone. It could be tricky to find time to go to the post office regularly — particularly in a pandemic or when you’re shipping high value, fragile, or perishable items that need to be delivered quickly. Using courier services may be more convenient as these come directly to your door and take the strain off the Royal Mail. This could also give your Etsy shop an appealing USP. The UK eCommerce Shipping Survey found that just seven out of 100 of the country’s biggest retailers offered same-day delivery. Using a service like CitySprint for instance, which has the largest same-day courier network in the UK, would enable you to provide these short delivery times and set your shop apart from the competition.

4. Think about customer incentives

To run a successful Etsy shop, you need to make sure that not only are you attracting new business, but you’re also turning first-time customers into repeat buyers. Recent statistics show that 75% of consumers are likely to make another purchase after receiving an incentive, and 45% made one to three purchases because of incentives in the past year.

Offering a discount on their next purchase is a good way to entice them back, as is a loyalty card that culminates in a larger discount or a free gift. Deals like buy one get one free are worth exploring in order to boost overall sales, and free delivery is also likely to go down well. According to the Magento UK Consumer Preferences Report, 61% of shoppers say free delivery would influence them to shop with a brand again, making this the highest decider, followed by price and free returns. Though it may not be feasible for you to cover postage costs at all times, you could offer this to customers who spend a certain amount, like free delivery over £50.

Make sure you advertise your incentives widely on social media and any other marketing channels you decide to use. And most importantly, don’t offer anything you can’t afford. Pay close attention to your margins and check that your business is able to cover the profits you’ll dent with these incentives before committing to them.