How to Start an Etsy Business in the UK!
Most people have heard of Etsy; it’s the go to marketplace for unique gift ideas, vintage furniture and handmade crafts. But for entrepreneurs looking for a marketplace for their products, Etsy is a treasure trove of opportunity.
Etsy is an online marketplace where people can buy and sell handmade, vintage and unique items. It’s become one of the most popular platforms for creative entrepreneurs. Etsy started back in 2005 as a platform for creatives to sell handmade wares, but it has grown massively over the last 17 years. Etsy stocks soared last year, and it is now a multi-billion dollar company.
If you’re looking for an easy way to sell your products online, Etsy should be at the top of your list. Before you start, you’ll need to familiarize yourself with the process and requirements. This guide will outline the five steps you need to get your Etsy shop up and running. We’ll also provide tips for getting your business off to a successful start.
5 Steps to Start an Etsy Business in the UK
Setting up an Etsy business is a pretty straightforward process. There are over 4 million Etsy sellers worldwide. So, if you want to set yourself up for success, you need to set yours up the right way. Plus, you’ll need to make sure you’re set up to pay any UK tax on your Etsy income so you don’t get a nasty surprise from HMRC.
Step 1: Decide What You Want to Sell on Etsy
If you’re thinking about setting up an Etsy business, you’ve probably already got an idea of what you want to sell. You may already have a long list of products that you want to add to your store. But if this is your first time selling online, it’s a good idea to start with a smaller number of products and build your offering.
Take a look at other stores and products in your niche and see what seems to be popular with buyers. If you have any products that are trending, start with them. But if you can, try to find a gap in the market your products may be exactly what Etsy is missing.
At this stage, it’s also worth taking the time to scout out your competition. Take a look at their product ranges, prices, shipping prices and reviews. Looking at their ranges and costs will allow you to price your products competitively. Their reviews will help you find common issues you can avoid and pain points to address.
Step 2: Choose a Name for Your Etsy Store
Naming your store is one of the most enjoyable parts of setting up your Etsy business. It’s your chance to get creative and find the perfect name. But while it can be a fun process, you need to find a name that your customers will remember and keep coming back to. Try to find a name that reflects the type of product you sell rather than something abstract.
It’s good to put together a list of potential names and try them on for size. Ask your family and friends for their opinion on your possible names and take their thoughts on board.
Alongside coming up with a memorable name, your business name also needs to follow Etsy’s naming guidelines:
No special characters or spaces
Not an existing Etsy store
It doesn’t infringe on an existing trademark.
Step 3: Create Your Etsy Account and Store
With your store name and products all good to go, you can create your Etsy account. The first step in the registration process is to go to etsy.com/sell and click “Get Started”. You can log in if you’ve already got an Etsy account or set one up with your email address, name and password.
Once you’ve set up your account and verified it, you’ll need to set up your account preferences. These include setting your default language, currency and home country. You’ll also need to select whether you’re a full-time seller, part-time or other.
It’s also a good idea to set up your payment settings at this stage. While you can use PayPal to receive payments from debit or credit cards, Etsy has its own payment platform called Etsy Payments. Alongside credit or debit card payments, Etsy Payments also allows you to add gift cards and store credit. All you need to do is add your bank details to receive payments from your sales.
Step 4: Add and Optimize Your Listings
Now that you’ve got all the administrative tasks out of the way, you can start listing your products and getting ready for your first sale. You can sell both physical and digital products on Etsy, and the process is slightly different for each. For this example, we’ll use a physical product.
To add new products, log in to your accounts, go to Shop Manager, and select Add a Listing. You’ll be taking to a new product listing, and you’ll need to add the following:
Product description and categories
Photos and videos
Stock numbers for that product
You can also choose whether you want to run an Etsy Ads campaign for that specific product.
You must take your time adding new products. Etsy is a very competitive marketplace, and if you want your products to appear in search results, you need to optimize your listings. If you can, do some keyword research on rival products that are doing well to include search terms in your product names and descriptions.
Step 5: Register Your Business
Once you’ve got your products listed, you’re pretty much ready to launch your Etsy business. But before you get started, you need to make sure you’re set up to pay any tax on your income. If you earn over £1000 outside of traditional employment in the UK, you need to register for a self-assessment tax return.
You’ll need to register with HMRC as a sole trader or a limited company. Unless you plan to have employees for your Etsy business, registering as a sole trader is probably your best bet. But nothing is stopping you from registering a limited company straight away.
While it might be tempting to wait to register your business, it’s wise to do it before launching your Etsy business. Registering a business and sorting your tax can be daunting, so taking the time to get to grips with it before launching means less stress later.
Once your business is registered, you’re good to go. Get those listings live and start making money from your passion.
How to Start an Etsy Shop
Artists and crafters across the world want to make money doing what they love. Etsy gives them that opportunity. If you are obsessed with making things, you can set up a shop on Etsy to sell your artistry.
Etsy started in 2005 as an alternative online marketplace for art, handmade crafts and vintage items. Nothing on the site can be mass-produced, which gives customers a unique buying experience where they can find handmade items from millions of artisans and creatives all in one place. It has since grown into a publicly-traded company on NASDAQ with over 60 million items for sale and now manufactured products can be sold.
Some people have an Etsy shop as a side hustle, but many artisans make a great income selling online. Wondering how to start an Etsy business? It’s so easy to get started! We share how it’s done and what to consider to legally establish your e-commerce business.
What Skills Do You Need to Be an Etsy Seller?
Etsy makes it easy for artists, designers, craftsmen and hobbyists to make money selling the things they make online. Obviously, you need to have the skills to make products, but do people want to buy what you are making? That’s the big question. Are your products creative and unique? Do they fill a need or make the perfect gift? Before opening your shop, research what other shops are doing well and see who is your competition. If five other shops are selling a similar product, how can you make it different or better? Or maybe you want to come up with another product altogether.
How to Start an Etsy Business
If you are making a business out of selling online rather than just a hobby or side hustle you’ll want to create a business plan. It does take time and effort to start an Etsy shop so you may find it’s not worth it for only a few items. If you want to get serious about it and make a decent income from selling online, here are a few things to consider before jumping in.
What is your brand name?
What is the design look for your brand and Etsy shop?
What are your unique selling points USPs and niche?
What are the start-up costs and expenses?
How many items will you sell and at what price?
What are your business model and legal structure?
What rules and regulations must you follow?
Do you need an accountant or assistant?
What is your marketing plan and how will you build your online presence?
Having an e-commerce business can only be successful if you put in the time to plan out all these details so nothing sneaks up on you later. With millions of products being sold on Etsy, you have to set yourself apart and be a step ahead of your competitors. So don’t skip this part.
How to Start an Etsy Shop
The good news is that starting an Etsy shop is free. Each listing you make on the site for your wares costs a small fee and Etsy takes a 5% commission on every sale. If you use their payment system there is a processing fee per transaction. Prices for goods are set by the seller, so take into account the fees and commission you have to pay when coming up with prices. Setting up an Etsy shop is as easy as pie go to etsy.com to create an account, create your shop and preferences, make sure you have an awesome name for your shop, then list your items with really great photos and descriptive text.
But the work doesn’t stop after you hit publish. There are always things to do when running an Etsy business like optimizing your shop for searches, marketing your shop across social media, package and shipping products, continuing to create new products, coming up with creative sales and discounts to incentivize shoppers, and taking care of administrative tasks. Don’t forget to save receipts for your materials, equipment, advertising costs, business travel costs and insurance. Keep track of any business expenses because you may be able to take deductions on your taxes.
Do You Need to Pay Taxes with Your Etsy Shop?
The short answer is yes, if you sell more than £1,000 in a year on Etsy then you will need to register a self-employed business and pay taxes depending on your income. Every country has different rules and regulations regarding taxes you must pay on income made from an e-commerce enterprise so please consult an accountant in your country of residence.
In the UK, when you are ready to start your Etsy business you need to register with HMRC. If you plan to make selling online a large enterprise you might consider forming a limited company. If it’s more of a side hustle you can go the sole-trader route. Deciding and completing your company formation is crucial to your business success. We can help you get set up Esty tax fast and easy.
Are you ready to start an Etsy business? At Mint Formations , we help you form your limited company or self-employed business and take away all the stress that comes with starting a business. We’ll secure your brand name and get your company registered fast so you can start doing what you love.