My Etsy shop beginnings were rough. The products were of the amateur quality. The listings and photos were thrown together. The tags and titles were created with absolutely no intention or strategy. Thinking back makes me cringe, but I don’t regret jumping in head first at all. Especially since I made my first sale within 24 hours and went on to sell over $1,300 in my first month.
In that year of selling on Etsy, I literally kept records of my finances written down in a notebook. I printed out the invoice for every order and calculated my profit. At the end of every month, I manually did a profit and loss report.
Nothing was automatically captured, calculated, or recorded – everything was on paper, either in my notebook or my file folders. This system took me tons of time to keep up with and stay organized. With no business background, I was doing the best I could to understand my bookkeeping.
Setting up shop on Etsy is a super exciting time. Sharing your art + talent with the world (and getting money in exchange!) is one of the most satisfying feelings ever. But as you begin this journey, you may quickly realize that operating an Etsy shop is not all sunshine and rainbows. There’s real work involved, and even before the sales start pouring in, you’ll want to make sure you’ve gotten the financial and legal side of things squared away correctly.
Today I’m going to offer you a brief overview of the steps required to get the financial side of your business set up properly. One of the biggest challenges we as makers face is that we often don’t even know all the rules that apply to us, so luckily I’ve got this handy printable checklist here for you to help you follow along.
Hesitant about opening an Etsy shop?
There are a ton of pros and cons to choosing to sell your products on Etsy. Depending on which person you ask, you’re going to get varied feedback. I’ll be the first to admit Etsy isn’t perfect, but it is a great platform for people just getting their online businesses started. In my opinion, if you’re selling any type of handmade good, you can’t afford to not be on Etsy.
Great place to start
When you’re just getting started, there are several reasons why Etsy is a perfect place to begin selling. The start up costs are extremely low, there are no reoccurring fees for membership or subscriptions, and it’s relatively easy to set up.
I designed my Guide to Getting Started for those interested in opening an Etsy shop, curious what it takes to sell online, or wanting some tips for improving their sales. I was blown away at the feedback of how many people found it useful and it made me jump for joy.
The guide was created as a personal passion project (say that three times fast!) to help other creatives pursue their passions. Etsy was the gateway that led me to entrepreneurship and I want to encourage others to do the same! Read all about how I turned my hobby into a business using Etsy here.
The freedom I now have is so, so valuable and I feel like I’m living my best life. If I can help others do the same, what’s better than that?
The guide full of actionable information, but for those ready to dive deeper I’ve created a course: Launch Your Etsy Shop in 5 Days. Why?
In the early stages of any new venture, keeping finances as low as possible is always a big priority. One of the things I love about Etsy is that the monetary commitment to getting started is relatively low. It’s technically free to have an Etsy shop!
There are no overall start up costs to setting up on the site itself. You’ll pay a small fee to list each item and will pay the processing charges once it sells. With Etsy, you’re not paying any monthly reoccurring fees to keep your shop running which is
really great crucial when you’re just beginning.
With a stand-alone website, you have to buy a domain, hosting, template or theme, and often some type plugin or ecommerce subscription in order to list and sell products. In most cases, you’ll be charged every year for your domain and hosting as they are annual fees which can be a few hundred dollars.