I recently had a look back at a post I made in January 2013 entitled, “Etsy Shop Start-Up — Quick Guide.” I was re-reading it, and realized it was a really good, informational post! Now, over 2 years later, I’ve been running The Curvy Elle Shop for almost 3 years and have had new experiences and insights with running an Etsy shop. It got me thinking that I should update that post a bit. So, here is that same post, with a few little tweaks! Let me know in the comments if there are any questions/information you’d like to see added to this post.
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When I first started looking into starting The Curvy Elle Shop on Etsy, I have to admit, I was thoroughly confused! I had so many questions and it was hard to find straight answers. Eventually, I figured things out (by trial and error mainly). I am still learning things, but I wanted to share my knowledge of starting an Etsy shop for all those looking to begin their own small business!
1. WHAT YOU NEED
- An Etsy account that has been verified.
- A Pay Pal account that has been verified. (This is OPTIONAL if you wish to only sell directly through Etsy.)
- A Product to sell based on Etsy Market Place Criteria.
- Decent quality Camera and photo editing software of some kind (i.e. Adobe Photoshop, iPhoto, etc.).
2. COSTS/FEES
(For a listing of Etsy Fees, click here. For a Listing of Paypal Fees, click here.)
Nothing in life’s for free, right? Neither is starting a business! Etsy only charges you when you LIST something to sell. The Listing Fee is $0.20 (USD) to just list ONE item for 3 months. Once your product sells (and ONLY if it sells), Etsy &/or PayPal additionally charge the following:
Transaction Fee: 3.5% of Selling Price
PLUS one of the two listed below:
Item Purchased Through Etsy Direct Checkout: 3% + $0.25 (USD)
OR
Item Purchased Through Pay Pal (WITHIN USA): 2.9% + $0.30 (USD)
Item Purchased Through Pay Pal (INTERNATIONALLY): 3.9% + “a fixed fee based on currency received”
SO, This means:
Listing Fee + Transaction Fee + Etsy Direct Checkout Fee OR PayPal Checkout Fee = ALL FEES INCURRED
3. PRICING
Whatever product you plan on selling, you need to figure out a practical price to sell your product at. You want to be able to cover all costs and make some profit, but you don’t want to try and screw people over (this will end up biting you in the ass, because your shop will never succeed!). You also don’t want to be too cheap and then screw yourself over! This is a business, and first and foremost you still need to make a living (or whatever cash flow works for your lifestyle/needs).
First and foremost: DO YOUR RESEARCH! Visit other shops with a similar product and see what they are charging. Look at competitors, etc… You don’t want to have some arbitrary number that ‘looks good to you.’ Remember – What is most important is that you can offer a cost effective product at a competitive price!
Most rules of thumb are that you should (retail) price your item 3-4 times what it costs you to make or buy “whole sale.” This may be more or less depending on any costs that need to be covered (supplies, fees – see above, business expenses, etc).
Pricing Example:
You are making an item. Supplies are $5 and it takes you 1 hour to make (say you charge yourself $12 an hour for labor). Your total wholesale cost is $17.
This means that your retail price should be a minimum of $51-68.
Now, ask yourself: Is your product worth this? Will your product sell at this retail price? If your answer is ‘yes,’ then great! If it is worth more, than you may have a higher profit margin. If it is worth less, you may have to find a way to make your product cheaper or look for a different option.
4. SHIPPING COSTS
(Check out Etsy’s ‘Shipping Help’ page for more info.)
I personally ship all my sales via United States Postal Service (USPS), they seem to be the cheapest way to go (in my opinion.) I send most of my orders via first class (small/lighter items under 16 ounces), parcel post, or priority mail (flat rate and non). For estimates on rates, please check out the USPS Postage Calculator. When choosing parcel post versus priority mail, sometimes it is about the same price (or a few cents different) to ship priority mail (and it will get to your customer faster). You can also give a discounted rate when customer’s purchase more than one item. Usually, the shipping costs are in addition to the retail price you are selling your product at.
How I ship items has changed drastically for me over the years. I am continually finding more convenient and/or better priced ways of shipping orders. Previously, I would package orders at home in either my own purchased packaging or USPS Priority Mail packaging, then go to the post office, and either wait in line or use the self help station to purchase shipping. This works fine for some people, but I have found some easier shipping methods.
The following has some more start-up costs, but is easier and more cost effective in the long run.
SUPPLIES
1. Shipping Scale
(Here is an example of one.)
2. Affordable Mailing Envelopes
(Used for International orders and lighter items. Here is an example of one type I use.)
3. USPS Priority Mail Packaging
(It is best to have some flat rate mailing options and regular mailing boxes. These can be shipped to your home or business FOR FREE from the USPS Website.)
4. Packing Tape & Other Packing Supplies
(I always wrap my items in tissue paper.)
5. Printer
6. Printable Shipping Labels
(I use Avery Shipping Labels that work with an Ink Jet printer.)
7. Ruler or Tape Measure
(For measuring a package’s dimensions.)
Using the above supplies, you can purchase shipping labels through Etsy by clicking the “Print Shipping Label” button that appears on each individual order/receipt. You can purchase both domestic and international shipping labels. You will need to enter the shipping method (first class, priority, priority flat rate, etc.), weight, (sometimes) the dimensions of your package, shipping zip code, date of shipment, and if the item is being shipped internationally, you will enter customs information. Once all this information has been entered, there will be a price listed for shipping. To purchase, click the “Confirm and Buy” button. Your Etsy Shop Account will be billed the shipping rate charged.
Once the above is done, all you need to do is drop off your packages at the post office. Most post offices have a package drop off slot or area for drop offs.
5. VISUALS / ADS
Your visuals and ad are a big key to your success. Most people are very visual and you want your product to be shown at its best. This may mean investing in a good camera (I use a Canon Rebel T3i) and find an appealing backdrop with good lighting (I use this backdrop setup).
Make sure to take pictures at multiple angles and zoom ins of details. The written ad should be very descriptive, you should have any measurements (if your product needs it), and most importantly — BE HONEST!
6. CUSTOMER SERVICE
1. Kindness counts and the “customer is always right,” but don’t let anyone take advantage of you.
2. Write up a CLEAR and DEFINITE policy of returns/exchanges and reserves/holds.
3. Respond promptly and clearly to any communication sent to you. Make sure to step back for a while if you find yourself not feeling comfortable with a message.
4. Ship out orders promptly, but give limitations to when you ship orders. (I only ship on week days and I will only make one trip a day to the post office. I always say 1-2 BUSINESS DAYS for shipping.)
7. IN CONCLUSION…
Good luck with your new venture! If you have any questions that I did not go over in this post, feel free to comment!
