Need money now

Sell what you make on Etsy: how to start

Handmade, vintage or craft supplies — exactly what Etsy charges, where to open your shop, and the IRS reporting rule for online sales.

  • 5 steps, each with the official page
  • Reviewed 2026-10-20

Start with step 1

At a glance

$0.20Etsy listing fee per item, sold or not
6.5%Etsy transaction fee on the total order amount
3% + $0.25payment processing per order with a U.S. bank account
$20,000and over 200 sales: when a platform must send you a Form 1099-K (IRS)

Sources: Etsy's fee pages and IRS Fact Sheet 2025-08. Checked 2026-10-20. Income is taxable even if you get no Form 1099-K.

What the work involves

  • Make, source or restore the items you sell
  • Photograph and describe them honestly
  • Answer buyer messages
  • Pack and ship on time
  • Track income, fees and costs for taxes

Your step-by-step plan

The same steps apply in every state. Every button opens the exact page where you act.

  1. Step 1: Check that Etsy allows what you want to sell

    Etsy is for items you make or design, vintage items and craft supplies. Read the Seller Policy before you buy materials, so you do not build stock you cannot list.

    Done when: You know your item fits one of Etsy's allowed categories.

  2. Step 2: Price each item with every fee included

    Etsy charges $0.20 per listing whether or not it sells, 6.5% of the total order amount, and — with a U.S. bank account — a payment processing fee of 3% + $0.25 per order. Add materials, packaging, shipping and your time before you set a price.

    Have ready: Cost of materials per item · Packaging and shipping cost · Hours you spend per item

    Done when: You have a price for each item that still leaves a profit after all fees.

  3. Step 3: Open your shop on Etsy's own page

    Start from Etsy's sell page — never a link in a message offering to "set up your shop" for a fee. You will name the shop, add listings, set up payments and billing.

    Have ready: Shop name · Photos of each item in daylight · Bank account and a credit or debit card for billing

    Done when: Your shop is open with at least one listing live.

  4. Step 4: Write listings buyers can trust

    Describe each item honestly: size, materials, care, processing time and shipping. Never copy another shop's photos or use brand names and characters you do not own the rights to.

    Done when: Every listing has your own photos, real measurements and a processing time you can keep.

  5. Step 5: Set money aside for tax from the first payout

    The IRS says all income is taxable unless the law says otherwise — even if you never get a Form 1099-K. If your net self-employment earnings are $400 or more, you owe self-employment tax (15.3%: 12.4% Social Security plus 2.9% Medicare) and file Schedule SE. Keep receipts all year: they help you deduct certain expenses.

    Done when: You know the reporting rule and set aside a share of every sale for tax.

Finish line

You are now waiting for your first order. Keep every conversation and payment inside Etsy — a buyer who asks to pay outside Etsy is a scam.

What Etsy and the IRS require

RuleWhat is requiredOfficial source
What you can sellItems you make or design, vintage items and craft supplies, under Etsy's Seller Policy.Etsy
Etsy fees$0.20 per listing; 6.5% transaction fee; payment processing 3% + $0.25 per order for U.S. bank accounts.Etsy
Form 1099-KA platform files Form 1099-K when your gross payments exceed $20,000 and you have more than 200 transactions — but all income is taxable even without the form.Internal Revenue Service
Self-employment taxOwed when net self-employment earnings are $400 or more (15.3%: 12.4% Social Security, 2.9% Medicare).Internal Revenue Service

Before your first sale, ask your state's revenue department whether you need to register to collect sales tax.

Sources

Fees and rules change: Etsy's own pages are the final word. JoRoute makes no promise about sales or earnings. Reviewed 2026-10-20. This page is general information, not legal or tax advice.