Sell what you make on Etsy: how to start

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. 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.

   • Read Etsy's Seller Policy

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

2. 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.

   • Etsy fee basics
   • Etsy payment processing fees by country

   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. 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.

   • Open an Etsy shop

   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. 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.

   • Etsy Seller Policy: intellectual property and listing rules

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

5. 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.

   • Manage taxes for your gig work — IRS
   • Self-employment tax — IRS
   • Estimate what you keep after tax — DebtRoute 1099 calculator

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

What Etsy and the IRS require

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

Sources

• Seller Policy — Etsy, checked 2026-10-20
• Etsy fee basics — Etsy, checked 2026-10-20
• Etsy Payments processing fees — Etsy, checked 2026-10-20
• Fact Sheet 2025-08: Form 1099-K FAQs — Internal Revenue Service, checked 2026-10-20
• Self-employment tax (Social Security and Medicare taxes) — Internal Revenue Service, checked 2026-10-20
• Manage taxes for your gig work — Internal Revenue Service, checked 2026-10-20