How to sell your products on Etsy
Start selling handmade, vintage, and creative products to millions of buyers on Etsy
Written by Ebony-Storm Halladay — Freelance accounting copywriter, 10 years. Read Ebony's full bio
Published Thursday 2 July 2026
Table of contents
Key takeaways
- Etsy is an online marketplace where independent sellers list handmade, vintage, and creative products to millions of buyers worldwide.
- The three main UK seller fees are a £0.15 listing fee, a 6.5% transaction fee, and a 4% plus £0.20 payment processing fee on each sale.
- Setting up a shop takes a few steps, from creating an account and verifying your identity to customising your shopfront and listing your first item.
- Tracking your sales, fees, and tax obligations from the start makes it easier to stay on top of your accounting as your business grows.
What is Etsy and who should sell?
Etsy is an online marketplace where creative sellers list handmade, vintage, and unique items to buyers worldwide.
Etsy is used by many independent creatives who sell art, jewellery, furniture, vintage items, digital products, and more. Because millions of buyers use Etsy around the world, it can be a great platform for getting your business out there.
If you're planning to start a creative business or take an existing venture further, you might be wondering how to sell on Etsy and whether the platform is right for you. Many people start on Etsy as side hustlers, selling the things they create alongside other forms of employment. If your Etsy store becomes a successful ecommerce business, it could develop into a full-time venture.
What you can sell on Etsy UK
To make sure items sold on Etsy have the human touch, there are Creativity Standards that require items to be either made, designed, handpicked, or sourced by the seller:
- Items made by a seller are physical goods created by hand or with computerised tools
- Items designed by a seller must be their original design, but can be printed or produced by a third party, or available for digital download
- Items handpicked by a seller are either vintage goods, items from nature, collections, or goods a seller has selected and curated for sale
- Items sourced by a seller are things that enable buyer creativity, like craft tools
Here are some examples of products that you can sell on Etsy:
- Made by a seller: A set of mugs produced by a potter, or a denim jacket the seller has embroidered with flowers using a computerised embroidery machine.
- Designed by a seller: A bundle of colouring pages designed by the seller and delivered to the buyer as a digital download, or a sculptural vase designed by the seller and produced by a production partner.
- Handpicked by a seller: A vintage beaded bag from the 1960s, a collection of fossils, or a new parent's bundle containing themed items for self-care.
- Sourced by a seller: Beads for jewellery-making, clay modelling tools, table decorations for a party, or crafting kits.
There's extensive guidance on what you can and can't sell in Etsy's seller guidance.
How to start an Etsy shop
UK creative business owners can set up an Etsy shop in a few short steps. Once you've started your account, you can refine your shopfront and list your first item.
1. Review what you can sell
Alongside Etsy's Creativity Standards, review the guidance on which items are permitted and prohibited.
2. Check your eligibility for Etsy Payments
Check that you're setting up a store in a location that's eligible for Etsy Payments. This is the main way to get paid on Etsy, and allows your customers to pay using debit and credit cards, third-party payment providers, and Etsy gift cards and credits.
3. Create your Etsy account
If you don't already have one, set up an Etsy account with your email address and a password. Add a profile picture and bio so your buyers can see who they're purchasing from.
4. Set up your shop
Head to Etsy's sell page and select 'Get started'. Answer the questions about your business experience, then set your shop's country, currency, and language.
5. Choose your shop name
This needs to be between four and 20 characters and unique from other sellers, so you might need to get creative.
6. Connect your bank account
Connect your bank account to Etsy so you can get paid. Once you've entered your bank account details, you'll also need to verify your identity, which includes uploading a photo of your ID. Follow Etsy's guidance on identity verification for more detail.
7. Enable two-factor authentication
The final step is setting up two-factor authentication, where Etsy sends a code to your email address or phone for you to sign in. After this, your shop is ready to customise.
Creating your shopfront
All that's left to do is to make your Etsy store feel unique, distinctive, and aligned with your creative business. Spend some time on the following steps to make sure your store stands out:
- Add a shop icon, or logo, that represents your brand.
- Create a stylised banner to showcase your product range; tie it in with your shop logo so that the branding looks cohesive.
- Highlight your business story in the 'about' section; tell customers a bit about you, how your business started, and what makes your products special.
- Add shop members so that customers can get to know your team and see other Etsy businesses you might collaborate with.
- Add your store policies for delivery, returns, exchanges, and anything else your customers need to know before purchasing; set your delivery prices and decide if postage is included or added on top.
Listing your first item
You need to list your first item to complete the Etsy store setup process. This involves uploading images, a clear description and title, and adding attributes and specific features that your ideal customer is likely to be searching for. Etsy's listing best practices include:
- Using high-quality images and videos that show what you're selling clearly and offer a true representation of the product
- Using titles and tags to describe the product accurately and are optimised for Etsy's search function; this is about using keywords that your customers are searching for, and being as detailed as possible with your listings
- Setting realistic processing times so that your customers know how long their items will take to arrive
How much it costs to sell on Etsy UK
There are a few different Etsy fees UK sellers should be aware of. The three main Etsy seller fees in the UK are a £0.15 listing fee, a 6.5% transaction fee, and a 4% plus £0.20 payment processing fee.
Firstly, you might need to pay a one-time store setup fee, depending on your store type. The amount varies, but is confirmed upfront before you finish setting up your shop, so that you know how much is due.
Then there's the listing fee, which is £0.15 per item. This fee is always set in USD, at $0.20, so the exact amount might vary. Listings last for four months, or until sold. If the listing expires at four months and is auto-renewed, you need to pay the listing fee again.
Then there's the transaction fee, which is charged when you sell an item, at 6.5% of the total order amount. On top of this, you have a payment processing fee of 4% plus £0.20.
You might be wondering: is selling on Etsy profitable? The best way to work this out is to calculate the fees for your products.
How much does Etsy take from a £100 sale?
For example, a handmade item listed for £100 starts with an initial £0.15 listing fee. Then, there's a 6.5% transaction fee (£6.50) if a customer purchases it. And finally, a 4% plus £0.20 payment processing fee (£4.20). That means the total charges on a £100 sale are £10.85.
On a £200 listing, the total fees come to £21.35. These figures don't include any advertising fees, or the VAT that Etsy charges on seller fees (regardless of whether you're registered for VAT or not).
There are other fees for additional Etsy services, such as:
- Etsy ads and offsite ad fees are usually optional, though, offsite ads are non-optional for those making more than $10,000 per year.
- Currency conversion fees of 2.5% if your shop currency and bank account currency differ.
Once you've tallied up the fees you'll need to cover, make sure you incorporate this into your Etsy pricing strategy. That could mean bumping up prices a little for customers, or accepting lower margins.
How to get found and make your first sale
Business owners who create Etsy shops but don't refine their listings or spend time on marketing can struggle to make a sale.
Start with the basics. Make your listings detailed, visually compelling, and accurate. Include key attributes like materials, age, and colours, and use search terms your customers are likely to be using. This will help you rank well in the Etsy search page. Don't be afraid to tweak your titles and tags every so often if a product isn't landing with customers.
If you're not sure where to start, look at competitors who have lots of positive reviews and regular sales. Take inspiration from them, and consider how you might do things differently. When you do make sales, encourage buyers to leave reviews; potential purchasers will be checking your feedback to see if they should spend money with you too.
Take advantage of free promotion and marketing options, such as social media, which can help you grow an audience. Video sharing apps where you can show customers how your product is made, the design process, or any other behind-the-scenes material can help you build a connection with potential buyers.
You might also decide to trial some Etsy ads, either on or off the site. Just make sure you're setting a budget and tracking the impact of paid advertisements so that you're protecting your profit margins.
Further down the line, you could find other sellers on Etsy to partner with and create collaborative products. The benefit of this is that you can tap into their audience, discovering new customers who may not have found you otherwise.
Use Xero to help your business thrive on Etsy
Once your business is off the ground and sales are flowing in, you need a practical way to manage your money.
Xero accounting software can help you track your cash flow and view your financial picture at a glance, so you can maintain a healthy business on Etsy. Make Etsy bookkeeping simple by connecting your business bank account to Xero, so that transactions flow in automatically.
Integrate the Etsy app with Xero, so sales from the platform are automatically categorised in Xero. You can also monitor stock with Xero's inventory tools, and maintain accurate financial records ready for tax return submissions to HMRC.
FAQs on how to sell on Etsy
Here are some common questions about selling on Etsy in the UK.
How much does Etsy take from a £100 sale?
Etsy takes approximately £10.85 from a £100 sale in the UK. This is made up of a £0.15 listing fee, a £6.50 transaction fee (6.5%), and a £4.20 payment processing fee (4% plus £0.20). This doesn't include VAT on seller fees or any advertising costs.
Do I need to register as a sole trader to sell on Etsy?
You don't need to register straight away. In the UK, individuals get a tax-free trading allowance of £1,000. If you earn more than this through your Etsy business, you must register as self-employed and declare your earnings to HMRC through Self Assessment.
Do Etsy inform HMRC?
Under the Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023, Etsy is required to report UK seller information to HMRC. This includes details such as your name, address, and transaction totals. You're still responsible for declaring your own income and paying any tax due through Self Assessment.
Do I charge VAT on Etsy orders?
If you're not VAT-registered, you don't charge VAT on Etsy sales. Etsy still charges you VAT on their fees where applicable. If you are VAT-registered, you need to add VAT to your sales and report it to HMRC. Submit your VAT number to Etsy to receive VAT invoices for your records.
When do I get paid with Etsy Payments in the UK?
New sellers are set up for weekly payments by default. You can change these settings in your account to daily, fortnightly, or monthly payouts.
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