How to Start an Etsy Shop: Steps, Fees and First Sales

To start an Etsy shop, sign in to an Etsy account on a computer, go to Etsy.com/sell and select Get started. Etsy then walks you through shop language, country and currency, a shop name, your bank and card details, identity verification, two-factor authentication and a first listing. It costs $0.20 to list an item, and you pay a 6.5% transaction fee plus payment processing only when something sells.

Check what you can sell before you open

Etsy has one rule that decides most questions: everything you list must be made, designed, handpicked or sourced by you. That covers four kinds of shop.

Reselling mass-produced items is not allowed, and AI-prompted designs must disclose the use of AI. Services and rentals are generally off limits unless they produce a new tangible item, and metaphysical services such as reiki and spell casting are prohibited. The prohibited list also covers alcohol, tobacco, drugs, weapons, hazardous materials and mature content.

Selling files rather than objects? See our guide to selling digital products.

You don't need a business license, but you must follow the laws that apply to a small online business. You also need to be 18 or older to use Etsy Payments, which is how Etsy pays sellers.

Open your shop from Etsy.com/sell

Have your ID, bank details and a card nearby. Setup must happen in a desktop web browser; afterward you can use the Etsy Seller app.

1. Sign in to Etsy, or create an account. This is the same account you use to buy.
2. Go to Etsy.com/sell, select Get started and answer a few questions about your business experience.
3. Set your shop language, shop country and shop currency. Choose the language carefully: you can't change it later, though you can add translations once the shop is open. Pricing in the same currency as your bank avoids conversion fees.
4. Choose your shop name (rules below).
5. Connect your bank account. Pick your bank's country from Where is your bank located, then under For tax purposes, what type of seller are you? choose Individual or sole proprietorship or Incorporated business.
6. Add a debit or credit card for paying your Etsy bill.
7. If a one-time shop set-up fee applies to you, Etsy shows the amount in the Total due now section. Check the box to authorize it. It is non-refundable.
8. Verify your identity with Persona, Etsy's verification partner. Choose Express review with biometric info or Manual review without biometric info, select Begin verifying, pick the country that issued your ID, then upload your ID and a selfie. No camera on your computer? Select Use another device to get a link by SMS or email.
9. Turn on two-factor authentication with an authenticator app (Etsy's recommendation), SMS or a phone call.
10. Select Open your shop.

Etsy's help center also says you need to add your first listing before the shop can open, so have one item photographed and priced before you start.

Shop name rules that trip people up

• 4 to 20 characters
• No spaces or special characters
• No profanity
• Not already used by another Etsy member
• Not someone else's trademark

If your first choice is taken, Etsy suggests available names and holds your pick while you finish setup. You can rename the shop later from Your shop under the Shop Name tab.

When verification stalls

Your ID must be unexpired and in the same name as your bank account. You can keep setting up during review and check the result in Shop Manager under Legal & tax information. If a phone number fails for two-factor authentication, use an authenticator app.

Know every Etsy seller fee before you list

These are the US rates from Etsy's Fees & Payments Policy, updated October 5, 2026. Etsy says there are no additional monthly fees for a standard shop.

A few details matter more than they look:

• Listings renew automatically. Each listing lasts four months, and auto-renew charges another $0.20. If you list several of the same item, Etsy charges $0.20 again after each one sells. Editing a listing is free.
• Processing fees depend on your bank's country. It is 4% + 0.20 GBP in the UK, 3% + 0.25 CAD for Canadian domestic and US orders, and 4% + 0.30 EUR in most EU countries. Some countries add a Regulatory Operating fee.
• Offsite Ads are optional only while you're small. Etsy buys ads for your listings on sites like Google, Instagram and Pinterest. Under $10,000 in sales over the prior 365 days you may opt out. Once you reach $10,000, you pay 12% and stay in for the life of your shop.

Here is what one sale costs a US seller. A $30 item with $5 shipping: $0.20 listing, about $2.28 transaction fee (6.5% of $35) and $1.30 processing (3% of $35 plus $0.25), roughly $3.78 before sales tax. If that order came through an Offsite Ad, add $5.25.

Fees come out of your sales automatically. See them in Shop Manager under Finances, Payment account.

Build a first listing that can be found

Etsy's listing form has seven tabs: Photo & video, Category, Item details, Item options, Pricing & shipping, How it's made and Settings. A few things to get right the first time:

• Use the photo space. You can add up to 20 photos and 2 videos of 5 to 15 seconds. Show scale, texture and the item in use.
• Write the title for search. Titles can run to 140 characters, but Etsy suggests fewer than 15 words that say plainly what the item is. Skip subjective words like "perfect".
• Choose the title carefully before you publish. The listing's web address is built from the title at first publish and never changes, even if you edit the title later.
• Fill all 13 tags with words a buyer would type, like "linen apron" or "personalized dog tag".
• Price with fees in mind. Check your price against the fee table above.

A new listing can take up to 48 hours to appear in Etsy search.

Send your followers to your Etsy shop

Your followers on Instagram and TikTok are often your easiest first sales, and Etsy pays you back for bringing them.

Join Share & Save first. In Shop Manager, go to Marketing, select Share & Save, then Join now. When a buyer orders within 30 days of clicking a link you shared, Etsy instantly refunds 4% of the eligible order total (6.5% for your first two weeks). On the $35 order above, that is $1.40 back. Eligible links are your shop link in the yourshopname.etsy.com format, listing links (in Listings, the gear icon, then Share) and promo code links. Links in Etsy Messages or in listing descriptions don't count, and an order whose last click was an Offsite Ad doesn't either.

Then put that link where your followers already look:

1. Instagram bio. Go to Edit profile, Links, Add external link. Instagram allows up to five.
2. Instagram stories. Add the Link sticker from the Stickers icon to a story about a new drop. Our guide on adding a link to an Instagram story covers the sticker step by step.
3. TikTok profile. You need at least 1,000 followers or a Verified Business Account. Tap Profile, Edit profile, then Add next to Links. Details are in our TikTok bio link guide.

For the bigger picture, see how to sell on Instagram.

Show your Etsy products on an Olaa page

If your bio link needs to point to more than your Etsy shop, such as a newsletter or a booking link, a link in bio page holds all of it.

Olaa Pro ($8 a month or $72 a year) shows your Etsy products with their photo and price, as a button or a buy card. Checkout happens on Etsy, and Olaa takes no cut. The free plan gives you one page with unlimited links, and setup takes a few minutes with no code. See everything on the features page.

FAQ

How much does it cost to start an Etsy shop?

Listing an item costs $0.20, and Etsy says there are no additional monthly fees for a standard shop. Some new sellers are charged a one-time, non-refundable set-up fee, and Etsy shows the amount before your final setup steps. Everything else, the 6.5% transaction fee and payment processing, is charged only when you make a sale.

Do I need a business license to sell on Etsy?

No. Etsy doesn't require a business license. You are still responsible for following the laws that apply to a small online business where you live, so check with a qualified professional if you are unsure.

Can I open an Etsy shop on my phone?

Not the first time. Etsy requires setup in a desktop web browser. Once the shop is open, you can manage it from the Etsy Seller app.

What does Etsy charge per sale?

For a US seller, 6.5% of the item price plus shipping and gift wrap, and a payment processing fee of 3% plus $0.25 on the total. If the sale came from an Offsite Ad, add 15% (or 12% for shops past $10,000 in yearly sales), capped at $100 per order.

Can I change my Etsy shop name later?

Yes. After the shop is open, go to Your shop and use the Shop Name tab. The new name has to meet the same rules: 4 to 20 characters, no spaces or special characters, not already taken and not someone else's trademark.