Running an Etsy shop is a popular way to sell products and earn income. For talented artists and crafty individuals, selling your goods in a third-party marketplace is a great way to pursue your passion and profit from it.
But before taking the next step, and after reading Etsy’s seller handbook, you should familiarize yourself with some tips on opening a shop. Business News Daily asked Etsy shop owners to share their advice for opening a shop the right way. Here are a few things to keep in mind when starting your Etsy business.
Pick the right name
While you may want to use the first shop name that pops into your head, you should give it serious consideration before deciding on a moniker.
“Be careful not to pick a name that limits your shop and what you offer,” said Kelly Phillips, owner of Wave of Life. “Avoid using terms in your shop name such as ‘jewelry’ or ‘crochet,’ unless you are absolutely certain that is all you ever intend to sell.”
Names often exude the first impression to buyers, so you want to ensure yours represents your company efficiently and serves its purpose.
“A more fanciful name that is unique to your brand will allow you to expand and grow as trends change,” Phillips said. “Make sure [another] shop is not using a name that is too close to the one you are contemplating, to avoid losing customers to the competition.”
Finances are always a major concern when starting a business – including if your new venture is an Etsy shop. Research the costs of your endeavor before embarking to avoid surprises.
“You should have an idea of what your business model will require [concerning] reporting for income taxes, and you should find out what your state requires of businesses with regards to business licenses and sales tax collection,” said Cathy Stein, owner of EDCCollective. “Getting these things straight before starting a shop on Etsy can help ensure you will not incur a penalty for failure to collect sales tax, for example.”
Additionally, Shelley Burton, owner of Squeaky Sailor Soap, said to calculate how much your product costs to make and how much time it takes to make it.
“The amount everyone else on Etsy is charging for a product similar to yours doesn’t matter if you can’t turn a profit at that price,” she said. “It’s really important to know what your profit margins will be, especially if you are approached by a shop that wants to wholesale with you, because standard wholesale purchasing price is 50 percent of retail.”
Mapping out your expenses will help prepare you for any issues. Create a budget so you’re aware of how much you’re earning versus how much you’re spending, including processes like production, packaging, shipping and more.
“Make sure you think through the cost of shipping,” said Roy Barker, owner of The Clock Monkey. “This includes your time to and from a mail center, the packaging, and the cost of transportation. It is easy to get caught short in shipping.”
Read more: http://www.businessnewsdaily.com/8523-etsy-shop-opening-tips.html