How To Set Up An Etsy Shop UK: Beginners Guide

how to set up an etsy shop
Photo by Rachel Claire

While there are numerous online marketplaces, Etsy dominates in the sale of handmade goods, vintage items, and arts and crafts. It’s also a top contender for millions of sellers because Etsy makes creating and managing an account simple. The website handles all orders, notifications, and payment processing, allowing crafty entrepreneurs to concentrate on production. Etsy is a great place to start if you’re looking for a platform to quickly get your products online. In this guide, we’ll show you how to start and set up an Etsy shop in the UK for beginners, what selling fees to consider, and how to sell items once your store is up and running.

What Exactly is Etsy?

Etsy is a website that sells handmade goods and artwork. Opening an Etsy shop is free and simple, and it can provide a home for your products, no matter how niche, without requiring you to build your e-commerce website. Some beginners in the UK, after learning how to set up an Etsy account, create items on demand as orders come in, while others keep an inventory on hand. Sellers can stay small on the platform, while others can scale significantly as their businesses grow.

How to Set Up an Etsy Shop For Beginners In The UK

Etsy is an online marketplace for handmade goods and artwork. Knowing how to set up an Etsy shop for beginners in the UK is important and relatively easy, and it can provide a home for your products—however niche—without having to build your e-commerce website. In eight steps, learn how to open an Etsy shop, as well as information on Etsy seller fees and tips for success on the platform.

#1. Open an Etsy Account

By going to and clicking “Get Started,” you can set up an account with Etsy. You can sign up with your email address or a Google, Facebook, or Apple account.

If you’ve previously shopped on Etsy and have an existing account, you can log in and then select “Open Your Etsy Shop” to begin creating your store.

#2. Configure your Shopping Preferences

Following that, you’ll be asked to provide some information about your company, such as how long you’ve been selling goods. If you don’t want to answer these questions, you can skip them. Then you’ll be taken to the “shop preferences” screen, where you can customize the basic settings for your store, such as your default language, country of origin, and currency. If you list products in a currency other than the one in your Etsy Payments account, you must pay a currency conversion fee of 2.5% on each sale.

#3. Give your Etsy Shop a Name

Coming up with an Etsy shop name is where you can start getting creative. Your store name can be anything you want as long as it adheres to Etsy’s guidelines:

  • Four to twenty characters are allowed.
  • There are no spaces or special characters.
  • It must not be a name already in use by another Etsy seller.
  • There are no trademark infringements.
  • There will be no profanity.

You can change the name of your shop up to five times. You can still request a name change after that, but it will have to be reviewed and approved by Etsy Support.

#4. Fill Your Shop With Items

Listing physical and digital items in your Etsy shop (for example, printable stationery, patterns, stickers, and gift tags) requires separate procedures. We’ll show you the fundamentals of listing a tangible item; if you’re listing a digital item, consult Etsy’s guide.

#5. Determine your Payment Preferences

For beginners in the UK, after you’ve added an item to your store, you’ll need to know how to set up your Etsy payment preferences in an Etsy shop. Etsy Payments, which allows you to accept credit cards, debit cards, Apple and Google Pay, Etsy gift cards and store credit, Klarna, and other payment methods, is generally required for sellers. In the UK, Etsy Payments charges a payment processing fee of 4% plus £0.20 per transaction.

#6. Set Up Billing

Etsy will charge you for selling fees if you don’t have a credit or debit card on file. This cannot be a prepaid debit card that cannot be reloaded. If you’re a seller in the UK, you can enroll in auto-billing, which means Etsy will charge your credit card on file for any selling fees you incur. Even if you’re starting an Etsy shop as a side hustle, keep your personal and business finances separate. The simplest way to implement this best practice is to open a business bank account dedicated to the revenue and expenses of your Etsy store.

How Many Items Should You Have in Your Etsy Shop to Begin?

For beginners who just learned how to set up an Etsy account in the UK, I would recommend you start your Etsy shop with at least 20 products and add more regularly to target specific customers. Many new Etsy sellers make the mistake of starting with only 1-2 products, which can severely limit their Etsy store’s reach.

If you’re having trouble adding new products, consider variations in style, color, size, and so on to expand your product listings. Another good way to add more listings is to combine a few products into a bundle. Having more listings can help you expand your shop’s reach. Each listing represents an opportunity to target more long-tail keywords. It also allows you to meet the specific needs of your target customers.

Techniques for boosting sales on your Etsy listings

Once you’ve set up your Etsy shop using the tips above, you’re ready to start selling! You will make some sales organically, which means you won’t need to do much more than optimize your listing, as previously mentioned. However, if you want to expand your business and increase the sales potential of your store, here are some additional strategies you can use to help your sales go from good to great.

#1. Use Social Media to publicize Your Listings

Social media can be an effective tool for marketing your company. Showing off social media posts from satisfied customers can help you gain credibility with potential customers. Re-sharing an Instagram post of a happy customer wearing one of your jewelry pieces, for example, can be powerful proof that your products are high-quality and satisfactory. When it comes to social media, Instagram and Pinterest are your best bets because they are both highly visual and have useful search and discovery capabilities.

#2. Professional Photography Can Help to Elevate Your Listing

Professional photography can make a significant difference in how people perceive your products. Because the lighting, background, and camera angles are well placed, the same product photographed professionally can appear of much higher quality. While good DIY pictures can be taken with a smartphone, investing in professional product photography will always give your listings a boost.

#3. Improve Your Pricing

When you price your items on Etsy, you want to make sure you’re keeping up with competitors’ prices while not undercutting your profit margin. That is why it is critical to monitor market trends and fluctuations. For example, an item you’re selling could suddenly become the most popular gift of the holiday season.

In this case, you should raise your prices to keep up with market demand, but not so much that you lose sales to a competitor. Similarly, if the market demand for a product you’re selling begins to fall, you’ll need to lower your prices accordingly. Other market conditions, such as the cost of materials to manufacture an item, should also be considered. Pricing should be a continuous concern that you monitor and adjust as market conditions change.

#4. Learn About The Etsy Algorithm

The sheer number of potential customers active on Etsy is a significant benefit. As a seller, you can reach a large number of people who can benefit from your products! However, you must still ensure that you reach the right customers. This is where keyword optimization and understanding how SEO works, especially concerning Etsy’s search engine, come into play. You should use the keywords that your ideal customers are searching for on Etsy. Etsy assists its sellers by providing an overview of its algorithm, and there are numerous videos and blog posts written by seasoned Etsy sellers available online.

Understanding Etsy Fees

Etsy is a great place to get your products in front of your target market’s eyes; however, there are several fees to consider when selling on Etsy.

#1. Listing Charges

Etsy charges a £0.17 listing fee per item to list your products on the site. The product listing fee covers the cost of displaying your product on the site for four months. If your item does not sell within that time frame, you can renew the listing for another £0.17.

#2. Transaction Fees

These are essentially commission payments made to Etsy for using their online marketplace. Etsy currently charges a fee of 6.5 % of the total item price, including any wrapping or shipping costs incurred by the customer.

#3. Payment Processing Fee

If a customer uses Etsy Payments, Etsy charges a fee. Sellers can accept a variety of payment methods through Etsy Payments, including major debit and credit cards, Etsy gift cards, Etsy coupons, PayPal, Apple Pay, and some bank transfer services. This fee is 4% of the total price of the item, plus £0.20.

#4. Shipping Costs

Etsy allows sellers to purchase shipping labels to make it easier to fulfill orders, charging a fee for USPS, FedEx, and Canada Post shipping labels. The shipping label fees are determined by the origin, destination, weight, and dimensions of each package.

Shipping costs must be considered when setting prices and shipping policies. On your shop’s homepage, you should outline your payment and shipping policies, which should include:

  • Payment methods accepted
  • Shipping costs and times
  • Policies on refunds and exchanges
  • International purchases incur customer and duty fees.

#5. In-person Selling Fee

By syncing their Etsy listings with Square, sellers can use the Square reader to process transactions when making in-person sales. If you use Square to sell in person and your listings aren’t synced, you’ll be charged a £0.20 fee per transaction. Square also charges processing fees based on the type of transaction. Transactions made with the Square reader are subject to Square’s processing fees rather than Etsy’s 4% transaction fee and payment processing fees.

#6. Fees for Advertising and Promotion

If you want to increase your visibility, Etsy provides services to help you advertise and promote your storefront, including Etsy Ads and Offsite Ads.

  • Etsy Ads: Etsy ads feature your products prominently in certain Etsy search results. Fees vary according to the maximum daily budget you set for ad spending.
  • Offsite Ads: Offsite ads will promote your listings on social media. You will be charged an advertising fee for any sales made if a buyer places an order from the ad within 30 days. If your annual income is less than £37,800, you can opt-out. A 15 % fee will be charged if you make at least £7,800 in a year.

#7. Fees for Subscriptions

Etsy Plus is only available to sellers with active shops. This subscription plan costs £8.28 per month and provides sellers with additional tools for growing their storefronts.

#8. Pattern Fees

The pattern tool on Etsy allows sellers to create and personalize a standalone website for a monthly subscription fee of £12.42. Sellers who want to try out this tool can do so for free for 30 days. If you decide to buy a domain name, you will have to pay an additional fee to register it.

Is a Business Licence Required to Sell on Etsy?

No, a business license is not required to sell on Etsy.

What Exactly Can You Sell on Etsy?

Etsy allows you to sell a wide variety of products, including:

  • Products made by hand
  • Items from the past
  • Crafts and supplies for crafts
  • Digital goods

Is Etsy Superior to Shopify?

If you’re new to selling and don’t already have a customer base, sell handmade goods or artisan services on Etsy. Shopify is ideal for retail sellers who already have a customer base.

What Items Do Well on Etsy?

In summary, the best-selling items on Etsy are found in the following categories:

  • Crafts and supplies
  • Handmade items
  • Wedding necessities and jewelry
  • Home decoration

Can You Sell in More Than One Niche on Etsy?

If you’ve been wondering if a multi-niche Etsy shop will work, know that it absolutely can! Simply do what you can to connect your products and create a brand that is easily recognized in each niche.

Last Thoughts

If you’re a small business or a solopreneur with a unique, artisanal, or quirky product, Etsy shop is a great place to set up and consider listing it. You’ll reach a large, highly targeted audience without making a large financial investment, and you may be able to integrate with other platforms as well. Signing up is simple, and as a seller, you’ll be part of a dynamic and one-of-a-kind eCommerce marketplace.


Leave a Reply

Your email address will not be published. Required fields are marked *