Etsy has grown into one of the most popular platforms for creative entrepreneurs and side hustlers. With millions of buyers looking for unique handmade goods, vintage items and digital products, it is an excellent place to start a side business with relatively low upfront costs.
In 2026, starting an Etsy shop is more accessible than ever, but competition is also higher. This guide will walk you through everything you need to know to start a profitable Etsy shop as a side hustle, from choosing what to sell to optimising your listings for search.
Why Etsy Is a Great Side Hustle
Etsy is not a get-rich-quick platform, but it offers several advantages for side hustlers:
- Low startup costs: You can start with just a few pounds for supplies and the 20 pence listing fee per item
- Built-in audience: Etsy has millions of active buyers looking specifically for handmade, vintage and unique items
- Easy to manage alongside a full-time job: You can create products in the evenings and weekends
- Scalable: Start small and grow as you learn what works
- No storage needed: Many sellers use print-on-demand or dropshipping models that ship directly to customers
If you are new to the side hustle world, check out our list of 11 real ways to make money from home for free to see how Etsy compares to other options.
What to Sell on Etsy in 2026
The key to Etsy success is finding a niche with good demand but manageable competition. Here are some of the best-selling categories for 2026:
Digital Products
Digital products are one of the best options for Etsy sellers. You create them once and sell them an unlimited number of times. Popular digital products include:
- Planners, journals and printables
- Spreadsheet templates and budgeting tools
- Social media templates for Canva
- Resume and cover letter templates
- Crochet and knitting patterns
- Art prints and wall art downloads
- Digital invitations and cards
Handmade Goods
If you are crafty, handmade items always perform well on Etsy:
- Jewellery and accessories
- Home decor and candles
- Personalised gifts
- Clothing and accessories
- Soaps and skincare products
- Baby and kids items
Print on Demand
Print on demand lets you sell custom-designed products without holding inventory. You design the artwork and a third-party printer handles production and shipping when an order comes in. Popular POD products include T-shirts, mugs, tote bags, posters and phone cases.
We have a full guide on how to start a print on demand business from home that covers the process in detail.
Vintage Items
Etsy is also a marketplace for vintage goods (items that are at least 20 years old). Vintage clothing, cameras, books, homeware and collectibles are all popular categories. If you enjoy thrifting and reselling, this could be a great niche for you.
Setting Up Your Etsy Shop
Step 1: Create Your Account
Go to Etsy.com and sign up. Choose a shop name that reflects your brand and is easy to remember. You can change it later if needed, so do not stress too much about getting it perfect first time.
Step 2: Set Up Your Shop Preferences
Choose your shop language, country and currency. Set up your payment methods (Etsy Payments is the standard). Configure your billing information for listing fees and Etsy transaction fees.
Step 3: Create Your Brand
Write a clear shop announcement, an About section that tells your story, and set your shop policies including shipping, returns and exchanges. Use high-quality photos for your shop banner and profile picture.
Step 4: Create Your Listings
Each listing needs a title, description, photos, price and tags. We will cover optimisation in the next section.
Etsy SEO: How to Get Your Listings Found
Etsy has its own search engine, and optimising for it is crucial for getting sales. Here is how to do it:
Keywords in Your Title
Your title should include the most important keywords that buyers would search for. For example, instead of “Cute Tote Bag,” use “Personalised Canvas Tote Bag for Women Eco Friendly Grocery Shopping Bag Gift.” Include your primary keywords at the beginning of the title.
Tags
Etsy allows you to add 13 tags per listing. Use all of them. Think about what words buyers would type into the search bar to find your product. Use a mix of broad and specific tags.
Description
Write a detailed description that includes your keywords naturally. Explain what the product is, what it is made from, the dimensions and any other relevant details. Use bullet points for easy reading.
Photos and Video
High-quality photos are essential. Use natural lighting and show your product from multiple angles. Include a photo showing the scale or size of the item. Etsy also lets you add a short video, and listings with videos tend to perform better in search.
Pricing
Price your items to cover your costs including materials, your time, Etsy fees and payment processing fees, plus a profit margin. Research what similar items sell for and price competitively. Do not undervalue your work.
How Much Does It Cost to Sell on Etsy?
Etsy charges several fees, so it is important to understand them before you start:
- Listing fee: 20 pence per item (listings last 4 months)
- Transaction fee: 6.5 per cent of the sale price
- Payment processing fee: 3 per cent + 25 pence per transaction (UK rates)
- Offsite ads fee: 12 or 15 per cent if a sale comes from Etsy’s offsite advertising (optional for shops under $10,000 in annual sales)
Factor these fees into your pricing so you are not surprised by how much Etsy takes from each sale.
Marketing Your Etsy Shop
Do not rely only on Etsy search to bring you customers. Promote your shop through other channels:
- Social media: Share your products on Instagram, Pinterest and TikTok. Pinterest is especially effective for Etsy sellers because it is a visual search engine.
- Email list: Collect email addresses from customers and followers to announce new products and sales.
- Etsy ads: Once you have some sales and reviews, consider using Etsy’s advertising platform to boost your best-performing listings.
- SEO: Optimise every listing for Etsy search as described above.
Tips for Etsy Success in 2026
- Start with 10 to 20 listings: Shops with more listings tend to get more traffic. Aim to list regularly.
- Get reviews early: Ask friends and family to purchase and leave honest reviews, or offer a discount to your first customers in exchange for feedback.
- Offer excellent customer service: Respond to messages quickly and ship orders on time. Good reviews are the best marketing.
- Keep improving your photos: As you make sales, reinvest in better photography equipment or lighting.
- Track your data: Use Etsy’s Stats dashboard to see which listings get the most views and which keywords drive traffic.
- Be patient: Most successful Etsy shops took months to build momentum. Keep creating and improving.
Final Thoughts
Starting an Etsy shop is one of the most accessible side hustles you can begin in 2026. Whether you make products by hand, design digital downloads or curate vintage finds, Etsy gives you access to a global audience of buyers looking for exactly what you have to offer.
The key is to start. Pick a niche, create your first few listings and learn as you go. The most successful Etsy sellers are not the ones with the most talent they are the ones who kept showing up and improving their craft.
For more side hustle ideas, check out our guides on how to make money selling on eBay, how to start a dropshipping store as a side hustle and how to start a virtual assistant business from home.
