(Updated post - first published in October 2023)

Ready to make money selling crochet on Etsy?

Are you a crocheter dreaming of selling on Etsy?

I've been there too.

It's frustrating to spend countless hours creating stunning pieces, only to have them sit untouched.

Let's change that.

In this article, you'll discover how to sell on Etsy and make money selling your handmade crochet creations.

You're here because you have a dream: to make money doing what you love.

Etsy is your gateway to transforming your creativity into cash.

Whether you're a seasoned crafter or just starting, you can sell your crochet creations to a global audience.

This article will show you how.

I’ll walk you through the step-by-step process of setting up your Etsy shop, from crafting captivating product listings to mastering effective marketing strategies.

Let's get started!

This post is a bit on the longer side, so you might want to grab a cup of coffee now!

Top Etsy Sellers: The top seller, PlannerKate1, has made over 2 million sales, while CaitlynMinimalist has over 3 million sales.

What is Etsy?

Etsy is a leading marketplace for handmade goods, connecting nearly 100 million active buyers across 234 countries. It's an ideal platform for part-time sellers, with two-thirds using it to supplement income and 95% running their shops from home.

Here are some interesting facts and numbers about Etsy that illustrate its robust marketplace and appeal to both buyers and sellers worldwide:

>>Active Users: Etsy has over 91.5 million active buyers and more than 6.6 million active sellers as of 2024.

>>Revenue and Sales: In Q2 2024, Etsy generated $647.8 million in revenue, with a marketplace gross merchandise sales of $2.5 billion.

>>Product Listings: There are over 100 million items listed for sale on Etsy, covering a wide range of categories.

>>Demographics: The primary age group of Etsy users is 25-34 years old, making up nearly 30% of its audience. Additionally, 86% of Etsy sellers are female.

>>Traffic: Etsy receives an average of 377.4 million visits per month, with the majority of traffic coming from the United States.

>>Home-Based Businesses: A significant 97% of Etsy sellers run their shops from home, highlighting the platform's appeal for small and home-based businesses.

>>International Reach: Etsy's international sales account for 47% of its total GMS, showcasing its global presence.

Percentage Increase in Searches for Crochet Items on Etsy

Top-Selling Crochet Categories: Amigurumi Toys, Crochet Accessories, Baby Blankets.

Before we talk about setting up your shop, let's look at some practical tips to help you achieve your Etsy goals.

How to make money on Etsy

Get to know Etsy
Identify Your Target Audience
Pick The Right Product To Sell
Create Captivating Photos
Effective Pricing
Master Marketing
Embrace the Power of Etsy Ads
Master Keywords and Etsy Stats
Use the Seasons to Your Advantage
Optimize Your Shipping Strategy
Monitor, Rinse, Repeat

Let’s look at each point in more detail.

Get to Know Etsy

Etsy isn't just another eCommerce platform; it's a unique marketplace for handmade items, vintage goods, and craft supplies. Understanding this ethos is key to your success.

Explore the site, familiarize yourself with the bestsellers in your category, and take note of what makes them stand out.

Also, before diving into product ideas, familiarize yourself with Etsy’s regulations to ensure your items comply with what can and cannot be sold.

Once you're clear on the rules, finding product ideas is a breeze with tools like eRank.
eRank provides a snapshot of top sellers and their most popular products, helping you make informed decisions about what to sell.

2. Identify Your Target Audience

- Who are your customers and what do they want to buy?

Understanding your ideal customers and what they want to buy will help you crochet products that resonate with them.

Start by identifying your ideal customer profiles and their unique preferences.

For example, you might target:

Young Mothers: They appreciate handmade, eco-friendly baby products like organic cotton blankets, crocheted baby hats, or personalized nursery decor. They seek items that reflect their commitment to sustainability and comfort for their little ones.
Fashion-Forward Individuals: This group always looks for unique, crochet accessories such as bespoke handbags, or statement scarves. They value originality and quality, looking for pieces that stand out and complement their style.
Home Decor Enthusiasts: These customers are interested in products for the home like baskets, rugs, cushions, or wall hangings. They seek items that add a personal touch to their living spaces and reflect their aesthetic preferences.

By understanding and catering to the specific needs of your target audience, you can create a shopping experience that speaks directly to them, ensuring your Etsy store thrives.

3. Pick The Right Product To Sell

-Put yourself in your customer’s shoes.

Start brainstorming a list of potential crochet products that align with your skills, interests, and the needs of your target audience.

What types of crochet products are they likely to be interested in?
What features or qualities do they prioritize, for example, are they looking for durability, comfort, or aesthetics?
Do they live in a hot or cold climate? Are they inserted in hats and scarves or crochet tank tops?

By understanding these aspects, you can create products which match what they are looking for.

Create a Cohesive Collection
Imagine your shop as an art gallery. A consistent theme, style, or colour scheme can help your shop stand out amidst the sea of sellers.

As you work to establish your Etsy crochet shop, keep an eye on the top-selling products within your niche. By identifying popular items and capitalizing on in-demand styles, you'll be better equipped to create products that resonate with your target audience.

>>TIP: Collect data from Esty buyers to learn what your potential customers are searching for and buying.

erank.com provides reports by real buyers on Esty.
merchantwords.com is another service that helps you discover merging trends and top-ranking products on Amazon Handmade.

Check out this article for more product inspiration: 26 Bestselling Crochet Items to Sell On Etsy

4. Create Captivating Photos

Eco-friendly crochet kit by Mouse & Sparrow.

- Visuals are king.

Your product photos should not only be clear and well-lit but also tell a story.
Use props and backgrounds that complement your product, showcase your item in use, and include close-up shots that highlight intricate details.

Here are some tips for achieving captivating product images:

Use a Good Camera: While smartphones have come a long way in terms of camera quality, using a DSLR or mirrorless camera with appropriate lenses will yield better results. These cameras offer greater control over settings like aperture, shutter speed, and ISO, allowing you to capture sharp, well-lit images.
Master Lighting: Proper lighting is essential for capturing the true colours, textures, and details of your crochet products. Experiment with natural light or invest in affordable lighting equipment, such as softboxes or LED panels, to create a well-lit environment that showcases your items in the best possible light.
Choose the Right Background: Select a simple, uncluttered background that complements your crochet creations without distracting from them. Neutral backgrounds, work well for most products and allow the colours and textures of your items to stand out.
Capture Multiple Angles and Close-ups: Showcase your products from various angles and include close-up shots to highlight intricate details, stitch patterns, and textures.
Style and Stage Your Products: Style and stage your crochet items to create visually appealing images that evoke emotions and tell a story.
For example, drape a crochet blanket over a cosy armchair or display a crochet scarf on a mannequin. This not only adds context but also helps customers envision how the products will fit into their lives.
Edit Your Photos: Use photo editing software or apps to enhance your images, correct colours, adjust brightness and contrast, and crop or resize as needed. Be careful not to over-edit, as maintaining an accurate representation of your products is essential for building customer trust.
Maintain Consistency: Ensure that your product images maintain a consistent style, lighting, and composition across your shop to create a cohesive and professional look.

5. Effective Pricing

- Don’t forget your time.

Pricing needs to reflect the value of your time, materials, and skill, while also remaining competitive. Research similar items on Etsy, consider your target market, and don't undervalue your work.

Your prices should also factor in Etsy fees and shipping costs to ensure profitability.
Keep in mind that the cheapest is not always the best.

6. Master Marketing

- Help people find your Etsy Shop.

Develop a strategic and consistent marketing plan. This is essential to help people find your new Etsy Shop and attract new customers.

Here are some effective marketing strategies to consider implementing:

Social Media:
Utilize platforms like Instagram, Pinterest or TikTok to showcase your products, share behind-the-scenes peeks, how to tutorials and engage with your audience.
Participate in conversations and ask for feedback.
Be sure to leverage Pinterest, where 445 million users seek inspiration monthly. Every pin you create can take potential customers right to your Etsy shop.
Promotions:
Etsy's built-in sales and coupon features are powerful tools for offering discounts or special deals, like free shipping.
These promotions are perfect for attracting new buyers and fostering loyalty among existing customers. Regularly update your promotions to keep your audience engaged and incentivize repeat purchases.
Customer Reviews:
With over 90% of online shoppers reading reviews before purchasing, a wealth of positive feedback can significantly impact sales. Encourage satisfied customers to leave reviews within Etsy's 100-day review window.
Respond to reviews to show appreciation and address any concerns, demonstrating excellent customer service and building trust.
Content Marketing: Create valuable and engaging content related to crochet, such as blog posts, tutorials, or pattern round ups, to attract your target audience and showcase your expertise.
Share this content on your website, social media, and through email newsletters to keep your audience engaged and encourage them to visit your Etsy Shop.
Email Marketing: Collect email addresses from visitors to your website and build an email list to send regular newsletters, product updates, and promotional offers.
Email marketing allows you to maintain a direct line of communication with your customers and keep them engaged with your brand.
Influencer Collaborations: Partner with crochet influencers or bloggers who share your target audience by offering them free products in exchange for reviews or social media features. This can help increase your Shop's exposure.
Love Your Customers
Customer service can make or break your business. Respond promptly and politely to queries, resolve issues effectively, and consider going above and beyond - a personalized note or a small freebie can turn a first-time buyer into a loyal customer. Remember, word of mouth is powerful; a delighted customer can bring in many more.

7. Embrace the Power of Etsy Ads

-Amplify your Shop’s reach.

If you're ready to allocate some funds to marketing, Etsy Ads is a strategic choice which can amplify your Shop’s reach.

Etsy Ads are like an auction for ad space on the platform. You determine a daily budget—starting as low as $1—and Etsy handles the bidding for you.

The advantage is that Etsy optimizes these bids to suit your specific listings, aiming to maximize your sales potential.

By allowing Etsy to select the best bids, you ensure your products gain optimal exposure to potential buyers. Investing in ads can elevate your store's visibility and drive sales, making it a savvy move for growth-minded sellers.

8. Keywords and Etsy stats

- The power of keywords and data.

SEO on Etsy is all about keywords. Identify relevant keywords that potential customers might use to find your products. Incorporate these in your product titles, descriptions, and tags.

Regularly review and update your keywords to stay on top of trends and changes in search behaviour.

Key Metrics to Monitor:

Views and Visits: Track how many potential customers are viewing your product listings. If certain listings aren't attracting viewers, see how you can improve the listing.
Conversion Rate: This measures how often visitors make a purchase. Calculate it using the formula: (orders ÷ visits) x 100. Aim for a conversion rate between 1-3%.
A low rate indicates that while people find your product, it might not meet their expectations.
A high conversion rate suggests demand—consider boosting ads to reach more potential buyers.
Traffic Sources: Discover where your buyers originate. Understanding this helps you allocate resources effectively. Are ads driving traffic? You might consider increasing your ad budget. If a particular social media platform is drawing in customers, focus on growing your presence there.

9. Use the Seasons to Your Advantage

- Embrace the seasons.

Capitalize on seasonal trends and events. Create and list seasonal items well in advance. For instance, start listing crochet Christmas ornaments in early fall. But remember, while seasonal items can boost sales, your shop should also have evergreen items that sell year-round.

10. Optimize Your Shipping Strategy

- Deliver cost-effectively.

Did you know that on Etsy, customers are significantly less likely to purchase if shipping costs are higher than expected?

20% of buyers are more inclined to complete their purchase when free delivery is offered. Shipping is a crucial element of a successful Etsy shop.

Here's the good news: Etsy empowers sellers to offer free shipping worldwide!

With their pricing tool, you can adjust product prices to cover shipping costs effectively, making global sales more viable.

Prioritize getting your products into their hands as cost-effectively and efficiently as possible.

11. Monitor, Rinse, Repeat

Success on Etsy requires continuous learning and adapting. Monitor your shop's performance using Etsy's analytics. Understand what works - which items are bestsellers, which keywords drive traffic, and which social media platform brings in the most customers.

Then, refine your strategies based on these insights.

How To Set Up Your Crochet Etsy Shop

Now that you know what it takes to have a successful Etsy shop, let’s get started on opening yours!

>>Open your own Etsy shop

Ready to turn your creativity into cash on Etsy?

Follow these simple steps to open your shop today!

Step 1: Launch Your Etsy Shop

Visit Etsy.com and click ‘Register’ in the top right corner.

Already have an account? Skip ahead!
Once logged in, navigate back to the profile menu, click ‘Sell on Etsy,’ and then select ‘Open Your Etsy Shop.’

In just a few easy steps, you’ll be on your way to becoming an Etsy seller!

To officially activate your shop, you’ll need to create at least one product listing.
So, come prepared with your first item ready to sell.

It’s that straightforward!

Step 2: Build your shopfront

Choose a catchy shop name under 20 characters. Focus on what makes it unique, evokes emotions, and tells a story. Don't spend too much time on this, as it can be changed later.

Then, set up your Etsy shop profile,

Seller Profile: Share a brief bio along with a photograph or logo.
Shop Bio: Utilize the 5,000 characters available to introduce your Shop, highlight your skills and most importantly, share the inspiration behind your creations.
Shop Policy: Detail your store’s guidelines, including transaction processes, shipping timelines, and refund policies. Clear policies help build trust with potential customers.

I know this sounds like a lot, but Etsy offers templates to guide you through the process.

3. Create Your Listings

The key to success on Etsy? Outstanding product listings! Use high-quality images to grab attention and convey the essence of your product. You will only need one listing to activate your Shop!

Here's how to create a product listing:

Navigate to the Shop Manager
- Once logged in, locate the ‘Shop Manager’ icon in the top right corner of the page.
- Click on it to access your shop management tools.
Start a New Listing:
- In the Shop Manager, find the ‘Listings’ section on the left-hand menu.
- Click on ‘Add a Listing’ to begin creating your product listing.
Add Product Details:
- Title: Enter a descriptive and clear title for your product. Etsy titles can be up to 140 characters, but only the first 40 are visible in search results. Make those first 40 characters impactful by clearly stating the product and its unique qualities. Use the full 140 characters to enhance searchability.
- Description: Write a detailed, personal description. Include unique features and benefits, materials, and any special instructions or care tips. Start with key details: features, measurements, condition, colour, and ordering instructions. Address common questions proactively.
  Struggling with product descriptions? Here is a Skillshare course on how to create product listings that capture attention and boost visibility.
- Category: Choose the most suitable category for your product to help customers find it.
Upload High-Quality Images:
- Click on the ‘Add Photos’ section to upload images of your product. You can upload up to ten images, I recommend you use them all.
- Use high-resolution, well-lit photos from different angles to showcase your product effectively. Use your top photo as the thumbnail, and include shots from various angles, plus lifestyle images of the product in use.
Set the Price:
- Enter the price for your product. Consider including the cost of materials, time, and perceived value.
Select Quantity and Variations:
- Specify the available quantity of the product.
- If applicable, add variations like size or colour options.
Provide Shipping Options:
- In the ‘Shipping’ section, choose how you want to ship your product.
- Set the shipping price, delivery regions, and estimated delivery time.
Publish Your Listing:
- Review all the details you’ve entered to ensure accuracy.
- Once satisfied, click ‘Publish’ to make your product live on Etsy.

🎉Congratulations on publishing your first Etsy Listing!🎉

Now, Make Sure Your Listings Get Seen!

When a customer searches for a product on Etsy, Etsy's algorithm uses query matching to determine which products get seen. The search results, focus on titles, tags, attributes, and categories.

Titles: Use up to 140 characters, emphasizing keywords in the first 40 to align with what customers search for.
Tags: Utilize all 13 tags with up to 20 characters each, preferring multi-word tags like "crochet accessories."
Attributes: Include details like color and material to refine searches.
Categories: Ensure listings appear in relevant sub-categories for better filtering.

Consistently use the same keywords across all elements to boost SEO and visibility.

Curious about how your product ranks on Etsy?

Take a moment to test its visibility by entering your product name into the Etsy search box. This simple action lets you see where your listing appears in search results.

If you’ve made it right to the end, you must be seriously considering opening your own Etsy shop.
So here are a few key things to consider before you jump in:

Consider the following:

Startup Costs: These include the cost of materials for your crochet products, packaging supplies, and photography equipment or services for high-quality product images. You'll also need to budget for any branding elements like logos.
Etsy Fees: Etsy charges a listing fee of $0.20 per item, a 6.5% transaction fee on the sale price (including the shipping price you set), and a payment processing fee which varies by country. You should understand these costs when pricing your items.
Price Calculation: You need to price your products not just based on material costs, but also taking into account your time, labour, and overheads, as well as Etsy's fees. The right pricing strategy is crucial for profitability.
Taxes: As an Etsy seller, you're running a small business, which means you're responsible for reporting your income and paying taxes accordingly. Tax laws vary by country and sometimes by state or region, so it's important to research these and possibly consult with a tax professional.
Shipping Costs: Consider how you'll package your items, how much it'll cost to ship, and who'll bear the shipping costs - you or the customer. Etsy offers various shipping options, so choose the one that suits your business best.
Time Investment: Running an Etsy shop requires time - for creating products, managing listings, marketing your shop, packing and shipping products, and providing customer service. Make sure you can commit enough time to all these tasks.
Inventory Management: Depending on the volume of your sales, keeping track of your inventory can become complex. Manage your stock levels to avoid selling products you don't have.
Marketing Budget: Do you have a budget for marketing activities, such as paid advertising, collaborations, or hiring help to improve your shop's visibility?

🎉Wow, You’ve made it to the end of this post! 🎉

In my opinion, Etsy is an excellent platform for new brands, offering significant exposure without the initial investment of creating your online shop. It’s perfect for side earnings and provides all the tools needed for growth.
Many Etsy sellers use multiple channels, indicating the importance of diversification.
Start by leveraging Etsy’s audience to establish your Shop, then expand to other platforms and develop your website to maximize your reach and success.

You now have all the knowledge you need to set up your crochet Etsy shop. What are you waiting for?

Feel free to get in touch and email me if you have any questions, I'm happy to help and promise to reply to every message.

And if you know anyone interested in starting an Etsy Shop, please share this blog post with them.

I'd be super grateful!

Happy Crocheting!