4 Things You Need to Do to Start an Etsy Business in the UK

Starting an Etsy shop in the UK is a great way to sell your handmade goods, vintage finds, or craft supplies. Etsy makes it easy to access a global marketplace with buyers from all over the world.

When Etsy started in 2005, it was the perfect place for artisans and craftspeople to sell their goods online easily. But now that Etsy is a multi-billion dollar business, there is far more competition for sellers. Even a relatively niche search for “bridesmaid candle” returns over 6,000 results.

Starting an Etsy shop is easy. You simply need to create an account and set up your shop. The process is quick, and you can choose from various listing options and payment methods. But starting a successful Etsy business is a different story. So before you rush to set up your Etsy account, here are four crucial things you should do first to set yourself up for success.

1. Research your niche and find gaps in the market

If you’ve decided to set up an Etsy business, you’ve probably already got some products in mind that you plan to sell. You might even have an extensive list of products you can’t wait to start selling. But if this is your first experience with Etsy, it’s vital that you try to find a niche.

Finding a niche will allow you to build your reputation as a seller and stand out in the search results. For example, if you make wooden ornaments, rather than selling a wide range of products, look into what’s popular but not too popular and start with those products.

Look at other Etsy shops that sell wooden ornaments and the search results to see how many other shops sell similar items. If there are lots, it’s probably worth considering starting with some of your other products first. If there are very few, it might be that you’ve found a gap in the market, but on the other hand, it may mean that there’s little demand for your products.

While you’re researching your competitors, it’s also essential to take note of the other products they sell, their prices and shipping costs. You may also want to look at their customer reviews, particularly bad reviews. While good reviews give you a chance to see what they do well, bad reviews will let you know where you can beat your competitors.

As with all businesses, there’s no way to guarantee that your products will be popular, but by finding a niche or gap in the market, you’ll have a better chance of making sales and growing your business.

2. Pick a memorable name

Choosing a name for your Etsy business might sound like a fun and straightforward exercise, but it’s crucial to find the right name. Unlike brick and mortar shops, most Etsy customers look for products by searching for a product type rather than browsing a specific store. Picking the right name will help your customers remember your store, recommend it to friends and keep coming back.

You should take your time when choosing a name for your store, and it’s a good idea to come up with a list of potential names. When you’re assessing your possible names, ask yourself the following questions:

• Is the name catchy and memorable?
• Does it reflect the type of products you sell?
• Will it appeal to your target audience?

One of the best things to do when choosing your business name is to get your friends and family to give their honest opinion. Often, new business owners are too close to the decision, and an outside perspective can help to determine the best option.

3. Create compelling listings

Once you’ve chosen your Etsy business name and found your niche, you’ll need to consider your product listings. As the Etsy marketplace is relatively saturated, good listings can make you stand out from the competition. Alternatively, bad listings will leave you languishing at the bottom of search results.

Creating good Etsy listings is a two-fold job. On the one hand, you need to create compelling listings that appeal to buyers. On the other, you need to appease the Etsy search engine gods by optimising your listing. Finding the balance between the two is crucial.

To create a listing that satisfies both requirements, you’ll need to:

• Write accurate and optimised product titles and descriptions
• Add as much detail as possible to your listings
• Take professional-level product photos and videos.

If you’re looking for inspiration, look at some of the organic search results (not paid ads) and take notes on what they’re doing well and not well. It’s also vital for you to create a professional-looking and compelling Etsy store page to help develop your brand and reassure buyers of your authenticity.

4. Register your business

With your niche, business name and product listings ready to go, the last thing you need to do is register your business. While it’s possible to register a business after starting it, it’s a good idea to lay the groundwork before you start selling.

If you earn over £1,000 outside of traditional employment in the UK, you need to register for a self-assessment tax return. You’ll need to register with HMRC as a sole trader or limited company to do this. Most UK Etsy sellers start as sole traders as they run the business alone but choosing to register a limited company may save you time and money later on.

Getting to grips with your company registration and tax responsibilities before starting your Etsy business means you can focus on making your business a success. While you’ll need to keep detailed records of income and expenses, getting everything in place pre-launch will save you time and stress.

Once you’ve registered your business, you’re ready to start selling. Set up your Etsy account, get those listings live and start making money from your craft.