How To Set Up An Etsy Shop UK - Step By Step Guide

Last updated: 15/02/2024 Written by: Ruby Layram

Are you looking to start an Etsy shop and tap into the thriving world of e-commerce? Setting up an Etsy shop in the UK is a fantastic way to showcase your creativity and reach a global audience. With its user-friendly platform and dedicated marketplace for handmade, vintage, and unique items, Etsy has become a go-to platform for aspiring entrepreneurs.

In this step-by-step guide, we'll walk you through the process of how to set up an Etsy shop UK, ensuring you have all the essential information to get started.

How To Set Up An Etsy Shop UK - Step by Step

Starting an Etsy shop in the UK is simple if you follow the right steps. Before staring the process of setting up an Etsy shop, take some time to decide what kind of Etsy business you want to create. Understanding your business before opening your Etsy store will help you to make the right decisions during the shop set up which will make things easier in the long run.

If you’re confident about your Etsy business, here’s how to start an Etsy shop in the UK step by step.

Step 1: Create an Etsy account

To begin your Etsy journey, the first step is to create an Etsy account. Visit the Etsy website (www.etsy.com) and click on the "Sign In" button at the top right corner. If you don't have an account, click on "Register" and follow the prompts to set up your account. Make sure to choose a secure password and provide accurate information.

Step 2: Set up an Etsy shop at Etsy.com/sell

Once you have an Etsy account, proceed to set up your Etsy shop. Visit Etsy's seller page at www.etsy.com/sell and click on the "Open Your Etsy Shop" button. Follow the instructions and fill in the required details, including your shop preferences, language, and currency. Etsy offers various subscription plans, so choose the one that best suits your business needs.

Step 3: Complete introductory questions

As you start your Etsy shop, you'll be asked a series of introductory questions to help personalize your shop's experience. These questions include your shop's name, the type of items you plan to sell, and your experience as a seller. Take your time to provide accurate and engaging answers that reflect your brand's personality and uniqueness.

It is important to have a clear idea about your Etsy business before learning how to start your Etsy shop in the UK.

Step 4: Choose your shop name

Selecting an attention-grabbing and memorable shop name is crucial for building your brand identity. Consider a name that reflects your niche, showcases your creativity, and is easy to remember. Make sure to include relevant keywords in your shop name to enhance your shop's visibility in search results. For example, if you specialize in handmade jewelry, incorporate relevant keywords like "handmade jewelry" or "unique accessories" into your shop name.

Step 5: Add a logo and banner to your storefront

Adding a visually appealing logo and banner to your Etsy shop is essential for creating a professional and inviting storefront. Your logo should be a clear representation of your brand, while the banner can showcase your best-selling products or unique selling points. Ensure that your logo and banner align with your overall brand image and aesthetics.

Canva is an excellent tool that can be used to design professional looking banners and logos for Etsy businesses.

Step 6: Add shop details and policies

Provide comprehensive shop details and policies to establish trust with your potential customers. Include a detailed shop description, shipping and return policies, and any additional information that may be relevant to your products. Clear and transparent policies help manage customer expectations and build a positive shopping experience.

Adding policies to your shop is a good way to avoid conflict with your customers. Make your policies as clear as possible to avoid future disputes.

Step 7: Add listings to your Etsy shop

Now it's time to showcase your products by adding listings to your Etsy shop. Craft compelling titles and descriptions that accurately represent your items and incorporate relevant keywords. This is an essential component of Etsy SEO.

High-quality product photos are essential to capture the attention of potential buyers, so invest time in creating visually appealing images. Use the primary and secondary keywords associated with your products naturally within the descriptions to optimize your listings for search engines.

Step 8: Connect your bank account to your Etsy shop

To receive payments from your Etsy shop, you need to connect your bank account. Etsy provides secure payment processing options, including Etsy Payments, which allows you to accept various payment methods. Follow the instructions to link your bank account and set up your preferred payment methods.

Etsy provides several payment options for sellers to receive payments from their Etsy shop. Here's how you can get paid:

• Etsy Payments: Etsy Payments is a secure and convenient payment processing system that allows you to accept various payment methods, including credit cards, debit cards, Etsy Gift Cards, and more. When you set up your Etsy shop, you'll need to link your bank account to Etsy Payments. Once a customer makes a purchase, the payment will be processed through Etsy Payments, and the funds will be deposited into your linked bank account.

• PayPal: If you prefer to receive payments through PayPal, you can also enable PayPal as a payment option for your Etsy shop. You'll need to link your PayPal account to your Etsy shop, and when a customer chooses to pay with PayPal, the funds will be transferred directly to your PayPal account.

• Direct Checkout: Etsy also offers a Direct Checkout option, which allows you to accept credit card payments directly without using a third-party payment processor. You'll need to provide your banking information and complete the necessary steps to set up Direct Checkout in your Etsy shop.

Remember to keep track of your sales and payment transactions for bookkeeping purposes and to ensure accurate financial records.

Step 9: Market your Etsy shop

Now that your Etsy shop is up and running, it's crucial to market your products and attract potential buyers. Here are a few effective marketing strategies to consider:

Social Media Promotion: Leverage the power of social media platforms like Instagram, TikTok, and Pinterest to promote your side hustle, engage with your audience, and drive traffic to your Etsy shop. Create visually appealing posts, utilize relevant hashtags, and collaborate with influencers or bloggers in your niche to expand your reach.

Search Engine Optimization (SEO): Optimize your Etsy shop and listings for search engines by incorporating relevant keywords in your titles, descriptions, and tags. Conduct keyword research to identify popular search terms related to your products, and utilize them strategically to improve your shop's visibility in search results.

Customer Reviews and Testimonials: Encourage satisfied customers to leave reviews and testimonials on your Etsy shop. Positive reviews not only build trust with potential buyers but also contribute to improving your shop's search rankings within the Etsy platform.

Promotions and Discounts: Offer special promotions, discounts, or seasonal sales to incentivize customers to make a purchase. Promote these offers through your social media channels and within your Etsy shop to attract new customers and encourage repeat purchases.

Also read: How to brand your Etsy shop

Legal Considerations When Starting an Etsy Shop UK

Selling on Etsy is one of the best passive side hustle ideas to consider in 2024. However, it is important to be aware of legal considerations before starting an Etsy shop in the UK. Etsy sellers must comply with Etsy guidelines to list their products on the ecommerce site. Here are a few important things to be aware of before opening your Etsy store.

Do I need a business license to sell on Etsy?

In most cases, you don't need a specific business license to sell on Etsy as an individual. However, if your shop grows and you reach a certain revenue threshold, you may need to register as a business and comply with local regulations. It's recommended to consult with a legal professional or tax advisor to understand your specific obligations.

We recommend looking at the services offered by 1st Formations who offer a full company formation for £12.99. They also offer 1-to-1 support for new sellers who want to register as a business in the UK.

Do Etsy report to HMRC?

Etsy is obligated to provide information to HM Revenue & Customs (HMRC) regarding sellers' sales and income. As an Etsy seller, it's your responsibility to accurately report your earnings and fulfill your tax obligations to HMRC.

Failure to accurately report your Etsy earnings could result in a tax fine. Etsy sellers are required to include their earnings as part of their annual self assessment tax return, which is usually due at the end of each fiscal year.

Do I have to declare income from Etsy UK?

Yes, as an Etsy seller in the UK, you must declare your income from your Etsy shop on your tax return. Keep track of your earnings, expenses, and relevant documentation to ensure accurate reporting.

Depending on how much you earn from selling on Etsy, you may need to pay tax in the UK. The amount of tax that you pay will depend on the tax bracket that you fall into.

How much money can you earn selling on Etsy before paying tax?

The tax rules and thresholds vary depending on individual circumstances and the UK tax regulations. It's best to consult with a tax advisor or visit the official HMRC website to understand the specific thresholds and tax obligations based on your situation.

In most cases, you do not have to pa tax on your side hustle until you earn over £1000 per year. If your Etsy shop is successful, it is easy to earn more than this so you will most likely need to pay some tax.

Still unsure about small business tax? Here is a useful video about paying tax on your small business.

How To Set Up an Etsy Shop UK and Be Successful

In this article, we have covered the basics of setting up an Etsy shop in the UK. But, how can you make sure that your Etsy business is successful?

Beyond the initial setup, here are some additional tips to help you succeed and start a side hustle on Etsy:

• Focus on variety: Offer a diverse range of products within your niche to attract a wider customer base. This allows you to cater to different preferences and increase your chances of making sales.

• Take great photos: Invest in high-quality product photography to showcase your items in the best possible light. Clear, well-lit, and visually appealing images can significantly impact a customer's decision to make a purchase.

• Optimize your product descriptions with SEO: Utilize relevant keywords naturally in your product descriptions to improve your shop's visibility in search results. Craft engaging and informative descriptions that highlight the unique features and benefits of your products.

• Create a recognizable brand: Develop a cohesive brand identity by using consistent fonts, colors, and design elements across your shop, logo, packaging, and social media platforms. A strong brand helps create a memorable and trustworthy shopping experience for your customers.

• Use sustainable packaging: In today's environmentally conscious world, using eco-friendly packaging can set your shop apart and appeal to customers who prioritize sustainability.

• Set reasonable prices: Research the market and competitors to set reasonable prices for your products. Consider factors such as materials, craftsmanship, and market demand while determining your pricing strategy. Pricing your items competitively while maintaining profitability is crucial for long-term success.

• Offer free shipping if possible: Offering free shipping can be an attractive incentive for customers. Analyze your product costs and margins to determine if providing free shipping is feasible for your business. If it aligns with your financial goals, consider incorporating it into your pricing structure.

What Are The Different Types of Etsy Shops?

Etsy is one of the biggest ecommerce platforms that caters to a variety of small businesses. Before you open an Etsy shop UK, it is a good idea to understand the different types of shops that Etsy accommodates for.

All products on Etsy are handmade or ‘crafty’. That means no fast fashion or high street brands. Instead, Etsy caters to small businesses and creatives. Here is a run of the different types of shop that you might find on Etsy.

Also read: Etsy business ideas for UK sellers

Handmade:

Handmade shops are Etsy shops that specialize in selling unique, handmade products crafted by the seller themselves. This includes items like jewelry, artwork, clothing, and home decor.

Vintage:

Vintage shops are another popular category on Etsy. Vintage shops offer vintage or antique items that are at least 20 years old. These can include vintage clothing, accessories, furniture, collectibles, and more.

Vintage sellers typically pick pieces out themselves by thrifting or visiting auctions.

Craft Supplies:

Craft supply shops are shops that focus on selling materials and supplies for crafting and DIY projects. This includes items like fabric, beads, yarn, tools, and other crafting essentials.

These products typically aren’t handmade but appeal to other sellers who use craft products to make the goods that they sell.

Digital Downloads:

Digital download shops have grown in popularity over the last few years. These shops sell digital products and Etsy printables such as printable art, templates, patterns, and digital files for various purposes like graphic design, party invitations, and more.

Personalized and Customizable:

Personalized shops offer custom products that are often bought for gifts of memorable occasions. Sellers allow customers to add names, initials, or specific details to items like mugs, jewelry, stationery, and gifts.

Etsy Shop UK Guidelines Explained

All Etsy UK sellers must adhere to shop guidelines. The guidelines that you must follow will vary depending on the type of Etsy shop that you choose to open. Here is an overview of Etsy UK guidelines for different types of shop.

Selling Handmade, Vintage, or Craft Supplies: Ensure that the items you sell fall under one of these categories. Handmade items must be created or designed by you or a team member. Vintage items must be at least 20 years old. Craft supplies refer to materials used for crafting and DIY projects.

Prohibited Items: Be aware of Etsy's list of prohibited items that cannot be sold on the platform. These may include items that violate intellectual property rights, are illegal, or pose health and safety risks.

Intellectual Property Rights: Respect intellectual property rights and do not infringe on trademarks, copyrights, or other protected materials. Make sure your shop and product names are original and do not violate any existing trademarks.

Accurate Listing Information: Provide accurate and truthful information in your product listings, including clear descriptions, pricing, and relevant policies such as shipping and returns.

Customer Communication: Maintain open and timely communication with your customers. Respond to inquiries, address concerns, and provide updates on order status promptly.

Etsy rules and policies

Conclusion

In this article we have covered how to set up an Etsy shop UK in detail so that you can start your own Etsy side hustle today. Like all side hustles that we cover on The Rich Girl Guide, setting up an Etsy shop is just the first step to making money. To be successful, you must continuously put effort into your Etsy business, market your products and optimize your store. It could take weeks (or even months) before you start earning regular income from Etsy in the UK but persistence pays off!

Etsy is fast becoming one of the most popular side hustles for mums, students and even men who want to sell there handmade goods. There is a huge audience for products that are unique and personal and this is expected to grow even more over the next few years.

Related posts

1. How to make Etsy printables with Canva

2. Best online side hustles for students

3. How to start a print on demand business

4. Best print on demand products to sell in 2024

5. Best eCommerce side hustle ideas