No Money, No Problem: How to start an Etsy shop with no money in 2023

Opening an Etsy shop can be a great way to turn your creativity into a steady stream of income. However, for many aspiring sellers, the upfront costs of starting a shop can be a huge roadblock. From listing fees to shipping costs, it’s easy to get discouraged when looking at the expenses.

But what if we told you that you can start an Etsy shop with no money? It may sound too good to be true, but don’t worry, it’s not a scam. In this blogpost, we’ll explore how you can start an Etsy shop without breaking the bank.

Whether you’re a seasoned artist, a DIY enthusiast, or just looking to make some extra cash, this guide will help you navigate the ins and outs of starting an Etsy shop with no money.


  • 1 Introduction
    • 1.1 Why starting an Etsy shop is a good idea
    • 1.2 The benefits of starting with no money
    • 1.3 What to expect from this guide
  • 2 Researching Your Product
    • 2.1 Niche selection
    • 2.2 Market research
    • 2.3 Finding suppliers
  • 3 Creating Your Shop
    • 3.1 Setting up your Etsy account
    • 3.2 Customizing your shop
    • 3.3 Writing product descriptions
  • 4 Marketing Your Shop
    • 4.1 Social media marketing
    • 4.2 Search engine optimization
    • 4.3 Advertising on Etsy
  • 5 Managing Your Finances
    • 5.1 How to track expenses and profits
    • 5.2 Pricing strategies
    • 5.3 Managing cash flow
  • 6 Scaling Your Shop
    • 6.1 Expanding your product line
    • 6.2 Hiring employees
    • 6.3 Managing inventory
  • 7 FAQs
    • 7.1 How much money needed to start Etsy shop?
    • 7.2 Do I need a tax ID to sell on Etsy?
    • 7.3 Can I start an Etsy shop without a business license?
    • 7.4 What can I sell on Etsy as a beginner?
    • 7.5 what to do before opening an etsy shop
    • 7.6 how to start an etsy shop legally
    • 7.7 how much does it cost to start an etsy shop
    • 7.8 how many items to start etsy shop


Are you interested in creating an Etsy shop but don’t have any money to get started? Don’t fret! With some hard work, dedication, and a bit of creativity, starting an Etsy shop without any money is completely possible.

Why starting an Etsy shop is a good idea

Etsy is a global online marketplace where people come together to make, sell, buy, and collect unique items. With millions of buyers visiting Etsy every day, starting an Etsy shop can be a great way to showcase your unique creations and make a name for yourself.

Etsy provides a platform for you to connect with a large and diverse audience from all around the world.

The benefits of starting with no money

Starting an Etsy shop with no money can have its advantages. It can encourage you to be creative and resourceful with the materials you have on hand. By starting with no money, you have the opportunity to work with what you have and make the most of it.

This can lead you to create unique products that stand out from the crowd.

What to expect from this guide

In this guide, we’ll walk you through the steps to start an Etsy shop with no money. You’ll learn how to research your product, find suppliers, and get your shop up and running.

By following these steps, you’ll be on your way to building a successful Etsy business.

Researching Your Product

Before you start your Etsy shop, it’s important to research your product to ensure that there is a demand for it. Here are the steps you should take:

Niche selection

First, you need to select your niche. What type of products do you want to sell? It’s important to select a niche that you are passionate about and have expertise in. This will enable you to create unique and high-quality products that your customers will love.

Market research

Once you have selected your niche, it’s time to conduct market research. Look at existing products on Etsy in your niche and analyze the competition. What do their products look like? How much are they selling for?

Use this information to determine what types of products are in demand and what price point you should aim for.

Finding suppliers

Once you have a clear understanding of your niche and market demand, it’s time to find suppliers. There are many ways to find suppliers, including:

  • Reaching out to local craftsmen and artisans
  • Scouring flea markets and garage sales for supplies
  • Upcycling materials you already have

By using these methods, you can start creating your products without having to spend any money on supplies. With these steps, you can start an Etsy shop with no money and begin building your brand and name in the marketplace.

So, get creative, think outside of the box, and let your passion and expertise guide you.

Creating Your Shop

Starting an Etsy shop can be daunting, but it is absolutely possible to start one with minimal funds. Here are some steps on how to start your Etsy shop in 2023 without any money:

Setting up your Etsy account

The first step in creating your Etsy shop is to sign up for an account. This is a simple process; all you need to do is provide your email address, create a username, and choose a password.

Once you have created your account, you can customize your shop and add your products.

Customizing your shop

Customizing your shop is important because it reflects your brand and sets you apart from other shops. You can choose your shop banner, avatar, and create a shop announcement defining your brand.

It’s important to create a cohesive look and feel for your shop that reflects your brand.

Writing product descriptions

When creating product descriptions, it’s important to be descriptive, clear, and concise. Boring or vague product descriptions won’t help sell your product. Put yourself in the buyer’s shoes and mention the key details that will make them want to make a purchase.

Remember to highlight important keywords in your descriptions so that buyers can find your products easily.

Marketing Your Shop

Now that you have set up your Etsy shop, it is important to market it effectively to attract potential customers.

Social media marketing

Social media marketing is an effective way to get your products in front of a broader audience. You can share your product listings, news updates, promotions, and sales with your followers. Instagram, Facebook, and Pinterest are a great place to start your social media marketing efforts.

Search engine optimization

Search engine optimization (SEO) is the process of optimizing your product listings to rank higher in Etsy’s search results. To achieve this, you need to use relevant keywords in your product titles and descriptions.

Use of relevant long-tail keywords can help you rank higher in search results, and drive quality traffic to your shop.

Advertising on Etsy

Etsy Ads is an effective way to promote your products and get them in front of a larger audience. The Etsy Ads platform allows you to create a customized ad campaign to promote your shop and products. You can set a daily budget and track the performance of your ads to modify and optimize your ads to achieve the desired outcome.

In conclusion, while it may seem like a daunting task to start an Etsy shop with no money, it is completely possible. Follow these simple guidelines to create and market your shop, drive traffic to your shop, and ultimately, start earning money.

Managing Your Finances

If you’re considering setting up an Etsy shop, but don’t have any money to invest, don’t worry – it’s absolutely possible to get started with minimal expense. Here are some tips on how to manage your finances when starting your Etsy shop.

How to track expenses and profits

One of the most important steps in managing your finances when starting an Etsy shop is keeping track of your expenses and profits. Make sure to keep a detailed record of all the costs involved in creating your products, including materials and shipping fees.

This will help you accurately calculate the profits you make from each sale. When tracking your profits, don’t forget to take into account any Etsy fees, payment processing fees, or shipping fees. There are many tools you can use to track expenses and profits, including accounting software such as Quickbooks or Xero.

Alternatively, you can create a simple spreadsheet to keep track of everything. Make sure to review your finances on a regular basis, so you can identify any areas where you can improve.

Pricing strategies

It’s important to set your prices correctly when starting your Etsy shop. You need to make sure that you’re covering the costs of your materials and labor, while also being competitive in your market. There are several pricing strategies you can use to help you set your prices, including cost-plus pricing and value-based pricing.

Cost-plus pricing involves calculating the total cost of creating your product, and then adding a markup to determine your selling price. Value-based pricing involves setting your selling price based on the perceived value of your product to the customer.

Whichever pricing strategy you choose, make sure to test and adjust your prices regularly to maximize your profits.

Managing cash flow

Cash flow is the amount of money that comes in and goes out of your business. When starting your Etsy shop, it’s important to manage your cash flow effectively to ensure that you have enough money to cover your expenses and invest in growth.

One of the easiest ways to manage your cash flow is to create a budget and stick to it. This will help you avoid overspending and keep your expenses under control. Another way to manage your cash flow is to offer discounts to customers who pay upfront, or to set up payment plans for customers who want to spread their payments over time.

This can help you get paid faster and improve your cash flow.

Scaling Your Shop

Once you’ve got your Etsy shop up and running, it’s important to think about how you can scale your business and increase your profits. Here are some tips on how to scale your Etsy shop.

Expanding your product line

One of the easiest ways to scale your Etsy shop is to expand your product line. This will give your customers more options to choose from, and can help increase your sales. When expanding your product line, make sure to research your market and identify any gaps or opportunities that you can fill.

You should also consider your production capabilities and make sure that you’re able to produce your new products efficiently.

Hiring employees

Another way to scale your Etsy shop is to hire employees. This can help you increase your production capacity and take on more orders. When hiring employees, make sure to carefully consider your budget and the skills and experience that you need.

You should also make sure that you comply with any legal requirements for employers in your area.

Managing inventory

Managing your inventory effectively is crucial if you want to scale your Etsy shop. Make sure to keep track of your stock levels and reorder products in a timely manner. You may also want to consider using inventory management software to help you manage your inventory more efficiently.

By following these tips, you can successfully manage your finances and scale your Etsy shop without investing a lot of money upfront. With hard work and dedication, you can turn your Etsy shop into a successful business.


How much money needed to start Etsy shop?

Good news! Joining and starting a shop on Etsy is completely free. You do not need to pay anything to get started. However, once you start selling, there are three basic selling fees:

  • A listing fee: This fee costs $0.20 to publish a listing to the marketplace.
  • A transaction fee: Etsy charges 5% on each transaction.
  • A payment processing fee: This fee will cost 3% + $0.25 for each item sold.
  • Offsite Ads fee: If your sales come from Offsite Ads, there will be an additional advertising fee.

Do I need a tax ID to sell on Etsy?

The answer depends on the type of business you have. If you register your business as a sole proprietorship, you do not need a tax ID to sell on Etsy. In this case, you will report taxes on your personal tax returns.

However, if your business is a corporate entity or an LLC, you will need an EIN (Employer identification number). This number will be used to file your taxes and report income to the government.

Can I start an Etsy shop without a business license?

Yes, you can start an Etsy shop without a business license. However, it’s important to note that the state, county, and local municipality where you’ve formed your business may require you to hold licenses and permits to operate your company legally.

Make sure to research and comply with all relevant regulations in your area before starting your Etsy shop.

What can I sell on Etsy as a beginner?

If you’re a beginner, we recommend starting with products you’re passionate about and have experience making. Here are some popular Etsy categories for beginners:

  • Handmade items: Jewelry, home decor, and clothing are all popular categories.
  • Craft supplies: If you love making crafts, consider selling supplies like yarn, fabric, and beads.
  • Printables: This includes items like digital art prints, invitations, and planner stickers.
  • Vintage items: If you’re a collector, consider selling vintage items like clothing, home decor, and jewelry.

What to do before opening an Etsy shop?

Before opening an Etsy shop, make sure you have a solid business plan in place. Consider the following:

  • Decide on what to sell: Choose a niche or product category that you’re passionate about and have experience making.
  • Research your competition: Look at other similar shops on Etsy and decide how you can differentiate yourself. Consider different pricing strategies, product offerings, and brand messaging.
  • Create a brand: Develop a logo and brand messaging that reflects your values and the unique qualities of your business.
  • Create inventory: Build up a strong inventory of products ready for sale before opening your shop.
  • Set up your shop: Create a shop name, write a shop description, and upload photos of your products.

How to start an Etsy shop legally

Starting an Etsy shop legally involves complying with all relevant laws and regulations in your area. Here are some tips:

  • Research local regulations: Look into any licenses, permits, or taxes you may be required to obtain.
  • Obtain necessary permits: If required, obtain necessary permits, and licenses before starting your shop. This may include sales tax permits or zoning permits.
  • Register your business: Decide on the legal structure of your business and register it with the appropriate government agencies.
  • Comply with labeling and safety regulations: Make sure any products you sell comply with labeling and safety regulations in your area.

How much does it cost to start an Etsy shop?

Starting an Etsy shop can cost as little or as much as you want it to. The platform itself is free to join and start selling. However, you may incur costs depending on the products you sell, such as materials, packaging, and shipping. Additionally, you may choose to invest in advertising or other marketing efforts to drive traffic to your shop.

How many items to start Etsy shop?

There’s no set number of items you need to start an Etsy shop, but we recommend having a variety of products in your inventory to attract a wider range of customers. Start with a strong collection of products ready for sale before opening your shop, and continue to add more items over time based on customer demand.

What do you need to start an Etsy Shop?

Are you passionate about crafting and looking to turn your hobby into a profitable business? Or do you have a unique or vintage item that you think could be a hit with others? Starting an Etsy shop might be the perfect solution for you.

With over 81 million active buyers, Etsy is the go-to platform for creatives and sellers who want to reach a large audience and make a profit. If you’re considering opening your own Etsy store, follow these steps to help you get started.

1. Identify Your Product

The first step in starting an Etsy shop is to determine what you want to sell. Whether it’s handmade goods or vintage finds, you’ll want to choose a niche that aligns with your passion and expertise. This will not only make it more enjoyable for you to create your products, but will also make it easier to market and stand out in a crowded marketplace.

You’ll want to consider the materials, skills, and time that will be required to create your products, as well as any potential challenges you may face in sourcing materials or scaling your production. Take some time to research your niche and the competition to get a sense of what’s already being sold and what potential gaps or opportunities you can fill.

2. Plan Your Branding

Once you’ve identified your product, you’ll want to start thinking about your branding. Your brand is more than just your logo or packaging – it’s the story and personality behind your products that will help you stand out in a crowded marketplace.

Think about the values and aesthetic that represent your brand and what kind of impression you want to make on potential customers. You’ll want to choose a name that reflects your niche and brand identity and create a logo and packaging that is both eye-catching and consistent with your branding.

3. Create Your Shop

To open an Etsy shop, you’ll need to create an account, set up your shop, and list your items. As you set up your shop, take the time to create a comprehensive and detailed shop profile that includes information about your brand, products, policies, and customer service.

When creating your listings, be sure to use high-quality photos that showcase your products in the best possible light. Write detailed and accurate descriptions that highlight the unique features and benefits of your products and make it easy for potential buyers to understand what they’re purchasing.

4. Price Your Products

Pricing your products can be one of the most challenging aspects of starting an Etsy shop. You’ll want to consider the time, materials, and overhead costs that go into creating your products, as well as the market demand and competition in your niche.

Research similar products in your niche and see what other sellers are charging. Consider offering a range of prices for different products or variations to appeal to a broader audience. Don’t be afraid to experiment with your pricing over time and adjust as needed based on customer feedback and demand.

5. Manage Your Inventory and Fulfillment

As orders start to roll in, you’ll want to make sure you have a system in place for managing your inventory and fulfilling orders. Consider using a management tool like Orderlytics or ChannelAdvisor to help streamline your operations and keep track of inventory levels and shipping details.

Be sure to package your products with care and ship them promptly to ensure a positive customer experience and encourage repeat business. You may also want to consider offering free or discounted shipping promotions to attract new customers and incentivize larger purchases.