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Can you make a full time income on Etsy?

With the rise of entrepreneurship and side hustles, more and more people are turning to platforms like Etsy to make extra money or even replace their full-time income. Etsy is an online marketplace for handmade, vintage, and craft supplies that has become a popular way for creative entrepreneurs to sell their goods. But can you really make a full-time living selling on Etsy?

What constitutes a full-time income?

First, it’s important to define what counts as a full-time income. This can vary greatly depending on where you live and your lifestyle, but a general rule of thumb is around $40,000 to $50,000 per year before taxes. This works out to $3,300 to $4,200 per month. Some considerations when determining your target income:

  • Cost of living – Income needs will be higher in expensive areas like San Francisco or New York City versus cheaper cities.
  • Healthcare – If your healthcare costs aren’t covered, you’ll need to earn enough to pay for insurance.
  • Retirement savings – Don’t forget to factor in saving for retirement in addition to current living expenses.
  • Emergency fund – It’s wise to have 3-6 months of living expenses saved in case of emergencies or fluctuations in income.
  • Debt and expenses – Think about existing debt payments, childcare or other family expenses.

While $40-50k per year is reasonable for many, assess your unique financial situation when setting an income goal.

Is it possible to make a full-time income on Etsy?

The short answer is yes, it is certainly possible, but it requires significant effort and strategic planning. Here are some key considerations:

  • Etsy fees – Etsy charges transaction fees plus listing fees, which can take a cut of sales. These must be accounted for in pricing and income targets.
  • Competition – Popular categories on Etsy can have fierce competition. Your products must stand out in quality, price, and marketing.
  • Production costs – The actual cost to make your products will impact profit margins. Price high enough to have healthy margins after costs.
  • Time investment – Running an Etsy shop takes significant time for product creation, photography, customer service, marketing, accounting, etc. The more products you list and sell, the more time it requires.

While it’s very possible to reach a $40-50k/year income on Etsy, it requires treating your shop like a real business, being strategic, and investing time upfront before you can leave your full-time job.

How much does the average Etsy seller make?

Etsy does not publicly share details on average seller incomes, so it’s hard to say exactly. However, there are some estimates based on available data:

  • An analysis by EtsyMin based on Etsy forums estimates average annual Etsy incomes between $15,000-$20,000 for sellers doing it part-time and between $40,000-$60,000 for full-time sellers.
  • Top-performing “power sellers” report earnings of over $100,000 per year.
  • Newer shops or those doing it as a side hustle make around $200-$500 per month when first starting out.

So while exact averages are hard to pinpoint, a range between $20k-$60k per year seems reasonable depending on your goals, items, time investment, and shop performance. Top sellers doing this full-time and selling in demand products can certainly clear six figures.

Factors impacting average Etsy seller income

There is a wide range in Etsy seller incomes, from a few extra hundred dollars to $100k+ for successful shops. Some factors impacting this variance:

  • Niche – Categories like jewelry, home decor, clothing do very well. Novelty items may have a harder time.
  • Time invested – Sellers spending 20+ hours a week on their shops earn more than side hustles at 5 hours a week.
  • Marketing and SEO – Driving external traffic through marketing is key vs. relying only on Etsy searches.
  • Quality of goods – Making a high-quality, unique product can command higher prices.
  • Customer service – Positive reviews and repeat buyers help increase sales.
  • Production efficiency – Streamlining manufacturing and shipping processes reduces costs.

While income averages give a baseline, use strategies like the ones above to maximize your own income potential.

What are examples of Etsy shops making $40k or more?

Here are some examples of real Etsy shops and sellers that reportedly earn $40,000 per year or more:

Jewelry

  • ElvenForestJewelry – sells wire-wrapped jewelry at $150+ per piece
  • DeniseDesigns – handmade beaded and gemstone jewelry
  • LeesBeadCreations – wide selection of beaded necklaces and bracelets

Home Decor

  • MKGraffiti – unique graffiti-style wall prints
  • PillowAvenue – throw pillows and blankets with trendy prints
  • RusticWoodSigns – custom handmade wood signs for home decor

Clothing & Accessories

  • ThreeKittiesClothing – boho-chic women’s clothing with prints
  • ToddlerTeesCo – kids graphic t-shirts and baby onesies
  • InfinityScarfCo – trendy, high-end infinity scarves

For privacy reasons, exact sales and income figures are not publicly shared by these sellers. But based on product pricing and shop size, these are examples of Etsy sellers who likely make a full-time income from their shops.

Some common themes among high-earning Etsy shops are:

  • Strong branding and product photography
  • Good SEO and keyword strategies
  • Marketing through social media and blogs
  • Focus in one product niche or buyer persona
  • Offering custom or personalized products
  • Streamlined manufacturing and order fulfillment

Using smart strategies like these can help maximize sales and reach a full-time income level.

What are the best selling items on Etsy?

While Etsy sellers offer a huge range of unique goods, some types of products consistently sell very well on the platform. Best selling items include:

Category Examples
Jewelry Earrings, necklaces, bracelets, rings
Home & Living Wall prints, pillows, blankets, doormats
Clothing & Accessories T-shirts, scarves, bags, hats
Paper & Party Supplies Wedding invitations, greeting cards, party banners
Craft Supplies fabric, tools, patterns, yarn
Artwork Original prints, photography, paintings

Items that are handmade, creative, customizable, or tap into current trends tend to outperform on Etsy. Favorites like jewelry and apparel have consistent demand year-round.

When brainstorming products to sell, focus on these consistently popular categories. But make sure to offer creative and unique takes on those items to stand out.

How can you maximize sales and income on Etsy?

Building a profitable Etsy shop that earns a full-time income takes significant strategy and effort. Here are some key tips:

Create a business plan

Treat your Etsy shop like a real business. Write a business plan including your target audience, product offerings, production plan, marketing strategy, and financial projections. This will keep you focused and on track.

Specialize in one product niche

Trying to sell too many unrelated items can seem scattered to shoppers. Focus your shop on one product niche with related styles, like handmade jewelry or boho apparel.

Invest in product photography

Use crisp, high-quality photos to showcase your products. Consider hiring a professional photographer for key items.

Focus on SEO and keywords

Research keywords potential customers use to find your products. Optimize titles, tags, and descriptions for those words.

Promote your shop on social media

Market across platforms like Instagram, Facebook, and Pinterest. Post consistently and engage your audience.

Offer specials and limited quantities

Create urgency with flash sales, holiday specials, or advertising limited quantities. Send email newsletters to inform subscribers.

Provide excellent customer service

Go above and beyond to resolve issues and make customers happy. This earns positive reviews to boost sales.

Reinvest profits back into your business

As your income grows, reinvest a portion back into improving your products, marketing, tools, and photography.

Conclusion

While it requires significant work and strategy, it is very possible to generate a full-time income selling on Etsy. On average, successful full-time Etsy sellers earn between $40,000-$60,000 per year. Some top sellers even surpass $100k annually. By focusing your shop on a popular product niche, investing time upfront in product development and marketing, providing excellent customer service, and reinvesting profits back into your business, you can grow a profitable Etsy shop that replaces your 9-5 income.