How much does it cost to start an Etsy shop?

Almost nothing to open — Etsy charges $0.20 per listing and takes its cut only when you sell. Budget around $10-20 to list your first batch, plus a domain (about $12/year) if you're securing the brand name, and whatever your materials or supplier costs are.

Do I need a business license to sell on Etsy?

Etsy itself doesn't require one, but your local government might, and rules vary by state and country. Most US sellers start as a sole proprietor and register an LLC once sales are steady. Check your state register before you file anything.

How do I choose an Etsy shop name?

Pick something descriptive enough to signal what you sell but broad enough to grow into. Etsy shop names must be unique across the entire platform, 4-20 characters, with no spaces or punctuation — and you should confirm the matching domain and social handles are free before you commit.

How long does it take to get the first Etsy sale?

Realistically weeks, not days. New shops have no reviews and no search history, so early sales usually come from your own promotion. Sellers who list 15-20 items rather than 3 give Etsy's search more chances to show them.

Should I offer free shipping on Etsy?

Etsy's search favours listings with free domestic shipping over $35, so most sellers build the shipping cost into the item price. Just remember Etsy's 6.5% transaction fee applies to the whole order either way, so free shipping is a pricing decision, not a fee saving.

How to Start an Etsy Shop in 2026 (Step-by-Step for Beginners)

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