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How to Sell on Etsy in Australia [Thorough Guide 2022]

Written by, Shushan Khachikyan

Updated May, 21, 2022

If you’re looking to sell your artisanal products in Australia, you must choose a selling platform where your market is. Fortunately, Etsy, the eCommerce site that focuses on handmade products, is open to the Australian market. You can now take advantage of it to offer your products in Australia. But how to sell on Etsy in Australia? 

In this article, you’ll learn what’s Etsy, things you should know before selling on Etsy, fees, tips and advantages and disadvantages of selling on Etsy.

What Is Etsy?

Etsy is an American online platform that sells handmade goods. The service is very popular in the US, and the number of registered users exceeds 20 million. 

Despite the large number of marketplaces selling various goods, handmade products have always remained in the shadows, but the advent of the Etsy online platform changed that. With its help, creative people can sell vintage or handmade items. 

The platform has more than 800,000 online stores, and the product range is more than 15 million items. Before it became a successful project, Etsy came a long way with its successes and failures.

So, what to sell on Etsy? The idea behind Etsy is to connect craftsmen with their customers and help people find unique products, whether that’s art, clothing, or all the decor you’ll need for a beautiful gathering. 

If you live in Australia, you can choose to sell numerous products on Etsy. To get you thinking, here are some ideas:

  • Jewellery and accessories
  • Clothing and shoes
  • Home and living
  • Wedding and party
  • Toys and entertainment
  • Art and collectables
  • Craft supplies and tools
  • Vintage goods

Is Etsy Popular in Australia?

Etsy has become very popular amongst Australians. Many people sell their homemade pieces and curated collections on this platform and even more use it for online shopping. 

According to Handmade Hunt, there are more than 125 active Etsy sellers in Australia. The company offers an on-ramp to creative entrepreneurship for people who might not have otherwise started a business. 

The US has the highest international seller distribution. The UK takes second place with 30% of the total sellers, followed by Canada and Australia. This puts the country in the fourth position, taking up 7% of all sellers on the platform.

Etsy ranks 19 among the top shopping apps in Australia on Google Play Store and the App Store. According to the platform, the average age of people selling on Etsy in Australia is 44. Some of the top seven popular categories popular in the country and worldwide include home and living, crafts supplies, jewellery, and clothing. Together, these categories have over 15 million buyers.

What You Should Know Before Selling on Etsy

Let’s look at four things you can do before you start selling on Etsy.

Research the Market

Etsy is the best place to sell handmade goods in Australia. But when you’re starting, it’s essential to choose what to sell on Etsy and carve out a niche for it. Once you know your target audience, you should figure out if those people will buy what you plan to offer — and if so, how much they’ll be willing to pay. You must understand the value you can deliver in this market. 

Business Structure

There are different ways to structure your business in Australia to determine how you run your online marketplace. Sole traders run many craft businesses in the country, but other craft entrepreneurs choose to set up a partnership

If you register your business as a company, you’ll be responsible for debts and obligations. All options have advantages and disadvantages, and you should speak to an accountant or company registrar before deciding.

Choose a Business Name

Build a name that people will remember. Use the principles in branding an idea to create something simple, short, memorable, and catchy

An important factor to consider when naming your Etsy shop is how to differentiate yourself from others selling similar products. Also, you can change your shop name on Etsy at any time. If you already have a name, consider registering a trademark for your logo to protect yourself on Etsy.

Consider Tax Obligations

Etsy merchants are responsible for paying state taxes in states where they have a significant presence. The platform automatically calculates, collects, and remits sales tax for items shipped to states that require online platforms to collect sales tax. 

Australian sellers also may have to register their business for goods and services tax (GST). If you’re selling to other companies, consider obtaining an ABN.

How to Sell on Etsy in Australia

Learning how to sell on Etsy can seem like an overwhelming and ambitious project. But selling on the marketplace requires just a few simple steps:

Create an Account

You need to create an Etsy account before selling products, and the registration process is straightforward. You just need to enter details like your email, password, and name. Alternatively, you can also use your Facebook or Google account.

Set Shop Preferences

If you’re wondering how to set up an Etsy store, you should know that editing your shop preferences is an essential step:

  1. You should set the default language that you’ll use for product descriptions. 
  2. You should select your home country and the currency in which you’d like to list your items. 
  3. You should state whether you’re a full-time business owner, part-time seller, or something else.

Pick a Name for Your Shop

You want customers to remember your Etsy shop name, and you can ensure that by finding a way to stand out from the crowd. The name you choose for your shop should be fun and creative enough to attract customers. Include your individual touch and be unique.

Add Products

Before you can start selling on your Etsy account, you have to set up your product listings and inventory to let the platform know what you sell. Use the ”Add a new listing” feature to create a new listing by matching an existing product.

Receive Money

Etsy accepts various payment options, including credit and debit cards. There are also several ways for customers to pay online, like PayPal, Apple Pay, and Google Pay

Set up Billing

How much does it cost to sell on Etsy in Australia? Keep in mind that the platform charges money for each sold item. After entering details about receiving payments, you’ll need to set up billing. Etsy will charge a fee for each product/listing you put on the site and opening your storefront. 

Design Your Storefront

Here are the steps to design your Storefront on Etsy:

  • Upload images. The first step to adding a product to your Etsy store is to find at least five photos so that customers can have a good idea of what it looks like.
  • Adjust your thumbnail. Once you have your amazing photos, ensure that your thumbnail picture is the correct size to represent your product visually. 
  • Add product details. To get your listings on search engines, you need to write clear, easy-to-read titles and descriptions that contain words people will use to find your product.
  • Mention quantity and price. Provide details for each product, including price, sales taxes, quantity, and SKU number. You also need to add essential information like size, materials, and colours.
  • Point out shop policies. You should tell your potential customers what to expect from you as a seller. Include details about your product manufacturing, processing, and shipping options. To trade confidently on the marketplace, you must comply with Etsy Seller Protection Policy and remain in good standing with the platform.

Think About Shipping Options

You can set different shipping options for a product. You’ll find them under the “Shipping Upgrades” setting. Though most Australian Etsy sellers ship via Australia Post, there are other domestic and international carriers, including:

  • Parcel Post
  • International Post Economy Air 
  • International Post Standard

You can purchase and print Australian Post shipping labels directly from your Etsy shop. Their cost depends on the origin, destination, weight, and type of package.

Create Listings

Creating an intelligible listing is good practice and avoids any confusion for the buyer. Category management will help your clients sift through your products more efficiently. And you can edit your listing order at any time.

Tips for Selling on Etsy

Selling on Etsy in Australia isn’t as easy as it seems. But how can you simplify the process and gain a decent profit? All the answers lie in adopting several key strategies. Below, you’ll find three proven tips for selling on Etsy like a pro.

Use High-Quality Photos

High-quality images boost buyers’ confidence in the seller and help seal the deal. In contrast, using low-quality images can undo all your hard work. Sharing multiple product images with good lighting and a clean background will make your business successful.

Search Engine Optimization (SEO)

You implement Etsy SEO by writing product descriptions with keyword-rich text. Your product detail page (namely the title, description, and tagging) should appeal to buyers. You can always start by searching for products like yours and see what keywords and listings others use.

Find a Warehouse/Storage Space

Whatever the business size, suitable warehouse space is often one of the most vital commodities, ensuring that you can produce goods efficiently. 

If you find yourself drowning in boxes and packages, there’s a quick and easy solution to your problem. By renting a storage space, you’ll have complete autonomy over your stock in a secure yet accessible place.

Etsy Fees

How much does Etsy charge? Let’s break down the Etsy fees you can expect to pay in 2022 for selling on the popular marketplace:

  • Transaction fees. Etsy fees are transaction-based, meaning sellers must pay to keep doing their online business. Australian sellers will need to pay the marketplace a 5% transaction fee of the sale price whenever they sell an item.
  • Payment processing fees. Etsy takes 3–4% of a sold item’s revenue, plus another AU$0.25 payment fee.
  • Listing fees. Published listings last until you sell the item or up to four months. If auto-renew is activated in the listing information, you’ll be charged AU$0.28 once the four months are up.
  • Currency conversion fees. All charges related to selling on Etsy are billed in USD. The platform may take a 2.5% currency conversion fee when doing business with Australian currency.
  • Offsite Ads fees. Offsite ads are listing ads promoted outside of Etsy. When someone clicks on your offsite ad and makes a purchase from your shop, you’ll pay 15% of your sale.

Is Etsy Plus Worth It?

All Australian sellers can choose the Etsy Plus package. The subscription costs $10 per month and offers a broader choice of tools, options, and other benefits. All Etsy Plus sellers get 15 listing credits and $5 in Etsy ads credit. The main benefits include:

  • Customizable shop options
  • Discount for the first year of domain registration
  • Notifications for your customers

Pros and Cons of Selling on Etsy

Involving your business in Etsy sales can be an exciting prospect. Selling on the platform can give you a huge boost, but there are pros and cons like anything else.

The Pros

  • Easy setup. The Etsy platform is already there, just waiting for you to sign up, establish your storefront, and begin selling.
  • Access to a vast audience. According to Statista, in 2021, Etsy had 96,3 million active buyers. 
  • Instant trust. When you sell on Etsy, you immediately gain the trust of customers who already know and love this marketplace.
  • Assistance. Etsy puts effort into educating and supporting its users.

The Cons

  • High competition. Remember that Etsy has millions of active users. With so many sellers, you’re likely to face stiff competition.
  • Seller fees. If your profit margins are very low, you may not benefit from selling certain products, especially among many competitors.
  • Brand image issues. When you sell on Etsy, you’re driving loyalty to the marketplace rather than your brand.

Conclusion

If you want to maximize the potential of your handmade products on Etsy, you have to do the research, put in the work, and be patient. 

There’s nothing quite like this marketplace, which offers the diversity and breadth of unique products, allowing merchants to sell handmade items. The platform efficiently finds the right customers, helps you sell, and gives your creative ideas a wing to reach their desired branches.

FAQ

Do you need an ABN to sell on Etsy Australia?

Applying for an ABN depends on whether your Etsy store is a hobby or a business. You don’t need an ABN if your business turnover is less than $75,000 a year. But if you want to register for Goods and Services Tax (GST), you’ll need an ABN first.

How much does it cost to have an Etsy shop in Australia?

Etsy doesn’t charge monthly fees for running a shop. But there are five types of fees you might need to pay: a listing fee, a transaction fee, a payment processing fee, a subscription fee, and offsite ads fees.

Who pays for shipping on Etsy?

Etsy doesn’t pay for your shipping. In many cases, customers pay for the shipping as the cost is added to the product price. They’re also responsible for ensuring the product is packaged properly.

Is selling on Etsy worth it?

Etsy is among the best places to sell handmade items in Australia. If you want to learn how to sell on Etsy in Australia, simply scroll up and read. It’s worth it, but only if you have a proper plan for what you want to achieve and are willing to put in the work.