How to Start, Scale, and Succeed on Etsy: Insights from a Multi-Six-Figure Seller

Etsy is a bustling marketplace with over 6 million sellers and 400 million monthly visitors. With such fierce competition, how do you stand out and turn your Etsy shop into a thriving business? 

In a recent episode of the Start, Scale, Succeed podcast, host Nicole Higgins sat down with Dylan Jahraus, a multi-six-figure Etsy seller and business coach, to uncover strategies for success on the platform. Whether you’re just starting out or looking to scale, this guide will walk you through the key takeaways from their conversation.

Prefer to listen instead of read? Listen to the full episode here. 

Getting Started on Etsy

If you’re considering launching an Etsy shop, the first step is to assess your brand and product positioning. According to Dylan, sellers tend to fall into two categories:

1. Those with an existing product or brand – If you already have a product, it’s crucial to position it correctly on Etsy. Each platform, from Amazon to Shopify, has a different type of customer, and Etsy shoppers have their own set of expectations.
2. Those starting from scratch – If you’re beginning without a product, start by identifying your ideal customer. What do they buy? What problems do they need solved? Targeting a customer who values time over money—such as high-income professionals—can be particularly lucrative.

How to Get Noticed on Etsy

With millions of listings on Etsy, visibility is a major challenge. Dylan highlighted four critical factors for standing out:

1. SEO Optimization – Etsy is a search engine, and ranking on the first three pages is essential. Many sellers only utilize 10% of Etsy’s SEO opportunities. Ensure that you’re optimizing your titles, descriptions, and tags effectively.
2. High-Quality Thumbnails – Your product images are your first impression. Investing in professional photography or outsourcing design work can drastically improve your click-through rate.
3. Competitive Pricing – If you’re a new seller with no reviews or sales history, pricing too high can hurt you. Consider starting with a competitive pricing strategy to attract buyers.
4. Driving External Traffic – Etsy ranks listings based on order velocity. The more sales you make within a short period, the higher you rank. Utilizing social media and external marketing can boost your shop’s visibility and sales.

Common Mistakes Etsy Sellers Make

Many Etsy sellers struggle because they launch their shops with the wrong approach. Dylan outlined the biggest mistakes:

• Starting with a product instead of a customer – Many new sellers create items they personally like rather than researching market demand.
• Not adapting to changing trends – Etsy’s competitive landscape has evolved since 2020, and what worked back then won’t necessarily work now.
• Overloading their shop with too many listings – A curated, high-quality selection of products often outperforms a shop cluttered with hundreds of low-performing listings.
• Neglecting branding and innovation – If your bestseller from two years ago is still your top product, you’re likely missing opportunities to expand and iterate.

What’s Working in 2024?

Dylan emphasized that successful Etsy sellers in 2024 focus on:

• A Curated Shopping Experience – Today’s shoppers prefer fewer, high-quality listings over an overwhelming selection.
• Trendspotting Outside of Etsy – Instead of copying existing Etsy trends, look at platforms like TikTok, Pinterest, and influencer marketing for emerging trends before they hit Etsy.
• Selling Higher-Quality, Heirloom Items – There’s growing demand for unique, personalized, and high-end products that stand out from mass-produced goods.

How to Revive a Declining Etsy Shop

Many Etsy sellers have seen a slowdown in sales over the past couple of years. If your shop is struggling, consider the following:

• Update Your SEO Strategy – SEO tactics that worked years ago may be outdated. Regularly refresh your listings and stay up-to-date with Etsy’s algorithm changes.
• Refresh Your Branding – Modernize your visuals, product images, and branding to stay competitive.
• Introduce New Bestsellers – If your top-selling product has remained unchanged for years, it’s time to innovate and introduce new items.
• Cut Unnecessary Listings – Having too many low-performing listings can make your shop appear cluttered and unfocused.

Should You Run Etsy Ads?

According to Dylan, Etsy ads are often ineffective due to a lack of control over how your budget is spent. Instead, she recommends focusing on external advertising platforms like Meta (Facebook and Instagram) for better targeting and return on investment.

Maximizing Customer Lifetime Value

Scaling an Etsy shop isn’t just about getting new customers—it’s about increasing the value of each customer over time. Dylan advises focusing on:

• Creating complementary products that encourage repeat purchases.
• Building an off-Etsy audience through social media and email marketing.
• Offering premium services like customization or personalization.

How to Move Etsy Customers to Your Own Website

While Etsy owns your customer data, there are ways to encourage customers to engage with your brand outside of the platform:

• Offer an Incentive – A discount or exclusive content can encourage buyers to join your email list.
• Leverage Social Media – Dylan’s top strategy was posting “sneak peeks” of customer orders on Instagram, enticing buyers to follow her brand.
• Create a Community – Engaging customers through social platforms helps maintain brand loyalty beyond Etsy.

Final Thoughts

Etsy remains a powerful platform for product-based businesses, but success requires strategy, adaptability, and continuous learning. Whether you’re launching a new shop or scaling an existing one, focusing on SEO, branding, customer retention, and external marketing will set you up for long-term success.

For more insights and coaching opportunities, connect with Dylan on YouTube and Instagram. If you’re ready to take your Etsy shop to the next level, implementing these expert strategies will help you start, scale, and succeed in the competitive world of e-commerce.