Mastering Etsy: From Side Hustle to a Thriving Business

Etsy offers an incredible opportunity for entrepreneurs, creatives, and side hustlers looking to generate significant revenue with a diverse range of products. While most people think of Etsy as a marketplace for homemade crafts, it’s far more versatile. 

In a recent interview on the Niche Pursuits Podcast, Dylan Jahraus, a successful Etsy seller and coach, shared valuable insights on how to leverage Etsy’s platform to build a profitable online business.

Prefer to watch or listen instead of read? You can listen to the episode on Apple Podcasts, Spotify, or YouTube. 

Getting Started on Etsy

Etsy isn’t just a place for craft enthusiasts; it’s a serious platform for entrepreneurs aiming to achieve six or even seven figures. According to Dylan, success on Etsy starts by understanding your target audience and providing products that offer value, utility, and purpose. To stand out, Dylan advises against simply copying top-selling products on Etsy. Instead, she suggests finding trending ideas outside of Etsy, such as on Pinterest or TikTok, and using those insights to create unique products.

Choosing the Right Products

When it comes to selecting products, Dylan emphasizes focusing on items that solve problems or offer utility. Examples include templates, spreadsheets, or digital downloads that help users save time or make money. For sellers interested in physical products, the focus should be on items with a clear purpose, such as gifts for niche communities (e.g., dog lovers) or functional products like home office accessories.

To differentiate yourself, consider targeting a specific niche within a larger category. For example, if you’re entering the pet market, focus on products for a high-demand breed like Golden Retrievers or Dachshunds. This strategy not only appeals to a targeted group but also helps you stand out in Etsy’s crowded marketplace.

Winning on Etsy Search: Pricing and SEO

Creating a winning listing on Etsy is about combining a strong title with competitive pricing and an eye-catching thumbnail. Dylan highlights the importance of using long-tail keywords that match specific buyer searches to improve visibility in search results. Rather than choosing simple, generic titles, opt for detailed descriptions like “personalized Golden Retriever dog collar” to attract more targeted traffic.

Pricing is another crucial factor. Initially, Dylan recommends setting lower prices to gain traction, increase your order volume, and generate positive reviews. Once your shop gains popularity, you can gradually increase prices. This strategy is similar to the Amazon model: prioritize customer acquisition over immediate profits.

Building Momentum with Loss Leaders and High-Ticket Items

To quickly build up reviews and sales, start with a few “loss leader” items, which are low-priced products designed to boost your sales volume and improve your shop’s visibility in Etsy search results. However, these products should be balanced with higher-ticket items that increase your average order value. Ideally, you want to have a mix of products that cater to various customer needs and price points.

Marketing Beyond Etsy: Using Social Media for Growth

Although Etsy offers some advertising options, Dylan recommends avoiding them due to limited control over targeting. Instead, leverage organic social media channels, particularly Facebook and Pinterest. Find groups or communities where your target audience spends time, such as dog lover groups for pet products or DIY groups for craft supplies. By engaging in relevant communities, you can promote your products and drive traffic without needing a large social media following.

Scaling with Power Listings

Once you’ve established a profitable shop, aim to create “power listings”—items that generate consistent sales over time. Power listings often hold a prominent position in search results and help drive sustainable growth for your shop. To create a power listing, ensure your product appeals to a wide audience and includes customization options, such as different colors or sizes.

Why Etsy Over Shopify or Amazon?

One of the biggest advantages of Etsy is its built-in traffic, especially for new sellers who may not have the budget or experience for paid ads. Etsy also provides data insights to help you understand your audience better. While platforms like Shopify require you to drive traffic independently, Etsy’s established user base allows you to reach potential buyers quickly and without significant upfront investment.

Final Thoughts: Start Small, Think Big

Dylan’s success story shows that with the right approach, Etsy can be more than just a side hustle—it can be a profitable, scalable business. For those considering Etsy, Dylan recommends taking advantage of its built-in tools, focusing on customer lifetime value, and continuously iterating on products to meet evolving customer demands.

Whether you’re looking to make a few hundred dollars a month or scale to five-figure revenue, Etsy offers a flexible and viable path for growth. Start by understanding your niche, leverage organic marketing, and continually adapt your product offerings to stay ahead of the competition.