29 Mistakes Etsy Sellers Make & How To Fix Them!

Are you feeling stuck or worried about your Etsy shop and wondering what are the common mistakes Etsy sellers make? 

I faced the same worries when I helped my sister setting up an Etsy shop. 

Making mistakes means you are leaving money on the table. 

On the other hand, knowing what mistakes to avoid will not only help you save your money but also your valuable time! 

I understand your struggles and in this article, I will share with you 29 mistakes Etsy sellers make. 

I will also explain how to fix and avoid each of them so you don’t go down the same route. Let’s dive right in! 

At A Glance: Mistakes Etsy Sellers Make

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Some of the links on here are affiliate links, and I may earn if you click on them, AT NO EXTRA cost to you. I hope you find the information here useful! Thank you so much. 

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If  you are super busy and you want to start making money selling digital products  on Etsy asap, you can check out this and this Etsy course, that will step up your Etsy game and start earning within 3 months! 

Alternatively, you can also check out this free Etsy Ebook that will share a list of best-selling products by month and teach you how to capitalize on seasonal trends to make sales.

29 Mistakes Etsy Sellers Make

1. Using Low-Quality Product Photos 

One of the easiest mistakes Etsy sellers make is using low-quality product photos. Product photos can make or break your Etsy business! It directly affects your click-through and conversion rate of your products. 

Most successful Etsy shops know that you need to use high-quality product photos. This allows potential customers to clearly see your product details. 

Make sure to shoot your products in a well-lit environment, show customers how to use them, and highlight creative details about them. 

2. Not Including A Video In Your Listings

Having photos is great but seeing a video of your products is the closest thing to trying them since your customers are shopping online. 

If you are selling clothes, this is a great way to show how the fabric drapes and how the different sizes would look on different bodies. 

Including a video in your listing helps build trust with your customers and increases your credibility as an Etsy shop!

3. Not Being Niche Enough 

If you’re trying to sell a bit of everything in your Etsy shop to pretty much anyone, that means you’re not being niche enough. 

For your Etsy business to succeed, you need to be specific about what you’re selling and who your target audience is. 

Refining this will allow your shop and brand to be cohesive! 

If you have picked a niche but seeing minimal sales after months, you can always pivot and experiment with other products to see if they would generate interest. 

4. Jumping In Without Doing Market Research And Competitor Analysis 

This is one of the common mistakes Etsy sellers make. Before you pick a niche and launch your Etsy shop, it’s best to do market research and competitor analysis. 

This includes looking at the product demand and the competition level. 

Do a simple search on Etsy and note what’s already available. Look at the number of listings similar to what you’re planning to sell and explore what your competitors are doing. 

5. Not Establishing A Clear Brand Identity 

Establishing a clear brand identity will make you stand out from your competitors on Etsy and make it memorable to customers. 

Having a shop logo, tagline, and color palette will tie everything together and help make your Etsy shop look cohesive and aesthetically pleasing. 

But what’s more important is the essence of your story and your craft. Think about your big why. 

Why do you make your products and what makes them unique? What does your brand stand for and how will that serve your target customers? 

6. Publishing Your Etsy Shop Name Wrong 

Part of establishing your brand is picking a great name for your Etsy shop. 

It needs to be unique on Etsy and is capped at 20 characters without spacing or punctuation. 

Once you officially open your shop, you can change your shop name up to 5 times only. So make sure you publish it correctly. 

If you need more tips on choosing the best name for your Etsy shop, check out this guide! 

7. Not Telling A Good Story In Your About Section 

Take advantage of the About section in your shop and tell a good story! 

Customers go on Etsy to look for unique products handmade by real people. Show your creative process and who you are. This will help you connect to your customers and they are more likely to support your craft. 

Plus, having a complete About section will help improve your search ranking on Etsy. 

8. Having Little SEO Knowledge To Optimize Keywords 

Having an understanding of Etsy Search Engine Optimization (SEO) is critical to your shop’s success. 

Part of the process of how to make a good Etsy listing is using SEO to optimize keywords in your listings. This increases your chance of ranking higher on the results page. 

I highly recommend using Etsy SEO tools like Keysearch and Sale Samurai if you’re not sure which keywords will rank better! 

If you want to take it a step further and learn more about SEO, enroll in my SEO course. I teach the exact strategies that will help you get thousands of organic traffic!

9. Writing Poor Listing Titles 

If you’re looking for tips on step by step selling on Etsy, writing a great listing title is the place to start. 

Every keyword in your title needs to be a term that someone types into the Etsy search bar to find exactly what you are selling.

Look for long-tail keywords that you can use in your listing titles. This means keywords that are longer and more specific phrases that customers are likely to use. 

Long-tail keywords have less competition and your customer will likely know that they want to buy it because they know exactly what they’re looking for. 

10. Publishing Basic Descriptions For Your Items 

Basic one-liner descriptions for your listing items may cause a potential customer to buy from your competitors instead. 

Maximize your conversion rate and make sure that your listing descriptions are descriptive yet concise. 

Highlight the benefits of your product, describe to your potential customer how using it will bring a positive change, and break it down into sections so they can easily find information. 

11. Neglecting The Importance Of Listing Tags 

Apart from your listing title and description, you also need to pay attention to your listing tags. 

Fill in all 13 tags that Etsy lets you use with accurate and relevant keywords! If you don’t, it will reduce the search terms that your products can potentially show up in.  

You can even experiment with minor changes in your tags to reach your target customers since tags evolve. 

12. Not Including Links To Your Other Listings 

An easy tactic to boost your sales is including links to other listings in your shop at the bottom of your product description! 

For example, if you have a listing for a necklace you can include a link to a pair of earrings to match. This will encourage customers to check out other items in your shop. 

13. Only Relying On Etsy Traffic For Sales 

Having an Etsy shop is a terrific start to building a business for your products but you shouldn’t rely only on Etsy traffic for sales. 

Get the word out about your business and bring your own traffic by marketing your Etsy shop on social media. 

Higher traffic means higher chances of potential customers buying your products! 

14. Having No Social Media And Marketing Strategy 

You’re leaving money on the table if you don’t have a marketing strategy or don’t use social media. It’s a powerful tool to reach more potential customers. 

Instagram and Pinterest are popular platforms of social media for Etsy sellers. 

You can show the story of your brand’s process through informative content and videos rather than just visual aesthetics or product photos. 

More importantly, find ways to engage your followers so they take a genuine interest in the behind-the-scenes of your brand! 

15. Overlooking Building Your Community 

Building your community takes time and is a long-term strategy but if you achieve this milestone, it will propel your shop’s growth. 

From day one of launching your Etsy shop, invite people to join your email list and follow you on social media! 

Over time, you can create sales and special discounts specially for your community of recurring customers. Plus, you can receive feedback on what they would like to see more of. 

16. Competing On Price Instead Of Quality 

One of the most important things to know about Etsy is that you should not compete on price. 

When you compete on price rather than value or quality, it kills your profits because you sell at a low price. 

Make sure your whole brand including the product photography, packaging, and customer service is high value. Learn to use perceived value as part of your pricing strategy. 

17. Ignoring The Business Operations Of Your Etsy Shop

Being a creative-minded Etsy seller, a business might not be your strongest suit but remember to focus on the business operations of your shop and not just the fun aspects. 

This includes tracking expenses, developing a business plan, and a pricing strategy. 

Find a rhythm that works well for you. For example, sit down every week to update your expenses record so that calculating your income and estimated taxes becomes easier to track. 

18. Not Maximizing The Etsy Shop Analytics To Improve Sales 

Track the progress of your Etsy shop and improve your sales by using Etsy Stats and Search Analytics.

For Etsy Stats, go to the Shop Manager and click on Stats. From there, you can see each product’s views, favorites, orders, and revenue. 

Probe further into listings that have high views but not many orders, and see how you can improve them in terms of photos or pricing. 

For Search Analytics, you can analyze the performance of all your keywords. It includes metrics like impressions, visits, and conversion rates. 

19. Neglecting Etsy’s Marketing Tools 

Try to experiment with Etsy’s marketing tools like Etsy Ads to level up your shop! 

Using Etsy Ads can increase your views and sales but you need to use the right strategy to run profitable Etsy Ads campaigns. 

But how do you make sure that it’s profitable? Check out this comprehensive guide about Etsy Ads for more tips! 

20. Having Little Knowledge Of Etsy’s Store Policies

You must take the time to go through the latest Etsy policies. The policies detail all the important Etsy shop do’s and don’ts. 

For example, what can and cannot be sold on Etsy, the expectations of sellers, and communication standards. 

If you unknowingly violate a policy, you might end up losing your Etsy account which will negatively impact your business! 

21. Not Adding New Listings Regularly 

If you currently have a low number of product listings like 5 or 10 only, work on adding new listings regularly. This will increase the chances of a potential customer buying from your Etsy shop. 

Some successful Etsy shops have listings ranging from 200 to 1000 listings. 

One of the benefits of having many listings is that they can act as bait to your shop. 

For instance, a customer could find your shop from one of your listings that they are interested in but end up purchasing something else from your store. 

22. Using The Wrong Categories For Your Items 

When you create a listing, you have to choose what category the product falls under. 

Choose the category that best and most accurately describes what your product is because customers can sort products by categories when they search for an item on Etsy. 

Categories are also important because they’re used for keywords. 

Make sure that you’re using accurate categories that can fill out the most extra keywords you can get because it helps you to be found in searches. 

23. Not Using The Etsy Shop Announcement 

When you add announcements in your Etsy Shop Announcement section, it pops up at the top of your page just below the banner. 

It’s a great way to bring in more sales. For example, if you have a bundle sale going on, you can write: “Buy 3 items or more and get 10% off your order!”  

If you’re away on vacation, let customers know when you will be back. So make sure to keep the announcements updated. 

24. Not Including A Banner In Your Etsy Shop 

If you include a banner, it appears at the top of your Etsy shop so it’s the first thing that potential customers see when they land on your shop. 

This is the opportunity to make a good first impression because just with one look, customers can get a feel of your shop. 

Experiment with different types of banners to see what works best for your shop. You can explore Canva to design it! 

25. Not Taking Advantage Of Holiday And Seasonal Sales 

At the end of the year is when customers are more likely to get gifts for family and friends. 

Avoid one of this mistakes Etsy sellers make and take advantage of the holiday season and prepare early to boost your revenue! 

Decide your discount level and when the sale will start. Then, schedule posts on social media to let customers know about the holiday promotion. 

You can even update your listings to include more gift-giving keywords and add gift sets to your shop. 

26. Giving Too Much Discount For Your Products 

If you’re wondering how much do Etsy sellers make, the answer is between $43,000 and $46,000 annually for the average successful seller. 

To achieve this, remember to not give too much discount for your products as it could hurt your bottom line and lose money. This is also one of the mistakes Etsy sellers make especially if they are new in the business.

Try to experiment with the different discount values. If you realize that you’re getting the same amount of sales for 20% and 15% off, then consider capping it at 15% only to make sure you’re protecting your profit margins. 

27. Offering An Average Customer Experience

You might think customer service is not important, this is one of the mistakes Etsy sellers make. Going above and beyond for your customers will set you apart from your competitors and help build a loyal customer base. 

Simple actions like responding to messages quickly, shipping on time, and updating customers on the tracking progress make a huge difference! 

Over time, you can be recognized as a Star Seller by Etsy and this will help build instantaneous trust with new customers when they see your badge. 

28. Trying To Do Everything Yourself 

As your business continues to grow, don’t make the mistake of trying to do everything yourself. You will feel that you’re being stretched thin and burned out quickly. 

Ask for help or hire others to help you with some aspects of the business! 

For example, you can outsource social media marketing or finance and accounting. This allows you to focus on the creative process of making your products instead. 

29. Giving Up Way Too Quickly 

There’s no doubt that building an Etsy business is hard work and the majority of people give up way too soon. 

It takes time to hone your craft and build your brand but your evolution will help grow your shop into a stable source of income. 

The more effort, time, and thought you put into your Etsy shop, the more you will get out of it. 

So keep creating and keep going! 

FAQs on Mistakes Etsy Sellers Make

What Is The Most Serious Challenge Facing Etsy? 

Curious about what is the most serious challenge facing Etsy? Here are the most serious challenges facing Etsy: 

1. Etsy is operating at a loss 

2. Amazon is building a big competitor 

3. Counterfeit products are widespread 

These are challenges Etsy has never faced before. The craftsman marketplace’s shares declined 43% a month after the company went public in April 2015. 

How Much Does The Average Etsy Seller Make? 

Wondering how much does the average Etsy seller make? The average seller makes over half a million dollars a year but the average income for an Etsy seller is $44,380. That amount isn’t terrible but it’s not terrific either. 

It’s possible to earn a comfortable income selling crafts online. For example, Three Bird Nest sells headbands that amount to $65,000 a month! 

Why You Should Not Sell On Etsy? 

Why you should not sell on Etsy? The number of fees you need to pay to sell on the platform is one of the largest complaints sellers make about Etsy. 

Each product in your Etsy shop is contingent on a listing fee, a payment processing fee, and a transaction fee. This includes a listing fee of $0.20 on every product listing. 

Can You Get Scammed As A Seller On Etsy? 

Can you get scammed as a seller on Etsy? Yes, you can get scammed as a seller on Etsy. This may happen when the scammer attempts to convince the seller to accept a fake payment for more than the item is worth. 

This is how the scam appears and if the scammers are successful, they will get both the product and the money. In almost every case, the scammer will not be caught. 

Final Thoughts 

Did any of the mistakes Etsy sellers make above surprise you? 

If you’re guilty of some of them, that’s okay! We all make mistakes as beginners. 

Having a successful Etsy shop certainly doesn’t happen overnight but realizing and acknowledging your mistakes is half the battle. 

Knowing how to fix them and follow through to actually do it, will make a huge difference in your progress! 

I hope that after reading through this article, you know exactly how to find the solutions to improve your shop and increase sales, setting you up for success! 

You can do it! I’m cheering you on 🙂 

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