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How to Set Up an Etsy Shop In The UK: 6 Simple Steps

Written by, Bojana Atanasovska

Updated August, 25, 2022

If you’re a handmade shop owner looking to expand your business globally, you may be wondering how to set up an Etsy shop in the UK. 

This article will cover everything from registering with Etsy UK to tips and tricks on getting your store up and running. 

So read on and discover how easy it is to sell your handmade and vintage products to a new audience!

Is Selling on Etsy Worth It?


Etsy is the biggest marketplace for handmade and vintage items globally, currently catering to over 81.9 million buyers.

It is estimated that an average seller makes around $44,380, with over 51% of sellers citing Etsy as their sole source of income.

What Do You Need to Know Before Setting up an Etsy Shop in the UK?

Before you even think about opening a shop on Etsy, there are some things you need to consider.

Follow the company’s guidelines

First off, to sell on Etsy, you must:

  • Create original items and only sell products that you have made yourself
  • Not use images that do not belong to you without permission
  • Not violate any laws or infringe on any third-party rights
  • Not copy or imitate another shop’s branding, including their name, logo or product designs

If you’re unsure whether your product or marketing materials comply with Etsy’s guidelines, be sure to check with the team before uploading them. 

If, for whatever reason, your products don’t fit these criteria, consider another marketplace like eBay or Amazon.

Decide what you are going to sell

There is a wide range of items that you can sell on Etsy, from handmade jewellery and crafts to vintage clothes and furniture. So, think about what you’re good at making or finding, and start brainstorming some product ideas

Once you have that figured out, check if there is a market for your products.

The first step here is to do some preliminary research.

Look into how many similar items are currently being sold on the platform, what the competition looks like, and how many people are charging for them. This will give you a good idea of whether or not there is potential for your products to sell well on Etsy.

Alternatively, you could reach out to your target audience and get their feedback or look through the company’s recent reports and see which categories were the best-sellers in the past quarter.

Consider sellers fees

While registering with the platform is completely free, there are a few payments you will need to make as an Etsy seller.

These include: 

  • Listing fee: £0.15
  • Transaction fee: 5%
  • Payment processing fee: 4% + £0.20
  • Regulatory Operating fee: 0.25%
  • 2.5% currency conversion fee (if required)
  • Etsy Ads fee (fees vary)
  • Offsite Ads Fee: 15% (This fee is paid only when you make a sale through Offsite Ads)

Think about postage fees 

When it comes to postage fees, there is a lot to consider.

First of all, you need to decide how you want to ship your products. You could use a postal service like Royal Mail, or you could look into shipping companies like DHL or UPS.

Then you need to calculate how much it will cost to send your products to your customers, factoring in the weight of the item, the size and the destination country. You’ll also need to take into account any customs duties or taxes that may be charged on your products when they are shipped out of the UK.

It’s important to be aware of these costs before setting your prices so that you don’t end up losing money on each order.

Consider taxes

As an Etsy seller in the UK, you are responsible for paying taxes on your income (before Etsy fees) when it exceeds £1,000.

The fastest way is to register as self-employed with HMRC. Once you do that, you will need to pay the following types of tax depending on how much profit you make:

  • Income Tax: at 20% of all earnings up to £50,270 and 40% if you exceed that amount. In short, the more you earn, the more you pay.
  • Class 2 National Insurance: £3.05 per week on your self-employed income over £6,515 per year
  • Class 4 National Insurance: 9% on profits between £9,658 and £50,270; 2% on profits over £50,270

Create an Etsy Shop in the UK: 6 Easy Steps to Follow

Let’s take a look at the step-by-step process of opening your Etsy shop.

1. Register an account with Etsy

To create an Etsy account, visit the Etsy website and click on “Register”.

You will be asked to provide some personal information, such as your name and email address.

2. Set up Etsy shop preferences

  • Click on ‘Sell on Etsy’
  • Click on ‘Open your Etsy shop’
  • Choose your preferred language and currency
  • Name your shop. Follow Etsy’s restrictions on shop names and bear in mind that the name should be short, snappy, and easy to remember

3. Stock your shop

Adding listings to your Etsy shop is a quick and easy process.

  • Click on ‘Shop Manager’
  • Click on ‘Listings’ and then click on ‘Add a listing’

After that you need to put in information for all the listings, which includes: 

  • Adding photos or videos
  • Write a title and choose a listing category
  • Add a description, features and prices
  • Choose if you want to use an Etsy Ads campaign to market your product
  • Set up delivery options
  • Preview, save and publish your listing 

Once you’re happy with everything, hit ‘Save’. Your new listing will be live on the site in minutes.

4. Getting paid

To sell items on the platform, all sellers must use Etsy Payments—the company’s own payment processing system. Etsy Payments allows buyers to pay for items using a variety of methods, including debit and credit cards, PayPal, Apple Pay and Google Pay.

Some of the benefits of the system include:

  • No need to set up a separate payment processor
  • Etsy takes care of all the administrative tasks associated with processing payments
  • Your seller’s fees are automatically deducted from your account

5. Set a billing method

You will need a credit or debit card to open an Etsy shop in the UK so that your fees can be deducted from the account. 

6. Open your shop

After all selections are made, it’s time to open your shop. Once it is live, you can make as many changes and customisations as you wish.

6 Tips for Starting an Etsy shop in the UK 

If you’re looking to set up a successful Etsy shop in the UK, follow these tips:

1. Make sure your listings are well-written and keyword-rich

This means that titles should be clear and concise, while descriptions need to be helpful and informative. It also helps if you tell a story with the item you are selling, as this makes the piece even more unique—something that Etsy buyers are sure to appreciate.

What’s more, when writing your listings, be sure to use keywords that people will likely search for on the site. This will help your items appear in more search results and increase the chances of people seeing and buying them.

2. Use high-quality photos

Including high-quality photos of your products is essential for attracting buyers. Make sure to take pictures from different angles and use clear, bright lighting. You don’t need a professional, but you might want to consider the option as good visuals are one of the biggest selling points on the site. 

3. Customise the look of your shop

Add a custom logo and create a banner to personalise your shop and build a recognisable brand for your products. Be sure to use high-quality graphics, eye-catching colours and fonts that above all look polished, professional and are aligned with your branding.

4. Market your shop with Etsy Ads

Etsy Ads is a powerful tool that allows you to target specific buyers who are most likely to be interested in your products, thus helping increase traffic to your shop and boost sales.

You should also build a social media presence—around 45 million people in the UK use social networks, so this would be a great way to reach out to those customers.

5. Offer great customer service

One of the most important things you can do to ensure the success of your Etsy shop is to offer excellent customer service. This means responding to queries and orders quickly, providing excellent products and going the extra mile, like sending handwritten thank-you notes, to make sure your customers are happy.

Satisfied customers are more likely to return and recommend your shop to others, so be sure to put your best foot forward and provide stellar customer service!

6. Research your competition

This will help you understand what kind of products are selling well and how to differentiate your shop from others.

Take a look at the shops in your niche, whether it’s selling used clothes or craft supplies, and see what kinds of products they’re offering and how they’re marketing them. Then, try to find areas where you can stand out and offer something that’s unique and appealing to buyers.

Bottom Line

Etsy is a great platform for creative entrepreneurs to sell their products online

Keep in mind that it takes time and effort to start a successful Etsy shop, so be patient and put in the work. And most importantly, have fun with it! 

Are you ready to start selling on Etsy?

Frequently Asked Questions And Their Answers

Do I need a license to sell on Etsy UK?

While Etsy does not require you to have a license, you must register with HMRC and pay taxes on any income that exceeds £1,000. 

How do beginners sell on Etsy UK?

First, you need to register with Etsy UK. Once you do that, it’s quite easy to set up an Etsy shop in the UK, add listings and product descriptions, and start selling. 

Does it cost to list on Etsy UK?

Registering with the platform is free; however, you will be required to pay sellers fees (transaction, payment processing and listing fee), in addition to paying taxes and insurance on your income. For more information on fees and taxes, take a closer look at our guide on how to set up an Etsy shop in the UK.

Bojana is my name and writing is my game. I am a content writer from Bitola who is always interested in the latest research in almost all areas of life. I have a Bachelor’s degree in English literature and a perfectionist character, both of which help me find the most accurate data and information available. Although I have my head stuck in studies and reports most of the time, I still have a bit of free time during which I enjoy knitting and watching classic 90’s Disney movies.