How to Sell on Etsy from India: The Full Guide

Who says Asian countries can’t up their game on Etsy’s platform? It is now time to start optimizing your passion for craft supplies, vintage items, and handmade crafts and place them in a global marketplace. 

Creative business is often overlooked in countries like India, but in this article, you will know how to sell on Etsy from India. 

Let’s start now!

Introduction to Etsy as an E-commerce Platform

If you have a passion for vintage goods and creating handmade items, you can start selling them and create an online business. Etsy is a global e-commerce platform solely for artisans, collectors of vintage items, and crafters, who want to reach international customers and local customers who are into this type of niche. 

Even though Etsy is most popularly known in Western countries like the United States, Canada, the United Kingdom, and other countries, you can still create a small business in Etsy from India. 

For Indian sellers like you venturing into e-commerce, Etsy offers you a large audience and the ability to keep selling internationally, but of course, the products are only limited to handmade crafts, vintage items, and craft supplies. That is Etsy’s trademark, a platform for artisans and artists. 

Etsy offers a platform where your creations will shine and be known globally. Creating an account on Etsy India is free but there are some listing fees you need to take note of. Some of the Etsy listing fees are offsite ads fees, product listings fee, and payment processing fees.

If you want to sell on Etsy, there is a listing fee of 0.20 USD or 16.62 INR per item that you will list and publish on your Etsy shop. These promoted listings will expire after four (4) months, then you will have to pay again. On the other hand, Etsy charges offsite advertising fees of 12-15% for each successful Etsy offsite advertising. Offsite ads mean that when the buyer clicks the ad and makes a purchase. 

Online marketplaces are everywhere, but it is rare to find a platform that has its specific niche and targets local and international buyers. Etsy is more than a platform where you can sell and earn, it is also a supportive hub for creative business owners and an environment for collaborations between other artists. 

Legal and Operational Considerations

Registering a small business in India is voluntary and not mandated. 

Etsy sellers like you can freely sell on Etsy without complying with necessary registrations, but this would make you vulnerable. If you are not registered, you can be subjected to many liabilities just in case an issue arises and your business and you will not be protected. That is why it is important to set up your business entity even if it’s small. 

You need to know your business structure and here are some of the business structures you need to consider:

• Sole proprietorship;
• General proprietorship;
• Corporation;
• Limited Liability Corporation (LLC). 

Sole proprietorship and general proprietorship are the simplest and not the most expensive business structures you can go for. The only difference between the two is the number of owners. A sole proprietorship means there is only one owner, while a general proprietorship means there are multiple owners. Most Etsy shops are sole proprietorships.

On the other hand, the main advantages of Corporation and Limited Liability Corporations are for example if a customer got hurt by your product and decided to sue you, they cannot sue you, the owner, directly. Instead, they have to sue the company or the corporation itself, this will protect you and your assets from debts and obligations. 

Sole and general proprietors will be the ones to be directly sued if a problem arises. 

Understanding the eligibility criteria for Indian sellers on Etsy

To know and understand the eligibility criteria for Indian sellers on Etsy you must adhere to Etsy’s official guidelines. 

Etsy offers marketing tools and a vast platform so you must follow its shop policies:

• Etsy sellers must be 18 years old or above.
• Etsy products must be handmade or handcrafted. 
• Vintage items must be 20 years old and above before you can put them in the product listings.
• Your products must meet Etsy’s quality, this means, clear photos, clear descriptions, clear shipping profiles, etc. 
• Adhere to all account verification.
• Indian sellers must create their payment accounts. A PayPal account would be the best account for international payments in India.
• Sellers need to ship products to Etsy customers domestically and internationally.
• Sellers are expected to have good communication with customers and provide good customer service.
• Sellers should familiarize themselves with fee standards and tax obligations. Indian sellers must know Goods and Service Tax.

Lastly, to be able to export your products from India, you will need to obtain an IEC or Import Export Code. You can obtain an import export code after you register your business in India, With these, you will need a legal entity depending on your shop preferences. 

Registering your business and obtaining the necessary licenses

As an Etsy seller, you may choose sole proprietorship as your legal business entity so that you can have less complexity in setting up your business legally in India. Now, here is what you should do to register your business.

If you are going to register for a sole proprietorship entity, here are the documents that will need:

• PAN Card;
• Aadhar card;
• Bank account;
• Registered office proof.

Here are the registrations or licenses you need to complete the registration:

• Registering as SME;
• Shop and Establishment Act license;
• GST registration.

Take note that registering your small business in India is voluntary and is not mandated as long as you know your tax obligations and legal compliances from Etsy.

Complying with tax regulations and international shipping requirements

Registering your small business is not compulsory but it is important to know your tax obligations and international shipping requirements under Etsy’s location and shop policies. 

Here are some of the key considerations you must know about:

• GST or Goods and Tax Services – For sales in India, all sellers must know their GST obligations. You should register for GST if your annual turnover exceeds the threshold set by your government.
  
• Seller Income Tax – You must report your Etsy income on your annual tax returns and pay income tax.
  
• International Taxation – Since you are going to sell internationally you should be aware of the treaties or customs duties between the countries you’ll be shipping products with.
  
• Shipping Options – You should find reliable couriers or shipping partners internationally to avoid issues with shipment tracking, etc.
  
• Shipping Restrictions – You should familiarize yourself with international restrictions on shipping. You should also be aware of the shipping times, shipping details, and other regulations such as products that are restricted to be imported.
  
• Shipping Costs -Transparent shipping costs will create customer retention to your buyers and you will be branded as trustworthy and this can attract potential buyers in the future.
  
• Product Packaging – Your product’s packaging should be well packed by its vulnerability and importance, also to avoid getting mishandled. You should put a warning sign on your packaging if the product is fragile, you should pack your products well to also avoid theft in the shipment sections. 

Complying to all the regulations mandated by Etsy can make your Etsy store authentic and trustworthy for the buyers. You can also create brand awareness after putting up testimonies from your customers that you comply with all the regulations, and others. 

How To Set Up Your Etsy Shop

Selling on Etsy would be as easy after you set up your account. 

Here’s how to set up your account on Etsy:

• Go to Etsy’s website.
• Click the “Open your Etsy Shop” button.
• Sign up using your business email.
• Once logged in, go to the shop manager.
• Click the pencil icon next to your shop name under “Sales channel” and create your profile..
• Create your shop name.
• Create your shop banner. This is going to be your brand identity. You can find new banner templates there and choose.
• Fill up the About section. It includes a description of your shop, location and address, your story, and anything authentic that will help build trust with your customers.
• Fill out shop policies. State whether you accept returns and exchanges.
• Create your FAQs.
• Fill out your shop announcement portion with anything you want to include. It’s best to put links to your social media accounts here, popular items, your featured listing options, or a little welcoming message to new customers who will visit your site. 
• After setting up your profile, find “Finances”.
• Go to legal and tax information. If you are a solo seller, just provide your name, India home address, and two valid IDs. 
• Go to payment settings after. Set up your payment method on how you want Etsy payments or how you want to pay Etsy. You can be paid, and you can pay Etsy via Apple Pay, PayPal account, Google Pay, Visa, Mastercard, etc. You can also connect your bank account and bank information for much easier transactions.
  

You can also set up your deposit schedule or the time or date you want to receive payments from Etsy or your profit. 

You should also take note that when you receive your first sale profit in your bank account, Etsy will ask you to verify if it is your account by sending you a small amount. What you will do is you will go to the shop manager and verify that it is your bank account or payment account. Then voila, you can now sell online and enjoy your first checkout!

Product Listings and Optimization

Once your Etsy shop is good to go, it is now time to add your products to the listing.

 Here are some tips on how to create an effective listing based on your brand identity:

• Upload high-quality photos of your products. Make sure to show them from different angles so that customers will already know what your product looks like from all angles.
  
• Put a detailed and well-crafted description. Include the materials you used, and put product descriptions for any customization options.
  
• Think about pricing. Research similar products on Etsy to determine your selling proposition. Competitive pricing is important, now, if your product is unique and unlike any other, you will vary from the materials and tools you used, the funds, and the time of labor it took you to finish the product. As for vintage items, it is best to consult an antique expert on how much value you should put in that item.
  
• Optimize SEO in your titles and descriptions to improve organic traffic and visibility in Etsy’s search results. You can use Google Analytics and other free SEO tools, or you can subscribe to one that offers the functionalities important for your marketing plan.
  
• Offer different product variations like colors, styles, etc.

Customers love browsing on Etsy, so make sure that your products stand out by putting up visuals like photos, and even videos that are up to 15 seconds. These help the customer see how your product would look in in-person.

Pricing and Shipping Strategies

Successful use of price and shipping tactics is essential for websites such as Etsy. Make sure your prices are competitive by looking up comparable products and accounting for labor, materials, and overhead. 

Value-based pricing should be taken into consideration for goods with special characteristics or handiwork. To grow your customer base, reduce expenses with flat-rate shipping or international delivery alternatives, and encourage larger orders by bundling items or setting free shipping thresholds. 

For orders coming from overseas, be open and honest about import taxes and customs charges. You should also be explicit about when items will be shipped. Reduce waste by optimizing packaging, and provide shipping insurance for expensive commodities. 

You may improve the whole Etsy store browsing experience, draw in more customers, and boost sales by carefully evaluating these tactics.

Marketing and Promoting Your Etsy Shop

Marketing and promoting your Etsy should not be hard especially since Etsy already has a large audience to start with. 

You should leverage Etsy ads and your social media account to create brand awareness. Email marketing can also be a good way to let your customers know that you have good deals or limited-time offer collections or designs. 

You can also leverage Etsy’s marketing tools for your content and enjoy more products sold. 

Managing Inventory and Stock Levels

Maintaining inventory and supply levels in your Etsy shop is essential to making sure everything runs smoothly and satisfies client demand. 

To prevent overselling, begin by carefully tracking your inventory. If needed, use tools or software to check stock levels. To restock inventory when numbers are very low, set up alerts or notifications. You should also think about projecting demand based on sales patterns and seasonal variations. 

Put in place a well-organized storage system to make it simple to find and retrieve your products, which will speed up order fulfillment. Meanwhile, do not forget to update your Etsy listings regularly to reflect correct stock levels, taking into account any differences in sizes, colors, or styles. 

A just-in-time inventory strategy should be used to reduce excess inventory and storage expenses while guaranteeing that supplies are available when needed. 

Lastly, evaluate sales data regularly to determine which products are in demand and modify your inventory management plan accordingly. You may streamline operations, reduce stockouts, and give your customers on Etsy a flawless buying experience by controlling your inventory and stock levels properly.