I'm excited to start up a new feature today - shop talk! For the next month or two, I'll be starting off each week with tips and tricks for running a successful Etsy business. I'm definitely not an expert and opinions will often vary, but I've been selling on Etsy since 2007 and can certainly share my own experiences. Hopefully those of you with Etsy shops will also jump in and share some of what you've learned along the way!
I am going to start with the basics today - setting up your shop. Opening an Etsy shop can be attractive to any artist / crafter / vintage lover looking to share their hobby with others, as well as those hoping to bring in some steady income from their talents. However, the process can sometimes be a little overwhelming or frustrating leading you to put it off for awhile. I've broken down the process into seven simple steps. If you are one of those putting off opening a shop, commit one day to each step and you'll have your shop up and running within a week or two!
Step #1: Pick your product. What are you going to fill your Etsy shop with? This might be a no brainer for you. If not, consider the following when making your decision. Obviously pick something you are passionate about. Make sure there is a market for your product, but also make sure that market isn't oversaturated. Think about the going rate for your product and whether this will cover your supplies and labor. You don't have to sell your product at the same price as other similar shops, especially if your supplies are more expensive or technique is more intensive, but there is a limit. It's really hard (although not impossible!) to sell a t-shirt at $100 when most others are in the $20 - 30 range, no matter how unique. There are some crafts I enjoy making, but don't list in my shop because the price I could charge just isn't enough to cover the supplies and time that goes into it. I think it's important to be realistic with yourself, especially if profitability is important to me.

Step #2: Name yourself. Choosing a shop name is important and incredibly hard. Unfortunately I don't have a quick solution to the naming game, but there are a few things you'll want to keep in mind. Your shop name must be available. Check on Etsy, but also do a Google search. Is www.yourpotentialshopname.com already being used? Pick something that is easy to remember and easy to spell. It can be beneficial for your shop name to directly relate to what you sell, but be careful not to limit yourself. You might only be interested in selling greeting cards right now. But, what if you want to add journals, calendars, and other paper goods later on? Are you still going to be happy with your Cards by Cathy shop name? (No offense if this is a real shop name!) Sometimes a shop name with room to grow will serve you better in the long run.

Step #3: Snatch up your accounts. As soon as you're ready to commit to a shop name, register with that shop name on Etsy but don't stop there. Also sign up for an email address with your shop name. I'm a big fan of Gmail, but there are others out there as well. Also consider signing up for a blog or website with your shop name, even if you're not ready to use them yet. It's a big bummer to get ready to jump into blogging and realize someone else already took your shop name.

Step #4: Register your shop. This is probably the least fun (and most intimidating) of all the steps. Most states, as well as many counties and cities, require that you register your small business. The regulations vary widely by location so I can't give specific advice, but do yourself a favor and do the research now. A few Google searches will usually lead you to the information you need. Read the paperwork, fill out the forms, and don't be afraid to call or visit if you have questions. Most of these departments are actually pretty friendly in my experience. If you still can't figure it out, consider contacting your local branch of a group like SCORE or Small Business Administration for free and knowledgeable advice. It's better to tackle all of this now and ensure you're in compliance before you start making sales.

Step #5: Make your shop pretty! Now you can get back to the fun work. You can start setting your shop apart from others with a professional and creative design. You'll need to design a shop banner and profile picture. You can either DIY or hire a graphic designer. If you decide to take on this task yourself, this Etsy article has all of the technical information you'll need. Be sure to follow the image size guidelines so your images don't appear pixelated and/or distorted. You can use any photo editing software you want, but I like Picasa (free from Google) and Photoshop Elements (came free with my laptop). If design isn't a strength of yours, don't be afraid to purchase some design services from someone else! You can search Etsy for many, many affordable design services. Spending $50 or less can get you a professional shop banner and profile picture that may end up contributing to much more in sales.
Dapper Paper, Mint Afternoon, Tastes Orangey
Step #6: Photograph your products. In my opinion, having strong photographs is essential for a successful Etsy business. Because you are selling online, aside from your written description, it is your photographs alone that need to both attract customers to your product and convince customers they want your product. Etsy has a long list of articles to improve your photography. Start by learning your camera. You don't need a fancy camera; you just need to know how to use yours to the best of its ability. You can read the owner's manual, but I am a visual/audio learner so I prefer to watch YouTube videos. Seriously, this quick video on DSLR basics really helped me understand my camera's basic features. Also focus on consistency. Whatever you choose for your photos (white backgrounds, wood table, etc.), stick with it for all of your products. Having similar photos adds a lot of cohesion and professionalism to your shop. Lastly, turn off your flash! Natural light can be in short supply during the winter and when you're at work all day, but is crucial for good photos (unless you have a good light box set up which I've never been able to figure out).
Native Bear, The Plain Canvas, Miles of Light
Step #7: Set your prices. Pricing can be a pretty personal aspect of opening a business. Finding the perfect price point is a little tricky. I try to find a price that is in line with what others are selling similar products for, but also adequately compensates me for my supplies and time. Many, many shops (myself included!) underprice their products when they first open, in part to make sales, even though too low of prices can make a customer leary of the quality. When determining my prices I consider all of the above. After I have a potential price in mind I think to myself, "Would I be happy to make 100 of these at that potential price?" If your goal is to run a successful shop, you are going to be striving to make multiple sales a day. You need to ensure you're happy selling multiples of your product at that price. If you realize the time it would take to make those 100 products is not worth the revenue you would be taking in, it probably isn't worthwhile to sell even one at that price.

That's it. You're ready to open up shop! If running an Etsy shop is something you've considered, I encourage you to give it a try! Unlike a brick and mortar shop or even a craft show booth, the start up costs are low. All you need is some time and a few dollars to list your first items.
If you've already gone through this process, do you have any other advice on starting out? What do you wish you would have known from the start? Any words of encouragement for those still a little apprehensive? Please share!
Hope you've enjoyed the first installment of this feature! If there is anything you would like covered, please don't hesitate to let me know and I'll do my best. If you've learned something from your own experiences that you would like to share, also let me know! I'd love to have others jump in on this discussion.
P.S. Shop update tomorrow morning at 8am Pacific!