Wendy Conklin didn't have big plans when she joined Etsy in 2012. All she wanted was to work and profit from the site.
"I didn't know what was going to happen," Conklin says.
What happened was a quick sale, followed by another. Four months after opening her Etsy shop, ChairWhimsy, custom orders for brightly colored, reupholstered chairs began pouring in, and profits skyrocketed.
In fact, you can also profit by selling digital products on Etsy, and in a convenient way, alongside your focus on traditional (physical) products.
You can also use your Etsy shop to profit from one of the most popular print-on-demand (POD) sites, Printful.
This article is divided into three sections: the first section will cover what the site is and how to sign up, the second section will focus on how to sell digital products on Etsy, and the third section will focus on tips for traditional products.
+What is Etsy?
Etsy was founded in 2005 as an online marketplace for handmade goods.
Over the years, it has evolved to include vintage collectibles and craft supplies, but it remains one of the most popular places on the web to buy unique craft items. Today, selling digital products on Etsy is also very popular.
According to a statement from Etsy, "The beauty of the Etsy platform is that anyone with a creative mindset can achieve success in our marketplace. The sky is the limit in terms of who can turn their passion, hobby, or side hustle into a financially viable small business."
So: How can you sell digital products on Etsy, in addition to traditional products?
Let's take a look at how to sign up first, then move on to the section (Selling Digital Products on Etsy):
Register on Etsy
To learn how to sell digital products on Etsy (in addition to traditional products), or to connect your store to a Printful account, a print-on-demand (POD) site, you must first register with Etsy. The registration process is easy:
Click the registration link on the Etsy website, enter your email address and first name, choose a password, and click "Register."
In this way, the registration process is complete. You can now profit from the Etsy website, after you open your store.
Why should you sell digital products on Etsy?
There's a lot of money to be made selling digital products on Etsy. For many freelancers, bloggers, and home business owners, these Etsy sales provide a comfortable passive income stream.
While the profits may not always come immediately, you can create your own digital product in your spare time and use it to generate long-term profits.
It's true that it's better to own your own website and sell your digital products there (it's always good to have control over your business if you can).
It's true that this will give you the freedom to build an email list, start blogging to bring in more visitors, control the appearance of your site, and so on.
But selling digital products on Etsy is a great way to supplement these sales!
Plus, it's easier and faster to get started with Etsy if you're still setting up your website or working on increasing traffic.
Etsy has a built-in audience of people actively searching for products. Not only that, but it's really easy to set up a storefront and add your products.
They sometimes even put money into advertising your products for you!
The downside is that they take a fee from your earnings. But that's a small price to pay for the extra exposure and increased sales.
What are the benefits of selling digital products on Etsy?
A source of passive income.
Easier customer service.
No need to worry about shipping or inventory:
Unlike physical products, selling digital products on Etsy means you don't have to worry about inventory management.
One-time work:
After creating your first digital downloads to sell on Etsy, you can upload them and then forget about them.
Cheap and easy to start:
Starting an Etsy shop is very low. It costs just $0.20 per listing, with a 5% transaction fee. Furthermore, you can sell digital products on Etsy after creating them using free tools like Canva.
Compare this to other businesses that require upfront costs for materials, tools, or packaging.
A vast market with built-in traffic:
Etsy has 90.7 million active buyers. If you create a shop with the goal of selling digital products on Etsy, you'll have a ready-made market where Etsy automatically attracts a large amount of traffic.
How to create digital files
Creating a digital file is simple if you use the right tools.
You can use Canva, a free graphic design tool, for the vast majority of your digital products.
You can use the paid version for $10 per month, but you can certainly use the free version if you prefer. Canva offers free images, graphics, fonts, and other design elements you can use.
For eBooks, you can use Microsoft Word.
Keep in mind: Any graphics you use when selling digital products on Etsy must be your own creation or properly licensed.
How to Sell Digital Products on Etsy
Once you've set up your Etsy storefront with basic settings and shop information, it's time to add your product(s)!
Click "Add a listing." Start by adding the template you created as your main image. Next, add a title for your product. Make sure to use specific keywords in the title that your potential audience might use to search for your product.
Next, specify details about who created your product and when.
Select a category for your product, set it to auto-renew, and choose the type (Digital). Next, write a description of your product. Include relevant keywords and indicate that it's a digital download.
It's a good idea to include the item format here (for example, PDF, PNG, etc.).
Next, in the "Tags" section, add keywords that people might use to search for your product. Make sure to use all the tags.
Add a price, quantity (you can put 30, however, quantity doesn't matter for a digital product), and then upload your file. You can add up to 5 files per product.
You can now sell digital products on Etsy!
Please note: Etsy doesn't allow individual files larger than 20MB. If your file is larger, either split it into smaller files or reduce the image quality slightly (making sure it's still high-quality when printed).
You can do this when exporting the file from Canva. You can also compress your files into a zip file.
Best-selling digital products
Digital Planners:
Everyone needs a little help organizing their lives, which is why planners are among the top digital downloads to sell on Etsy:
Monthly or weekly calendars.
Daily schedules.
Wedding planners.
Meal planners.
Fitness tracking schedules.
Habit tracking schedules.
Printable Labels:
Printable labels are one of the best options when selling digital products on Etsy. They include labels for children, parties, weddings, and more.
Templates:
Digital product sales include editable templates for:
Resumes.
Cover letters.
Forms.
PowerPoint slides.
Ebooks
Budget Spreadsheets:
There's a constant demand for personal finance and budget spreadsheets as people want to save and better manage their money. Therefore, you can sell digital products on Etsy as spreadsheets that organize these interests.
Art Prints or Clip Art:
If you're good at drawing or graphic design, selling digital products as digital prints is an excellent option.
You can also choose to sell smaller clip art downloads or logos.
Sewing Patterns:
Because Etsy is a crafting community, sewing, knitting, and embroidery patterns are among the best options when selling digital products on Etsy.
Invitations:
When selling digital products on Etsy, you can easily create and sell invitations for parties, weddings, and birthdays.
You can offer customizable options where you fill out the details for the buyer, or you can sell forms that customers will have to fill out themselves.
Ebooks or Guides:
Etsy is actually a great place to market downloadable ebooks.
You can consider selling digital products on Etsy in the form of ebooks, and in any area of your expertise, such as fitness, travel, crafts, beauty, or even marketing tips.
Recipe Cards:
With the growing popularity of home cooking, the demand for recipe cards has increased. You can sell digital products on Etsy in the form of recipes that home cooks can download and print.
Educational Materials:
Busy working parents are always looking for worksheets, activity sheets, flashcards, and other educational materials for their children, so you can sell digital products that include downloads for the children's segment.
How to Make Money on Etsy (Tips for New Sellers):
Now, if you're new to the site and wondering how to sell traditional products on Etsy? Here are some tips that will ensure your success:
1) Select the right product:
Before you open a shop to start making money on Etsy, make sure your products fit into one of the site's permitted categories:
Handmade goods (you can sell digital products on Etsy)
Vintage collectibles that are at least 20 years old.
Craft supplies.
Traditionally, the site's most popular categories have been homewares, home furnishings, jewelry, personal accessories, and craft supplies. Now, selling digital products is also popular.
In addition to selecting the right products, research the going rate for similar items in other stores to determine if your business is a good fit for starting a profitable business on Etsy.
When calculating your costs, don't forget to include Etsy's fees, which include a 20 cent fee for a four-month listing, a 5% transaction fee based on the selling price, and a 3% plus 25 cent payment processing fee.
2) Post great photos:
Because Etsy is an online marketplace, good photos are essential for sales (even when selling digital products), according to experienced sellers.
There's no need to invest in expensive equipment to start making money on Etsy, as most smartphones are capable of taking high-quality photos.
"Photography is everything," says Joni Morgan, owner of Fact + Fiction Toys in Big Rapids, Michigan. She's been selling handmade wooden toys on Etsy for seven years and has seen some new sellers stumble because their photos aren't appealing.
While some sellers may use filters or photo boxes, Morgan has found success with a simpler approach.
“I just use a white IKEA table and place it near a window for natural light,” she explains. To hone her technique, she watched YouTube videos for photography tips.
In fact, if you want to know how to make money on Etsy, the two points above are the most important: choose a suitable product to sell and add attractive images to express it.
In any case, there are other tips for marketing your products (which may be handmade, or when selling digital products on Etsy as well) that increase the chances of them reaching buyers. Let's continue with the next tip.
3) Tell a story:
For buyers, Etsy offers the opportunity to purchase artisanal goods that aren't available anywhere else. "People love the story," says Morgan. "They want to hear your background and how you make things."
Being transparent about who makes your products—whether you or a team member—and what materials are used can help encourage sales from those seeking to support small business owners.
"Women and Etsy consumers today are more socially conscious and aware of sustainability, environmental impact, and natural alternatives," says Susan Sachs, whose ArtDecoDiamonds Etsy shop sells engagement rings and vintage jewelry.
Emphasizing the use of sustainable materials and business practices can be another way to attract customers.
Presenting a product as an extension of a larger story yields good results not only for traditional goods but also when selling digital products on Etsy.
4) Pin images to Pinterest:
Conklin says that if you want to know how to make money on Etsy, don't ignore the power of Pinterest to drive sales. "For a while, 50% of my traffic came from Pinterest."
Pinterest is a social media site that allows people to save—or pin—images to virtual boards they create. Other users can follow specific boards or people on the site. They can also search for images that interest them.
For example, let's say you design T-shirts on print-on-demand (POD) sites. You can sell them on your Etsy shop and display the images on…
You can promote your store for both physical merchandise and digital products.
In many cases, Conklin found that people would follow her photos long before making a purchase. Since ChairWhimsy offers custom chairs, the photos also serve the dual purpose of sparking the imagination of potential customers and helping them visualize their own chair. Therefore, Pinterest can definitely help you profit from Etsy.
5) Tag Products with Relevant Keywords:
Both Conklin and Morgan agree that skipping keyword tags in product listings is a common mistake.
As we mentioned in the section "Selling Digital Products on Etsy," using keywords is important to help people find you.
"The keywords you create for your listings drive traffic," says Conklin. As you know, traffic to your store equals more sales.
However, she adds that many people overthink keywords: "You have to think like a normal person."
When tagging a listing, Morgan tries to imagine what people might enter when searching for her products, such as "wooden toys, handmade, organic."
They also started almost all of their product titles with the term “wooden toy” to help their listings move to the top of search results.
a summary
According to Etsy, "On Etsy, someone searches for a gift box every two seconds, and someone searches for wall art every second."
In conclusion, you now know how to make money on Etsy. Now that you've learned about the site, how to register, and how to sell digital products on Etsy, in addition to traditional products, you can put what you've learned to use!

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