Etsy Shop

How Profitable Is An Etsy Shop? (Updated for 2024)

Pat Walls

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Updated: October 10th, 2024

How Profitable Is An Etsy Shop? (Updated for 2024)

So you want to start an etsy shop?

And the first question that came to your mind was, “well, are etsy shops actually profitable?”

With a market size of $2.72T - there’s plenty of business to go around.

Especially considering:

You could start a etsy shop with as low as $100
Based on our data, etsy shops generate an average of $570K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a etsy shop.

Let’s dive in!

Is an etsy shop profitable?

Yes, an etsy shop is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $570K per year with an estimated gross margin of 40%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your etsy shop.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your etsy shop is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an etsy shop worth it?

If you’re wondering if a etsy shop is worth it, the answer is a big YES. With etsy shops, you have the potential to earn $570K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $2.72T, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a etsy shop to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful etsy shops case studies.

Examples Of Profitable Etsy Shops

Here are a few examples of profitable etsy shops, and a few more details about them:

1. Cinquanta Cox-Smith ($120K/year)

Cinquanta Cox-Smith, a Multipreneur from South Carolina, stumbled upon the Print On Demand industry 12 years ago when she wanted to create a unique shirt and discovered Spreadshirt.com. Through her creativity and networking skills, she found success in designing and selling catchy, conversation-starting shirts. This eventually led her to create multiple POD brands on various platforms, generating an impressive $120k per year in revenue.

Is it profitable? Yes
How much money it makes: $120K/year
How much did it cost to start: $100

I Make $120K/Year With My Print On Demand T-Shirt Side Hustle

A multipreneur shares how she built a successful print on demand side hustle, generating $120,000 per year through multiple brands spread over various platforms.

Read this case study

Read by 12,081 founders

2. Vagabond Heart ($120K/year)

Mike’s idea was a combination of his interest in vintage clothing, style, and old movies, with his love of menswear and fashion, and travel.

Is it profitable? Yes
How much money it makes: $120K/year
How much did it cost to start: $2K

How I Started A Successful Brand Selling Vintage Patches On Etsy

Serial entrepreneur grows modern vintage-inspired travel patch company to over $5,000 in monthly sales volume with a 100+% growth rate by expanding product line and utilizing online marketplaces like Etsy and Amazon.

Read this case study

Read by 8,546 founders

3. Valhalla Wood Forge ($102K/year)

James Wolfer, a police officer and Coast Guard reservist, started Valhalla Wood Forge in 2017 after making a wooden flag for his department. He saw potential and began creating custom wedding bands and rustic wood flags, gaining traction through word of mouth and organic growth on Instagram. Despite working long hours, he managed to streamline his process and hire an employee due to the increasing demand and continued growth of the business.

Is it profitable? Yes
How much money it makes: $102K/year
How much did it cost to start: $400

How I Started A $4K/Month Veteran And First Responder Woodworking Company

Valhalla Wood Forge is a veteran and first responder run woodworking company that grossed $8500 in October 2019, noted for making rustic wood decor and high end men’s jewelry.

Read this case study

Read by 12,053 founders

Learn more about starting an etsy shop:

Where to start?

-> How much does it cost to start an etsy shop?
-> Pros and cons of an etsy shop

Need inspiration?

-> Other etsy shop success stories
-> Etsy shop slogans
-> Etsy shop names

Other resources

How much can you make with an etsy shop?

With a etsy shop, you can make an average of $570K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a etsy shop make a week?

Based on our data, average weekly revenue for a etsy shop ranges around $11.9K. As such, you could see monthly revenues of $47.5K.

To know if your etsy shop achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your etsy shop.

How much do etsy shops owners make?

The income of an etsy shop owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established etsy shop is about $11.9K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an etsy shop owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Etsy Shop Profit Margins

Generally speaking, an etsy shop can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an etsy shop, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, etsy shop owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, etsy shop owners can ensure long-term sustainability and profitability for their business.

Etsy shop owner salary

The salary of an etsy shop owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established etsy shop, in a prime position, might see an average weekly salary around the ballpark of $4.75K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a etsy shop may be a promising business to start - but the success of your etsy shop mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable etsy shop.

Part of

Starting An Etsy Shop: Everything You Need To Know

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