How to Sell on Etsy: Step-by-Step Guide for Filipino Business Owners

Launched in 2005, Etsy is an online global marketplace connecting buyers to independent sellers worldwide. It is similar to a large craft fair, where customers can browse personalized and handmade products directly from the sellers who made them. Compared to traditional online stores that sell mass-produced products, Etsy provides a platform for small business owners, artists, and creators to sell unique products, showcasing their authenticity and craftsmanship.

If you’re an artist, small business owner, or creative entrepreneur who wants to turn your passion into a thriving business, Etsy can be a great place to grow your brand. There are several resources available to sellers if they want to learn how to sell jewelry and digital products like Canva templates on Etsy.

In this guide, we will walk you through everything you need to set up your very own online store on Etsy. We’ll also mention how a creative business owner in the Philippines can use Wise Business Account to simplify receiving international payments from Etsy, with less fees, making it easier for Filipino sellers to expand globally.

What you can sell on Etsy

If you plan on opening an Etsy shop, it’s important to learn what you can sell legally and effectively. Etsy offers a wide variety of categories of products designed, handpicked, and sourced by creative sellers¹.

Handmade products

Personally crafted or designed products by the seller are the most common category on Etsy. This includes jewelry and accessories such as bracelets, earrings, necklaces, and bags. Sellers can also list custom and handmade clothing and shoes under this category.

Customers can find home and living decorations like candles, ceramics, and pillows under handmade products. Other handmade products include art and collectibles (paintings, prints, and sculptures) and toys and games (puzzles, plushies, and craft wooden toys).

Vintage products

Etsy classifies any item that is at least 20 years old to be vintage. Sellers who enjoy thrifting and collecting vintage accessories, clothing, and furniture can list their items in their shop. Sellers can also sell first edition novels, old media paraphernalia, and musical records as vintage products.

Craft supplies

Craft supplies are tools and resources that other creators use to design and make their products. These are fabrics, sewing kits, paints, brushes, DIY kits, and scrapbooking materials.

Digital products

Etsy is also a great platform to sell digital products like graphic designs, art prints, fonts, planners, and business templates. Creators do not need to manage physical inventory to sell digital products. Once uploaded, customers can purchase and download digital items again and again without extra production costs on your end.

Once paid, customers can receive their purchased products instantly, eliminating delays and geographical limitations. Selles can add new designs continually or bundle products to increase value.

Health and beauty

Handmade soaps, essential oils, perfume, essential oils, candles, and other beauty and wellness products are worth looking into when deciding on the products to sell on Etsy. Some of the target customers are those looking for natural and organic self-care products with creative blends, unique scents, and personalized packaging.

Pet supplies

Customers can find personalized collars, engraved ID tags, handmade sweaters, and hand-sewn toys on Etsy. There is a wide variety of designs and custom options in terms of colors, names, and size to match the personality of their pets.

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What is prohibited on Etsy

Etsy facilitates a marketplace that is creative, respectful, and safe. Complying with Etsy’s policies about prohibited products enables sellers to build trust with customers and remain in good standing with the platform. Mass-produced and counterfeit items are also strictly forbidden. Selling these items can lead to account suspension, listing deletion, or permanent ban. Here are some products sellers are not allowed to sell on Etsy².

Illegal and regulated products

Stolen goods or fake branded products, replicas, and other items that infringe on intellectual property rights are strictly prohibited on Etsy. Etsy also bans the sale of tobacco and tobacco-related products, cigars, vapes, nicotine products intended for smoking, pipes, and bongs.

Dangerous products and substances

Etsy does not allow the sale of ammunition, explosives, firearms, or any parts or accessories (knives and stun guns) used to make or modify weapons. Dangerous and toxic products like chemicals and flammable materials are banned as they could pose safety risks during handling and shipping.

Banned medical and health products

Etsy forbids the sale of controlled substances, illegal drugs, certain medical devices, drug paraphernalia, and other substances that imitate forbidden drugs. Sellers cannot list products that make false or unverified claims about curing illnesses.

Mature content

Etsy does not allow the sale of products with explicit or pornographic content. Similarly, Etsy prohibits any listings that offer adult or erotic services. Products that promote discrimination, exploitation, assault, hate speech, and violence are also banned.

Live animals and illegal animal products

Live animals are strictly prohibited on Etsy. The platform also bans selling animal parts like bones from protected species, skins, and ivory to prevent illegal trade and protect wildlife.

Sellers cannot sell human organs, skeletal remains, body fluids (breast milk, blood, and urine), and fingernails, hair, and teeth if presented in saw or unprocessed form. However, Etsy may allow certain items as long as they comply with its policies. For instance, Etsy can permit the sale of teeth or human hair if the seller/designer crafted them artistically into a different product, like a loose tooth locket or a wig.

Rental services

Etsy prohibits listing items for rent, such as costumes, furniture, and event decorations, because they do not comply with Etsy’s policies. For rental services, the use of items is temporary, which is inconsistent with Etsy’s Purchase Protection Program³ centered around permanent product delivery.

Drop shipping

Drop shipping happens when a seller lists an item made by a third party, and that same third party fulfills the orders to the customers. Since Etsy requires direct involvement in the design or creation of the products, drop shipping is not allowed. However, Etsy allows drop shipping if the seller is working with a production partner⁴. For this exception to hold, the seller must design the product itself and disclose the product partner in the listing.

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Step-by-step guide to setting up your Etsy shop

Starting an online store on Etsy does not require a huge investment. It does not have to be complicated either. With enough planning, clear branding, and quality goods, you can set up your Etsy shop without all the fuss.

1. Set up your shop preferences

Go to Etsy.com and create a seller account or log in to your existing account. Click ‘Sell on Etsy’ and choose ‘Open your Etsy shop’. Then, choose your shop language, but take note that this will be the default language for all the titles and descriptions of your listings. You may add languages later.

Choose the right billing currency, as receiving payments in a different currency from your bank account may incur conversion charges. If you are using a Philippine bank account, you can set the currency to PHP to avoid conversion fees.

Choose the country where you want to operate your business. This will dictate the tax elements of your business, shipping origin, and payment options.

2. Choose a memorable shop name

The name of your Etsy shop is more than just a label; it is your brand identity. It helps customers remember your store and impacts your overall search visibility. Aim for a name between 4 and 20 characters long without spaces or special characters. Do not complicate the spelling and avoid words that are difficult to pronounce or contain profanity.

3. Add products and descriptions

List your products strategically and help customers understand what they are buying. Start by going to ‘Shop Manager’ and finding ‘Your Shop’. Click ‘Listings’ and select ‘Add a listing’. Upload your product images by clicking the camera icon and choosing the best thumbnail.

Add several high-quality photos from different angles. Make sure the photos have neutral backgrounds and clear focus on the product. A short video can be helpful if the product requires a demonstration.

Writing clear descriptions can increase your product’s visibility and sales. Create an SEO-friendly title that includes the keywords buyers search for. Write a detailed and compelling product description by including all relevant attributes such as color, material, size, and variations. If applicable, write the care instructions.

4. Set up shipping information

To ensure accurate shipping rates, add the dimensions and weight details on every item. Choose the shipping methods that apply to your selected origin country. You can create a shipping profile⁵ and apply it to all current and future items.

5. Add payment and bank details

Provide the necessary information on how you want to be paid. Etsy may ask you to upload a valid ID or bank document to verify your identity. Review all billing and fee details associated with selling on Etsy.

You can decide how often you receive payouts (daily, weekly, or monthly). If you want to change your banking information later, you can update it by clicking ‘Shop Manager’, ‘Finance’, and ‘Payment’ settings.

• Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
• Simply share your account details with customers or add them to invoices.
• Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
• Full fee transparency when clients pay you via Wire / SWIFT.
• Hold, send, and convert money at the mid-market rate in one account.
• Accept payments from customers and payment service providers (PSPs) like Stripe and Amazon.

➡️Get started with Wise Business today

6. Open your shop

Once all steps are complete, click the 'Open your shop' button. At this point, your shop is officially live and visible to Etsy customers. Meanwhile, you will be directed to the ‘Shop Manager’ dashboard, where you can track and manage orders, messages, and analytics.

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Understanding the cost of selling on Etsy

Listing fees

Etsy charges a flat listing fee of 0.20 USD⁶ for each item with a four-month expiration. You can manually renew the listing or turn on auto-renew for an additional fee of 0.20 USD. If you are selling multiple units of the same product, you incur a 0.20 USD fee every time one unit sells.

Transaction and payment processing fees

A transaction fee of 6.5%⁶ of the total amount is charged when an item sells. The fee will apply in the currency the product is listed in. Etsy also charges a separate processing fee applicable to the price of the entire order. If you are using a Philippine bank account, the payment processing fee is 4.5% of the total sale price plus a 25 PHP flat fee per order⁷.

Currency conversion charges

If you list your products in USD while using a bank account in PHP, Etsy may charge a currency conversion fee of 2.5%⁸. To minimize charges, consider matching your shop currency to your payout currency.

Let’s say you want to sell a handmade shirt for 1,500 PHP with a 50 PHP shipping fee:

• Listing fee: 11.64 PHP (estimated conversion from 0.20 USD)
• Transaction fee: 100.75 PHP (6.5% of 1,550 PHP)
• Payment processing: 94.75 PHP (4.5% of 1,550 PHP + 25 PHP)
• Currency conversion: 38.75 PHP (2.5% of 1,550 PHP)

Total Etsy fees will be 245.89 PHP. It is important to calculate all the applicable fees when pricing your products to protect your profit margin.

Advertising fees

To boost the shop’s visibility and sell products faster, Etsy offers advertising services through a pay-per-click method. You can set a daily budget based on the volume of customer clicks. While Etsy's default settings promote all your listings, you can choose specific products to prioritize.

Shipping costs

As a seller, you can charge customers the shipping amount. You can also offer ‘free shipping’ by integrating the cost into the price of the order/s. Many sellers offer free shipping because it often gives the impression of a customer-friendly shop. Customers see a single amount at checkout.

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How to connect Wise Business to your Etsy shop

Connecting a dedicated bank account is a small but strategic step to running your Etsy shop smoothly and professionally. With a Wise Business Account, you can track your shop’s income and expenses in an organized manner.

To connect Wise Business to your Etsy shop:

• Log in to your Etsy account and click ‘Shop Manager’
• Select ‘Finances’ and ‘Payment Settings’
• Click ‘Add a bank account’ or ‘Edit bank details'
• Add your Wise account details for the currency you want to be paid in
• Review and agree to Etsy’s payment terms

Once verified, Etsy will send payouts to your Wise account based on your chosen schedule (daily, weekly, biweekly, or monthly).

➡️Get started with Wise Business today!

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Sources:

1. Etsy, Categories
2. Etsy, Prohibited Items Policy
3. Etsy, Purchase Protection Program
4. Etsy, Drop Shipping
5. Etsy, Shipping Profile
6. Etsy, Fees & Payments Policy
7. Etsy, Payment Processing Fee
8. Etsy, Currency Conversion Fees

Sources checked on October 15, 2025