How To Make Passive Income On Etsy | Updated

Wondering how to make passive income on Etsy? Of course. Everyone loves how to make money without working. Then we can spend our time doing what we love and make money from it.

This post will show you how to make money on Etsy without having to work hard. And yes, you can also earn without spending a lot of time.

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Why should you make Passive Income on Etsy?

When you think of Etsy, you probably think of things constructed by hand. Most people don’t realize that you can also sell digital goods on Etsy.

This is the way to make the most money out of Etsy. If you are wondering how to make passive income on Etsy, digital goods are a catch. So, why sell digital goods to make passive income on Etsy? 

#1. Low risk and low cost.

There isn’t much of a risk with digital downloads. Why? You can make the most money with the least amount of work and no inventory. You don’t have to store any physical goods.

With digital goods, you don’t have to pay for shipping or any other costs that come with making a physical product. This means you’ll spend less money and have to do less work.

#2. Delivery in real-time

Through Etsy, your customer can get the item they bought right away. Etsy sends the product to the buyer’s email address as soon as the purchase is complete. That’s cool, right?

#3. Cheap and easy for your customers to get.

Over time, you’ll see that your customers will like your art more if they can get it easily and for a lower price. Because of this, digital downloads are a great way to get more people to see your art.

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How does Making Passive Income on Etsy work?

To answer how to make passive income on Etsy, you should know how it works. It’s very simple. When we say “passive income,” we mean that you can set it up and then forget about it.

You upload a digital product to Etsy, and they take care of the rest of the transaction.

In case you need to help a customer, the only thing you have to keep up with is your messages. But if you can’t spend much time in your shop, this could be a good option for you.

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How to Set up to Make Passive Income on Etsy?

When setting up physical products, ensure you add the right juicy descriptions. Take the pictures of the product from a great angle.

Also, consider the price you are selling at. Make sure it’s not too exorbitant or too less. Etsy includes the delivery fee.

It’s similar to making a new listing on Etsy. But instead of listing a physical product, you will choose “digital downloads” as your listing type. If you choose this, they remove the shipping option.

They would also find a way to upload the files you’re selling. This way, buyers can easily see what the product holds for them. The price of delivery is also added.

When setting up to make passive income on Etsy, you should have details about the items on Etsy.

You can upload up to 5 digital files to Etsy. At the moment, each file can be no longer than 20 MB.

Now, if you have something bigger than 20 MB, you can always upload it elsewhere. Like your website or Dropbox, and put a link to download that file inside the PDF.

You can set it up in

  • Audio/Video
  • MPEG/MP3 file
  • images in GIF, JPEG, PNG, or TIFF format
  • PDF Text file

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How to Make Passive Income on Etsy- Passive Income Ideas

  • An artwork you can print. You can make your art printable by putting it in PDF format. But remind the customer that it should only be for his or herself.
  • Worksheets or forms that you can print. It’s a sheet for setting goals. You can ask your graphics designer to do something like this. It has to look unique, so make sure you come up with great ideas.
  • EBooks. You can turn your books into eBooks and sell them on Etsy.
  • Fonts. If you’re a lettering artist and you know how to make your fonts, you can also sell those on Etsy.
  • Coloring pages. People can print these out more than once, which is great if they have more than one child or are a teacher.
  • Gift tags. A great idea, especially around holidays, birthdays, baby showers, and other special events.
  • Services for making graphics. You can offer graphic design services on Etsy, such as making logos.
  • Decorations for a party.
  • Craft patterns for sewing, knitting, crocheting, and making things to sell.
  • Scrapbooking papers and tags
  • Picture-taking
  • Graphics

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How to Sell Products on Etsy Successfully?

As with any other source of passive income, there is a lot of work to do at the beginning. Creating the products can take a lot of time, so you have to make an eye-catching thumbnail.

You can then put the listing on Etsy. If product design isn’t your strong suit, you can also hire a freelancer to do it for you.

You should also work on your product descriptions and SEO to give your items the best chance of appearing in Etsy searches. But you don’t have to worry about the listing anymore after you’ve posted it.

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How to Choose the Best Niche on Etsy?

You should choose a great niche when wondering how to make passive income on Etsy. Since it’s so easy to put up a listing and start making money on Etsy, there’s a lot of tough competition.

Choosing a niche for your products will make it much easier to start your business. Especially since customers will know exactly what to expect when they come to your store.

Printable art and quotes, bullet journaling and organization, resources for business owners, and educational content for kids are good niches to consider.

If you look at this list of products to sell on Etsy above, you may also come up with some of your own.

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Tips for Passive Income on Etsy

Wondering how to make passive income on Etsy? These 7 tips are good enough to put you at the top.

#1. Choose a great niche

Most of the time, people shop on Etsy for gifts or events. They are willing to pay more for items related to big events. That’s why weddings, bachelorette parties, and bridal showers are such profitable niches.

Choosing a niche that will make money is Etsy’s first great tip for passive income. 

#2. Bundle your items

Put together packs of four games. Customers like it, and you can make money on each sale.

It also helps make up for the cost of paid ads. If you have been wondering how to make passive income on Etsy, this tip will help. 

#3. Make products for each season

Most people only look for bachelorette party printables in the spring and summer. You can still make sales in the fall and winter, but not nearly as many.

This would make you wonder what other printables you could sell during other times of the year. You can take advantage of seasonal trends in so many ways.

For Thanksgiving, you could make place cards and menus that you could print out. You can print out gift tags for Christmas.

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#4. Know Etsy SEO

Once you’ve listed your product, you’ll want to work a little bit on your Etsy search position. You should remember this tip to answer how to make passive income on Etsy. 

Our favorite Etsy SEO tips are to make sure your tags match the title of your listing. You can use the free Etsy-made tool eRank to find better search terms. You can also change your tags to reflect seasonal trends.

#5. Make things easy for the client

In the listing images, tell the customer everything they need to know. In the listing images, point out that the printable is a digital download and that they won’t get anything in the mail.

Some people just look at the pictures and don’t bother to read the text. Because of this, I ensure that the listing images show all the important details.

#6. Use coupons

If a customer puts in the word “FLAMINGO” on a coupon, they get 10% off. Customers love discounts, and losing 10% shouldn’t be a big deal for you.

Printable profit margins are huge because I only have to spend my time making them. o answer how to make passive income on Etsy, you should keep this tip in mind. 

#7. Learn how to make good graphics

This last one is hard, especially if you know nothing about designs. So, don’t worry if you want to do this as a side job but don’t think you’re creative or good enough at design.

You should learn a few ways to make your printables look better and stand out more. To make passive income on Etsy, you should keep this tip in mind. 

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FAQs On How To Make Passive Income On Etsy

Can Etsy help you make a good living?

How much money you can make on Etsy depends on what you sell. It also depends on how much time and works you put into your store. And how much demand there is for your items. In your first year, you can make anywhere from $5,000 to $50,000 or more.

Can Etsy help you make a living?

Etsy is a great place to make money. But because the money is not constant, it can mostly serve as a passive income.

How can you make the most money on Etsy?

The most profitable thing to sell on Etsy in 2022 is Handmade Jewelry. Handmade jewelry is one of the most popular things to sell on Etsy. And it sells a lot because there are many ways to personalize items in this category. You can also try-
– Supplies for making jewelry
– Craft kits
– Stickers
– Handmade cards
– Personalized cards
– Photography, and
– Digital art.

Who is the richest person on Etsy?

People often call Alicia Shaffer Etsy’s richest seller. And the fact that she made $70,000 a month in sales made her a lot of news. Her shop, Three Bird Nest, made almost $1 million on Etsy in 2015.

Is Etsy Worth it in 2022?

In 2022, it’s still worth it to sell on Etsy. It’s one of the fastest, cheapest, and easiest ways to get your handmade goods online. It is also a great way to set up a w shopping cart. Compared to building a website, it’s also a low-risk choice.

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Selling digital products on Etsy is a great way to make extra money if you’re willing to put in the work. Etsy does take a small cut of your sales. But we think the fee is well worth reaching the millions of people who use Etsy.



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