Seller Handbook

So you’ve decided to turn your hobby into a business with Etsy, but feel a bit overwhelmed? It’s a feeling that seasoned shop owner Timea Gremsperger knows well. She urges new sellers to dive into the experience despite their fears. “I had a big problem with starting in general,” she says of her Berlin, Germany-based shop Mighty Vintage, which sells vintage housewares. “My advice is that if you have an idea, just begin,” she says. “You can optimize later.”

Once you’ve set your jitters aside, where should you focus your energy, though? Read on for tips from some successful shop owners.

1. Tap into the Etsy community

Though you’re starting your own business, you’re not in this alone. “Both the Seller Handbook and the Etsy Success Newsletter are amazing resources, and everyone should check in with them often because they’re always being updated,” says Eva-Dewi Pangestian Harahap, who co-owns the Munich, Germany-based bookbinding shop Nauli with her sister Johanna. Another rich source of information is fellow shop owners who belong to the Etsy Germany Street Team, which the two sisters currently lead. If you have a question, the odds are good that someone on the team has had similar concerns, and members are willing to help, she says. Search for local Etsy teams to meet other sellers from your area.

2. Embrace evolution

Every Etsy shop changes with experience and customer feedback. Don't be afraid if you feel you aren’t ready. If you look at shops you admire and go back to the first items they sold, you will see the look and feel of the shop was very different. Take an experimental approach, weigh customer feedback and remember to have fun as you adjust your business strategy along the way, she says.

3. Tackle bureaucracy head-on

Starting a new business can be intimidating no matter where you are. But in Germany, a country notorious for opaque bureaucracy, the hurdles can seem even greater. Thankfully, it’s not as bad as it seems. There are three things you should do right away. First, determine how you will define your business and register it accordingly with the Finanzamt to receive a tax ID for your business. Second, find out if your tax status requires you to sign up with your local Chamber of Commerce and Industry (IHK). And third, hire a lawyer or use a service provider to help you handle all the necessary legal texts in accordance with German and European Union e-commerce law. One of the many service providers is Händlerbund, an online trade association who offer a service package for Etsy sellers.

Clarifying your tax situation from the beginning is essential, and some shop owners also recommend getting a tax advisor. “The system is complicated and this made us feel more confident,” says Eva-Dewi. But if you choose to do your own bookkeeping, then you can find helpful courses on self-employment with your local IHK, adult education center (Volkshochschule) or Federal Employment Agency (Arbeitsamt) office.

4. Create a financial plan

Whether your aim is to quit your day job or earn enough to pay for your next vacation, it’s important to consider your finances. Make short-term and long-term goals, laying out what you have to do to get there. It might be scary but it really helps to find structure.

Timea of Mighty Vintage recommends taking a conservative financial approach. “Be humble, start small and really prioritize what you need,” she says, adding that if you make a bit of money, invest it in the strategic improvement of your business. And if you’re creating handmade goods, don’t overproduce, says Nauli’s Eva-Dewi. “A real advantage of a small business like ours is that we can do limited editions and test the market,” she explains.

5. Think carefully about pricing

Among the most important parts of your financial planning will be figuring out a pricing system. Consider your material costs and how much time you need to make each item (or, for vintage sellers, how much time you need to find it, clean it, and pack it up). Develop a price strategy that ensures you are not enslaving yourself. A lot of people starting out make the mistake of denying themselves a salary, but it’s important for building a sustainable business.

6. Hone your photography skills

The presentation of your products is as important as the products themselves, and experienced sellers all agree that good photos are essential. “You have to find a language and style for your pictures — you can never invest enough time in that,” says Timea, who describes her photos as “happy and bold.” Each type of product requires different presentation and photography techniques, so be ready to experiment, says Eva-Dewi. “Photos have to be appealing enough that people click on them,” she says. “With our small patterns it was quite tricky, but we figured it out.”

7. Personalize your brand

Developing your photo presentation is just one part of creating an individual shop aesthetic and story. The simplest way to do this is by introducing yourself and your work in the shop owner profile. “Customers are very interested in what we do and how we do it,” says Nicole Eitzinger of DyeForYarn, the Nuremberg, Germany-based specialty yarn shop she co-owns with business partner Cordula Surmann-Schmitt. Though both acknowledge they were a bit shy about creating a public presence at first, they say it has been essential for building their business. The duo also takes their brand identity to the next level with darkly humorous yarn color names like “Murderous Make-Up” and “Tweety’s Revenge.”

8. Explore shipping options

“I’ve shipped more than a thousand packages, and that has been a really interesting journey,” says Timea. “The shipping should be pretty, but most of all safe — that always comes first,” she says. Germany has a number of affordable shipping options, and you’ll need to research them to determine which best suits your products, customer needs and the destination.

Depending on which method you choose, you may want to offer customers a tracking number, which many sellers recommend. “If there is a delay, people get worried, and you don’t want that,” Timea says, adding that knowing a package’s location puts both customers and shop owners at ease.

9. Think globally

Your shop is in Germany, but with Etsy you’re addressing an international audience, so it’s beneficial to list items in both German and English, shop owners say. (You can find out how in this help article). “I don’t think I would be as successful without it,” says Timea. Depending on your time constraints, it’s a good idea to list items in any other language in which you are fluent. Etsy also offers an automatic listing translation tool, which can automatically machine-translate your listings for you.

10. Engage with your customers

One helpful marketing tool is social media. The more active you are on platforms like Instagram, Twitter, and Facebook, the more likely you’ll be noticed. “People buy from us because they want to know who is behind the products, so social media is a huge part of each day,” says Eva-Dewi, who also recommends blogging about your business.

“It’s one of our biggest marketing opportunities,” says Nicole, who uses different social media platforms to showcase items she and her partner create using their specialty yarns. And while social media has helped Timea make sales, there’s another aspect that she says is just as valuable: “It can provide a lot of inspiration too.”

What are your best tips for starting an Etsy shop in Germany? Share them in the comments below.