Etsy is the online marketplace for small sellers who offer everything from crocheted plant holders to handmade jewelry and vintage homeware. It's an independent alternative to eBay and an excellent place for creative teens to flex their entrepreneurial muscles and learn how to make money.
Our latest Youth Economy Report shows that a quarter of teens are already earning from selling things on online marketplaces, and 26% plan to be their own boss.
“The future of work is rapidly changing," says Louise Hill, Co-founder and COO of GoHenry.
"Kids are growing up surrounded by people just like them, who are starting businesses from their bedrooms (95% of Etsy sellers run their business from home) and making money thanks to the explosion in digital opportunities. Empowering children to earn money from a young age could have a lasting positive outcome on equality and job opportunities in the US."
Can minors sell on Etsy?
Minors between 13 and 18 can only sell on Etsy via a parent-registered Etsy account. A parent-registered account means a parent is responsible for any account activity made by a minor. In addition, all financial information affiliated with the Etsy account, such as a credit card or a PayPal account, must belong to a parent or guardian.
Kids must also disclose in their profile and "About" page that their parent oversees their Etsy account.
Minors aged 13-17
Teens between the ages of 13-17 are permitted to use Etsy's service, but if they wish to sell on Etsy they must:
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Use their shop’s About page to disclose all members of the shop, including the parent who owns the account.
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All financial information on the account must be under the parent's name.
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All billing information must belong to a parent who is responsible for the account.
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If using Etsy payments (the way you get paid on Etsy), a parent must register using their information.
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Under 18s cannot be listed as shop owners.
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The email address on the account must be registered with the parent.
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Under-18s who earn under $12,950 in the 2022 tax year won’t pay taxes ($13,850 in 2023). But they will need to file a return if they made over $400 in the tax year. Our article on income tax for under-18s explains the tax rules for minors.
Minors under 13
Children under 13 are not allowed on Etsy.
How to get started selling on Etsy as a minor (step-by-step)
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Choose what to sell. Running an Etsy shop is like selling products anywhere, your teen needs to find a gap in the market. This means getting them to brainstorm what they can sell and then researching how other people in their niche market are doing.
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Next, get your teen to work out their costings for what they’ll sell. Do they have the time to make things? Do they have the funds to set up a business if they buy materials?
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Once they have an idea, suggest they do market research to see who would buy their goods and if there is a market for them. For example, if it's handmade bracelets, who is their target audience, and how much are they likely to spend?
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When they’re ready to start selling, set up an Etsy seller account under your name. To open an Etsy account, sign in and create an account. Then go to Etsy sell and follow the instructions.
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Once the shop is running, it's time to list your products. To create listings, your teen will be asked to add photos and details about the items, including shipping and processing time. Be sure to have Etsy-worthy photographs that make your goods look attractive.
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Finally, choose an account to get paid into. This needs to be an account associated with the parent account name (i,e not your teen's account) and is where money from Etsy payments will be sent.
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Fill out the security and about section, and you’re good to go. Don't forget kids must disclose on their "About" page that their parents oversee their Etsy account.
What your kids could sell on Etsy
In 2022 the best-selling items on Etsy were:
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Jewelry
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Accessories
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Paper & Party supplies
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Clothing
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Vintage Items
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Home & Living items
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Art & Collectibles
Under those categories your kids could make and sell:
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Handmade bracelets and necklaces
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Scarves
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Handmade cards
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Bird houses
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Headbands
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Candles
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Paintings
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Bookmarks
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Seasonal items (Valentine’s, thanksgiving, holiday)
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Magnets
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Party bags
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Personalized items
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Chore charts
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Soap
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Digital art
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Zero waste products
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Handmade accessories
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Personalized prints
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Wallets
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Pet supplies
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Journals
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Bottle openers
Also see best small business ideas for kids
How much money can you make on Etsy as a minor?
How much money your teen could make depends on how much work they put into making their shop successful. This includes the quality of the product, how much marketing effort they put in to promote their shop and what they’re selling.
Smaller Etsy sellers make a steady income of $20 – $30 a month, more if their product is niche or they advertise on social media channels. Be aware, however, that Etsy charges a transaction fee. You’ll be charged 6.5% of the sale price (including postage and packaging fees) when you make a sale, which can cut your profits.
What kids can learn from having an Etsy shop?
Financial independence
Earning a wage is empowering—and it's a great way to learn about the value of money. Having their own Etsy shop also teaches teens much about becoming financially independent.
First, they must learn to track their sales and all incoming money. Second, they need to look at their outgoings to work out pricing, being sure to factor in shipping, material costs and labor. This takes time and effort but teaches teens much about tracking their money.
Entrepreneurship
Our data shows that Gen-Zers have a strong entrepreneurial streak – and they're far more likely than previous generations to come up with creative ways to make money.
Running their own Etsy shop will show them the process of being an entrepreneur as they develop, organize, and run a business to generate profit.
Resilience
Taking on feedback and dealing with bad work days is part of running a business. Your teen will learn that not everyone is friendly or reviews goods favorably. Moreover, there will be days when items don't sell or get returned. Weathering these tricky periods builds resilience in your teen.
Marketing skills
If your child is keen to run their own business one day (and a quarter of teens are), they will need to understand how to market their goods, so people are (1) aware that they exist and (2) come to buy things. Etsy's excellent marketing guide for sellers will teach them how to grow a business and give them lifelong skills.
Commitment
Running a business can be challenging. It's daily work that teens have to commit to simply because there is always something to do. Whether it's processing sales, shipping goods, working out finances or marketing.
Career and life skills
One of the biggest benefits to your child from having an Etsy shop is developing career skills like networking, analytical thinking, problem-solving, and communication. These skills will not only help them improve their business but also how they interact in all areas of life.
How GoHenry can help?
GoHenry also helps teens gain financial independence. With money from their Etsy shop, they’ll learn about money management, budgeting and tracking their spending, in a safe, secure way.
The in-app Money Missions will also help teens to develop their money, saving and investing skills through a series of bite-sized, interactive games and quizzes designed to accelerate your child’s financial literacy.
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