How To Make Passive Income On Etsy (Top Tips To Do So)

Are you looking to dip your toes into the world of selling on Etsy to make a passive income but aren’t sure how to start?

Digital products require lower costs and fewer risks, making them excellent for sellers looking to earn a passive income on Etsy. Popular digital products to sell on Etsy include printable worksheets, invitations, budget trackers, and more.

Great news- you do not need to be an artist or crafter to make a passive income on Etsy! All you need is a computer, a little ingenuity, and an Etsy account. In this article, I will share tips and tricks with you for how you can make a passive income on Etsy.

How to Make a Passive Income on Etsy

Etsy is a digital marketplace that many people associate with arts and crafts, but did you know you can sell digital products too? If you are looking to create an Etsy shop for a passive income, digital products are the best way to go.

Opening an Etsy shop for passive income may sound daunting to you at first, but it is a super easy platform to start selling on. Many people have turned to Etsy as a new side hustle or passive income.

To open your own Etsy shop, you only need a unique shop name and product.

You can sell digital products in any of the following file formats:

PDF
Images (JPEG, GIF, PNG, TIFF)
Audio/Video
MPEG or MP3

Why Should I Sell Digital Products on Etsy?

Digital products require less risk and less cost than other products. You likely will not have to buy materials to make the products, making the cost significantly lower. You also don’t have to pay for shipping which will save you a lot of hassle and money.

They also require less time to create. Creating other products, such as earrings, takes time. You can run out of stock and then have to make more. With digital products, you only have to frontload your time to create the product, and once it is uploaded, it never goes out of stock.

Because they cost less to make, you can sell them at a lower price and thus entice more buyers to purchase. As a customer, it is far easier to agree to spend $5 on a gorgeous art print download versus $25+ shipping. This price difference will increase your sales. It’s a win-win!

What Can I Sell on Etsy to Make a Passive Income?

Now that you know selling digital products is an easy way to make a passive income on Etsy, you might be asking what products will help you rake in the most dough. While you can sell many different types of digital media, the best-selling ones are usually PDFs.

Let your imagination spur your product. To help get your creative juices flowing, here is a list of the top-selling digital products on Etsy:

Downloadable art
Crochet patterns
Digital planners
Invitations
Budget trackers

Downloadable art

If you are an artist looking for an easier way to sell your art, you should consider offering downloadable art print options.

Scan your prints, take artsy professional-level photos of the product, create a listing, and suddenly, your art is available for mass purchasing without you having to make another replica.

Crochet patterns

If you love to crochet and create your patterns, consider selling those patterns on Etsy for a passive income. Since the COVID-19 pandemic, many people have started crocheting as a new hobby. With this increase in interest, crochet patterns have become more popular than buying the actual crocheted product.

Digital Planners

Bullet journals and daily planners are all the rage. People are constantly looking for new layout ideas or a great planner page to help them achieve all their goals. If you create good quality, useful planners for yourself, sell them on Etsy!

The planners do not have to be just for daily use either. Consider creating wedding planners or party planners to help your customers stay organized for the big events in their lives.

Invitations

Everyone is always in need of a good, quality invitation for parties and events. Digital designers and calligraphy artists can make an excellent passive income by uploading formal invitations or offering commissioned personalized ones!

Wedding invitations are a big seller on Etsy!

Budget Trackers

With inflation on the rise globally, everyone is looking for ways to keep track of their money. Why not help yourself fight inflation by selling a product that helps others? Creating cute and useful budget trackers to help your customers save money is a great way to make a passive income on Etsy.

Top 3 tips for how to Sell Digital Downloads on Etsy

1. Do Market Research

Shop around on Etsy to see what is available on the market right now. Ask yourself how you can fill any void or how your products would add meaning to a customer over the products you are seeing. This task will help you design and market the best digital product for a passive income.

2. Choose a Niche

Less is more when it comes to choosing what to sell on Etsy. You want to highlight that you understand what you sell- and to do that, you need to specialize in one thing.

For example, if you want to sell planners, do not also try to sell crochet patterns. If you’re going to sell products that do not correlate, you can always open another shop!

3. Taking good product photos

Every Etsy seller understands the importance of a great product photo. For digital products, this can sometimes be a little more complicated. If you do not have access to high-quality cameras, you can experiment with photo editors, such as PicMonkey or Canva.

Check out this article from Etsy to get even more great tips about photos for your digital products!

Final Thoughts

Now you know how to make a passive income on Etsy. Choosing to sell digital products, such as planners and patterns, is an excellent option because of the cheaper costs and fewer risks. Place the customer’s needs at the forefront to capture their attention to what is unique about your products. Happy selling!

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How To Make Passive Income On Etsy (Top Tips To Do So)