In this article, we are gonna talk about How to create passive income from Etsy digital products in 2023. Etsy is one of the best online platforms to make money and the best part is that you can actually use Etsy to create passive income.
Who would not want to work once and earn for a lifetime? Let’s first explain the concept of passive income briefly.
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What is Passive Income?
“Unearned revenue that can be maintained or earned with little to no work is known as passive income.”
Unlike active income i.e. from a 9-5 job, you don’t need to work directly to earn money. In passive income, you have to build potential earning sources and they would keep getting you profits. But obviously, in the beginning, one has to work harder.
There is a famous quote:
“If you don’t find a way to make money while you sleep, you would have to work till you die!”
Passive income is in simple words, a way to make money even if you are sleeping
What is Etsy?
Etsy is basically an e-commerce company focused on selling handmade or vintage items and crafts. You can also sell digital products on Etsy. These products fall in different categories from jewelry to toys and arts.
Etsy provides a great opportunity to create passive income by selling digital products.
What are Etsy Digital Products?
If you have been on Etsy, you might have seendigital products. They are basically designs that the customers can download without a physical printed product. Some examples of Etsy digital products are as follows:
- Paintings
- Invitation
- Birthday cards
- Logos
- Photo Presets
- Photography
- Digital Arts
- etc.
Some Benefits of Digital Products over Physical Products
- You only need to make the digital product once
- The product could be sold for infinite times
- You can give maximum discounts on the products because you have the same initial cost or effort for making that digital product
- You don’t need to physically ship the product
- Easy refunds
- You can start selling digital products on Etsy without any investment
Also read our article about the Best Ways to Make Money Online
How to Create Passive Income from Etsy Digital Products
So now let’s get onto the actual question, how to create passive income from Etsy digital products?
The answer is quite simple. You just have to create your digital products like paintings, photo presents, or any other which you can make easily and professionally. You can use different software to create your digital products. Some of the best software which can help you make your digital products are as follows:
1. Canva
Canva is recommended for most of the designs. It is very easy to use and there is also a free version of it. Canva has a lot of templates, fonts, styles, audio, photos, gifs, and other elements. These elements would really help you make your designing journey easy. The free version also has a lot of templates and other stuff but if you have the budget, I would recommend you buy the premium version.
One thing that you must keep in mind is that you can’t sell Canva templates directly. You should add your own unique creativity to that and should only use Canva as an editor and a resource library. Always remember to make your digital products unique.
2. Corjl
Corjl is also a very good software to help you make and edit your designs. Instead of downloading and putting your designs on Etsy, you can directly put your digital products on corjl and when someone buys it, he/she would be able to access and edit the design directly without your need.
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After creating your digital products, you can put your digital products on your Etsy store. When your digital product has been published on your store anybody on Etsy can find it and can buy it from you.
But the good point about Etsy is that you don’t need to worry about the payment and delivery process as it’s done by Etsy itself. Etsy will take the payment from the customer and will give him the product.
If there are any refunds they would also be processed by Etsy itself. Except for creating the products and answering the queries of your customers, you don’t really have to do anything. Even if you don’t do any marketing stuff, you can still get sales from Etsy because it has a customer base of more than 100 Million users.
How Much Can I Make Selling Digital Products On Etsy?
Well it obviously depends upon a lot of factors like:
- The average price of your products
- Number of sales that you generate
- Your Niche
- How well do your products rank on Etsy
Actually, the two basic things that matter are the average price of products and the number of sales.
If let’s say you have an average price of $5 and in the first month you get 1 sale per day, that would be $150 for your first month. Not that bad as its passive income. It will definitely grow over time and let’s say if you start getting 10-15 sales per day after 3 to 4 months, you can easily make $2000 per month as a passive income!
Keep in mind that it’s better to stay realistic in your goals and be patient.
What Digital Products Sell Best On Etsy?
There are a lot of different kinds of digital products on Etsy and it’s difficult to say which products sell best on Etsy. But the following products are often seen selling better than others.
- e-Books
- Business Cards
- Recipe Cards
- Digital Artwork
- Wedding Downloads
- Luxurious branding kits
- Websites templates and themes
- Stickers
- Patterns
- Fonts
Some Cons of Selling Digital Products on Etsy
While you may find a lot of gurus telling you that it’s very easy and you will start making thousands of dollars without much effort, it’s important to have a realistic approach to your Etsy journey. I am never saying that you can’t make thousands of dollars with Etsy. You can, but for that, you would initially have to work hard and give your complete focus to that. You would have to know the tactics of selling. There are basically two cons to selling on Etsy:
- High Saturation: On Etsy, there is a high saturation of digital products. There are a lot of sellers on Etsy selling the same things, so it’s comparatively difficult to get your product on the first page.
- Extra Hard Work in the Beginning: The basic concept of passive income overall is that you have to work extra hard initially and after establishing the system, you would get rewards with no to very little work. The same goes for Etsy digital product selling. Initially, you have to work extra hard and that’s why most people quit even before getting their first sale.
To get over these cons you should follow some tips given below.
Also read our article about the Most Profitable Skills to Learn at home
Tips for Increasing Your Sales on Etsy
If you want to be successful in your Etsy Journey, there are some tips that you should follow:
1. Choose the Products wisely
Before publishing products in your Etsy store, you should do complete research and choose the products that you can create professionally and uniquely. Try to choose a high-selling and low-competition digital product. Some of the best-selling Etsy digital products are given above.
2. Charge Reasonably
You should charge reasonably for your products. Try to give the best price in the market. If you do so initially, you can give your sales a kick.
If you are a new seller, selling the same thing at a higher rate than your competitor, why would someone buy from you? So make sure to charge reasonably
3. Create Clickable Product Photos
Product photos play a very important role in the CTR of your product. Make sure to post impressive and beautiful photos of your products. It will increase your sales
4. Product Descriptions
Product descriptions are from where your customers get the details of your digital products. So you should write good product descriptions of your products which should explain every important detail about your product.
Your product descriptions must include the following points:
- Dimensions of the product
- Format of the product
- Number of pages of the product
- Order process details
- Printing information details
5. Etsy Shop SEO
Make sure to correctly do the SEO of your Etsy shop. This is the way that can get you free traffic for your shop.
Try to include relevant keywords and tags. I would recommend you to target the long-tail keywords as they are usually less competitive and easy to rank on.
SEO is the thing that if done correctly will get you ranked you on the first page.
Conclusion
So these were some words from me to let you know how to create passive income from Etsy digital products. Follow the above-given steps and make Etsy your source of passive income. I wish you very good luck in your Etsy journey!
If you have any confusion, feel free to contact Finanzerr. Finanzerr is always here to help you! 😊
