How To Start An Etsy Shop In Canada (For Beginners)

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If you are based in Canada and are looking to sell your artisanal products, you must choose a selling platform where your market is.

Luckily, Etsy, the e-commerce site that focuses on handmade products, opened its doors to the Canadian market.

Yes, you can now take advantage of Etsy’s specialized market and sell your products while in Canada.

So how do I set up an Etsy shop in Canada?

You can now take advantage of Etsy’s specialized market and sell your products while in Canada. Etsy is free to sign-up service for your artisanal business. Make sure that your product is handmade or vintage, and you can sell on the site.

For the most part, the basic subscription is enough to get your product out there.

What is Different About Starting an Etsy Store in Canada?

There isn’t any difference when starting an Etsy store in Canada.

If a customer is from the United States, and your price your product in Canadian Dollars, chances are he would see fluctuating prices when converted to US Dollars.

This is due to the exchange rate.

Many Canadian storeowners use US Dollars instead of Canadian Dollars when selling their goods to have a steady price.

It is also worth noting that the majority of Etsy customers are still in the US.

By having prices in US Dollars, customers get to see a single price, instead of a fluctuating price based on the exchange rate.

How Much Does it Cost to Sell on Etsy in Canada?

Etsy in Canada has put the following fees for all shop owners:

Listing Fee (0.20 US dollars)

Listing fees are billed in US dollars, even when you are in Canada.

This is a fee you need to pay, regardless of whether an item is sold or not. But, you only need to pay this fee once every four months.

Shipping Transaction Fee (5 percent)

Etsy gets five (5) percent of your shipping costs.

A way to circumvent this is to include the shipping costs with the item, and advertise it as free shipping.

Transaction Fee (5 percent of total item cost)

This is regardless of currency and based on your listed price. Once the final cost has been computed, including shipping and gift wrapping, Etsy gets five percent of that as part of its fees.

Etsy Payment Processing Fees (0.25 CAD + 3 percent for domestic orders, or 4 percent for international orders)

Etsy Payments is the most convenient way of accepting payments on the shopping platform.

While you can opt-out from it, you will have to arrange payments manually with your buyer.

Listing Currency Conversion Fee (2.5 percent)

If your listings are priced using foreign currency, Etsy charges a fee to convert it.

For example, if someone from Indonesia purchases an item worth 50 CAD in your shop, and the shipping cost would be 11 CAD, your total cost would be 61 dollars.

From that 61 dollars, Etsy will charge you, 0.27 CAD for listing, 0.55 CAD for shipping transaction, 3.05 for regular transactions, 2.69 dollars for payment processing, and 1.53 for currency conversion, giving you a total of 8.09 CAD.

For that transaction alone, Etsy already takes at least 13% of your gross revenue. You still need to factor in the cost of production, taxes, and other miscellaneous fees that may incur with your shop.

There are ways to circumvent some of these fees, such as arranging for other payment gateways with your buyer.

Etsy also has monthly subscription packages for you to customize your shop, and boost your marketing efforts on the site. While you can use Etsy without these packages, this extra overhead cost should also be factored in your pricing.

Do I Need a Business License to Sell on Etsy Canada?

Etsy does not need you to submit your business documents when you sign up.

There are local laws that need to be adhered to, which Canadian sellers must follow.

These laws do not affect your Etsy subscription.

How Popular is Etsy in Canada Compared to the US?

When it comes to the number of sellers, the US still has the most number of Etsy vendors, as compared to Canada, which ranks number three (3).

What is “Etsy Made in Canada”?

Etsy Made in Canada is an initiative by Etsy Sellers in Canada to celebrate the Canadian craftsmen on the site.

Sellers gather and organize a market to sell their products to local customers.

These markets also allow the grassroots to experience first-hand the craftsmanship of artisans on Etsy.

While this is a seller-initiated effort, Etsy has given its support to the Etsy Made in Canada movement.

What are Good Canadian Etsy Stores for Inspiration?

Etsy has been able to help a lot of store owners display their products to an international market.

Some of these are:

Robinson Merch Company

Robinson Merch Company is based in Grimsby, Ontario, and specializes in jewelry organization.

Their designs are modern and chic and make a great way to accent a room.

La Reserve Design

The products of La Reserve Design present nothing but comfort when you look at them.

Making knitted wool products, this Montreal-based shop makes a variety of items such as blankets, cushions, scarves, among other products.

Grace Design

The Toronto-based shop makes bags of all sizes and preferences.

Whether you want something that minimalist or flashy, Grace Design has the perfect clutch or shoulder bag for you.

Sock Dirty To Me

Sock Dirty To Me is the epitome of wit on socks.

Just try to “keep your socks on” with their witty humor in every pair of socks.

Whatever you have in mind, Sock Dirty To Me will have something for you.

CAMP Skincare

CAMP Skincare makes plant-based beauty and skincare products.

To nourishing your skin, their products also cater to mother and infant care markets.

Fat Cat Greetings

Fat Cat Greetings specializes in hilarious greeting cards for all occasions.

If you are looking for something unique and funny, Fat Cat Greetings is the place to go, as they also offer customization for free.

Also, Fat Cat Greetings donates 20 percent of its profits to Montreal Cat rescue efforts.

References:

Etsy Made in Canada

How to sell on Etsy Canada

Number of active Etsy sellers from 2012 to 2019

Canadian $ vs. American $?

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