How To Start A T-shirt Business on Etsy

Etsy has become very popular with over 95 million buyers in 2024, according to  Etsy Investor Relations . This makes it the ideal place for artists to turn their designs into profitable businesses. If you’re ready to dip your toes into the water or scale up your Etsy shop, let’s get right into it.

Starting any business on Etsy without knowing your target customers sets you up for failure. You can never really meet your customers' needs without understanding their demographic data, income, needs, pain points, interests, and lifestyle choices. 

This information helps you tailor your designs and marketing strategies in a way that’s appealing to the targeted group. One way to collect such information is through market research. Study the successful Etsy sellers in the niche and understand their customer base. Customers on Etsy leave reviews and feedback that provide valuable insights.

There are thousands of shops on Etsy fighting for the same customer base. To stand out, pick a niche that you are comfortable in and are certain can create the best designs. Start by looking within for your hobbies, interests, and designs you are passionate about. The more authentic you feel in a niche, the higher your chances of doing well in it.

Your niche of choice should have low competition but high demand for you to gain traction on Etsy quickly. Some niches you can look into that fall within this category are shirts for pet lovers, family themes, and vintage and personalized t-shirts.

You should have some inspiration for designs based on what your customers’ preferences. Work on differentiating yourself from competitors by making unique designs. Update yourself by researching the current trends that are relevant to your customers, then incorporate them with your brainstormed ideas.

I bring my ideas to life using design tools such as Canva, Adobe Illustrator, and Photoshop. These platforms have beginner-friendly interfaces, including “drag and drop,” and free versions. You don’t have to worry about being a professional graphic designer to use them.

The last step is to create a mockup. Remember that your design’s display is important to Etsy’s customers because the platform is visually driven. There are thousands of digital t-shirt mockup templates online that show the design from different angles.

When you’re satisfied with the overall design, export it in PNG format, or vector files for higher quality, awaiting upload in the shop. It's important to have at least one physical shirt printed so you can take high-quality photos for your listings.

For you to create an Etsy seller’s account, you need to have a consumer’s account. Setting one up should be very easy.

Etsy’s official site has login or sign-up options. The first step requires a desktop web browser. Click “Register” and fill out the form using your name, email address, and password, then verify the account.

After logging in, on the top left corner, just next to the cart is your profile where you can manage the account settings, upload a profile photo, or create a seller's account.

Click on the “Sell on Etsy” icon under the profile followed by the “Open Your Etsy Shop” button to change it to a seller’s account.

Etsy will prompt you to enter your shop name and preferences, such as language, currency, and country. The shop name should be unique, catchy, and memorable. Remember to be careful when picking the name because once it is set, you can’t change it.

The last step is to select the means of receiving payment after selling inventory. You have to connect your bank to the account and add a credit or debit card or PayPal account to pay for the expenses on the platform.

With a shop in place, it's time to start printing the t-shirts. There are two ways you can control the printing process.

With in-house production, you control and coordinate the printing using your own equipment within your home. With this approach, you are responsible for the entire process from buying the printing material to packaging and shipping. 

Although you require a substantial amount of upfront investment, bulk printing reduces the cost per item, meaning more money goes into your wallet. Before partnering with a POD company, check the quality of their prints, your profit margin based on their rates, and how they integrate with Etsy.

In contrast, print-on-demand services take away all the annoying aspects that come with the production process, so you can focus on perfecting other parts of the business, like design. I would recommend this method for beginners testing out the waters because it allows room for flexibility with very low risks. However, your control over the speed, quality, and production process is limited.

If you choose to print the shirts yourself, you need to decide on the method you will use. The decision is mostly affected by the quantity and quality of the print, the fabric and the budget.

Heat transfer vinyl is also known as iron-on printing. It requires fabrics that don't melt when heated. It works by using a heat press to apply pressure and heat to transfer a design from a special paper to a shirt. The heat melts the adhesive on the paper while the pressure adheres it to the shirt. This method works for a variety of designs, and it is a cheap and easy method for beginners.

This involves applying ink or stenciled designs directly on the fabric by pressing ink through a mesh screen. You start by creating a stencil on a fine mesh screen, then rub ink through its permeable parts using a squeegee, resulting in long-lasting and high-quality prints. Screen printing is recommended for designs with fewer colors and is easy to set up.

This process starts by printing the design on a special paper using subliming inks and a specialized inkjet printer. It is then transferred to the fabric using a heat press. The heat sublimes the inks, turning them into gas, and embeds them in the fabric. When cooled, the ink returns to a solid state, producing a vibrant and durable print. Since the ink fuses with the shirt instead of layering, it becomes significantly less prone to fading or peeling off.

With the production part out of the way, it's time to start selling. But before you are too excited to upload the designs, make sure they can be sold on Etsy, and under a specific category. Remember Etsy prohibits the resale of another seller’s handmade items, even if it's repackaged.

Click on “Add a listing” under the “Shop Manager” menu to start. You will be prompted to add up to 10 photos of your designs. I like using all the options exhaustively to show the buyers all the design’s angles. I also pick a photo that shows the complete design to use as the thumbnail so that buyers know what they are getting at first glance.

Then enter your listing’s details like the title, category, inventory and pricing, description, and shipping preferences, using Etsy’s SEO. Save and publish the listings when done, then repeat the process for all the designs.

For every listing you upload, Etsy charges you a $0.20 fee.

The sales process starts when you receive an order from a customer. Orders are notified through email, or the Etsy app. Review the order, take note of any special requests, and check that the payment is complete before you start preparing the shirt.

When ready, package the t-shirt and ship it to the buyer, if you’re using a POD service, ensure you have forwarded every detail of the to the company.

To be more visible on the platform and make more sales, you need to market your shop. A good place to start is posting on Pinterest and Instagram where most of your audience spends time. Use high-quality photos and videos that are visually appealing to capture the user’s attention.

Run ads on Etsy, offer promotions and discounts for your inventory, and provide exceptional customer service and feedback to attract and retain buyers.

If you need to scale up your business on Etsy, here are some tips for you.

To minimize the risk of unsold inventory and a stagnant business, sell designs that are in demand and line with the customer’s tastes and preferences. It also helps with a confidence boost when you meet the customer’s expectations and they leave positive feedback.

The audience on Etsy relies heavily on shops’ reviews and feedback, and recommendations from other buyers. When your customer service is excellent, your shop gets positive reviews and ratings boosting credibility, encouraging repeat customers, and referrals.

Just like with any other e-commerce platform SEO optimization is key in boosting organic traffic and attracting new customers. It means optimizing the listings' titles, descriptions, and tags with keywords that buyers like to use when looking for shirts. I use Marmalead to find keywords used on Etsy.