How to Sell on Etsy Without Inventory: A Comprehensive Guide

Have you ever thought of starting an Etsy business but still hesitated cause of managing inventory problems? Good news! You can learn how to sell on Etsy without inventory, in just 8 minutes! This article is your all-in-one solution to make a slick start in selling on Etsy, no need to worry about stock, shipping, or storage.

Let’s quickly run through the main part you will gain through this blog, and jump straight to it!

• • The possibility of selling on Etsy with no inventory.
  • The 8 methods to start on Etsy that don’t need an inventory.
  • The 3 steps on how to sell on Etsy without inventory.

Can you sell on Etsy without inventory?

Absolutely, you can!

In fact, many successful Etsy sellers have never dealt with inventory. Selling on Etsy doesn’t necessarily require physical stock, such as digital products, drop shipping, and print-on-demand services. In the next part, we will together dive into some of the best options you have to start selling on Etsy without the burden of managing a stockroom.

8 ways to start an Etsy Shop with no inventory (with Pros & Cons)

Following are 8 ways you can consider creating your Etsy Store with no inventory:

1. Digital Designs

⚙️ How it works:
You sell digital products, such as digital downloads, printables, planners, artwork, or even an eBook. The good thing with these types is that customers can download them right after purchasing. And since it is in the online world, you only need to create this product once and sell it an unlimited number of times.

Pros 👍	Cons 👎
– No physical inventory or shipping. – Passive income potential: create once, sell forever – You can easily scale by adding more digital products	– High competition. – Requires design skills or a learning curve if you’re new to digital creation.

🔎 Want to know in more detail? Take a look at this article about How to sell printables on Etsy. 

2. Dropshipping

⚙️ How it works:

Dropshipping is not allowed on Etsy, according to the documentation in the Etsy help center. However, you can still do it, but with certain limitations. When a customer makes a purchase, the supplier ships the item directly to them. This process must be supported by a production partner. If you decide to go on with dropshipping, you set up your Etsy shop and list products from a third-party supplier.

 

Pros 👍	Cons 👎
– No need to manage stock or shipping. – You can offer a wide variety of products without upfront costs. – Low competition as Etsy makes it quite difficult to enter dropshipping on this platform.	– Lower profit margins since the supplier takes a cut. – Shipping times can be longer, especially if the supplier is international. – Strict rules about dropshipping to follow on this platform.

3. Print-On-Demand

⚙️ How it works:
You design custom products like t-shirts, mugs, or phone cases. A third-party company that specializes in POD services handles printing and shipping once an order is placed. This niche has a huge potential as forecasted to reach around USD 87.13 billion by 2033,  expanding at a CAGR of 26.9% from 2024 to 2033, according to Precedence Research.

The print-on-demand market size from 2023 to 2033 (in USD billion).

Pros 👍	Cons 👎
– No need for inventory or printing equipment. – Unlimited space for creativity, so that you can go free with your design ideas. – Easy to enter and start.	– Lower profit margins. – You have little control over quality or shipping speed. – Longer time is needed for production and delivery.

4. Custom Order or Made-to-Order

⚙️ How it works:
Instead of keeping stock, you create items only when customers place an order. This works well for personalized products or tailored orders, such as custom jewelry or bespoke art.

Pros 👍	Cons 👎
– No upfront investment in materials, you can ask for a deposit before starting. – Personalized items often command higher prices. – No need spacious storehouse to store stocks.	– Time-consuming to create each item individually. – Can’t benefit from bulk production savings. – Hard to build customer trust at the start.

5. Etsy Affiliate Marketing

⚙️ How it works:
Etsy’s affiliate program allows you to promote products from other shops on any platforms you have, such as your website or social media. As long as you make a sale from the link you share, you earn a commission. However, Etsy has certain aspects to qualify if you are eligible to enroll in the affiliate program:

• • Be 18 or older.
  • Have one of the following authorized channels to promote affiliate links:
    
    • • A website with a URL:  all unique sites and URLs must be approved separately by Etsy;
      • Instagram: have created content, be a public page, and affiliate links are not used in paid ads;
      • Facebook: have created content, groups, and channels must be public, and affiliate links are not used in paid ads;
      • Pinterest: have created content, with a link directing to your blog
      • YouTube: have created content, be a public page, and affiliate links are not used in paid ads;
      • TikTok: have created content, be a public page, and Affiliate Links may not be used in any paid ads; or a channel otherwise approved by Etsy in writing via [email protected];

  • As part of your application for the Etsy Affiliate Program, disclose any Etsy shops you own or are closely associated with to the Affiliate team.
  • If you create or become involved in any Etsy shops after your Affiliate application is approved, notify the Etsy Affiliate team.

To understand deeper about the requirements, you can find out through this Etsy documentation about the Affiliate Policy.

Pros 👍	Cons 👎
– No need to create or manage products. – Completely passive once you’ve set up your affiliate links, so you can earn money without doing anything.	– High competitive as it is easy to start. – You need to have an established platform to promote the links. – Smaller income potential since you’re only earning commissions.

6. Subscription services

⚙️ How it works:
Etsy is well-known for selling handmade, vintage crafts, but you can also sell subscription-based products or services. There are many packages to sell such as monthly planners, customized templates, digital art, or even educational materials that customers receive on a regular basis.

Pros 👍	Cons 👎
– Recurring revenue stream. – Builds a loyal customer base over time.	– Requires consistent creation of new content, which might be daunting at some point. – Managing subscriptions can be complex.

7. Secondhand or Vintage Products

⚙️ How it works:
If you’re a vintage lover, this is a great option. Since you make your products with the already used materials, it is often cheaper and you don’t have to stock many products in-house. You can source vintage items or secondhand goods from thrift stores or estate sales and list them on Etsy.

Pros 👍	Cons 👎
– Low-cost sourcing from thrift stores or garage sales. – Unique products that appeal to collectors or vintage enthusiasts.	– Sourcing can be time-consuming and inconsistent. – May require refurbishment or cleaning.

8. Music or Sounds

⚙️ How it works:
People use music in every action: a background sound for the video, music for the event, some sound effects to make the video more lively, etc. This creates a consistent demand for a variety of digital audio files, making it a viable option for musicians looking to monetize their skills.

Pros 👍	Cons 👎
– Digital product with no inventory. – Potential for passive income.	– Niche market – requires quality production and marketing. – High competition in stock music libraries.

How to Sell on Etsy Without Inventory: 3 Steps

You just go through all the thrilling ideas to start your business on Etsy. Now is the time to turn those ideas into reality by learning how to sell on Etsy without inventory. Here are the 3 steps you need to know:

1. Create an Etsy Shop

This is the first step in your Etsy journey of learning how to sell on Etsy without inventory for free.

⭐ Create an Etsy account:

If you haven’t had an Etsy account before, you need to build one. To speed up the process, you can also log in to Etsy with your existing Google, Facebook, or Apple account.

 

⭐ Click “Sell on Etsy”: 

After signing in, you will see a small avatar icon on the top right bar to click on it. Then, find the line that says “Sell on Etsy” to select.

⭐Decide your shop preference:  

At this step, there are 3 things you need to set up for your store: Language, Country, and Currency. Two important notes for you to keep in mind: you can’t change your language setting later AND you will be charged a 2.5% transaction fee if your store currency is different from your payment account.

⭐ Give your shop a name:

Catchy, short, but memorable, and most crucially, reflecting your brand and what you sell. In case you need inspiration, check out our list of unique Etsy shop name ideas!

⭐ Add your first listing: 

Add at least one listing to officially make your Etsy shop go live. No big deal here, just fill in the needed information for your listing. As your store gets bigger, you can optimize the title, descriptions, and tag content for SEO.

⭐ Decide how you’ll get paid: 

To wisely set the payment method, make sure that you have caught up with the Etsy Payments requirements. Besides setting up your payment account, you must declare what kind of seller you are, and add bank account info. Setting up an account may be slightly different based on your location.

⭐ Provide billing information:

Prepare your card at hand to add it to the Etsy account. In fact, you will be asked for a credit card to pay for the fee on Etsy, too.

🔎 If you are still confused with the steps about how to start an Etsy business with no money, take a look at this blog: How to sell on Etsy for beginners: 12 easy steps,

3.2. Upload and Optimize Listings

Rather than your very first listing during the onboarding step, you will need to upload more of your products and focus on SEO. It is important to do keyword research. Later on, use relevant keywords in your titles, descriptions, and tags to ensure your listings are discoverable.

Some tips for doing keyword research for the Etsy platform:

• • Use Etsy’s search bar:
    
    • • Use AI tools such as ChatGPT, Claude, or Perplexity to expand your keyword ideas.
      • Use Etsy’s suggestion: A drop-down menu always shows when you enter a keyword into the search bar as the suggestion. Don’t waste this valuable source of data. Add these keys to your list.

 

• • Leverage tools: There are a lot of free to paid tools that provide insights into trending keywords:
    
    • • Keywordtool.io
      • Alura Etsy Tool
      • Keyword Tool Dominator
      • eRank
      • Marmalead

  • Analyze your competitors: Use tools to crawl the primary keywords used by your successful rivals, or manually review their titles, descriptions, and tags.

3. Promote your Etsy store

Promotion is the key to getting eyes on your shop. For this step, you can produce content and share it on various social media. Otherwise, creating an email list to send the promotion campaign, or collaborating with influencers can be good tactics.  If you want to attract more customers in a fast way, use Etsy ads to drive traffic to your store. Several other platforms to use are Pinterest, or Behance, which is literally a goldmine for Etsy sellers. Some tricks:

• • Consistency is key: Frequent, fun content posted on each of your social media outlets will engage your audience and keep them wanting more.
  • Offer incentives: Promotion, discounts, and giveaways are just some of the marketing campaigns that may attract new customers or repeat business.

How to Sell on Etsy Without Inventory: The Bottom Line

If you’re wondering whether selling on Etsy without inventory is possible – yes, it absolutely is. But keep in mind that just like with any business, success won’t happen overnight. Thus, not every product published on Etsy will make the hit that everyone craves for it. Everything takes time to establish, to be stable, and to grow! So, be patient and believe in the process!

Want to make your Etsy shop stronger with many useful tips, tricks, and up-to-date knowledge from other sellers and from Etsy itself? You can get all that just by staying tuned with Masstic newest blog posts.

FAQ on How to Sell on Etsy Without Inventory