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Is Etsy a Good Side Hustle? How to Make Passive Income with Etsy?

Etsy has emerged as a popular platform for creative entrepreneurs and side hustlers alike. If you’re looking for a flexible way to make money online, Etsy offers various opportunities to build a profitable business with minimal investment. From setting up an online store to leveraging dropshipping, print-on-demand (POD), and affiliate marketing, Etsy offers a range of paths to create passive income streams. Here’s how you can turn Etsy into a thriving side hustle.

1. Setting Up an Etsy Store and Dropshipping

The first step to building an Etsy side hustle is setting up an online store. Etsy is known for handmade, vintage, and craft items, but you don’t necessarily need to stock physical inventory. You can use dropshipping, a business model where you sell products that are fulfilled by a third-party supplier.

Dropshipping on Etsy

Etsy allows dropshipping, but it works best when you focus on handmade or craft-related products. Many Etsy shoppers seek out unique, high-quality, and artisan items, which means generic mass-produced goods might not perform as well. Instead, consider dropshipping handmade or craft supplies to align with Etsy’s target market.

To make dropshipping easier, platforms like Auto-DS offer a seamless integration with Etsy. Auto-DS works with reliable suppliers such as AliExpress, Banggood, CJ Dropshipping, and also Auto-DS’s private suppliers. These suppliers ensure timely and trustworthy deliveries, allowing you to focus on growing your business without worrying about fulfillment. With Auto-DS, you can automate order processing, price adjustments, and stock monitoring, making your Etsy store run more smoothly with minimal hands-on work.

Why Dropship Craft Supplies?

Craft supplies have a natural fit on Etsy, where DIY enthusiasts and creative professionals shop for materials. From yarn, beads, and fabrics to specialty tools, there is a wide range of items that can be sourced from reliable dropshipping suppliers and resold on Etsy with a margin. Dropshipping in this niche also allows you to target a more engaged and creative customer base, which often results in higher repeat sales.

2. Dropshipping Print-On-Demand (POD) Products

Another great way to make money on Etsy without holding inventory is through print-on-demand (POD) products. POD allows you to sell custom products without the need to stock or ship them. When a customer makes a purchase, the product is printed and shipped on demand under your brand. This is a popular method because it allows you to offer personalized items like T-shirts, mugs, wall art, phone cases, and more—all without any upfront investment.

Printful: A Leading POD Supplier

There are many POD suppliers, but one of the best options is Printful, which integrates smoothly with Etsy. Printful offers a variety of products that you can customize with your own designs, logos, or artwork. Once you set up your Etsy store and link it to Printful, any time a customer places an order, Printful will handle the production and shipping, leaving you to focus on marketing and growing your brand.

Using Printful for your Etsy business not only saves you time but also allows you to expand your product offerings without having to deal with inventory. It’s an excellent way to test different niches and designs without taking on financial risk. Plus, you can add your branding to the packaging, which enhances your brand recognition with customers.

3. Make Passive Income Through the Etsy Affiliate Program

Beyond running an online store, Etsy offers another opportunity to earn passive income: the Etsy Affiliate Program, powered by Awin. As an Etsy affiliate, you can earn commissions by promoting Etsy products through your own website, blog, or social media channels.

How to Join the Etsy Affiliate Program

To become an Etsy affiliate, you typically need a website or blog to apply for Awin, the affiliate network that powers the Etsy Affiliate Program. However, building a website these days is easier than ever, even if you have no prior experience in coding or design. You can use platforms like WordPress to create a professional-looking website in no time.

Once you have a website, you can apply for Awin and other popular affiliate networks such as ShareASale and Admitad, which allow you to join premium affiliate programs from big brands like Walmart, Target, and more. By writing about Etsy products and embedding affiliate links, you can earn a commission for each sale made through your referral links.

Maximize Your Affiliate Earnings

As an Etsy affiliate, you can promote a wide range of products, from handmade goods to vintage treasures. You can write blog posts, create product reviews, or even start a social media channel that highlights top Etsy finds. The more traffic and clicks you drive through your affiliate links, the more you stand to earn. Since you don’t need to deal with inventory or customer service, affiliate marketing is an excellent way to generate passive income with minimal ongoing effort.

Conclusion

Etsy is a versatile platform that can serve as a profitable side hustle, whether you’re running an online store or earning passive income through its affiliate program. With dropshipping, particularly through platforms like Auto-DS for craft supplies and Printful for print-on-demand products, you can start selling without holding inventory. Alternatively, Etsy’s affiliate program offers a way to earn commissions by promoting products to a wider audience. Whether you’re looking to build a business from the ground up or simply earn extra income in your spare time, Etsy provides the tools and opportunities to succeed.

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