Getting Started What You Need to Sell Digital Products on Etsy

Sell digital products on Etsy and kickstart your side hustle—congrats on taking the first step! This is an exciting journey, and I promise it's easier than you think. In this post, I'll guide you through everything you need to get your Etsy shop up and running. From setting up your account to creating your first product, I've got you covered. Plus, I'll share my personal experience along the way! Don’t forget, there's a free checklist waiting for you at the end of the post.

1. Setting Up Your Etsy Shop

The first step in this journey is, of course, creating your Etsy shop. This part is really simple, and Etsy walks you through each step of the process. Here’s how to do it:

Step-by-Step Guide to Setting Up an Etsy Shop:

  • Create an Etsy account: If you don’t already have one, head to Etsy.com and sign up. You’ll need to provide your name, email, and create a password.
  • Choose a shop name: Your shop name should reflect your brand and the type of products you’re selling. Don’t stress too much about this—just choose something that feels right. (Tip: Make sure the name is easy to spell and remember!)
  • Example: When I started, I went with something simple that reflected the types of printables I was selling. It’s okay to tweak it later if you need to!
  • Complete your shop profile: Etsy will prompt you to fill in your shop information, including your location, language, and currency.
  • Upload a logo or banner: If you want to make your shop look professional, consider designing a simple logo or banner using a tool like Canva. If you’re not ready for this, don’t worry—your shop can still be successful without it at first.

Once you have your shop set up, you’re ready to start selling! I remember feeling a sense of accomplishment after completing these steps—it was my first real milestone toward launching my side hustle.

2. What Tools Do You Need to Create Digital Products?

Now that your shop is set up, it’s time to create your products. Don’t let the idea of designing digital items intimidate you—there are tons of tools out there that make this super easy, even for beginners.

Here are some tools you can use to create your printables, planners, and journals:

  • Canva: This is my personal favorite tool, especially if you’re new to design. It’s free to use (with the option to upgrade for more features), and it comes with tons of templates, fonts, and graphics that make it easy to create beautiful products. You can use Canva to design everything from daily planners to goal-setting journals.
  • Pro Tip: Start with a template, then customize it with your own style and branding!
  • Adobe Illustrator or Photoshop: If you’re looking for more advanced design options, these tools are great, but they do have a steeper learning curve. Many Etsy sellers use these once they’re more experienced, but you definitely don’t need them to start.
  • Google Docs: Believe it or not, you can create simple and effective printables using Google Docs. For example, if you’re creating a printable checklist or budget sheet, Google Docs can work perfectly.
  • Affinity Designer: A more affordable alternative to Adobe software, it offers professional-level design tools without a monthly subscription.

I started with Canva because it was beginner-friendly and didn’t require any design experience. It’s still my go-to for creating planners and journals. The best part? You don’t need to spend any money upfront on fancy tools.

3. Basic Legal Considerations: Taxes, Licenses, and Copyrights

Before you jump in headfirst, there are a few legal things you need to be aware of. This might not be the most exciting part, but it’s essential for long-term success.

  • Business Licenses: Depending on where you live, you might need a business license to sell online. Check with your local government to see what’s required in your area.
  • In my case, I didn’t need a special license when I started, but I did check to make sure I was compliant with local laws.
  • Taxes: Etsy will collect sales tax on your behalf in certain states, but you’ll still need to keep track of your income and pay any applicable taxes. I recommend setting aside a percentage of your earnings for taxes so you’re not caught off guard.
  • Copyright and Licensing: Be sure that any graphics, fonts, or images you use in your designs are licensed for commercial use. Canva, for example, offers both free and paid elements, but not everything can be used commercially. Always double-check to make sure you’re in the clear!

It might seem overwhelming, but don’t worry—you don’t have to figure it all out at once. When I first started, I made sure to keep good records of my earnings and consulted with an accountant to make sure I was on track.

4. Picking Your Niche: How to Stand Out in the Marketplace when You Sell Digital Products on Etsy

One of the most exciting parts of selling digital products is choosing what to sell. The key to success on Etsy is finding a niche that you love and that other people are looking for. When I first started, I experimented with different types of printables until I found a style that worked for me—and that resonated with buyers.

Questions to help you find your niche:

  • What are you passionate about?
  • What do you enjoy using in your daily life (planners, budgeting tools, meal planners)?
  • Is there a gap in the market for a certain type of printable or journal?
  • What kinds of products are trending on Etsy right now?

When I started my shop, I loved the idea of helping people stay organized, so I focused on designing daily planners and goal-setting printables. Over time, I fine-tuned my niche and started to expand into journals and more specialized planners.

5. Creating Your First Product: A Step-By-Step Guide

Now for the fun part—creating your first product! Here’s how to create a simple printable planner in Canva:

Step-by-Step Guide to Creating a Simple Daily Planner in Canva:

  1. Open Canva and select “Create a design.” Choose a document size (8.5 x 11 inches is standard for printables).
  2. Use Canva’s templates to start building your planner. You can search for “daily planner” to find layouts to customize.
  3. Add elements like text boxes for the date, to-do lists, goals, and time slots.
  4. Customize the colors, fonts, and style to match your brand. This is where you can let your creativity shine!
  5. Download your finished design as a PDF (print quality) and save it to your computer.

Voila! You’ve just created your first product. When I completed my first planner, I felt so proud—and a little nervous—but it’s all part of the learning process. Just remember, your first product doesn’t need to be perfect. You’ll improve over time!


Ready to Start Selling?

Now that you’ve got your Etsy shop set up and your first product ready to go, it’s time to list your item! In the next post, I’ll walk you through how to create a listing that will attract buyers and help you stand out in the Etsy marketplace.

Starting your Etsy shop is a huge accomplishment, and you should be proud of how far you’ve come. Keep going, and before you know it, you’ll have a side hustle that can bring in extra income while letting you do something creative and fun.

Stay tuned for Post 3, where I’ll share tips on designing products that sell and how to make sure your shop gets noticed by potential buyers. Let's keep this momentum going!


How about a free checklist for beginners on setting up your shop? I know I get motivated when I tick things off a list.

This post may contain affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through a link!