Podcast Summary:

How to Sell Your Stuff on Etsy – Ep 214 | How to Start an Etsy Shop in 2026 (The Right Way)
Host: Lizzie Smiley
Date: January 1, 2026

Overview

In this high-energy episode, Lizzie Smiley kicks off 2026 with a comprehensive beginner’s guide to starting an Etsy shop "the right way." Speaking directly to aspiring and experienced Etsy sellers, Lizzie combines practical, step-by-step startup advice with her signature blend of encouragement, tough love, and “big sister” energy. The episode focuses on mindset, platform strategy, product choices, and actionable steps for making Etsy work in today’s competitive (and AI-influenced) landscape. Lizzie also shares new tools, resources, and her updated community offerings, designed to help listeners launch and scale their shops in the coming year.

Key Discussion Points and Insights

1. Etsy in 2026: Why It Still Works

• Lizzie is more optimistic than ever about Etsy’s potential, emphasizing its effectiveness for both sellers and buyers.
• Shares anecdotal evidence from her own sales, students, and other coaches that success on the platform is absolutely attainable for new sellers.
• Denounces trends that suggest “Etsy is over,” reinforcing that the site continues to deliver real opportunities.

  "We are all doubling down on Etsy… I just, I'm doubling down on Etsy." – Lizzie (02:10)

2. The Right Mindset for Starting

• Encourages listeners to begin, even if they feel a mix of nervousness and excitement:

  “It's okay to start a little scared. It's okay to be messy, and you have to kind of like fail forward in entrepreneurship." – Lizzie (18:21)

• Reminds sellers to give themselves permission to not be perfect; progress beats perfection.

3. Essential Strategic Tools & Resources

• Strongly recommends using data-driven tools (not just intuition) to guide decisions:
  • Profit Tree (11:21): A tool that provides sales data, listing age, favoriting stats, and tags used on competitor listings. Notably offers a one-time $67 lifetime access deal.
  • Custom Product Picker GPT (32:10): Created by Lizzie for personalized product brainstorming using her extensive experience.
• Announces free and paid community resources:
  • Free 35-Minute Workshop: “How to Blow Up Your Etsy Shop” (16:17) – reveals a strategy mega sellers use.
  • Scaling Society Membership: All-inclusive access to courses, templates, trend reports, and community coaching (16:58).

4. Step-by-Step: How to Start an Etsy Shop in 2026

Step 1: Decide Why You’re Starting (20:10)

• Be clear on your goals (side income, full replacement, creative outlet, etc.)
• Align your expectations and available time accordingly.

  "We're not building a six figure income this year if you can only give it five hours a week." – Lizzie (22:04)

Step 2: Choose the Best Product Type for YOU (23:24)

• Product types on Etsy:
  • Digital Products
  • Print on Demand (POD)
  • Handmade Goods
  • (Also: Supplies, Vintage)
• Pros and cons of each, with tips for matching your choice to your lifestyle, budget, and skills.
• Lizzie predicts handmade will become more important as AI advances:

  “…in the next five to 10 years, handmade products are where we're all going to go back to if we want to be successful on Etsy [due to AI]." (32:53)

• Digital is fastest to get started with, but competition is highest.

Step 3: Understand How Etsy (Actually) Works (49:55)

• Etsy is a search engine, not just a marketplace—keywords and demand matter most.
• Listings are matched to buyers based on titles, tags, and descriptions (SEO).
• Reputation and shop performance influence visibility and sales.

Step 4: Don’t Guess—Let Demand Lead (53:36)

• Don’t create only what you like; research demand with search bar autosuggestions, bestseller badges, and tools like Profit Tree.
• Trends and proven sellers provide clues to profitable niches.
  • Tip: Use the hidden bestseller filter (Lizzie explains in a YouTube tutorial).

Step 5: Choose a Starting Niche & Launch (59:40)

• Start narrow (micro-niche), create multiple listings to generate data.
• Key Advice: Don't obsess about picking the “perfect” shop name or branding. It can all be changed later.
• Shop opening is guided step by step by Etsy—you can use a “dummy” listing if needed to finish setup.

Step 6: Be Clear, Not Clever in Listings (1:10:45)

• Use descriptive, keyword-rich titles (not just creative names).
• Your thumbnail image is your storefront—make it count.

  “Your thumbnail… that first image is your storefront. Know that most people are never going to actually go over into your shop.” (1:11:29)

• Use the photo gallery to answer all possible customer questions (few will read the description).
• Watermark images gently to deter copycats.

Step 7: Start Before You Feel Ready (1:13:30)

• Progress comes from taking action, even imperfectly.
• "Reps matter more than talent. Every single person can get better." (1:13:57)
• Story: Her daughter is building a business at age 10—imagine what you could do if you gave yourself the same grace and timeline.

Step 8: Use Data, Not Emotion (1:16:36)

• Diagnose your listings:
  • No views: SEO issue
  • No clicks: Thumbnail/image issue
  • No sales: Positioning/pricing/etc. in the listing
• Continually research and “build your brain cache” by analyzing what’s actually selling.

Step 9: Incorporate Trends (1:20:48)

• Using trends is a practical shortcut; not mandatory, but a major accelerator.
• Micro-niche applications beat generic ones (e.g., "CICU Nurse" vs. "Nurse" T-shirt).

Step 10: Wash, Rinse, Repeat (1:22:53)

• Success isn’t a secret; it’s about consistent experimentation and volume.

  “It almost sometimes feels a little… underwhelming. Like, you think it should be this big thing that causes the breakthrough, but what it really is is just still doing the same thing over and over again.” (1:23:42)

• Realistic conversion math:
  • ~5,000 impressions ➔ 100 views ➔ 1 sale

Notable Quotes & Memorable Moments

• On Starting Messy:

  "It's okay to be a little nervous. My dad always says if you're not a little nervous, you don't understand what's about to happen to you." (19:00)

• AI’s Impact and Handmade Prediction:

  "My prediction… is that in the next five to 10 years, handmade products are where we're all going to go back to if we want to be successful on Etsy." (33:00)

• On Competition in Digital Products:

  "We focus on understanding demand and niches and trends. And when you focus on that, competition and saturation aren't even a factor for you." (43:05)

• On Test & Volume:

  "Test, tweak, play, test until you find a product and style that sells. I don't care how long it takes. Keep consistently putting things up every day to test and see." (1:24:56)

• Reality Check:

  “Taylor Swift gets tired of singing Shake It Off, I promise you…” — Comparing Etsy shop routine to doing the hits! (1:25:25)

• Reps Over Talent:

  “Reps matter more than talent. Every single person can get better.” (1:13:57)

Timestamps of Key Segments

• 02:10 — Etsy is still a strong platform; myth-busting the “Etsy is dead” narrative
• 11:21 — Profit Tree tool explained in detail
• 16:17 — Free “How to Blow Up Your Etsy Shop” workshop intro
• 18:21 — “It’s okay to start a little scared.” Mindset for new sellers
• 23:24 — Choosing the right product type: Pros & cons for handmade, POD, digital
• 32:53 — AI prediction for Etsy’s future (handmade resurgence)
• 49:55 — Etsy 101: How the marketplace/search engine really works
• 53:36 — “Let demand lead.” Practical ways to spot demand
• 59:40 — Niche selection and the low-pressure way to launch
• 1:10:45 — Listing clarity, making great first impressions, answering questions in images
• 1:13:30 — “Start before you feel ready.” Encouragement + Lizzie’s daughter’s “pet influencer” story
• 1:16:36 — Using data instead of emotion to improve
• 1:20:48 — The power of trends and micro-niches
• 1:22:53 — “Wash, rinse, repeat.” Volume, consistency, and realistic conversion expectations

Tone & Style

Lizzie’s style is upbeat, candid, and no-nonsense—part business coach, part motivational big sister. She brings humor, self-deprecation, and real-life examples to make the process relatable (Gilmore Girls references included). She encourages “imperfect action,” data-driven decision making, and community support.

Conclusion & Takeaways

• Don’t overcomplicate it: Decide your “why,” choose a product type that fits your situation, use data to guide you, and get your listings up.
• Action > Perfection: The sooner you start (even if it’s messy), the quicker you’ll learn what works. “Reps” are the route to mastery.
• Stay strategic: Focus on what’s in demand, get your SEO and images right, and use tools to speed your learning.
• Growth mindset: Commit to regular improvement (not overnight success) and seek community for accountability and support.
• Get connected: Find Lizzie’s free trainings, use the GPT Product Picker, and consider Scaling Society or trendspotting membership to accelerate your journey.

Links and further resources are found in the show notes for this episode.

Perfect for:

• Total beginners and those returning to Etsy who want a thorough, practical, and motivational starting point for 2026.
• Experienced sellers looking to refresh their strategy in an AI-impacted marketplace.