The 10 best Etsy passive income ideas are:
1. Ebook
2. Wallpapers
3. Lightroom presets
4. Social media templates
5. Digital artwork
6. Etsy shop banners
7. Fonts
8. Resume templates
9. Website templates & themes
10. Digital bookmarks
Digital downloads and printables are among the most popular products on Etsy. Aspiring Etsy business owners can take inspiration from successful sellers who have shown it’s really possible to earn money from the platform. For example, North Carolina-based Kayla Warner made over $93,000 in a year selling digital downloads on Etsy. Similarly, Rachel Jimenez earned a monthly average of $9,500 selling printables.
In this feature, we share with you 32 Etsy passive income ideas you can consider, along with the benchmark pricing from actual sellers on the ecommerce website. We also discuss 3 potential stumbling blocks that may stop you from generating passive income on Etsy. Moreover, we recommend a surefire business model that can bring you residual income with little to no effort.
32 Etsy Passive Income Ideas
1. Ebook
Selling ebooks can be a good way to earn passive income on Etsy. Authors get to tap a global market for their works through the Etsy platform. According to a Statista report, the number of ebook users worldwide is estimated to “continuously increase between 2023 and 2028 by in total 165.5 million users (+16.84 percent).”
In a Business Insider feature, we read about Olivia Crabtree who made $132,000 in a year as an Etsy seller. The 21-year-old woman from Yorkshire, England initially launched The Small Business Handbook and much to her surprise, she earned £600 in one day. She now has 7 mini ebooks (Brand Story, Buyer Psychology, Copywriting Formulas, etc) ranging from $2.35 to $3.93. In addition, she has also started selling planners, prompts, and guides in her Etsy shop.
2. Wallpapers
Wallpapers also sell well on Etsy. In 2023, digital artist Viktoja Borison started creating downloadable mobile and desktop wallpapers, taking inspiration from “kawaii culture and Studio Ghibli.”
Today, her ViktojaDesigns shop has gained a Star Seller badge after selling over 3,500 items. Most of her items (which are composed of 12 wallpaper designs) are sold at $4.83 while her bestselling Wallpaper Mega Bundle has a price tag of $31.88.
3. Lightroom presets
Lightroom presets are also good for anyone looking for effective Etsy passive income ideas. These pre-defined presets are for users of the photo editing software Adobe Lightroom. With these presets, users can edit photos with greater ease. They get to access and adjust color balance, contrast, exposure, along with other settings and features for a more consistent output.
Jakesout owner Jacob Brown has made over 61,000 Lightroom preset sales since establishing his Etsy business in 2017. A self-taught photographer from Utah, his All In One 300+ Lightroom Preset Bundle sells for $64.00 each, while his cheapest presets are at $3.99.
4. Social media templates
Social media templates make perfect Etsy passive income ideas. Small and medium-sized businesses purchase these templates for their social media posts and banners, instead of hiring full-time graphic artists.
Rachel Jimenez of ProsperousPrintables sells several social media template packages for different purposes. For example, one of her bestsellers 50 Editable Bookkeeping Social Media Templates costs $5.94. The rest of her products range from $3.30 to $16.50. Since 2019, Rachel’s Etsy shop has sold 43,000 digital and printable products.
5. Digital artwork
Digital artwork can generate you passive income on Etsy. Buyers on the platform are always looking for good art that’s available by digital download. Mel, a graphic designer and visual artist from Berlin, Germany, runs the EclecticPrintStore where she and her team offer “eclectic and tasteful selection of digital wall art.” Browsing through their offerings, we see both seasonal (Christmas, New Year, and Halloween wall arts) and evergreen (surf wall art, watercolor ocean print set) products priced from $2.25 to $14.07.
EclecticPrint Store was established in 2023 and has so far made over 2,500 sales. It has also gained an Etsy Star Seller badge.
6. Etsy shop banners
Etsy shop banners and shop kits make great passive income sources for designers. Shop owners use the platform to look for editable banners they can use for their Etsy business.
Graphic designer Christin Yu owns the Etsy store PastelGrid store where she sells shop bundles that help customers build better branding. These bundles include Etsy shop banners, listing photos, receipt banners, shop icons, and others. Among the store’s best selling products include the Boho Pastel, Happy Colors, and Peach Cream bundles, which sell for $29 each.
7. Fonts
Fonts can also be an excellent source of Etsy passive income. Kaitlynn of KAFontDesigns is a Star Seller with over 232,000 sales on Etsy. Currently, the store offers 775 items.
Their best seller is the Modern Script Font Bundle (8 script fonts), which is being sold for $7.50. The cheaper products sell at $1.12 while the most expensive (Extended Font License For ONE Font File) has a $100 price tag.
8. Resume templates
Another great passive income idea for Etsy business owners is to sell resume templates. Job seekers purchase these templates as they create resumes and send them to prospective companies. These editable resumes help them save time and make a professional impression as they apply for their dream jobs.
Writer Cosima and designer Daniel of CoResume sell resume templates available for MS Word, Google Docs, and Apple Pages. For example, their $7.50 ATS Friendly Resume Template includes 1-page and 2-pages resume templates, along with reference and cover letter templates, plus resume writing guidebook, checklist, action verb list, and unlimited customer service.
CoResume also bears the Star Seller badge and has made over 43,500 sales so far.
9. Website templates & themes
Website templates and themes eliminate the need for business owners to create a website from scratch. Writing code requires skill and these pre-made templates and themes can greatly simplify the process.
On Etsy, Nes Presets has made over 41,000 sales since 2019. Among their top sellers is the Boho Coach Website Template, which they sell at $60. Another hot templates in their store is the $40 Photography Website Template.
10. Digital bookmarks
Digital bookmark sellers also earn passive income on Etsy. Book lovers check out the site for unique designs and purchase these printable products for personal use, to sell or give away.
In addition to games, activity sheets, gift tags, and other items, Melissa Goyette also sells digital bookmarks in her LilacsAndCharcoal shop. The stay at home mom from Valencia, California has black-and-white, color-your-own bookmarks as well colored bookmarks in her gallery.
When selling bookmarks on Etsy (and any other product, for that matter), make sure not to use copyrighted material to avoid getting permanently suspended on the platform.
11. Zoom background
For professionals who often use Zoom, virtual backgrounds are important to use during video conferences. So some Etsy users go to the platform to purchase Zoom backgrounds. As such, this can also be an effective way for creatives to earn passive income on Etsy.
DonutGraphicsStudio is one of the stores that sell Zoom backgrounds on Etsy. A Star Seller with over 900 sales, the shop offers elegant and professional backgrounds ranging from bookshelf and city view, to home office and even Christmas-themed designs for $3.50 each.
12. Procreate brushes
Digital illustrators who use the Procreate app can turn to Etsy to find plenty of great brushes to help enhance their artistic styles. In fact, a quick search on the site yields over 37,000 results.
For example, Kseniya Tumanova, an artist from Fethiye, Turkey, sells Procreator brushes in her online shop. Her digital products cost from $3.00 to $26.50 and so far, she has made over 46,000 Etsy sales.
13. Photoshop actions
Adobe Photoshop users visit Etsy to check out and buy Photoshop actions. These tools are recorded tasks that help users automate tasks and save time as they edit photos using the software.
Hue Palette Presets Shop sells Photoshop Actions on Etsy. Priced at $4.30, their Moody Chic PS Action includes 12 unique Photoshop actions and a step-by-step PS actions PDF guide, among others. Their PS action products range from $3.90 to $7.60.
14. Clip art
Clip arts are digital graphics that can be useful for creating greeting cards, mugs, planner pages, posters, shirts, stickers, and other products. Designers often find it a better idea to buy clip arts than to rely on free ones found online because they have better quality.
Etsy has over 3.2 million clip art listings, which just proves there’s a huge market for these digital art files. Case in point, Viktoriya Hristozova is an artist from Bulgaria who creates cliparts and digital download products for her Etsy business TellTheWhale. Some of her bestsellers are evergreen (dogs, cats, cartoon sun, ice cream, new mom) and seasonal (Christmas, Day of the Dead, Thanksgiving, St. Patrick’s Day), costing from $1.87 to $12.30.
15. Logos & branding kits
Premade logos and branding kits for sale allow small entrepreneurs to create a consistent business image without the guesswork. Compared with hiring specialists, these digital file products are sold at a lower price point and are fully customizable. No wonder, they’re also a hot commodity on Etsy.
SwitzerTemplates designer Jane Switzer creates and offers logos, flyers, social media, ebook templates, and more on her Etsy shop. Her 1000 Branding Package Templates and other branding kits cost $37.90 each. Meanwhile, she charges $36.82 for custom and semi custom logo designs.
16. Printable planners
Etsy currently has over 658,000 printable planner listings on their website, proving there is a huge market for these products. These digital planners range from work planners, budget planners, meal planners, wellness planners, and more.
London-based Yvonne Hudduma has been running the FRGLMAMA shop on Etsy since 2020. She is a certified Star Seller with over 68,000 sales. Her products range from finance planners and weekly planners, to habit trackers and more, which she sells from $1.71 to $10.15.
17. Workbook and worksheets
A quick Etsy search on workbooks instantly brings over 59,000 results. These digital workbooks can be used for personal and professional use, depending on their content.
Since launching PinkMINTED in 2017, Mora has made over 61,000 sales. Her downloadable and printable Ultimate Boss Babe Experience and Women Empowerment Workshop workbooks sell for $14.99 each.
Meanwhile, worksheets generally sell for as low as $0.08 to as high as $113.77 on Etsy. They often range from simple Math worksheets for kids, to mental health worksheet bundles for adults and are made using Microsoft Excel, Google Sheets, and other similar software.
18. Journal inserts
Journal inserts are pre-made pages used by people who use refillable journals. These printable inserts are usually lined or may have various design elements, depending on their purpose.
On Etsy, Joy Dean of Sudbury, Canada sells journal and notebook pages through her store JoyDeanDesigns. Among her top digital items is the 140+ Pre-Made Bullet Journal Pages which sells for $9.22. Journal insert products and bundles on her shop sell from $1.15 to $37.83.
19. To-do list
To-do lists help people increase productivity and improve time management. These lists allow them to visualize and prioritize their tasks. They remain popular today, with over 132,000 listings on Etsy.
Star Seller Anna Elmaloglou of SerenatasEssentials sells budget and planning spreadsheet solutions in her shop. Her bestselling To Do List task tracker comes with a calendar tab and dashboard. The list is also available on Google Sheets and Microsoft Excel formats, which makes it easy for users to print this $5.01 Etsy digital product from home.
20. Calendars
Calendars are among the most popular products for sellers hoping to earn passive income on Etsy. When selling calendars, you’ll only need a basic template and then tweak them accordingly each year. Currently, there are over 386,000 printable calendar listings on the Etsy database.
Stay at home mom Sarah Hansen owns OurCottageHaven, an Etsy business she established in 2015. Her 2024 Lined and Unlined Monthly Calendars are among her featured items and she sells them for $2.00 each.
21. Budget trackers
Budget trackers allow users to monitor their expenses. With this tool, people can handle their money better and avoid financial problems that come with overspending.
Odette of the Haye Ameri Etsy store is a photographer with an Economics background. She uses her passion for numbers to create personal finance spreadsheets for her customers online. Her digital product offerings range from Simple Budget and Annual Budget trackers, to Paycheck Budget and Bill Calendar sheets. Her items cost $3.21 to $15.86 each.
22. Printable invitations
With over 7,100 digital product listings, DesignMyPartyStudio is definitely an Etsy success story. Amsterdam-based Anita runs this business that specializes in printable invitations and party decors. In fact, she has sold over 624,000 items on the Etsy site.
Anita specializes in printable birthday, Christmas, and other party invitations. The printables cost anywhere from $2.43 (simple invitations) to $21.00 (invitation and party bundles).
23. Cosmetic labels
Cosmetic labels is a specific niche you can target if you’re looking for Etsy passive income ideas. There are only over 12,000 listings on the site, which means there’s at least fewer competition compared with other popular niches.
Graphic design expert Kara Stokes owns DIYbyCustominted, an Etsy store specializing in editable business templates and printables. So far, the Atlanta, Georgia-based shop has made over 31,000 sales on the platform.
Their featured item Editable Body Product Labels CANVA sells at $9.00 each. This bundle contains easy to edit templates for cosmetic products of different sizes.
24. Business cards
Business cards are also a great source of passive income on Etsy. According to GraphicsZoo, around 10 billion business cards are printed in the USA each year. By offering DIY, printable business cards on the Etsy site, you are helping small business owners save time and money.
UnmeasuredEvent founder Tash runs her Etsy shop from Denver, Colorado. Her Dahlia Lemon Business Card Template “features tropical watercolor palm leaves and an elegant calligraphy font” and costs $6.59.
So far, UnmeasuredEvent has made over 405,000 sales by selling “easy editable templates for all life's special events.”
25. Thank you cards / greeting cards
Businesses use thank you cards as a simple way to express gratitude, encourage customer reviews, and build brand loyalty. You can also earn money by selling printable thank you cards on Etsy.
Christina of MakinaDesign is a passionate graphic designer with over 20 years of experience. In her Etsy shop, she specializes in “glam branding for the ambitious babes” and also sells editable thank you cards ranging from $3.67 to $11.05. So far, she’s a Star Seller with over 86,000 sales on Etsy.
Meanwhile, Christa of GreetingsFromHome earns extra money by selling evergreen and seasonal greeting cards on her Etsy store. She has everything from birthday cards, christmas cards, get well cards, thanksgiving cards, and more with each one priced at #1.58 each.
26. Invoice templates
Selling invoice templates can also be a source of Etsy passive income. Businesses and freelance professionals use invoices to collect payment. Some go to Etsy to check out the site’s 16,000 listings for invoice templates.
Tania of DigitalTemplatePaper has 75 invoice templates for sale in her Etsy shop. These professional invoice templates sell for $2.25 each and are fully editable for easier use.
27. Recipe cards
Recipe cards contain detailed instructions (ingredients, measurements, step-by-step procedure) of specific dishes. Blank and editable versions of these recipe cards are also being sold on Etsy.
WillowLanePaperie owner Sarah McDonald has made over 326,600 sales over the years on Etsy. While her shop specializes in DIY wedding stationery and event printables, she has 75 recipe cards in her shop. Most of her cards sell from $2.00 to $3.50, plus she has a bundle worth $100.25.
28. Stickers
Some Etsy sellers also cater to individuals and businesses who purchase unique sticker designs online. These buyers often print the stickers using their own printers or the services of local print shops.
Mohamed Agbaria sells digital printable stickers through ZoomkSVG. Since 2012, his Etsy shop has made over 36,700 sales and now holds a Star Seller badge. His products are available via Etsy digital download and are usually priced between $0.75 to $1.50.
29. Editable flyers
Flyer marketing remains to be a cost-effective marketing strategy used by companies today. According to the Pfeiffer Report, distributing flyers can potentially bring businesses a 3.5% return of investment. Meanwhile, a Data & Marketing Association research tells us that “89% of consumers remember receiving a door drop mailing - more than any other marketing channel… with 45% keeping leaflets on a pinboard or in the kitchen drawer.”
That said, selling editable flyers can be a terrific Etsy passive income idea. Case in point, Preplates is an Australia-based Star Seller with over 74,000 sales since 2020. The Etsy store has 364 digital flyer templates online, most of which are sold for $1.80 each. Additionally, their flyer bundle sells for $9.35 each.
30. Menu templates
Menus are used not only to showcase a restaurant’s food and beverage products. Others also use them for events (weddings, parties) and businesses (cakes, balloons, etc).
London-based seller Selen runs BlushPaperieShop on Etsy. A Star Seller with over 107,000 Etsy sales, Selen specializes in minimalist and elegant editable wedding menu templates. Her Etsy printables sell for $7.10 each.
31. Gift tags
Gift tags are also great digital products to sell on Etsy. Potential customers purchase these customizable printables for personal and business use.
Christian Conde is an Etsy Star Seller from Chicago, Illinois with over 194,000 sales since 2016. His Stickearte shop primarily sells “unique and gorgeous printable invitations along with decor and supplies for those happy occasions in your life.”
Their gift tags usually cost $3.00 to $3.50. To attract more buyers, the shop also offers a 60% off discount for those who get 3 items or more.
32. Art And Decor
There is also a demand for printable art and decor products on Etsy. In fact, a search on the site brings over 3 million results.
Carolina Prodan of Portugal has been on the platform since 2020. Her store birdyfindsforyou has made over 11,500 sales. She has also earned the Etsy’s Pick badge for 1000+ Printable Vintage Art Prints for Home Decor - Eclectic Gallery Set, which she sells for $11.92.
What Are Digital Downloads?
Digital downloads are downloadable digital files that sellers usually offer online. Buyers often use platforms like Etsy to file digital items such as digital planners, ebooks, Procreate brushes, website templates, and more. These products are used digitally and are not printed physically.
How To Make Money On Etsy With Digital Downloads?
Is Selling Digital Downloads On Etsy Profitable?
Yes, selling digital downloads on Etsy can be profitable if you put the right amount of time and energy into creating effective products and marketing them online. In a blog on her Amma Rose Designs website, Kayla Warner of Greensboro, North Carolina shared how she made over 93,000 in revenue selling digital downloads on Etsy. This was from January to December 2020, which was during a pandemic.
“Etsy is continuously growing & expanding,” Kayla adds. “You’re going to have competitors with new and fresh ideas popping up left and right. Trends come and go, and you have to be prepared to adjust and move with your market.”
What Are Printables?
Printables are digital files of imagery that people can download online and print for personal or business use. These printables are available in different formats such as JPEG, PNG, PDF, or SVG. As opposed to a physical product, a printable can be personalized and edited to suit a buyer’s purpose. The text and size dimensions are usually customizable. Buyers can then print these files using their home printer or hiring the services of local print shops.
Some of the most popular printables include calendars, printable planner, greeting cards, product labels, stickers, wall art, and others. Generally, printables are sold at a much cheaper price than physical products.
How To Sell Printables On Etsy?
Is Selling Printables On Etsy Profitable?
Selling printables on Etsy can be profitable because the website attracts a massive number of potential customers. In a Business Insider feature, we read about Rachel Jimenez who makes $9,500 per month on average by selling printable planners and templates on Etsy.
"Once I started using my skills to help others solve problems and fulfill their needs, sales started to come in," she reflects. "I've helped busy parents make holidays more magical with scavenger hunts.. I've helped business owners market their businesses with flyer templates."
Can You Make Passive Income On Etsy?
Yes, you can make passive income on Etsy by selling high-demand products. According to reports, there are over 96.2 million active buyers in 2023 alone. This means there is a significant number of potential buyers on a global scale. Moreover, an Etsy business only requires low overhead cost compared with running a physical store. It’s fairly low risk, plus you get to eliminate the hassles of shipping and inventory.
What Are The Best Tools To Create Passive Income On Etsy?
This Etsy app allows you to “manage your shop on the go.” With it, you can create listings, respond to customer messages, track shipments, and more.
Cost: Free
Canva is an easy-to-use tool that doesn’t require any graphic design skill or experience. While there is a free version, users can also check out Canva Pro to access premium templates and design elements.
Cost: Free or $14.99 for 1 user and $29.99 for up to 5 people per month.
A Creative Cloud subscription can be useful if you’re doing the designs yourself. With this package, you can access 20+ Adobe apps including Illustrator, Photoshop, and more. Alternatively, you can subscribe to specific apps at a different cost.
Cost: $59.99 per month for Creative Cloud, $22.99 per month for Adobe Illustrator or Photoshop.
If you’re hiring creatives, you can find freelancers on platforms such as Fiverr. This website has a massive database of professional graphic designers, logo designers, and more. Signing up is free but you’ll have to pay service fees as a buyer for every transaction.
Cost: 5.5% service fee of the total purchase amount
Is Creating Passive Income On Etsy Hard?
Creating passive income on Etsy is hard because you’ll have to attract a steady stream of buyers each month. This often means having a large online following you’ve built over the years or having a groundbreaking product that suddenly goes viral. This can be challenging to achieve, especially for beginners who often have to start from the bottom. So while it’s possible for some, earning passive income on Etsy may not be for everyone.
Etsy seller Kara Buntin, who has 50.7 subscribers on YouTube, goes on to point out that true passive income is rare and usually requires significant effort. “It doesn't matter what you sell online. You're still going to have to create new products,” she says. “You're going to have to deal with customers. You're going to have to promote your business, send people to your listings and do the SEO… There's really nothing passive about any of that.”
3 Drawbacks Of Creating Passive Income On Etsy
1. Continous Update Of Your Design Based On Trend
A drawback to creating passive income on Etsy is that you’ll need to continuously update your designs based on current trends. While it’s true that digital products can be repeatedly sold without limits, it’s not exactly a “set it and forget it” business model. Tweaking existing designs for marketability is often necessary. Plus you often have to create and release new designs to attract current and potential customers on Etsy. Competition can be great so you’ll have to offer unique digital product designs for your target market.
2. It Is Not Free To Sell On Etsy
Selling printables on Etsy is not free. While creating an account does not cost anything, sellers have to pay $0.20 per listing every 4 months, plus a 6.5% fee for each sale. Additional taxes may also apply, depending on the seller’s country.
Moreover, printable sellers who hire others to design graphics for their business will have to cover professional freelancer fees. According to Fiverr, freelance graphic designers on their website charge anywhere from “just $5 per gig going up to hundreds or thousands of dollars for more complex and time and resource consuming requirements.”
3. Etsy Can Shut Down Your Shop
Another possible hindrance to earning passive income on Etsy is that the platform can actually shut your shop down. Copyright violations are among the most commonly violated rules on Etsy and it can lead to temporary or permanent suspension of your account. That said, shop owners should not use copyrighted materials on their products. For example, your sticker designs should not contain the images of musical acts (such as Taylor Swift, Blackpink, and others) or popular Disney characters.
Refer to the Etsy Seller Policy often and comply with the rules to avoid such problems in the future.Conclusion: Why Local Lead Gen Biz Is The Best Way To Create Passive Income Than Selling On Etsy?
While selling digital downloads and printables can be great ways to earn passive income on Etsy, the business model has several potential disadvantages. As mentioned, Etsy is a competitive marketplace with over 6 million active sellers on the platform. You’ll also have to spend time creating new designs and dealing with customer inquiries on a regular basis. It can take a lot of work on your end. Plus you’re largely dependent on Etsy’s policies and algorithm as you use their services. You’ll have to observe their rules to avoid getting suspended, plus you’ll have to invest in ads to gain attention from your target buyers.
You won’t have any of these problems with local lead generation. With lead gen, you are not in a market with millions of sellers offering the same products. Instead, you are only competing against 10 to 15 local businesses for top search engine ranking using targeted keywords. Once your website ranks, it can possibly stay in that position for a year or more with little to no maintenance work. You can then rent out your website to interested local companies that constantly need organic leads and traffic.
As a lead gen service provider, you are also in greater control of your websites and your earnings. You can potentially earn anywhere from $500 to $3,000 per month from your clients. Case in point, my Grand Rapids tree care site continues to make me $2,000 monthly. Since I own several lead gen sites, I often earn up to $52,000 per month. As long as you know what it takes to boost your site’s search engine presence, you can look forward to a steady stream of earnings. No need to create hundreds of digital downloads and printables to generate passive income. If all that sounds interesting to you, we have a lead gen coaching program with over 7,000 students. Contact us and we’ll teach you how you can do this, too.
