How to Find Profitable Niches on Etsy: 5 Helpful Tips to Find Your Winning Niche

April 30, 2024

To find profitable niches on Etsy:

  1. Analyze Current Trends on Etsy
  2. Identify Your Passion and Expertise
  3. Identify Your Target Customers and Understand Their Exact Needs
  4. Analyze the Competition in Potential Niches on Etsy
  5. Evaluate Demand and Profitability
  6. Detect Seasonal Demand Fluctuations
  7. Engage with Etsy Communities for Insights
  8. Analyze Successful Competitors on Etsy for Inspiration
  9. Collect and Analyze Customer Feedback on Etsy to Identify Market Gaps

Finding profitable niches on Etsy requires a direct approach. It blends market research, self-assessment, and planning. Examining Etsy's current best-sellers and trending categories gives insight. It's a good start to understand what consumers prefer. Tools like EtsyHunt or Google Trends can analyze search volumes and competition levels. This approach provides a clear path to find and use profitable opportunities on Etsy. It ensures your products resonate with consumers and stand out in the marketplace.

Etsy’s Annual Report for 2022 states that there 7.5 million active sellers in the platform. However, less than 10% of new shops achieve significant profit in their first year due to high competition. That means there are 6,750,000 successful Etsy shops after the first year. Successful niche sellers can achieve profit margins above 50%, far exceeding the average for Etsy sellers. This shows the need for targeted research. And for strategic positioning to succeed on Etsy. Identifying a high-demand, low-competition niche requires thorough analysis of thousands of product categories.

This article explores how to find profitable niches on Etsy. It covers analyzing market trends and identifying customer demands. I will also highlight tools and techniques for estimating market demand and profitability. At the end, I will introduce an alternative business model that may offer a more stable and lucrative opportunity than selling on Etsy.

How to Find Profitable Niches on Etsy

1. Analyze Current Trends on Etsy

Analyzing current market trends lets you see what buyers are searching for. This increases your products' visibility on the platform. It also helps you identify less saturated niches and discover inspiration for new, in-demand items. To do this, use Etsy's own trend reports, explore the search bar and trending sections on the site.

Pay close attention to the types of products that are featured. Also, note any patterns in materials, themes, or design styles. Don't blindly follow trends - find ones that resonate with your skills and interests. And always try to infuse your own unique perspective to stand out in the marketplace. You can also consider trend analysis tools like eRank or Insight Factory. 

Starla Moore

YouTuber, Sarla Moore uses historical data and E Rank, an SEO tool, to analyze and predict trends on Etsy. She identifies search volume patterns and competition. This helps sellers optimize listings and plan product launches. Sarla also identified several trending terms on Etsy, including "retro" themes and axolotl shirts," which jumped from 320 searches in September to 3,510 in October.

retro trends

She also adds that searches for "capybaras" surged from 1,220 in September to 9,180 in October. Staying informed about these trends helps Etsy sellers. It positions you shops to meet current and future customer demands.

Rowan Cheung

Rowan Cheung — The Rundown AI Founder


8/ Print on Demand Store:

Create a niche store on Etsy using AI art generation tools such as MidJourney and the print-on-demand service Printful.

Find profitable niches using keyword research tool rank. Leverage Etsy's traffic and target audience with the right keywords.

1:50 AM · Jan 28, 2023

2. Identify Your Passion and Expertise

Identifying your passion and expertise allows you to leverage your strengths to create unique products. This makes your work enjoyable, attracts the right customers, and helps you stand out in your niche. Reflect on hobbies you love, assess your skills, and brainstorm how these translate into potential product ideas.

For example, if you love yoga and have graphic design skills, you could create and sell yoga-themed printables or accessories. Products made with passion and expertise have a higher perceived value and authenticity. And leads to attracting a dedicated customer base for your store.

A Reddit user, Steelhips, shares that many Etsy sellers did not pick a niche. They used Etsy's supply" results to choose what products to sell. They also added how they turned their love of steampunk aesthetic to an Etsy business that they sell for $100. 

3. Identify Your Target Customers and Understand Their Exact Needs

Identifying your target customers and understanding their needs involves creating a detailed customer profile. Consider factors such as age, interests, lifestyle, and the specific problems your products can solve for them. Get insights by studying your customers, competitors and online communities in your niche. This ensures your marketing speaks to them, saving you money and effort. Your products will also be tailored to their desires, attracting sales and positive reviews.

Brittany Lewis

Brittany Lewis, creator and owner of Be A Wolf Biz, emphasizes the importance of collecting data over generating sales. She teaches Etsy sellers how to create long-term, sustainable businesses by understanding market demands and leveraging customer feedback. This focus on customer demand lets sellers tailor their products. It ensures that they match the real needs and trends of the market.

Brittany advises leveraging Etsy’s substantial organic traffic and prioritizing customer needs before investing in paid ads or external marketing. By adapting products based on customer feedback and market trends, sellers can maximize their chance of success. It helps them build a solid business base. And, it helps experienced sellers stay competitive in Etsy's fast-changing marketplace.

4. Analyze the Competition in Potential Niches on Etsy

To analyze the competition in potential niches on Etsy, start by identifying the top sellers in your chosen niche. Study their product range, pricing strategies, marketing tactics, and customer reviews. This analysis will help you understand what works well in your niche and how you can differentiate your products to gain a competitive edge.

For example, you can type your niche idea (e.g., "handmade leather journals") into Etsy's search bar. Analyze the Star Sellers and — their shop style, product photos, prices, and reviews. Also use Etsy's "Etsy's Pick" filter to help you see the most popular items in your chosen niche.

Christina Umerez

YouTuber Christina Umerez outlines effective strategies to analyze competition on Etsy, helping identify profitable niches. She recommends using E-rank to evaluate keywords that are linked with popular Etsy stores. And focus on those with low competition but reasonable search volumes. Christina advises sorting these keywords by their competition levels.

The goal is to find niches that are accessible but under-exploited. This approach helps new sellers avoid crowded markets. And increases their chances of being seen and making sales. This analysis helps sellers position themselves in competitive market segments to grow their business.

5. Evaluate Demand and Profitability

Evaluating demand and profitability involves looking at both market interest and potential income. This is crucial to avoid creating products nobody wants and to ensure your pricing covers your costs. Assess the number of searches and sales for products in your niche to gauge demand. Consider pricing and costs. See if you can meet this demand while staying competitive. Always use Etsy Fee Calculator to determine your true profit per item after factoring in material costs and labor.

Etsy Fee Calculator
Hannah Gardner

YouTuber Hannah Gardner stresses the importance of assessing demand and profitability to help sellers optimize product offerings and set competitive prices. Hannah uses Profit Tre to track and analyze her Etsy shop's profit data in real time. By linking her Etsy account, she can upload costs and view financial metrics such as net sales, expenses, and profit margins on the dashboard.

Profit Tre helps Hannah understand how factors like marketing costs and product pricing impact her shop's profitability. This allowed her to make data-driven decisions to enhance performance. Hannah advises using tools like Profit Tre to make data-driven decisions for targeting lucrative niches.

6. Detect Seasonal Demand Fluctuations

Detecting seasonal demand fluctuations is crucial for capitalizing on peak selling periods. Etsy's trend reports help you see when demand peaks and dips. Think about clear holidays like Christmas and Valentine's Day. Also consider seasons, like summer gear and back-to-school, and events like weddings. They might all impact your niche. Proactive planning around these fluctuations will boost your sales potential throughout the year.

This is the top results you will see when you search for "digital art prints for Christmas" on Etsy. Here, you can see a variety of Christmas digital art print styles, including watercolor, minimalist, and modern designs. This can give you some good ideas for what types of prints are selling well during this Holiday season.

christmas art prints
RJ Martinez

YouTuber RJ Martinez, in his video "Top 50 WINNING Q4 T-Shirt Design Niche Research for 2023," emphasizes leveraging the Q4 holiday season for t-shirt sales and notes the strong performance of evergreen designs. He advocates using Merch Informer to track trending designs and analyze Best Sellers Rank (BSR). RJ highlights lucrative niches like combining anime, ramen, and sketching. Also, reinterpreting traditional themes like ugly Christmas sweaters into funny t-shirt prints. He stresses the importance of strategic keyword use and monitoring BSR helps to understand demand trends.

RJ also says to stay ahead of new trends. He says to add creative twists to popular ideas. For example, he suggests "The Grill Father" for barbecue fans. This will make you stand out from the competition. He recommends maximizing profitability in the competitive Q4 t-shirt market by blending evergreen and seasonal sales strategies.

7. Engage with Etsy Communities for Insights

Joining Etsy communities is a fantastic way to get feedback, stay ahead of trends, find support, and connect with potential customers. You can access discerning markets by taking part in niche Facebook groups, and subreddits like r/Etsy. These platforms are valuable for gaining firsthand knowledge from other sellers and customers. And it will help you to stay updated on changes within the Etsy marketplace.

Etsy also has its community where Etsy sellers can join the conversations with thousands of sellers. You can use the Etsy forum to report a technical issue or to see recent announcements made by the platform.

Etsy forum

8. Analyze Successful Competitors on Etsy for Inspiration

To analyze successful competitors on Etsy for inspiration, study stores that perform well. Find top sellers using relevant keywords on Etsy. Look at their product lines, marketing techniques, customer service strategies, and brand aesthetic. See how they present themselves on social media for additional marketing insights. The goal is to learn from their best practices and find inspiration to improve your own shop, not to copy them.

9. Collect and Analyze Customer Feedback on Etsy to Identify Market Gaps

Collecting and analyzing Etsy customer feedback is crucial for spotting hidden customer needs, addressing common issues, and finding untapped areas in the market. Pay close attention to reviews, direct messages, and social media mentions for insights. This feedback can guide you in developing new products or refining existing ones to better meet market needs.

Negative reviews show where to improve and unmet customer needs. For instance, this print shop has challenges with its product quality. This is shown by customer feedback. Consider how you could address the issues raised in the negative reviews.
By analyzing them, you can find gaps in the market. You can then make products that better meet customer needs. This gives you a competitive edge.

customer feedback

5 Helpful Tips in Finding Profitable Niches on Etsy

1. Monitor Related Non-Etsy Marketplaces

Monitoring marketplaces like eBay and Handmade at Amazon is essential because it expands your view of market trends, and helps you find your profitable niche. Search for products similar to yours on these platforms, paying close attention to top sellers and reviews. This information can show potential product improvements or price changes. You might find popular features you could add to your own product inventory. It can also reveal gaps in the market that you could fill on Etsy and give you a competitive edge.

2. Use Google Trends for Related Searches

Using Google Trends for related searches is a powerful strategy for Etsy sellers to understand market demands and seasonal trends. This tool allows you to track the popularity of search terms over time. It provides invaluable insights into consumer behavior and interests. This can uncover new product categories or variations that might be worth exploring. Sellers can plan their promotions around peak interest. And maximize visibility and sales potential.

Jeff from Pod Insights leveraged Google Trends to enhance his product design planning by identifying seasonal peaks in consumer interest for specific products, such as "mom mug" and "dad mug." He pinpointed the exact times when these terms peaked. This was around major holidays like Mother's Day and Christmas. This allowed him to schedule when to design and list new products. It let him maximize their visibility and sales during these high-demand times.

Jeff from POD Insights

3. Attend Craft Fairs and Art Shows

Attending local and national craft fairs and art shows gives Etsy sellers a lot of inspiration and networking. They also get to interact with customers and learn about the market. These events provide a platform for showcasing their work. It also serves as a growth opportunity for sellers to refine their craft, understand their audience, and enhance their presence on Etsy. Participating in fosters a deeper connection with the craft community. It helps them stay attuned to market trends and drives the success of their online shop.

4. Explore Niche-Specific Online Forums and Blogs

Exploring niche-specific online forums and blogs are excellent places to monitor for market trends that you could capitalize on in your Etsy offerings. Niche-specific online forums and blogs are gold mines for Etsy sellers. Engage with communities to gain insights on preferences, product research, and collaboration chances. Forums show real consumer conversations, uncovering pain points, preferences, and sought-after products.

5. Leverage Etsy’s Keyword Tool for Untapped Niches

Leveraging Etsy's Keyword Tool for untapped niches can be a strategic move for sellers aiming to identify untapped niches within the marketplace. The tool can provide search volume and competition levels for each keyword. This shows data about what buyers are looking for, including unsaturated niche areas. Sellers can use this data to refine product listings including high-performing keywords. This helps them create unique products to meet customer needs. It boosts visibility, conversion rates, and competitiveness.

Successful Etsy Shops and How They Found Their Niche

Kate Kim is the owner of CaitlynMinimalist, an Etsy store that sells personalized jewelry. ound their niche on Etsy by identifying a unique market demand for affordable, personalized jewelry. Kate Kim found her Etsy niche by combining personal passion with market understanding.

Initially, she worked in high-end jewelry. Her direction changed in college when she made a necklace from her grandfather's letter. This piece is both sentimental and comforting. It got attention from friends and family, leading to requests for personalized jewelry. She noticed her college friends' interest but limited budgets. So, she shifted to making affordable, personalized jewelry. This move let her carve a unique spot in the Etsy market. Her shop now earns $24,000 monthly.

Tim Koa is the owner of TurtleTags, an Etsy store that sells kids labels. Tim identified a gap in the market for unique, kid-friendly labels. Tim identified his Etsy niche by realizing parents' need for more personalized and engaging labels for kids' items. He applied his design skills to make alternatives to the dull, corporate-style labels common online.

TurtleTags is one of the star sellers on Etsy and has a total of 6,405 sales. Since 2021, Tim has been building businesses and side projects to gain financial freedom. He shares his journey and insights to help others.

Alaina Fingal

Alaina Fingal owns TheOrganizedMoney Etsy shop. She found her niche by making and selling her minimalistic cash envelope design. She got into budgeting and the cash system. Her design's popularity among her community led her to start offering it on Etsy. TheOrganizedMoney shop already amassed 28,619 sales with a 4.8 average rating on Etsy.

Alaina also shares finance tips on her YouTube channel. It has over 68,000 subscribers and 4 million views. HuffPost featured her as a "Budget Pro of Instagram." And Emma App recognized her as one of the "Top 50 Personal Finance YouTubers in the United States."

What is the Most Profitable Niche on Etsy?

The most profitable niche on Etsy is jewelry with the top shop averaging 40,000 sales per month. This niche includes rings, bracelets, and necklaces. This category is ranked second in Etsy's 2020 gross merchandise sales (GMS). And it's popular among both men and women.

This niche records thousands of sales on EtsyHunt with the minor drawbacks of substantial competition. An Etsy report shows jewelry ranked second in 2020 gross merchandise sales (GMS). CaitlynMinimalist, a shop that sells handcrafted personalized jewelry has an overall sales of 2,900,927. This translates to a monthly sales of $24,174.39. This shows the jewelry niche's profitability on Etsy. 



Etsy isn't easy but it's simple.

It's simple to find products with low competition and high search volume, make good content and post listings

The hard part is actually putting in the work DAILY and letting the money come to you.

8:28 AM · Aug 10, 2023

Yes, selling shirts on Etsy is profitable, particularly when you offer unique designs that capture attention, stay on top of trends, and market your products. Successful sellers earn between $43,000 and $46,000. Partnering with a reliable print-on-demand supplier helps cut costs. While also offering quality shirts with your designs.

For small business owners, starting a t-shirt shop on Etsy can tap into a market of millions looking for unique items. Setting up an account is simple. Integrating with services like Printful removes inventory and shipping worries. This lets you focus on design and sales.

What are the Research Tools to Find Profitable Niches on Etsy?

Here are the research tools to find profitable niches on Etsy:

  • EtsyHunt: This tool offers detailed filters and in-depth analysis of individual listings, including sales performance, price, favorites, and reviews.
  • InsightFactory: This Etsy product research tool includes a niche finder with a complete list of popular niches and a keyword research tool. It also shows keyword competition and sales signals.
  • EComposer: This tool excels at finding profitable products, analyzing market trends, and discovering lucrative niches. EComposer is also a part of a list of the best Etsy product research tools.
  • Marmalead: This Etsy SEO tool is designed to improve organic traffic and increase conversions. It offers keyword analytics for Etsy searches related to any keyword entered.
  • eRank: This tool analyzes niche demand and identifies profitable product types for specific target audiences. eRank is mentioned in a YouTube video as Etsy's most popular SEO tool. 

What not to do When Finding Profitable Niches on Etsy?

The things not to do when finding profitable niches on Etsy are:

1. Ignore Market Demand

Ignoring market demand can lead to missed sales opportunities, as you won't offer what people are looking to buy. This leads to inventory problems with either too much unsold stock or not enough product to meet demand. Pricing becomes difficult since you won't understand the market value of your items. It's essential to research and understand what customers are searching for and buying on Etsy.

2. Overlook Competition Levels

Overlooking competition hurts visibility. Your products might get lost among many similar listings. Not knowing your unique selling point can waste your advertising budget. It can also make your messages unappealing to customers. Your goal is to find in-demand, but not oversaturated niches. This way you offer unique value or set your products apart.

3. Neglect Niche Depth

Choosing a niche that's too broad can dilute your brand. It also makes it harder for customers to know what you specialize in. Selecting a niche that's too narrow may limit your customer base and growth potential. Finding a niche with enough depth allows for product variety. This should cater to a specific target audience.

4. Disregard Trends and Seasonality

Disregarding trends and seasonality can result in missed opportunities for increased sales. Trends can provide insights into emerging markets or products that are gaining popularity. But, relying on trends can lead to a business model that's not sustainable in the long run. Incorporating a mix of trendy and evergreen products can help balance out sales throughout the year.

5. Fail to Evaluate Profit Margins

Failing to evaluate profit margins can result in high sales volume but minimal actual profit. You want to ensure that the niche you choose can have healthy profits. Failing to do so can result in a lot of sales with little to no actual profit. Looking at niche profitability before diving in can save you from later financial disappointment.

6. Ignore Your Passion and Expertise

Ignoring your passion and expertise can lead to burnout and lack of motivation. The best Etsy shops often combine the owner's passion and expertise. They also meet market demand. Finding a niche that fits what you love and are good at can lead to a more fulfilling business. It can also make it more sustainable.

Conclusion: Why Local Lead Generation is Better Than Selling on Etsy?

Local lead generation is better than selling on Etsy because it eliminates the need to create or source new products, manage inventory, and shipping logistics. Local lead generation focuses on building digital assets (like websites) that attract interested customers for specific local businesses. Etsy follows a product-centric model, so you will need to design or source new products and create attractive listings. This business model is a never-ending cycle that can be both time-consuming and stressful. This is especially true since you're competing with countless other sellers in a crowded marketplace.

Earning on Etsy without creating unique products is hard. This is because of competition from millions of sellers. And, the need to promote non-handmade items within Etsy's strict policies. Local lead generation offers a simpler alternative. It connects you with local businesses looking for customers. It has no limits as an intermediary platform. This allows you to sell leads to businesses and at a higher payouts per lead. Once you've established these assets and ranked them well, they can generate leads with less ongoing effort. This means you can earn $500-$2,500 monthly with a 95% profit margin. Unlike on Etsy, where selling a large volume is necessary for substantial income.


Local lead generation is a more efficient online business model with a ready-to-buy target market and requires less customer engagement and brand expansion effort. For a more profitable and less challenging business model, local lead generation is the better choice.

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