Do You Need A Business License To Sell On Etsy In Canada?

Do you need a business license to sell on Etsy in Canada? This is one of the most important questions to ask before opening a shop on Etsy. It helps you know and abide by the Canadian laws for online businesses and stay away from trouble. 

Etsy is an e-commerce platform that sells handcrafted items and vintage supplies. Most sellers on the platform own the items sold. Unlike the other shops, you don’t require a business license to sell on Etsy, but you have to follow all the rules regarding online business registration. 

If you just started making and selling your handmade items, Etsy is a suitable platform for your small business. You will gradually grow the business through marketing and meeting your customer’s expectations. Our article will educate you on the government requirements for opening a shop and how to sell on Etsy. 

Let us get started.

Starting Your Etsy Store

Starting an Etsy store is straightforward. First, you don’t need any license to begin selling. Also, sole proprietors don’t need to register their business if they use their real name for the company.

However, whether to or not register the business name depends on your municipality’s requirements. It is also essential to register the business because this allows you to send and receive payments through the business name. 

Etsy store’s platform resembles other online stores like Amazon and eBay, and having great listings for your products is essential. When the listings are appealing, they attract customers resulting in many sales. 

Invest in a good camera that can take good photographs of the items. Customers will only buy the products if they look nice and if the pictures can clearly show all the products’ details. 

Once you have clear shots of your items, be creative with the titles. Ensure the title has the keywords of your product so that customers can find it online easily. When describing your items, capture all the keywords also. 

Describe the item in the most straightforward words possible to make the customers understand and mention the good’s unique characteristics. Including keywords in the item description ranks it in the top searches. 

Pricing is tricky when listing your products because you have to be fair with them while also ensuring you will make a profit. If you don’t know how to price the products, research first. 

Do I Need A Business License To Sell On Etsy In Canada?

The Canadian government will not run after you because you don’t have a license for your Etsy store. However, Canadian businesses pay taxes, so ensure you do to avoid paying heavy fines.

How to Make sales on Etsy 

You might not make sales on Etsy for a few days after opening your store. However, to meet your Etsy targets, ensure you make your customers happy by doing the following;

• Make Your Customer Service Excellent

Every customer likes to be treated right, and if they get the attention in your business, they will come back. Besides, your older customers will recommend your store to their friends, increasing your sales. 

Ensure your actual products match those in the pictures. Do not catfish your customers by delivering different items from what they see online. Also, include any defects of the products in your description to reduce the chances of getting returns. 

Take the shortest time to reply to your customers. Luckily, the Etsy app helps sellers respond to their customers’ messages quickly. You can also set reminders on your phone to check for notifications after a specific duration. 

• Set Your Customers’ Expectations

As a seller on Etsy, it is vital to ensure your customers are aware that you deliver quality items. To keep your customers updated on everything, set up your shipping profiles on the platform. 

When the customers can see your shipping profiles, an estimate of the shipping charges, and the expected date for delivering the product, they become less anxious. The extra information also increases your customer’s trust.

Ensure you state the return policy. You could say the number of days after purchasing when customers can return the product and if they will get cashback or an exchange. 

• Show Gratitude

Customers like grateful sellers. It might not be a big deal to some, but adding a thank you note in every purchase before shipping it to your client creates a good profile for your store. 

Write a personalized note to the customer telling them how you appreciate doing business together. You can also hand-write the note to make it more special. The buyer will likely leave a good review on your Etsy site, which grows your business.

• Offer Free Shipping

Customers like free services, and if your products are good, you will get many buyers. You can include a reduced shipping fee in the product’s price. The other way to provide free shipping is by using shipping companies that offer great discounts. However, this requires you to do thorough research.  

Market Your Etsy Store

Now since you have the correct answers for ‘do I need a business license for Etsy, ‘ use your time to grow the store by marketing. You can use social media platforms and influencers or use the Etsy platforms. Some of the options you have are;

• Social Media Advertising

Social media is free and easy to use, so you won’t incur any charges to advertise here. You can post your Etsy products together with your platform’s link to build traffic and increase sales. 

Some common social media platforms to advertise your business are Instagram and Facebook. Ensure you also follow people who fall under the bracket of potential customers. 

Alternatively, you can use social media influencers on Facebook and Instagram. However, these charges a fee. Hire those that your business can afford and ensure you give clear instructions of your products to avoid misleading information. 

• Etsy Advertising

Besides social media, you can use Etsy advertising to create awareness of your product. The two advertising methods on this platform are Etsy Ads and Offsite Ads. 

Etsy Ads advertises your platform within the Etsy platform only. However, if you want to create more awareness of your products, choose Offsite Ads. The system promotes your products on other platforms outside Etsy. 

Be Patient With Etsy

Starting a business can be challenging and frustrating, especially when making minimal profits and not meeting your goals. However, as a beginner on Etsy, be patient with your business. 

Some days will be better than others in terms of selling and making profits. Also, ensure you do all the necessities to get customers, like advertising and offering good customer service to retain your current buyers. 

As you progress with establishing your business, experiment with different marketing methods and see what works for you. Remember that your time and effort in the shop will bear fruits, so be intentional with the hours you are putting in your store. 

Researching helps in the growth of your business. Search for the best shipping agencies to use because it will help you make more profits. Also, research the best ways to create a good product listing to attract customers. 

Final Thoughts

Do you need a business license to sell on Etsy Canada? You can create and set up your Etsy store without a permit and start selling. However, ensure that you follow all the laws of online selling according to the government and advertise your shop.