You can sell handmade items on major online marketplaces like Etsy, Amazon Handmade, and UK-focused Folksy, use your own site with platforms like Shopify or Big Cartel, or sell locally at craft fairs, farmers' markets, and consignment shops. Social media platforms like Instagram and Facebook also offer direct selling features, while broader markets like eBay can attract different buyers.
Etsy is the number one online market place for handmade products, with 5.3 million sellers (2022) worldwide with over 88.3 million buyers! It's the best-known global marketplace for unique and creative goods from unique handmade products to vintage treasures.
When it comes to crafting, there are very few areas in which a licence is essential. If you are working with and selling alcohol, food or have a business premise that isn't your home, you may need a licence. Otherwise, it is mostly acceptable for a small business to simply register with HMRC and begin trading.
10 things you MUST do to have a successful online handmade business.
What is the hottest craft right now?
The most popular crafts right now include the booming revival of crochet (especially granny squares), trending fiber arts like punch needle/rug tufting, personalized techniques such as wood burning, and digital/resin crafts like creating 3D printed items, epoxy resin art, and laser-engraved goods, alongside popular paper crafts like handmade stationery and invitations. These crafts appeal due to their potential for personalization, profitability, and alignment with vintage/nostalgic aesthetics.
Public liability insurance is not a legal requirement, however, some craft fair organisers will want to see evidence of the craft sellers' insurance. This is because during the craft fair, you will be interacting heavily with the public.
Joining Handmade, creating your shop, and listing products is free. When you make a sale, Handmade will deduct a 15% referral fee. During registration, you will register with a Professional selling plan that provides you with Handmade-specific tools and support to grow your business.
Etsy's biggest competitors include Amazon Handmade, for its massive audience and fulfillment options, and Shopify, for sellers wanting a customizable, independent store. Other key rivals depend on the product, with eBay offering broad reach, Redbubble for artists, and platforms like Goimagine focusing specifically on handmade goods.
Most online marketplaces charge a commission or a fee to sellers for using their platform. The only place you can sell your crafts online that doesn't charge a fee is Facebook Marketplace, which allows independent sellers to reach customers within around 100 miles of their location.
Do I need to register my craft business with HMRC?
Yes, you do need to register your craft business with HMRC for tax purposes. Even if you earn less than the minimum income of £1,000, you'll have to be registered.
Etsy has lower startup costs but charges recurring fees. Amazon has higher fees but provides better scalability through Fulfillment by Amazon (FBA). Etsy allows more personalization and storytelling, making it better for building customer loyalty. Amazon is more product-focused, prioritizing efficiency over creativity.
Do I have to pay taxes on crafts I sell in the UK?
If you're buying or making things for the sake of selling them at a profit, then you're likely 'trading' and you might owe tax on what you make. You will need to tell the HMRC if: you sell more than the 'Trading Allowance' of £1,000 (before deducting expenses).
Simply take the number of hours it took you to make the product, multiply it by your hourly rate, and that's how much you should charge for the item! For example, let's say that you spend 2 hours making a pair of earrings. Using an hourly rate of $12.50, you would charge $25 for the earrings ((2 x 12.50) = 25).
The most popular crafts right now include the booming revival of crochet (especially granny squares), trending fiber arts like punch needle/rug tufting, personalized techniques such as wood burning, and digital/resin crafts like creating 3D printed items, epoxy resin art, and laser-engraved goods, alongside popular paper crafts like handmade stationery and invitations. These crafts appeal due to their potential for personalization, profitability, and alignment with vintage/nostalgic aesthetics.
