On this label
- Etsy’s top six categories made up about 85% of marketplace sales in 2025.
- Custom or made-to-order items were about 30% of Etsy’s gross merchandise sales.
- Habitual buyers were about 7% of active buyers but about 40% of 2025 sales.
Lists of “hot Etsy products” go stale quickly. Etsy’s own annual report to the Securities and Exchange Commission is a steadier guide. It tells you which categories carry the marketplace, how much of it is custom work, and what kind of buyer keeps coming back. Combined with Etsy’s rules on what may be listed, it gives a realistic picture of where a new shop has a chance.
The six categories that carry Etsy
According to Etsy’s Form 10-K for 2025, the marketplace’s top six categories by gross merchandise sales were:
- Home and living
- Jewelry and personal accessories
- Apparel
- Craft supplies
- Paper and party supplies
- Toys and games
Together these represented approximately $8.9 billion, or 85%, of Etsy marketplace sales. Etsy marketplace sales as a whole were $10.5 billion in 2025, down 4% from the year before, which the company said trailed overall e-commerce growth. A new shop in one of these six categories is fishing where the buyers are, though it is also fishing alongside the most competitors.
Custom and personalized work is a large share
The same filing says custom or made-to-order merchandise made up about 30% of total sales. Etsy also names gifting, holidays and personal milestones such as weddings as purchase occasions it focuses on. For a small seller, that points to a practical strategy: products that can carry a name, date, photo or color choice compete less on price, because no two orders are identical.
Tip: If you offer personalization for an extra charge, Etsy’s fee policy adds that charge to the listing price, and the 6.5% transaction fee applies to the total. Price the option accordingly.
What Etsy allows you to list
Etsy’s help center sorts every item into one of four groups, and an item that fits none of them does not belong on Etsy:
| Group | What it covers | Conditions |
|---|---|---|
| Made by a seller | Items made by hand or with computerized tools such as a 3D printer, CNC or Cricut machine | You must use your own photographs |
| Designed by a seller | Your original design as a digital download or produced by a third party; seller-prompted AI creations | Disclose any production partner; AI creations must disclose AI use |
| Handpicked by a seller | Vintage items at least 20 years old, items from nature, curated collections | Must be selected and curated by you |
| Sourced by a seller | Items that enable buyer creativity: craft supplies, party decorations, items personalized with the buyer’s own text or image | See Etsy’s Creativity Standards |
Reselling is not allowed in the handmade category; Etsy defines it as listing an item as handmade when you were not involved in designing or making it. Services and rentals are generally not allowed unless they produce a new tangible item, and Etsy’s prohibited list includes alcohol, tobacco, recalled items and weapons, among others.
The buyers worth building for
Etsy’s report divides buyers by how often they purchase. Habitual buyers, defined as those who spent $200 or more and bought on six or more days in the past 12 months, were about 7% of active buyers but represented about 40% of 2025 sales. Repeat buyers, who purchased on two or more days, were about 40% of the active buyer base. In other words, a minority of loyal shoppers drives a large share of spending. Products people buy more than once, such as supplies, refills, seasonal décor or gifts for recurring occasions, fit that pattern.
Mobile matters
Forty-five percent of Etsy’s 2025 sales went through the Etsy app, up from 42% in 2024. Your first photo and the first words of your title are often seen on a phone screen. See Product Photos That Sell: Meeting Etsy and Amazon Image Rules With a Simple Home Setup and Writing Product Listings That Convert: Titles, Descriptions and Claims You Can Back Up.
Children’s products need extra care
Toys and games are one of Etsy’s top categories, and they bring federal safety rules. The Consumer Product Safety Commission requires products designed primarily for children 12 and under that are subject to its safety rules to be third-party tested by a CPSC-accepted laboratory and certified in a written Children’s Product Certificate. Registered small batch manufacturers may be exempt from third-party testing for certain rules but must still issue a certificate. Check this before you list a single toy or child’s garment.
Putting it together
- Start in a category you can make well and that sits in or next to Etsy’s top six.
- Offer personalization where it fits; custom work is about 30% of Etsy sales.
- Design for gifting occasions and for repeat purchases.
- Price with Etsy’s fees in mind; see Pricing Handmade Products: A Formula That Pays You, Covers Fees and Stays Honest.
- If your product is mass-produced, Etsy is not the channel; compare Etsy vs Amazon vs Shopify: Matching the Channel to the Product.