Starting Your Own Etsy Store In Australia (2025 Updated)

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Etsy is a dynamic online marketplace where millions of businesses worldwide sell their products. In 2025, buyers can quickly search for the exact items they want—from contemporary home furniture to eco-friendly handmade soaps—with an impressive array of options available at their fingertips.

The individual businesses on the platform are known as ‘Etsy shops’, reflecting the unique marketplace model where a diverse spectrum of sellers operate under one virtual roof. This collaborative space continues to thrive, attracting both established brands and emerging entrepreneurs.

What sets Etsy apart is that it does not manage the sale, marketing, creation, shipping, or postage of the products listed. Instead, all these aspects are handled directly by the sellers, while Etsy connects these businesses to an extensive global customer base. This approach truly defines it as a marketplace.

What Kind Of Business Structure Can I Have On Etsy?

There are no rigid rules or restrictions regarding the type of business that can sell on Etsy. Businesses of every size—from large corporate enterprises to individual, home-operated ventures—are welcome to join the marketplace. If you’re launching a new venture on Etsy, it’s important to consider the business structure that best fits your goals and risk profile.

Sole Trader: If you’re running your business on your own, you’ll operate as a sole trader—a straightforward and common choice for many Etsy sellers in 2025.
Partnership: If you and one or more partners are managing the business together, forming a partnership allows you to share responsibilities, profits, and liabilities.
Company: For a larger or growth-oriented venture, establishing a company can limit your personal liability as the business becomes its own legal entity. Although the registration process is more involved, this structure is robust and well-suited for an expanding Etsy shop.

How Does Registration Work?

Once you’ve decided to launch your Etsy business, the logical next step is to register your business. If you plan to trade under a name other than your own, you’ll need to register a business name. For sole traders, using your legal name is acceptable, but a distinct business name can help build a strong brand identity.

If you are operating as a partnership, you may choose to include your partners’ names or create a unique business name. Registration can be easily completed online through the ASIC website or via services such as Sprintlaw’s Company Set-Up package.

Australian Business Number

Along with your registered business name, obtaining an Australian Business Number (ABN) is imperative. In 2025, the process remains straightforward and can be done online via business.gov.au. This number uniquely identifies your business within Australia. If you choose to form a company, you will also need an Australian Company Number (ACN).

What Should I Know About Copyright?

Intellectual property is a crucial asset when operating an online business, particularly on platforms like Etsy. Whether it’s your brand name, logo, or original product designs, your creative work is automatically protected by copyright once it is fixed in a tangible form. This protection is inherent under Australian law, although you may wish to document your creations for additional security.

For further insights into protecting your creative work, you might find our Trademark vs Copyright article useful. Additionally, while you don’t need to register copyright, safeguarding your ideas through clear documentation can offer extra peace of mind.

Copyright vs Trademarks

Although copyright and trademarks might seem similar, they serve different functions. Copyright protects your original creative works, such as artwork, writings, and product designs, whereas trademarks protect the symbols, logos, and names that distinguish your business. To ensure your brand is secure in 2025, consider registering your trademark with IP Australia.

Licensing

Etsy operates under a Licence Agreement with its sellers. In essence, this agreement grants you the right to use Etsy’s platform to sell your products, connecting you to a broad customer base. As with any licence, your use of the platform is subject to Etsy’s Terms and Conditions, which are updated regularly. For example, you must not misuse Etsy’s trademarked images or logos in your own marketing.

What Legals Do I Need For My Suppliers?

It’s important to remember that Etsy is a marketplace, which means it does not oversee your shipping or supply chain operations. These responsibilities fall entirely on you as the seller. In 2025, having well-drafted legal documents to manage these relationships is more important than ever.

Consider the following key legal documents when dealing with suppliers:

Supply Agreement

If you’re selling physical products, a robust Supply Agreement with your supplier is essential. This contract should clearly detail product specifications, contract duration, shipping methods, and delivery timelines. With increased competition in 2025, having every detail documented can help prevent disputes and ensure smooth operations.

A comprehensive agreement also helps clarify the roles and responsibilities of both parties, safeguarding your business interests as your Etsy shop grows.

Consumer Guarantees

Despite your best efforts, customer complaints can arise. It’s crucial to have procedures in place for handling returns and refunds. Implementing robust consumer guarantees not only complies with Australian Consumer Law but also demonstrates your commitment to quality and ethical business practices.

Fees

While Etsy does not charge a fee to create an account, you will incur costs such as listing fees, transaction fees, and currency conversion charges. Additionally, be mindful of any fees imposed by payment gateway providers. Managing these costs efficiently is key to maintaining your profitability in 2025.

Taxes

Income earned from your Etsy business is subject to Australian taxation. Once your venture becomes profitable, you may need to register for and charge GST as well as pay income tax on your earnings. Keeping detailed financial records and seeking advice from a tax professional can help ensure your business remains compliant with the latest tax regulations in 2025. For more guidance, consider reading our Master Your Tax Admin guide.

What Else Do I Need To Know?

Etsy is a fantastic platform for selling your products online. Setting up your shop is relatively straightforward and opens you up to a global audience. However, it’s crucial to thoroughly understand both the legal and business aspects before launching your venture. In addition to the legal requirements, consider the following business tips:

Business Name: With thousands of Etsy shops competing for customers, choose a unique name and brand that truly stands out.
Invest in Photo Quality: High-quality images are essential since customers primarily judge products online. Crisp, clear images can significantly boost your sales.
Consider Your Global Audience: Tailor your product range and marketing strategy to appeal to a diverse and international customer base. For example, if you sell summer clothing, think about how you might adjust your offerings for regions experiencing winter.

As you move forward in 2025, it’s also wise to keep abreast of evolving online marketplace regulations and consumer trends. Regularly reviewing your contracts and compliance requirements—possibly with advice from experts like those at Sprintlaw—can help safeguard your business and keep you ahead of the curve.

What’s Next?

Launching a new venture on Etsy or expanding an existing business into the online marketplace is an exciting opportunity in 2025. With so many factors to consider—from legal registration to supplier contracts and effective marketing—a well-planned start is essential. Seeking customised advice from experienced legal professionals can ensure you meet all regulatory requirements while protecting your business as it grows.

Moreover, as digital commerce continues to evolve, keeping your legal documents, consumer guarantees, and business strategies updated is key to long-term success. For further guidance on safeguarding your online business, explore our comprehensive guides on Intellectual Property and Online Business Privacy. If you’d like a consultation on your options going forward, please contact us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Sapna Goundan

Sapna has completed a Bachelor of Arts/Laws. Since graduating, she's worked primarily in the field of legal research and writing, and she now writes for Sprintlaw.

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