How to Start Selling on Etsy from Ukraine and Keep Startup Costs Under Control

To start selling on Etsy from Ukraine while keeping costs under control, prepare a few products, check that they comply with the marketplace rules, and calculate the costs for each order. Before opening your shop, find out what is required for identity verification, payouts through Payoneer, and international shipping. Etsy may charge a shop setup fee, and listing and sales fees are charged separately.

For your first launch, we recommend choosing 3–5 products, setting a firm budget, and starting with one or more shipping destinations you can serve. A small range will let you test photos, pricing, packaging, and order fulfillment without buying a large batch. Sales and profit will depend on demand and your actual costs.

Check whether Etsy allows you to sell your product

Etsy allows products under four Creativity Standards categories. Before buying materials, determine which category applies to each product you plan to sell.

For example, a bag you sew by hand may fall under Made by, while a T-shirt with your original illustration printed by a partner may fall under Designed by. A ready-made wholesale bag does not become an original handmade item just because you add your label. Do not plan to resell items or have a supplier ship them without checking that they comply with Etsy’s rules.

If a partner prints, sews, or otherwise makes an item to your design, disclose their involvement in the fields Etsy provides. For works created with artificial intelligence (AI) in response to your prompts, the standards require a disclosure in the description; prompt collections on their own are not permitted products in this category. Also check that you have the rights to the illustrations, fonts, photos, characters, and names you use. Similar listings in other shops do not confirm that you have the right to use them.

Set up Etsy Payments and Payoneer before opening your shop

Under Etsy Payments policy, sellers in Ukraine connect payment processing through Payoneer. Sellers must be of legal age, pass the provider’s verification, submit accurate information, and provide a valid payment card for charges. Personal details and the information for the linked account must match the verified identity.

It is practical to prepare in this order:

1. Prepare an identity document and write down your details as they appear in your documents and with your bank. Check the spelling of your name in Latin characters.
2. Decide in what legal capacity you will sell and prepare the corresponding bank details. If you operate as an individual entrepreneur (FOP, the Ukrainian sole proprietor registration), agree with your bank in advance on receiving business revenue through Payoneer.
3. Enter your actual country and your own details during registration. Do not use someone else’s documents or account, or list another country to bypass verification.
4. Connect Payoneer while setting up Etsy Payments and complete any requests to verify your information.
5. Before confirming the setup, read the charge terms, check the shop setup fee shown, and save the terms that apply to your account.

Etsy transfers available funds to Payoneer in United States dollars (USD). Withdrawal to a local bank account happens separately. Reserves, holds, and payout delays can affect when funds are available, so the sales total in your shop is not the same as money you can already spend. We recommend keeping your own funds available for materials and shipping the first orders.

Calculate all Etsy fees and Payoneer costs

Separate your budget into shop setup, listing maintenance, order fulfillment, and receiving funds. The main charges are set out in Etsy’s Fees Policy and Etsy Payments policy.

The Offsite Ads fee may apply to an order placed within 30 days after a buyer clicks through from one of these ads. If the buyer’s last ad click before the order was through Etsy Ads, the Offsite Ads fee is not charged for that order. The maximum Offsite Ads fee is USD 100 per attributed order. Etsy Ads are a separate, optional advertising service with their own budget; include their costs in your estimate.

Under Payoneer’s pricing, the cost of receiving funds from marketplaces depends on the specific marketplace, while withdrawal fees depend on the country, currency, and payment route. The page also lists an annual fee of USD 29.95 if you receive less than USD 6,000 or the equivalent during any 12 consecutive months. Terms differ for some account types, regions, and plans. Check the Fees section in your account, the minimum withdrawal amount, and the amount you will receive before confirming a transaction.

Calculate your price with shipping and returns included

We recommend preparing a separate calculation for each product. List materials, consumables, the cost of your own labor, packaging, postage, fees, taxes, and a reserve for order issues. Check the price for each shipping destination: a single shipping price for every country may not cover your costs.

A returns reserve can account for possible reshipments, damaged packaging, and costs you may not recover. This is a planning recommendation. Review the actual reserve amount based on your own orders.

Illustrative calculation for one order

The prices, cost of goods, shipping, taxes, and reserves below are illustrative assumptions, not carrier tariffs or tax rates. The Etsy fees use the rates in the policies cited above. Suppose the item costs USD 50 and the buyer pays USD 10 for shipping separately. The total is USD 60; in this example, there are no additional taxes in the payment processing fee base.

This remaining amount still needs to cover the shop setup fee, unsold listings, any Payoneer annual fee, and other ongoing costs. If additional charges or taxes on fees apply to a specific order, add them to the calculation. Do not call the remaining amount net profit until you have accounted for all business costs.

Before launch, check three scenarios: a regular order, an order with Offsite Ads, and an order with more expensive shipping. If costs exceed revenue in any of them, review the price, packaging, or shipping destinations. If you include shipping in the item price, its cost still belongs in your budget.

Example of a product listing layout; the price and interface shown do not reflect current Etsy terms.

Example of a product listing layout; the price and interface shown do not reflect current Etsy terms.

Prepare photos and descriptions that help buyers choose

Etsy’s standards require photos of the actual finished item where the relevant category calls for them. For a personalized item, the first image must show the completed personalized product. Using a photo of a blank base item as the first image does not meet this requirement. The specific terms are in the Creativity Standards.

For your first photo session, we recommend showing the overall item, material details, the back, dimensions, and what is included. Also show handmade features and acceptable variations between items. A photo of the item next to a ruler can help buyers assess its size, but it does not replace numerical dimensions in the description.

In the description, answer the questions that affect a buyer’s decision in a clear order:

• What exactly is included in the order, and how many items will the buyer receive?
• What are the dimensions, materials, color, and care instructions?
• Is the item ready to ship, or will you need to make it?
• How long will order preparation take, and from which country will you ship it?
• What information does the buyer need to provide for personalization, and how will you confirm the wording?
• What is the estimated transit time after dispatch?
• What are your cancellation and return terms, and how can buyers contact you about a defect?

If you are targeting English-speaking buyers, prepare clear English copy and check the numbers, units of measurement, and return terms separately. For example, for a personalized bag, say where the text will appear, which characters are available, and when you will begin making the item after confirmation. State the production time and transit time separately so the buyer can understand what to expect.

For the title and search fields, use accurate details: item type, material, purpose, size, and available personalization. First make a list of the product’s features, then choose appropriate wording. Do not add other people’s trademarks or features the item does not have. Filling in the fields by itself does not guarantee impressions or sales.

Align your Ukrainian business setup with international requirements

This launch process is intended for a seller operating in Ukraine and shipping products from Ukraine. Before opening for regular sales, we recommend discussing your seller status, business activities, tax regime, and accounting for Etsy and Payoneer income with an accountant. Marketplace registration and compliance with Ukrainian tax obligations need to be addressed separately.

For preparation, use Ukrposhta’s e-export guide, which covers business setup, receiving revenue, and shipping documents. Ask an accountant to determine, for your sales model, the amount and date for recognizing income, how to account for fees, taxes, reporting, and the documents needed to support transactions. Separately, clarify any special terms that apply to you during martial law. Do not use the example’s generic tax amount for actual bookkeeping.

Keep order details, invoices, Etsy reports of sales and fees, Payoneer statements, bank statements, and carrier documents. It is practical to link them by order number so you can trace each sale through shipment, payout, and any return.

What to check before selling to an overseas buyer

We recommend creating a short checklist for each shipping destination: whether the carrier accepts your item, what documents are required, what product safety and labeling requirements apply, who handles the import, and how returns will work. For toys, cosmetics, electronics, and other products with special requirements, allow time and budget to check compliance before publishing the listing.

For sales to end consumers in the European Union (EU), account separately for value added tax (VAT) and customs duty. According to the European Commission’s guidance, the import VAT exemption for low-value consignments has been abolished. Import One Stop Shop (IOSS) is a system for declaring and paying VAT on distance sales of imported goods in consignments worth no more than EUR 150. It does not cover excise goods. Before using it, check whether your order meets the system’s requirements.

When a marketplace has already collected VAT and an order is to use IOSS, provide the relevant information to the carrier in the designated customs information field. This process is described in Ukrposhta’s guide. Check the details for the specific order before shipment to reduce the risk of VAT being charged twice.

For distance sales of imported goods to the EU in consignments worth up to EUR 150, a temporary customs duty of EUR 3 per item category, as determined by tariff classification, applies during the specified transition period. After that period ends, the usual customs rates based on the product will apply. Before calculating shipping costs, check how long the temporary duty applies using the European Commission link below. According to the official explanation of Council Regulation (EU) 2026/382, five T-shirts in the same tariff category incur EUR 3, while a T-shirt and a watch incur EUR 6. An exception is provided for goods benefiting from trade preferences or customs union measures, if VAT was not collected through IOSS and the goods were cleared using a full H1 customs declaration. Shipping from Ukraine alone is not sufficient grounds to automatically apply this exception.

According to this guidance, the obligation to pay usually falls on the declarant, seller, importer, or relevant representative, depending on the clearance arrangement. Before setting your price, find out from the carrier how your shipment will be cleared and what amounts it will charge you. Separately, agree how Product Identifiers (PIDs) will be provided: the European Commission guidance cited above requires their use. Ask what information is needed for your product, which fields to enter it in, and when the carrier will require it for clearance. Also check the return terms and mandatory consumer rights for your chosen market: Etsy’s refund process does not define all of a buyer’s rights.

Choose a small product range and set a spending limit

For a pilot launch, we recommend products that share materials and have straightforward production. For example, preparing several variations of one item is simpler than managing different categories with separate packaging and requirements. Make a sample first, package it, and measure the finished parcel. This gives you a basis for calculating postage.

1. Set a budget. List shop setup, listings, materials, packaging, any product compliance checks, and funds to keep available for fulfilling orders.
2. Prepare 3–5 products. Each needs to comply with the rules and have a sample, photos, description, price, and verified shipping method.
3. Limit quantities. List only as many ready-made items or made-to-order slots as you can fulfill within the stated time.
4. Review optional costs. Evaluate Offsite Ads participation, listing renewal settings, and whether you need Etsy Ads. Subscribe to Plus or Pattern only if you have a specific need.
5. Set a review date. For example, after four weeks, compare costs, views, inquiries, orders, and remaining funds.

Start promoting with the materials you have prepared: show the finished item, its dimensions, use, and personalization on your own channels. If you decide to test paid ads, set a budget and end date in advance. Assess the cost per order and the amount left after fulfilling it.

If buyers often ask about size, add more to the photos and description. If you get views but no orders, check the total price with shipping, how clear the offer is, and the delivery time. Change one significant element at a time so you can see what may be linked to a change in results. Consider increasing the batch only after checking actual costs and your production capacity.

Check each order before shipping

1. Check the payment and order status in Etsy, along with the selected product option, quantity, and address.
2. Confirm personalization in messages and save the approved wording or design.
3. Check the item, what is included, and whether it matches the description. Take photos of the finished item and packaging for your records.
4. Complete the carrier documents using an accurate description and value. Declare the transaction as a sale.
5. Enter the order’s required tax and customs information in the appropriate carrier fields.
6. Save shipping confirmation and provide the buyer with tracking information if included with the service.
7. Record actual costs and reconcile the payout against the fees. If there is a return, record the item’s movement and the refund separately.

Update your price calculation after the first orders. Actual material use, labor time, and packaging weight will show whether enough remains to support future sales.

Track materials, finished products, and Etsy sales in Torgsoft

If you already keep inventory records or sell the same items through several channels, we recommend tracking materials and finished products as separate items. In Torgsoft, the “Склад — Стан складу” (“Warehouse — Stock status”) form displays received goods, quantities, costs, and sale prices; you can also view product movements and set a minimum stock level. This can help you check product availability before listing quantities on Etsy.

You can record sales using “Документ — Реалізація” (“Document — Sale”) and product returns using “Документ — Повернення” (“Document — Return”). It is practical to record the Etsy order number in the sale comment and keep the related documents. To track returns, check the “Налаштування — Параметри — Загальні — Максимальний термін повернення” (“Settings — Parameters — General — Maximum return period”) setting and align it with your sales terms and buyers’ mandatory rights. The program allows a product return within the period set by this parameter. If more days have passed since purchase, the program reports that the period has been exceeded. Before processing a later return, check and, if needed, change the setting. Process the buyer’s refund separately in the payment service and reconcile it with your records. Check Etsy quantities and Payoneer payouts yourself.

Before purchasing, check the Torgsoft license options: “Старт” (“Start”) is intended for basic record keeping for one shop and is not suitable if you need multiple accounting locations, transfers between warehouses, wholesale, or an online store. The “Виробництво” (“Production”) option costs extra; check its compatibility with the chosen license before purchasing. A 30-day demo version is available. To assess it, use your own example to test receiving materials, tracking a finished product, a sale, and a return, then decide on the required configuration and its place in your startup budget.