Etsy Digital Downloads: Market Research Guide

When I first started selling on Etsy, I had no idea how much time and effort would go into market research. Like many new sellers, I assumed that the majority of my time would be spent on the creative process, designing beautiful products that I hoped customers would love. 

However, I quickly learned that market research is the backbone of a successful Etsy shop. In fact, I now spend about 80% of my time on market research, ensuring that every product I create has the best chance of standing out and attracting buyers. This guide is a culmination of what I’ve learned along the way, and I hope it helps you navigate the world of Etsy with confidence and creativity.

1. Start Broad

The very first thing I do is go to Etsy and search “Wall Art”. This may seem simple, but it’s a big component into market research. By completing this search, I can get a sense of what’s intriguing to buyers at the moment by looking at products tagged as “Popular Now” and “Bestseller” 

Both categories are important, and neither is superior to the other in terms of value, but it’s helpful to keep in the back of your mind that “Bestseller” implies that this product is popular consistently. “Popular Now” typically means it’s received a high influx of views in the past 24 hours and/or multiple people currently have it in their carts.

2. Identify Common Themes

While browsing these popular listings, I pay attention to common themes and tags. Are the designs all a specific color? Do they feature similar symbols or patterns, like florals or books? Are they in a specific style, such as minimalism or maximalism?

This is important for two reasons: 

1. It can help you narrow down tags: When you see a common theme, William Morris for example, you can input that to your analytics tool and branch out from there.

2. It can act as a “prompt” for designing: If you see a lot of floral designs in these categories then you’ll know that you need to incorporate it somehow into your product. This can be your starting point if you’re low on inspiration!

3. Analyze Tags Using Everbee and Erank

While analyzing these sales, I like to use Everbee to analyze tags and Erank to check if there's room for me to stand out. I aim for tags that have low competition, but high search volumes, with a high click-through rate (CTR) being a bonus. 

This part of research is crucial and takes up a lot of my time because I don't want to create something that won't be able to be marketed. For instance, there are thousands of "flower market" style designs on Etsy. Although it has a high search volume, the high competition means my designs won't stand out.

4. Use Tags as Design Prompts

As I briefly mentioned earlier, once I find a couple of tags I like, I use them as prompts to start my design ideas. For example, for my "slow progress is still progress" design, I was inspired by the tags "sage green wall art" and "therapy office decor." 

When I had done my market research, I noticed that a lot of “Popular Now” products had the color green as a main element. So not only was it confirmed in the analytical part of the research, but also in the visual aspect. If you take a look at my shop currently, there are a lot of products on there with this color for that reason :) 

5. Consider Long-Term SEO

It's important to keep in mind that SEO isn't instant. On Etsy, it can take months for a product to show up in search results. Therefore, I try to think about what people will be buying in a couple of months, not just what's popular right now. That's why my latest design, "William Morris," features a lot of floral elements. I know spring is around the corner, as well as Easter, so people will want to decorate their homes for the season.

It’s not always guaranteed, most of us aren’t fortune tellers after all, but I’ve learned that a big part of selling product on Etsy is trial and error and that’s part of the fun!

6. Start Designing in Canva

With my research in hand, I go into Canva and search for graphics that align with what I saw on Etsy. Sometimes I also use public domain images and search for terms like "William Morris art." For Canva, I search for simple terms that are in the designs I saw, like "books" or "self-care quotes," and start from there.

Once I find relevant graphics, I begin experimenting with different layouts and compositions. Canva’s drag-and-drop interface makes it easy to move elements around and try out various design ideas quickly. I always keep my target audience in mind and try to create designs that will resonate with them.

7. Utilize Canva Templates

Canva offers an extensive library of templates that can serve as a great starting point if you're unsure where to begin with designing. These templates are designed by professionals and cater to a wide range of styles and purposes, from social media posts to business presentations.

• Explore the Variety: I take some time to explore the different categories and styles available. This exploration helps me get a sense of the possibilities and sparks ideas for my designs.

• Customize the Template: Once I find a template that resonates with the vision I have in mind, I make sure to personalize it. I change colors, fonts, and elements to reflect my brand and the trends I’ve identified in my research. This ensures that my design stands out and isn’t just a copy of a pre-made template.

• Align with Market Trends: I align the design with what's popular in the market. This means incorporating colors, themes, and styles that are currently trending and relevant to my niche. For example, if minimalist designs with earthy tones are popular, I’ll adjust my template to fit that aesthetic.

Using Canva templates as a foundation allows me to streamline my design process, but

I always make sure to infuse my unique touch and creativity into each piece.

8. Design with Flexibility

I don't limit myself when designing; I use trial and error to see what works. I keep in mind the room I'm designing for. For instance, I create very minimalist designs if I'm marketing them for therapy offices. If I'm designing an aesthetic "cheers" type of print, I consider what I see in my friends' apartments in their hosting areas. This helps me visualize my print as a physical copy and can spark my inspiration.

Create with Confidence 

By following these steps, I hope you too can navigate the world of Etsy with confidence and creativity. Remember, a significant part of success on Etsy is trial and error, so don't be afraid to experiment and learn from each experience.

Happy designing!

My shop