How to withdraw money from Etsy in Ukraine 2026, how to earn
Do you make jewelry or even sew clothes – but sell only to friends via Instagram? Meanwhile, your products could be bought in the USA, Canada, or Germany, where people are ready to pay 3-5 times more for handmade than in Ukraine. There is only one problem: where to find these buyers and how to enter the international market without a huge advertising budget? The answer is Etsy the world’s largest marketplace. In more than two years since the launch of Etsy Payments in Ukraine, thousands of local makers have turned their hobbies into stable foreign-currency businesses.
In this article, we break it down step by step: how to register, what you can and absolutely must not sell, how to set up the Etsy + Payoneer connection, and how much you will actually receive “in hand” after all commissions. And most importantly – how to work legally under automatic tax information exchange to avoid account blocks.
What is Etsy
Etsy is the world’s largest marketplace for crafters and lovers of unique items. Around 100 million buyers visit the platform every month, looking not just for a product but for a story, emotion, and individuality. It is a space where handmade is valued, not mass-market goods from AliExpress or Temu.
On Etsy in 2026, you can sell four main categories:
- Handmade: Items made or designed personally by you (from ceramics to clothing).
- Vintage: Items that are over 20 years old (vintage clothing, decor, electronics).
- Craft Supplies: Materials for creativity (embroidery kits, hardware, patterns).
- Digital Products: Digital goods (planners, wedding invitations, print templates). This is the category with the highest margins, since you do not spend money on shipping.
After the official launch of Etsy Payments in Ukraine in 2023, the entry barrier disappeared. Buyers from the USA or Europe now pay using familiar methods (Apple Pay, Google Pay, PayPal), and you automatically receive these funds in your Payoneer account.
Important: For Ukrainian sellers in 2026, working with Etsy is practically impossible without a verified Payoneer account, as Etsy Payments in Ukraine pays out funds exclusively through it.
We explained in more detail how Payoneer works in Ukraine in a separate article.
How Etsy works
Etsy works like Ukraine’s Prom.ua, but for handmade goods. The platform connects buyers looking for unique items with makers from all over the world. Instead of a mass-market bag – an exclusive leather product with the owner’s initials.
In 2026, Etsy takes care of all the “dirty” work:
You focus on creativity and packaging, while the platform turns your local brand into an international business.
If it’s difficult, delegate your
accounting to professionals
Our experienced accountants will analyze your business, consider all nuances, and ensure complete order in your reports and taxes.
Is it really possible to earn on Etsy
The short answer is yes. The platform covers more than 230 countries, and Ukraine currently ranks in the top 10 worldwide by the number of successful shops. For many Ukrainians, Etsy has become not just a side income, but a primary foreign-currency business.
How much can you earn?
- Additional income ($300-$800/month): Requires 1-2 hours of work per day. Suitable for makers who sell a few items per week.
- Stable business ($2,000-$7,000/month): A full-time operation with a wide assortment, advertising, and possibly a small team.
- Digital products: A separate niche (patterns, presets, planners) where profit can reach $5,000+ without spending on shipping or materials.
To earn more, focus on niche products: personalized gifts, eco decor, or complex engineered items (for example, wooden maps or 3D construction kits).
How to create an Etsy shop
Launching an Etsy shop does not require technical knowledge or large investments – the entire process can be completed in one evening. First, you need to register on the platform and create a shop.
Step-by-step algorithm:
- Shop preferences: Choose the language (English is better), country (Ukraine), and currency (USD). Payouts will be in dollars anyway, so this helps avoid unnecessary conversion.
- Name your shop: The name should be concise. Avoid complex numbers. Instead of “Super_Master_2026”, choose something like “NordicWoodUA” or “LvivCeramicStudio”.
- Stock your shop: Add the first 5-10 products. Etsy favors well-filled shops.
- How you’ll get paid: Here you connect Etsy Payments. The system will ask you to authorize via Payoneer. The data in both profiles (full name, address) must match exactly, letter by letter.
Important: Be sure to connect Etsy Payments – this is the only way for Ukrainian sellers to accept payments from buyers. Without it, the shop simply will not work. Etsy Payments integrates with Payoneer, so you will also need an account there to withdraw earned funds to a Ukrainian bank card.
- Set up billing: Link a bank card to pay marketplace fees (for example, $0.20 per listing).
- Shop Security: Be sure to enable two-factor authentication. Without it, the risk of shop suspension or hacking is significantly higher.
Detailed instructions for each step are available in the official Etsy guides.
Etsy may ask you to pay a one-time registration fee (around $15). This is a standard security measure to confirm that you are a real seller and not a bot.
How to promote your Etsy shop
Creating a shop is only 20% of success. The remaining 80% is how you make Etsy’s algorithms work for you.
- Start with SEO optimization. Etsy SEO (Search) works like Google. A buyer does not search just for “bag”. They search for “personalized brown leather crossbody bag for travel”.
- use long-tail keywords
- use tools like eRank or Marmalead to see what people are typing into the search bar right now.
- Visual content. Use all 10 photo slots. One of the photos should include a list of benefits in English (for example: Waterproof, 100% Organic, Gift Wrap Included).
- Do not rely only on internal search. Pinterest is Etsy’s best friend. One pin can bring orders for years. Show behind-the-scenes content on TikTok/Reels. Use special Etsy links for your social media. If a person buys a product after clicking your link, Etsy refunds 4% of the order amount to you as a commission discount.
- Internal advertising (Etsy Ads) This is an accelerator. Set a budget of $1-2 per day for your best products.
Important: Turn on ads only when you have at least 3-5 reviews, otherwise you will simply spend money on clicks without sales.
In 2026, response speed matters. If you reply to a customer within an hour, your chances of getting the Star Seller status increase. This status gives a significant boost in search results. Good reviews are your reputation on the platform – without them, new buyers will not trust the shop.
How to ship products from Ukraine
Shipping from Ukraine works steadily. Despite closed airspace, logistics companies use hubs in Poland, from where parcels are sent all over the world.
Main carriers
Ukrposhta
The cheapest option. Ideal for small items (jewelry, decor). Delivery to the USA takes from 14 to 21 days. Integration is available – you can create shipping labels directly in the Ukrposhta dashboard, and the tracking number will be automatically pulled into Etsy.
Nova Post (Nova Poshta)
Has become a favorite for fast delivery to Europe and the USA (from 5-9 days). Offers convenient digital services, automatic label synchronization, and special rates for exporters (significant savings on regular shipments).
Consolidators (Express delivery)
Services like Western Bid or Handmade-Hub allow you to send parcels by express delivery. Your parcel goes in a shared truck to Poland, and from there flies with UPS or FedEx. This is cheaper than ordering a FedEx courier directly.
When creating a listing, you specify the shipping profile: where you ship from (Ukraine), where you ship to (you can choose specific countries or worldwide), the shipping cost, and estimated delivery times. Etsy automatically calculates the cost for the buyer based on their location.
Tip: If you sell small and expensive items (for example, jewelry), include the cost of express shipping in the product price and offer “Free Shipping”. For an American buyer, the phrase “Free Shipping” is the main incentive to click the “Buy” button.
When shipping to the EU, be sure to include the Etsy IOSS number in the customs declaration (you will find it in the order details). This confirms that the buyer has already paid the tax at checkout. Never ship without a tracking number. Without it, you are not protected by the Purchase Protection program mentioned earlier.
Etsy and Payoneer fees in 2026
Many beginners fail because they do not account for hidden fees. On Etsy, you pay not once, but at every stage.
1. Main marketplace fees:
- Listing Fee ($0.20): A fee for “shelf rental”. Each product is listed for 4 months. If it sells, you pay another $0.20 to renew.
- Transaction Fee (6.5%): A sales commission calculated from Product + Shipping.
- Etsy Payments (3-6.5% + $0.25): Payment processing fee. For Ukraine, it averages 3% + $0.25.
2. Offsite Ads (additional advertising fee): If a buyer finds your product through Etsy ads on Google, you will pay an additional 15% (if shop revenue is up to $10,000/year) or 12% (if above).
3. Withdrawal of funds (Payoneer): When money goes from Etsy to your Payoneer and then to your card (Privat/Mono), you lose 2% on withdrawal.
IMPORTANT: Funds from Etsy for Ukrainians are withdrawn only through Payoneer – there are no other options. Register right away. Comprehensive information about withdrawing funds from Payoneer is available in our separate article.
Table: Real calculation. Example: A bag for $100 with shipping.
| Parameter | Amount | Comment |
|---|---|---|
| Product price + Shipping | $100 | What the buyer paid |
| Sales fee (6.5%) | -$6.50 | Etsy standard |
| Payment processing (≈4%) | -$4.00 | Etsy Payments |
| Listing | -$0.20 | Listing fee |
| Balance on Etsy | $89.30 | Your “gross” revenue |
| Withdrawal to card (2%) | -$1.78 | Payoneer fee |
| NET PROFIT | $87.52 | You lost ≈12.5% |
*If Offsite Ads (15%) applies, you will receive only about ~$74. Therefore, factor the advertising risk into the price from the very beginning.
Withdrawing funds to a personal card without registering as a sole proprietor in 2026 becomes risky due to automatic data exchange (CRS). The optimal solution is a sole proprietor on the third group. This is the most popular model for Etsy sellers in 2026. It allows you to legally receive foreign currency and have confirmed income for travel abroad or large purchases.
Registering as a sole proprietor and setting up reporting for marketplaces has its nuances – from choosing the correct KVED codes to accounting for currency exchange differences. To avoid wasting time on bureaucracy and to be confident in the safety of your money – contact an accountant.
If it’s difficult, delegate your
accounting to professionals
Our experienced accountants will analyze your business, consider all nuances, and ensure complete order in your reports and taxes.
How to withdraw money from Etsy
In 2026, for Ukrainian sellers there is only one legal and working way to receive funds – through the Etsy Payments system integrated with Payoneer.
What is Etsy Payments and why is it great? It is the marketplace’s internal payment gateway. A buyer in the USA or EU sees familiar buttons: Apple Pay, Google Pay, PayPal, or simply a card field. They pay using their preferred method, and Etsy handles all transaction security. For you as a seller, this means:
- no need to process payments yourself – Etsy does it automatically,
- the buyer sees all convenient payment methods, which increases conversion,
- you can set payouts to Payoneer daily, weekly, or monthly,
- sales are recorded in USD, protecting your profit from exchange rate fluctuations,
- all transactions are protected by payment system standards.
Important for beginners: During the first 90 days after opening a shop, Etsy may apply a “Payment Reserve”. This means that part of the funds (usually 30%) will be temporarily frozen on the balance to insure against returns. After shipping the product with a tracking number, these funds are released faster.
How to withdraw money from Etsy via Payoneer
Payoneer is your personal international account that allows you to legally receive foreign currency from Etsy. This is the only payout method for Ukraine.
Read more about how Payoneer works in Ukraine in our separate article.
Scheme for withdrawing money from Etsy:
- When registering a shop on Etsy, you link it to your Payoneer account.
- Buyers pay for products on the website via Etsy Payments, and all earned funds are stored on the Etsy balance.
- Once a week (or on request), you withdraw funds from Etsy to Payoneer.
- From Payoneer, you transfer funds to your Ukrainian bank account (2% fee).
Ways to receive funds:
- To a sole proprietor account (Recommended): You withdraw USD to your foreign currency account in a Ukrainian bank. This allows you to legally pay taxes and have an official source of funds.
- To a personal card: You can withdraw directly in UAH to a card (Monobank, PrivatBank). However, the bank may request proof of funds origin for regular amounts, and taxes will be significantly higher than for a sole proprietor.
- Payoneer virtual card: In 2026, you can issue a virtual card in the Payoneer dashboard and pay with it in stores or online via your phone.
Do you need to pay taxes on Etsy income
If you sold a few items for $100-200 to test a niche – this can be considered a hobby. But as soon as sales become regular and amounts exceed $300-500 per month, legalization becomes necessary.
Why should you not delay registering as a sole proprietor in 2026?
- Automatic CRS exchange: Ukraine already receives data on foreign accounts of its residents. Information about your Payoneer balance will sooner or later reach the tax authorities.
- Blocking risks: If a bank sees regular foreign currency inflows to a personal card, it has the right to block the account under financial monitoring rules until explanations are provided. References to a “gift from a friend” no longer work.
- Fines: Operating without registration, you risk paying 18% personal income tax plus military levy on the entire turnover for previous periods, plus fines for illegal entrepreneurship.
If your account was blocked, you do not know which KVED codes to choose, or how to properly report foreign currency income from Etsy – do not risk your money. We will help you open a sole proprietorship, set up payouts, and minimize tax risks.
How to switch to Etsy Payments in Ukraine in 2026
Setting up Etsy Payments is simple:
- Go to Shop Manager > Finances > Payment settings.
- If you are not connected yet, click Enroll now.
- The system will ask you to authorize in Payoneer. If you do not have an account yet – create it in advance (this will speed up the process).
- Verify your identity: Etsy may request a photo of your international passport or ID card. Important: documents on Etsy and Payoneer must be identical.
Why did the transition become mandatory in 2026?
Since the end of 2025, Etsy has officially completed the transition to a single payment system. Older shops that did not connect Etsy Payments face limited functionality or a complete freeze of payouts. First, only with Etsy Payments do you receive protection against lost parcels (up to $250). Without this system, all logistics risks fall entirely on you.
Second, in 2026, customers from the USA and the EU are accustomed to instant payments via Apple Pay and Google Pay. If your shop offers only complex payment methods – you lose up to 70% of potential orders.
What to do if there are difficulties connecting Payoneer to Etsy
The integration of these two giants usually happens automatically, but in 2026 security measures have been strengthened, so difficulties may occasionally arise.
If questions or technical issues arise when connecting a Payoneer account to Etsy, the easiest solution is to contact Payoneer support. They assist with integration with Etsy because it is one of their key partners. You can contact them via chat in the Payoneer personal dashboard (the fastest way), by email at support@payoneer.com or via the hotline phone number.
Typical issues and solutions
- Payoneer does not appear in Etsy payment options – check that your Payoneer account is fully verified (documents and address confirmed).
- Etsy does not accept Payoneer details – make sure that your first and last name are spelled identically (in Latin characters) in both accounts.
- Payouts do not reach Payoneer – wait 2-3 business days after withdrawing from Etsy, sometimes delays are technical.
If Payoneer support did not help or the issue is on Etsy’s side, contact Etsy support via Help > Contact Support. They usually respond within 24-48 hours and often resolve issues remotely.
Top mistakes on Etsy: Why do 80% of new shops close?
To prevent your shop from becoming part of the statistics of those closed in the first year, avoid these “classic” beginner mistakes:
- Copyright infringement: The worst mistake of 2026. Using чужі brands (Nike logos, Marvel characters, Harry Potter) leads to listing removal or lifetime shop suspension with no right to appeal. Sell only your own unique designs.
- Poor-quality product photos. Buyers purchase with their eyes. Photos taken on a kitchen table or in poor lighting do not work. Use all 10 photo slots and обязательно add a listing video.
- Incorrect pricing. Beginners often either underprice (thinking this will sell faster) or overprice (not understanding the market). If you sell a bag for $20, and your material cost is $15 + 3 hours of your labor + Etsy fees 12% + Payoneer 2% + shipping $10 – you are operating at a loss.
- Ignoring SEO and promotion. The product name “Blue Bag” is a dead end. Use niche queries: “Handmade blue leather tote bag for laptops”. You must speak the language of your buyer.
- Ignoring Star Seller status. In 2026, this badge provides a huge search advantage. To get it, you must respond to messages within 24 hours (preferably faster), ship orders on time with a tracking number, and maintain a review rating of at least 4.8 stars.
Success requires attention to detail, continuous skill improvement, and constant market research. Look at competitors: how they photograph products, what prices they set, which tags they use, and how they communicate with customers.
FAQ: frequently asked questions about Etsy
Can I sell products on Etsy that were not made by me?
Only if it is the Vintage category (items older than 20 years) or Craft Supplies (materials for creativity). If you sell new handmade products, you must be either the design author or the direct manufacturer. Reselling other people’s works under your own name is strictly prohibited and leads to a ban.
Do I need to register as a sole proprietor to sell on Etsy?
If you are testing an idea and sold a few items for $100-200 – you may not need to register yet. But once sales become regular ($300-500+ per month), it is better to register as a sole proprietor. Otherwise, you will have to pay taxes retroactively plus fines and penalties. The optimal option is a sole proprietor on the simplified taxation system. If you do not know how to register as a sole proprietor, contact our accountants – they will help and select the optimal taxation system.
How to find a profitable niche on Etsy?
Look for the intersection of high demand and low competition. Tools like EtsyHunt, EverBee, or Marmalead help analyze sales trends: how many products are sold in a category, what prices are used, and which tags work. Also check the bestsellers section on Etsy – what is bought most often and whether you can make something similar but with your own unique twist. For example, leather wallets sell well but competition is high. Personalized leather passport covers with initials are a narrower niche with less competition.
Can I use AI to create products?
Yes, but with the AI disclosure rule. If you sell paintings or prints created by neural networks, you must indicate this in the listing settings. Etsy welcomes transparency: the buyer should know where the maker’s hand ends and where the algorithm begins.
How to protect a shop from copyright issues?
Do not use other people’s brand names, logos, or images without permission. For example, you cannot sell a mug with a Marvel logo or a T-shirt with the text “Nike handmade version” – this violates trademarks. Before creating products, check whether a trademark is registered on sites like USPTO (for the USA) or EUIPO (for the EU). If you use someone else’s illustrations or designs – purchase a license or create your own originals. Etsy strictly blocks shops for copyright violations, sometimes without prior notice.
Conclusion
Etsy is not just a site with products – it is your personal gateway to the global market. Nearly 100 million buyers are ready to pay for Ukrainian quality and uniqueness 3-5 times more than you would earn in Ukraine. However, remember: this is a full-fledged business, not a lottery. The first six months will go into niche testing and collecting reviews, and stable foreign-currency income will be the result of systematic work.
What should you do now? Create an Etsy shop, register a Payoneer account (without it you will not be able to withdraw funds), prepare high-quality photos and descriptions in English – and launch. The first $0.20 listing fee is your investment in testing the international market. Most importantly – remember legalization. As soon as sales become regular, register as a sole proprietor. Funds go through Payoneer to a Ukrainian card – the bank sees USD inflows, and if you are not registered as an entrepreneur, you will have to pay taxes retroactively plus fines. If you are not sure how to properly register a sole proprietorship and declare income from online sales, contact our accountants – they will help you choose the optimal taxation system and explain everything.
Would you like to consult with a specialist
as soon as possible?
Leave a request and our specialist will contact you shortly
