Do You Need a Business License to Sell on Etsy?
Learn when you need a business license to sell on Etsy, including hobby vs business rules, local permits, sales tax, and home-based shop requirements.
I run a small Etsy shop selling handmade items, and I also have a modest audience on TikTok from when I first started promoting my products. My TikTok account is now eligible for TikTok Shop, but I’ve never bought or sold through it, so I’m not sure what to expect.
How does TikTok Shop compare to Etsy in terms of fees, order management, shipping/returns, and customer expectations, and is it worth adding as a second sales channel?
Hi! Yes—TikTok Shop can be a great “second channel” alongside Etsy for handmade products, but it feels more like fast-paced retail than a handmade marketplace, so it’s worth doing only if you’re okay with quicker fulfillment expectations, more impulse-driven customers, and a platform that can change shipping/returns rules more often than Etsy.
How TikTok Shop compares to Etsy (practical differences)
1) Fees (what you’ll actually notice)
My rule of thumb: Etsy is easier to forecast per-order profit. TikTok Shop is easier to get sudden volume, but harder to control margin unless you stay on top of settings.
2) Order management & day-to-day workload
If you’re already comfortably fulfilling Etsy orders, TikTok Shop can feel like: same packing table, but more urgency and more customer-service pings.
3) Shipping expectations (and what’s changing)
4) Returns/refunds & customer expectations
So… is it worth it for you?
Given you already have a modest TikTok audience, it’s usually worth testing TikTok Shop—but only with a controlled, low-risk setup. I’d add it as a second channel if:
If most of your items are truly made-to-order with longer processing times, TikTok Shop can still work, but you’ll want to be extra careful because TikTok customers often expect fast turnaround.
A safe way to test (without blowing up your Etsy workflow)
If you tell me what you sell (type of item + typical price + whether it’s ready-to-ship or made-to-order), I can suggest whether TikTok Shop is a “yes, test it now” or “wait until you streamline fulfillment” situation—and what to watch in your settings so it doesn’t undercut your Etsy profits.
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