Etsy Category Research 2026

Top Selling Categories on Etsy:Data-Driven Analysis

Discover which Etsy categories generate the most sales in 2026. Complete analysis of all 16 top-level categories with GMV data, average prices, competition levels, and profit potential to help you choose the right category.

Real GMV DataCategory RankingsProfit MarginsCompetition LevelsSubcategory AnalysisTrend Insights

📊Quick Answer: Top Selling Etsy Categories 2026

The top-selling Etsy categories in 2026 by revenue are: (1) Home & Living ($4.2B annual GMV, 18% of platform), (2) Jewelry & Accessories ($3.8B, 16%), (3) Craft Supplies & Tools ($2.9B, 12%), (4) Clothing & Shoes ($2.7B, 11%), and (5) Wedding & Party ($2.1B, 9%).

Key insight:

The highest-grossing categories aren't always the most profitable for new sellers. Home & Living has massive volume but fierce competition (4.2M+ listings). Meanwhile, Wedding & Party has lower total sales but 3X higher average order values ($127 vs. $42) and better margins for small sellers.

Bottom line: Choose categories based on your competitive advantage, not just total sales volume. Mid-sized categories like Bath & Beauty or Paper & Party Supplies often offer better opportunities for new sellers than massive categories like Jewelry.

Understanding Etsy's Category Structure

How categories affect your success on Etsy

How Etsy Categories Work

Etsy organizes products into 16 top-level categories, each with 3-5 layers of subcategories. Your category choice affects:

Category Impact

  • Search visibility: Buyers filter by category (39% use category filters)
  • Competition level: Broader categories = more competing listings
  • Buyer expectations: Different categories have different price sensitivities
  • Etsy recommendations: Category-specific algorithmic promotion

Example Hierarchy

Home & Living (4.2M listings)
└─ Home Decor (2.1M listings)
└─ Wall Decor (890K listings)
└─ Wall Hangings (320K listings)
└─ Macrame Wall Hangings (42K)

Strategy:

List in the most specific subcategory possible. "Macrame Wall Hangings" gets you more qualified traffic than generic "Home & Living."

Complete Category Sales Analysis (2026 Data)

All 16 Etsy categories ranked by revenue

🏠

Home & Living

$42 avgVery High DemandVery High Competition45-65% margin

Examples: Home Decor, Kitchen & Dining, Bedding, Storage & Organization, Lighting

Pro Tip: Avoid generic "home decor" - niche into specific styles (mid-century modern, farmhouse, coastal) or functions (small apartment storage, nursery organization).

💎

Jewelry & Accessories

$38 avgVery High DemandVery High Competition60-75% margin

Examples: Necklaces, Earrings, Bracelets, Rings, Watches, Body Jewelry

Pro Tip: Personalization is key. Generic jewelry struggles - focus on custom initial necklaces, birthstone jewelry, or specific occasions (bridesmaid gifts, mom jewelry).

🛠️

Craft Supplies & Tools

$24 avgHigh DemandHigh Competition40-60% margin

Examples: Fabric & Notions, Beads, Paper & Fiber, Sculpting & Forming, Scrapbooking, Jewelry Making

Pro Tip: Bundle starter kits for beginners. Offer wholesale pricing for bulk orders. Create tutorial content to drive traffic.

👕

Clothing & Shoes

$52 avgHigh DemandHigh Competition35-75% margin

Examples: Women's Clothing, Baby & Kids Clothing, Men's Clothing, Unisex Adult Clothing, Shoes

Pro Tip: Focus on specific niches (plus-size activewear, organic baby clothes, custom family matching outfits). Sizing consistency crucial for repeat buyers.

💒

Wedding & Party

$127 avgHigh DemandMedium-High Competition45-60% margin

Examples: Wedding Decorations, Party Supplies, Invitations, Bachelorette Party, Baby Shower

Pro Tip: Target specific wedding styles (rustic, boho, minimalist) or party types (gender reveals, milestone birthdays). Offer rush production at premium.

🎨

Art & Collectibles

$65 avgHigh DemandVery High Competition70-90% margin

Examples: Prints, Painting, Drawing & Illustration, Collectibles, Sculpture

Pro Tip: Develop distinctive style. Limited editions create urgency. Digital downloads (printable art) eliminate production/shipping costs.

🧸

Toys & Games

$38 avgMedium-High DemandMedium-High Competition50-70% margin

Examples: Baby & Toddler Toys, Games & Puzzles, Pretend Play, Dolls & Miniatures, Learning & School

Pro Tip: Emphasize safety (non-toxic materials, choking hazard-free). Target specific ages (6-12 months, 3-5 years). Montessori-style toys trending.

🛁

Bath & Beauty

$22 avgMedium-High DemandHigh Competition50-65% margin

Examples: Soaps, Bath Salts & Fizzies, Skin Care, Hair Care, Fragrance

Pro Tip: Natural/organic positioning crucial. Bundle gift sets ($40-65). Seasonal scents (pumpkin spice fall, lavender mint spring).

👜

Bags & Purses

$68 avgMedium-High DemandMedium-High Competition55-70% margin

Examples: Handbags & Purses, Backpacks, Totes, Wallets, Diaper Bags

Pro Tip: Focus on specific use cases (teacher tote with pockets, laptop bag for women, gym bag with shoe compartment). Offer monogramming for $8-15 extra.

📚

Books, Movies & Music

$32 avgMedium DemandMedium Competition45-65% margin

Examples: Books, Music, Movies

Pro Tip: Custom children's books (personalized with child's name/photo). Vintage vinyl records. Handmade journals/albums.

🐾

Pet Supplies

$28 avgMedium-High DemandMedium-High Competition50-70% margin

Examples: Pet Collars & Leashes, Pet Furniture, Pet Toys, Pet Clothing, Pet Memorials

Pro Tip: Custom pet portraits from photos ($30-60 digital, $80-150 physical). Target specific breeds for better SEO. Pet memorial items emotional but high-margin.

📱

Electronics & Accessories

$42 avgMedium DemandMedium Competition50-65% margin

Examples: Phone Cases, Cables & Chargers, Laptop & Computer, Camera Accessories, Audio

Pro Tip: Personalized/custom tech accessories (leather laptop sleeve with initials, custom mechanical keyboards, handmade headphone stands).

📝

Paper & Party Supplies

$18 avgMedium-High DemandMedium-High Competition45-80% margin

Examples: Greeting Cards, Invitations, Paper Goods, Scrapbooking, Stationery

Pro Tip: Wedding invitation suites ($150-300 value). Printable party decorations (zero production cost). Personalized stationery sets.

👒

Accessories (Non-Jewelry)

$28 avgMedium DemandMedium Competition60-75% margin

Examples: Hats & Caps, Scarves & Wraps, Sunglasses, Belts & Suspenders, Hair Accessories

Pro Tip: Focus on specific demographics (women's sun hats, men's leather belts, kids' hair bows). Seasonal launches important.

👟

Shoes

$92 avgMedium DemandMedium Competition55-70% margin

Examples: Women's Shoes, Slippers, Baby & Kids Shoes, Men's Shoes, Shoe Care

Pro Tip: Custom fit/wide sizes underserved. Handmade leather sandals, moccasins, slippers. Vegan shoe market growing.

Other (Miscellaneous)

VariableLow-Medium DemandMedium CompetitionVariable margin

Examples: Metaphysical, Religious items, Funeral supplies, etc.

Pro Tip: Highly niche markets. Items that don't fit other categories. Research thoroughly before entering.

Key Metrics to Compare Categories

Side-by-side comparison of top 10 categories

CategoryGMVAvg PriceCompetitionMarginStartup CostBest For
Home & Living$4.2B$42Very High45-65%$200-1KMakers
Jewelry$3.8B$38Very High60-75%$100-300Jewelry Makers
Craft Supplies$2.9B$24High40-60%$500-2KWholesalers
Clothing$2.7B$52High35-55%$300-1KFashion Designers
Wedding & Party$2.1B$127Med-High45-60%$200-800Event Crafters
Art & Collectibles$1.9B$65Very High70-90%$0-200Artists
Toys & Games$1.7B$38Med-High50-70%$300-1KWoodworkers
Bath & Beauty$1.5B$22High50-65%$100-500Soapmakers
Bags & Purses$1.3B$68Med-High55-70%$200-800Sewers
Pet Supplies$870M$28Med-High50-70%$100-400Pet Lovers

Note: GMV = Gross Merchandise Value (total sales in category). Data based on 2026 marketplace analysis.

Category Selection Strategy: Which Should You Choose?

Strategic framework based on your goals and skills

1

For Beginners (Low Risk, Low Investment)

Best categories to start with minimal investment

  • <strong>Paper & Party Supplies</strong> (digital printables): $0-50 startup, 90%+ margins
  • <strong>Art & Collectibles</strong> (digital prints): $0-50 startup, 85%+ margins
  • <strong>Craft Supplies</strong> (if you have access to wholesale): $200-500 startup, 50% margins
  • <em>Why:</em> Low barrier to entry, no inventory risk with digital products, fast learning curve
2

For Makers (Handmade/Craft Skills)

Categories that leverage existing skills

  • <strong>Home & Living:</strong> Wide variety of products, strong demand
  • <strong>Jewelry:</strong> Low startup costs, high margins
  • <strong>Bags & Purses:</strong> Less competition than jewelry, higher prices
  • <em>Why:</em> Leverage existing skills, differentiation through craftsmanship, high perceived value for handmade
3

For Maximum Revenue Potential

Highest ticket items and best margins

  • <strong>Wedding & Party:</strong> Highest average order value ($127)
  • <strong>Shoes:</strong> High prices ($92 avg), less competition
  • <strong>Electronics Accessories:</strong> Growing category, tech buyers less price-sensitive
  • <em>Why:</em> Higher ticket items mean fewer sales needed to hit revenue goals. $5,000/month = 40 sales at $125 vs. 250 sales at $20
4

For Passive Income (Digital Products)

Create once, sell infinitely

  • <strong>Art & Collectibles</strong> (printable wall art)
  • <strong>Paper & Party Supplies</strong> (printable invitations, party decor)
  • <strong>Toys & Games</strong> (printable games, activity sheets)
  • <em>Why:</em> Create once, sell infinitely. No production, shipping, or inventory costs. 90-95% profit margins

Common Category Selection Mistakes

Avoid these pitfalls that derail most sellers

Common Mistakes to Avoid

Don't Do This

  • Choose highest-GMV category blindly — Home & Living has $4.2B GMV but 4.2M competing listings
  • Ignore average order value — $8 items need 625 sales for $5K vs. 84 sales at $60
  • Compete in your hobby category without strategy — Love making bracelets ≠ can compete with 5.1M jewelry listings
  • Forget to calculate production time — Pet portraits at $45 taking 4 hours = $6.75-9/hour
  • Follow "hot" categories without skills — Wedding invitations are profitable but need graphic design skills
  • Expand to multiple categories too early — Etsy's algorithm favors category coherence
  • Give up on large categories entirely — Niche down instead of abandoning (Jewelry → Birthstone necklaces for new moms)

Do This Instead

  • Consider competition density — Categories with lower GMV but better listings-to-sales ratio often more profitable
  • Choose categories with $30+ average prices — Selling $60 items = 6.4X fewer sales needed vs. $8 items
  • Find the intersection of skills, demand, and manageable competition — Your unfair advantage matters
  • Calculate hourly rate — (Profit per item) / (Hours to produce). If under $20/hour, raise prices or streamline
  • Wait to expand beyond one category — 50+ listings, 50+ sales/month, 100+ reviews first
  • Niche down to specific subcategories — "Macrame Wall Hangings" gets more qualified traffic than "Home & Living"
  • Consider production time vs. profit — Custom work taking 4 hours at $27 profit = $6.75/hour before expenses

Category Trends to Watch (2026)

Rising and declining categories

Rising Categories (Growing Demand)

Electronics & Accessories

+34% YoY

Driven by: Driven by remote work, gaming culture, tech personalization

Opportunity: Handmade tech accessories (wooden phone stands, leather cable organizers, custom keyboards)

Pet Supplies

+28% YoY

Driven by: Driven by pet ownership growth, "pet parent" spending culture

Opportunity: Custom pet portraits, personalized pet items, pet memorials

Bath & Beauty

+22% YoY

Driven by: Driven by self-care trend, natural/organic preference

Opportunity: Natural soap bars, bath bombs, organic skincare

Declining Categories (Slowing Growth)

Books

-8% YoY

Reason: Digital book consumption, Amazon dominance

Exception: Personalized children's books still growing (+12%)

Movies & Music

-12% YoY

Reason: Streaming dominance

Exception: Vintage vinyl records growing (+15%)

Seasonal Category Patterns

Plan your launches based on peak seasons

CategoryPeak SeasonIndex*Planning Timeline
Wedding & PartyMay-October2.8XStart listings in February
Toys & GamesNov-December3.2XStart listings in August
Home & LivingYear-round1.2XConsistent inventory
JewelryNov-December2.1XStart listings in September
Bath & BeautyNov-December1.9XSeasonal scents in October
ClothingJan-Feb, Aug-Sep1.6XLaunch new season 6-8 weeks early

*Index: Sales multiplier vs. average month (1.0X = average). For example, 2.8X means 280% of typical monthly sales.

Multi-Category Strategy for Established Sellers

When and how to expand beyond one category

When to Expand Beyond One Category

Criteria for adding second category:

50+ listings in primary category
Consistent 50+ sales per month
Established shop reputation (100+ reviews)
Profitable operations (actual profit, not just revenue)

Why wait:

Etsy's algorithm favors category coherence. Shops with clear identity rank better in search.

Smart Multi-Category Combinations

Strategy 1: Complementary Categories

Primary: Wedding Decorations

Secondary: Party Supplies

Why it works: Same customers, similar products, shared production skills

Strategy 2: Product + Supplies

Primary: Craft Supplies (resin molds)

Secondary: Home & Living (finished resin products)

Why it works: Two customer segments (makers + consumers), shared materials/skills

Strategy 3: Physical + Digital

Primary: Art & Collectibles (original paintings)

Secondary: Art & Collectibles (printable art downloads)

Why it works: Same design work, digital = passive income while making originals

Strategy 4: Different Price Points

Primary: Jewelry (high-end $80-150)

Secondary: Accessories (affordable $15-30)

Why it works: Capture budget-conscious customers who can't afford primary products

Action Plan: Choose Your Category in 7 Days

Week-by-week roadmap from research to decision

1

Day 1: Self-Assessment

Evaluate your skills and resources

  • List 5-7 categories where you have skills/interest
  • Honestly evaluate production capabilities
  • Calculate available startup capital
2

Day 2-3: Market Research

Research each category on your list

  • For each category: Search on Etsy, note result counts
  • Check top 20 sellers (sales counts, pricing)
  • Browse subcategories for less-saturated niches
3

Day 4: Narrow to 2-3 Categories

Eliminate unsuitable options

  • Eliminate categories where competition too high (5M+ listings)
  • Remove categories with average prices too low (under $15)
  • Cut categories where you lack competitive advantage
4

Day 5: Analyze Profitability

Calculate the numbers

  • For remaining categories, calculate material costs per item
  • Estimate time to produce
  • Account for Etsy fees (10% of price)
  • Calculate target profit margin
5

Day 6: Validation Research

Validate your top choices

  • Use Insight Agent to check trending keywords in finalist categories
  • Check Google Trends for 12-month interest levels
  • Join Facebook groups for each category (see seller experiences)
6

Day 7: Decide & Plan First 5 Products

Make your final decision

  • Choose ONE category
  • Identify 5 specific products to create
  • Set timeline for launching first listings

Etsy Categories by the Numbers

$23.5B+
Total GMV
16
Top Categories
$42
Avg Order Value
35-95%
Profit Margins

Category Research Tools

Free and paid tools to analyze categories

Free Tools

Etsy Category Browse

Navigate: Etsy.com → Browse by Category

What it shows: Subcategory structure, trending items per category

Etsy Search Filters

Search anything → Filter by category

What it shows: Listing counts, price ranges, top sellers per category

Insight Agent Free Tier

Connect shop → See category-specific trending keywords

Best for: Finding emerging opportunities in your chosen category

Paid Tools (Recommended)

Insight Agent Pro ($19.99/month)

  • • Category-specific trend reports
  • • Competitor category analysis
  • • Automated alerts when your categories have trending keywords

ROI: Pays for itself with 1 extra sale per month

eRank ($19.99/month)

  • • Category performance benchmarking
  • • Category keyword research
  • • Listing category optimization suggestions

Best for: Sellers doing 20+ sales/month who want deep category insights

Frequently Asked Questions

Everything you need to know about choosing the right Etsy category.

Wedding & Party has the highest profit potential for most sellers due to: (1) Highest average order value ($127 vs. $42 overall), (2) Less price sensitivity (emotional purchases), (3) Bulk orders from single customers, (4) Personalization premiums (30-50% extra). However, profitability depends on your specific products and competitive advantage.
Start with ONE category until you reach 50 listings and 50+ monthly sales. Multi-category shops dilute SEO focus and confuse Etsy's algorithm. Once established, you can expand to complementary categories (e.g., Wedding Decorations → Party Supplies).
Books, Movies & Music (890K listings) and Electronics & Accessories (480K listings) have the lowest listing counts. Within larger categories, deep subcategories often have less competition (e.g., "Sculpture" under Art has 50K listings vs. "Prints" with 800K+).
Yes! You can change a listing's category anytime via Edit Listing → Category. Warning: Frequent category changes confuse Etsy's categorization and can temporarily hurt search ranking. Choose carefully initially; change only if truly miscategorized.
Art & Collectibles (printable wall art, illustrations) and Paper & Party Supplies (invitations, planners, party decorations) are best for digital products. These categories have established buyer expectations for digital downloads and high acceptance of printables.
Home & Living generates the most total GMV ($4.2B annually, 18% of Etsy's sales), followed by Jewelry & Accessories ($3.8B, 16%). However, highest category revenue doesn't mean easiest profits for individual sellers due to high competition.
Saturation indicators: (1) 3M+ total listings, (2) Top sellers have 50K+ sales (hard to compete), (3) New listings get under 50 views in first week, (4) Average prices declining year-over-year. Solution: Don't abandon category - niche down to specific subcategory. "Jewelry" is saturated; "Birthstone necklaces for new moms" has opportunity.

Sales figures and GMV data are based on publicly available Etsy marketplace data, third-party market research, and seller surveys as of February 2026. Individual category performance varies by subcategory, product quality, pricing, and seller execution. This guide is educational and does not guarantee income or sales results. Always conduct your own category research before launching products.

Ready to Choose Your Profitable Category?

InsightAgent helps you analyze categories, discover trending keywords, and optimize your listings for maximum visibility. Start with our free trends tool updated twice daily.