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I suspect there are a lot of variables, all based around what you’re offering. Many niches are under-saturated because they may not have a responsive customer base.
But I’ve considered doing something like this too just to diversify my income too and am happy to brainstorm together if you want to DM me.
Update: There's no way I can toggle on DMs by myself. Instead, I would need to get a certain amount of likes on my posts and then DMs will automatically be unlocked.
I ran one for a few years. Never crazy successful, but I'd make $500-$1000 on autopilot most months. It just got to be too much of a hassle to maintain, and the competition has gotten even crazier than it was back then. Do the research and optimization and you've got a shot at being successful, but if you're just doing POD stuff, keep your expectations realistic. There is no barrier to entry, and if you do manage to create a design that takes off, expect 30 copycats to appear using it in a few weeks. The better play is to get set up on Shopify where you own your brand and don't eat Etsy's fees, but that requires a lot more work than just opening up an Etsy store and isn't for everyone.
UPDATE: I think I found a more practical approach to running my Etsy shop (or a small online business in general) if anyone’s interested.
I could open up applications for various positions (can put the links here; will also need to think about what positions would be available) so one person doesn’t have to manage the whole shop.
UPDATE 2: I’ve taken the first steps to officially launch my Etsy shop. It should take up to three business days to finalize everything, and yes, I have decided on a niche. Also, for anyone wondering, I have been referencing various Etsy YouTube channels, and from what I have been noticing (and please take this with a grain of salt), a lot of sellers who’ve tried out their methods have been doing quite well.