How This Etsy Shop Earns $30,000+ Per Month—and How You Can Too!

Imagine starting an Etsy shop from scratch and earning over $30,000 a month within just four months. Sounds unbelievable, right? But that's exactly what one shop, Shades of Drops, has achieved by selling digital backdrops. The best part? You don’t need any special skills, expensive equipment, or a large budget to get started.

In this guide, I’ll walk you through every step of the process—from creating stunning artwork using AI tools to optimizing your Etsy listings for maximum visibility. Stick with me until the end, and I’ll share a game-changing tip to increase your average order value by $40 to $50!


What Are Digital Backdrops?

Digital backdrops are high-quality background images that photographers use to enhance their photos. For instance, instead of manually setting up an elaborate scene with props like angel wings or booking a costly location, photographers can now achieve the same results by overlaying their subjects onto digital backdrops with minimal editing skills.

Thanks to AI, creating these backdrops is easier than ever. This shop (Shades of Drops) has been leveraging AI technology to generate stunning backgrounds and sell them at a profit margin of over 93%.

Here’s why this business model is so powerful:

  • Minimal Costs: No physical inventory, shipping, or manufacturing.
  • Passive Income: Once you list your backdrops, they can sell over and over again without additional effort.
  • Growing Demand: Photographers love the convenience of digital backdrops, and this market is still relatively unsaturated, making it a great time to jump in.

Step 1: How to Create Digital Backdrops with AI

To create professional-quality backdrops, we’ll use MidJourney, a text-to-image AI generator available on Discord.

Getting Started with MidJourney

  1. Sign Up: Visit the MidJourney website, join the beta, and accept the Discord invite.
  2. Create a Private Server: Add the MidJourney bot to your private server to keep your work organized.
  3. Generate Images: Use structured prompts to create highly detailed backdrops.

Crafting Effective Prompts

Here’s a sample prompt to generate a breathtaking digital backdrop:

Ultra-realistic, extra-large white angel wings with real feathers in a rustic palace, contemporary cinematic lighting, ultra-wide shot, aspect ratio 16:9, MidJourney version 5.

Tips for Better Prompts:

  • Start with the subject (e.g., “white angel wings”).
  • Add descriptive terms like “ultra-realistic” for more intricate details.
  • Include a setting (e.g., “rustic palace”) and lighting style (e.g., “cinematic lighting”).
  • Specify the aspect ratio (16:9 works well for backdrops).

Upscaling and Refining Images

Once your image is generated:

  • Use MidJourney’s upscaling feature to enhance resolution.
  • If the image is blurry, upload it to a free AI upscaler like Upscale Media for a sharper result.

High-resolution images are crucial since photographers need clear, professional-quality backdrops for their work.

Step 2: Showcasing Your Backdrops

To attract buyers, you’ll need compelling listing images that demonstrate how your backdrops can be used.

Creating Listing Images

You can generate subjects (e.g., a pregnant woman in a flowing gown) with MidJourney using prompts similar to those for backdrops. Once you have both the subject and backdrop:

  1. Use Canva to combine the two images.
  2. Use Canva’s Background Remover tool to seamlessly blend the subject into the backdrop.
  3. Adjust colors and lighting with Canva’s Auto Adjust or manual editing tools for a polished look.

Adding Watermarks

Protect your work by adding a subtle watermark to your listing images. This discourages unauthorized use while still allowing potential buyers to see the quality of your designs.

Step 3: Optimizing Your Etsy Listings

To ensure your backdrops get discovered on Etsy, follow these steps:

  1. Research Keywords: Use tools like EverBee to analyze competitors’ listings and find high-traffic keywords.
  2. Write Effective Titles: Incorporate relevant keywords naturally (e.g., “Rustic Angel Wing Digital Backdrop for Maternity Photoshoots”).
  3. Descriptions and Tags: Highlight the benefits of your backdrops, including ease of use, high resolution, and compatibility with photo editing software.

Step 4: Boosting Your Profits with Customization

Here’s the tip I promised earlier: offer a customization service to increase your average order value. For an additional $30–$50, you can edit a customer’s photo onto the backdrop they purchase.

Why It Works

Photographers or clients who lack the time or skills for editing will gladly pay for this service. Similar sellers on Etsy charge anywhere from $50 to $100 for custom edits, so this is a valuable upsell.

Final Thoughts

Starting a digital backdrop business on Etsy is not only easy but also highly profitable. With minimal investment and the help of tools like MidJourney and Canva, you can create stunning products that photographers will love.

The key to success is to start now while the market is still relatively untapped. If you want to learn about other Etsy shops making $20,000+ per month and how they do it, check out my next guide.

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