Every Etsy Seller asks the same question:
How many products should I have on Etsy?
For most businesses, I believe starting out with fewer products is better. You want to prove that your business model and your concept on Etsy is actually going to work. And if you start churning out hundreds of items at once, you're going to get burnt out.
I believe there is a simple rule of thumb you should always keep in mind on Etsy:
For every Sale you get, make one new item.
So if you have 20 Sales on Etsy, you should have about 20 Items. If you have 100 Sales on Etsy, then 100 Items is okay. Once you hit about 200 Sales, then your product development should slow down, and you should really focus on quality instead of quantity.
Depending on where your Etsy shop is at right now, here are my recommendations for you:
1. New Etsy Sellers
If you have less than 200 Sales on your Etsy Shop, don't pound out hundreds of items. You need to make sure the things you make actually sell. So start off with about 20 items, and then once you get 20 Sales, then add a couple more items that are inspired by your best sellers. If you have 100 Items, but only 5 Sales, there's a problem. You need to figure out how to improve your current products and use the right keywords before you continue to make new designs.
2. Etsy Physical Sellers
If you sell physical products, you have a ton of things to figure out. Not only do you have to understand keywords, shop optimization, and other unique things about Etsy, but you have to source materials, build things, and ship them to customers. That's a lot of work. So pounding out lots of designs when you sell physical products is going to be very difficult. Focus on inspiring, quality products that you're highly skilled at making.
3. Etsy Digital Sellers
When you sell digital downloads, there is a temptation for Digital sellers to make hundreds of items that no one buys because building digital items is much easier than physical items. So slow it down. It's not all about having hundreds of designs. It's much better to have 20 good quality items on Etsy that actual sell than 1,000 items on Etsy than never sell.
4. Etsy Advanced Sellers
Once you have 200 or 500 Sales on Etsy, you're in a much better position to make more items. You know what people want to buy, and you know how to make products, deal with customers, and ship out items. It's only once you have a minimum of 200 to 500 items sold that you can really start to expand your product line, develop new items, and figure out new Keywords so that even more customers can find your Etsy Shop through keyword searches.
There is no Magic Number
A lot of Etsy Sellers ask if there is a "Magic Number" to how many products they should have on their Etsy Shop. And there really is no number to hit. Each Shop should figure out what the maximum number of products they can reasonably make, to make the maximum amount of money. As a general rule, the more expensive your items are, the fewer you should probably have. So if your price point is only $5, then it makes sense to have more products for customers to choose from. But if your price point is $50 or $100, then somewhere around 100 or 200 products is more reasonable.
What's more important is that you actually sell the items you make, and that you don't frantically make more items just to have an Etsy Shop that is full of stuff. People go on Etsy to find inspiring, unique things. And if you're in a rush to stuff your Etsy Shop with lots of items, then it's likely not going to be very inspiring and there's no reason someone should want to buy from you. So build beautiful products that people want to buy, and use good keywords so that people can actually find those products.