Is it worth selling on Etsy? That’s the question that brought you here and that’s the question that we are going to answer today.
I guess we should first get one thing out of the way.
There are a lot of successful people on Etsy who make a ton of great money. So for them, it’s 100% worth selling Etsy, but that doesn’t mean it’s worth being on there for you.
That’s something that we are going to have to figure out together so if you’re ready to take a journey then let’s do this.
Understanding the Etsy Platform
Etsy is a global online marketplace that connects sellers of handmade goods, vintage items, and craft supplies with buyers from around the world. It provides an easy-to-use platform where you can set up your shop, list your products, and manage your sales.
Etsy’s strengths lie in its simplicity and its focused audience. The platform handles the technical aspects of running an online store, so you can focus on creating and selling.
Additionally, Etsy draws in customers who appreciate handmade, unique, and vintage items, which might align perfectly with what you have to offer. Check out our guide on how to start selling on Etsy for a step-by-step walkthrough.
Who Can Benefit from Selling on Etsy?
While Etsy is a versatile platform, it’s particularly well-suited to certain types of sellers. If you’re a creator of unique handmade goods, vintage items, or craft supplies, Etsy provides a dedicated platform to reach customers who value these types of products.
Artisans, crafters, and vintage collectors can all benefit from the exposure that Etsy provides. The platform’s global reach can help you connect with customers from around the world who are specifically interested in these types of products.
However, Etsy might not be the best fit for everyone. If your products don’t align with the handmade, vintage, or craft supply categories, or if you’re looking for more control and customization over your online shop, there might be other platforms that are better suited to your needs, such as Shopify.
Ultimately, the question of “is it worth selling on Etsy” depends on your unique circumstances and goals. Understanding the Etsy platform and who it can benefit is the first step in making that decision.
Is It Worth Selling on Etsy? Looking at the Pros of It All
There are a lot of benefits that you get selling on Etsy. I think it’s important to tackle them first so you don’t get chased away but also, don’t get carried away with these.
Exposure to a Large, Global Audience
One of the biggest reasons you might find it worth selling on Etsy is the platform’s massive reach. With millions of buyers worldwide, you have the potential to reach a global audience that you wouldn’t be able to access through traditional sales channels.
Etsy’s brand recognition also works in your favor. Many shoppers turn to Etsy when looking for unique, handmade items, and being on the platform means you can capitalize on this existing customer base.
But here is a warning for you. Too many people assume that just because the set up a shop on Etsy, that Etsy will start to send traffic their way.
It doesn’t work like that. There are a lot of different factors that contribute to Etsy showing your shop to the right people. It simply doesn’t happen because you set it up.
So while there is an amazingly large audience of people on Etsy, don’t think that guarantees you any of them will come to visit.
Ease of Setting Up Shop
Etsy makes the process of setting up an online shop remarkably straightforward. You don’t need any technical skills to get started – just a product to sell, a bank account to receive payments, and a bit of time to put your shop together.
The platform offers a host of resources to guide you through the process, from listing your first item to handling shipping. If you’re new to online selling, this ease of setup can be a significant advantage. For more information on setting up your shop, check out our guide on how to start selling on Etsy.
The Community and Support Network
Being a seller on Etsy also means being part of a vibrant, supportive community. There are numerous forums and groups where you can connect with other sellers, share experiences, seek advice, and learn from others who’ve been in your shoes.
Etsy also offers comprehensive customer support to help you navigate any challenges that arise as you manage your shop. This support network can be invaluable, especially if you’re new to the world of online selling.
Now that you’ve seen some of the benefits of selling on Etsy, it’s also important to consider the downsides, such as platform fees and competition, which we’ll explore in the next section.
You might also want to look at the competition – the article on how to start selling on Shopify might be a good place to start. Remember, the key to successful selling is finding the platform that’s the best fit for you and your products.
Considering the Cons of Selling on Etsy
While Etsy offers plenty of advantages for creators like you, it’s also important to consider the drawbacks before deciding if it’s the right platform for your business. Here are some of the main challenges you might face when selling on Etsy.
Platform Fees and Costs
One of the primary concerns when selling on Etsy are the various fees and costs associated with maintaining your shop. Etsy charges a listing fee, a transaction fee, and a payment processing fee for every item you sell. These costs can add up over time and eat into your profits.
| Fee Type | Cost |
|---|---|
| Listing Fee | $0.20 per item |
| Transaction Fee | 5% of the item price |
| Payment Processing Fee | 3% + $0.25 per transaction |
For more information on the cost of selling on Etsy, check out our detailed guide on the cost of selling on Etsy.
Competition on the Platform
Given the immense popularity of Etsy, competition on the platform is fierce. There are millions of sellers offering a wide range of products. Standing out among them and attracting customers to your shop can be quite a challenge.
Your shop doesn’t exist in a bubble. It’s going head-to-head with every other shop on there.
And there are hardcore Etsy people that actively search for keywords to create new products around so while you might be happy with your tiny niche, the second it sees success you can expect the competition to come.
It’s critical to find a unique selling proposition for your products and market them effectively to succeed. For more tips on this, you can read my tips for selling on Etsy.
Limited Customization Options
While Etsy provides an easy-to-use platform for setting up your shop, the customization options are quite limited. You have less control over your shop’s appearance compared to other platforms.
This could be a drawback if you want to create a unique, branded experience for your customers.
In comparison, platforms like Shopify (my favorite platform) offer greater customization options, giving you more control over your shop’s look and feel.
If this is a priority for you, then you might want to consider alternatives. Take a look at my article on how to start selling on Shopify for more information.
Lowest Common Denominator Pricing
Phew, that was a mouthful. One of the problems you might face on Etsy is that because you usually aren’t the only person creating a certain type of product, you’re going to compete on price.
If you sell wood signs and want to sell them for $200 but someone else is selling them for $75 then you’re going to have a hard time justifying the increased price.
This becomes even worse in some categories where prices will go down to $1.99 making it really hard to turn any kind of profit.
One of the beautiful things about owning your own shop is that you aren’t competing on price with anyone else. It’s just your site and the expectations that you set for your audience.
These are some of the potential cons of selling on Etsy.
However, it’s worth noting that these challenges are common to many online selling platforms. The key is to understand these drawbacks and find ways to work around them. With careful planning and strategy, you can still succeed in selling your creations on Etsy or any other platform.
Factors to Determine if Etsy is Worth It
Deciding whether it’s worth selling on Etsy is a personal decision that depends on several factors. Let’s explore some key considerations that can help you make an informed decision.
Evaluating Your Product Line
The first step in determining if Etsy is a viable platform for your business is to evaluate your product line. Etsy is famously known for unique handmade goods, vintage items, and craft supplies. If your products fall into these categories, then selling on Etsy might be a good fit for you.
However, if your product line includes mass-produced items, you may need to consider other platforms.
It’s important that your products align with the preferences of Etsy’s customer base to increase your chances of success. Remember, a successful product on one platform may not necessarily perform well on another.
Understanding Your Target Market
Next, take a moment to understand your target market. Who are your ideal customers? What are their shopping habits? Etsy’s user base consists mostly of women aged 18-34, who appreciate and are willing to pay for unique and handmade items.
If this demographic aligns with your target market, then Etsy could be a great platform for your business.
You should also consider where your target market is located. Etsy is a global marketplace, serving customers in nearly every country around the world. If your target market is international, Etsy’s global reach can be a significant advantage.
Considering Your Business Goals
Finally, consider your business goals. Are you looking to grow your business rapidly, or are you content with slow and steady growth? Do you want complete control over your branding and customer experience, or are you comfortable with using a platform’s established structure?
If you’re looking for rapid growth and complete control over your branding, you might want to consider other platforms like Shopify. You can learn more about this in our articles on how to start selling on Shopify and cost of selling on Shopify.
On the other hand, if you’re content with steady growth and appreciate the support of a community, selling on Etsy could be a good fit for you. Etsy also provides a simple setup process and a host of tools to help you manage and grow your business.
Ultimately, determining if it’s worth selling on Etsy depends on your product line, target market, and business goals. Take the time to understand these factors to make an informed decision that best suits your business.
For more guidance, check out our articles on how to start selling on Etsy, cost of selling on Etsy, and tips for selling on Etsy.
Successful Selling on Etsy
Whether you’re pondering if it’s worth selling on Etsy or you’ve already embarked on your Etsy selling journey, knowing how to effectively sell your products is crucial.
Crafting an Effective Product Listing
Creating an effective product listing is your first step towards a successful Etsy shop. Your product listing is what potential customers see when they come across your product. It should be informative, appealing, and accurate.
Here are some key elements to consider:
- Title: Your product title should be clear and descriptive. Use relevant keywords that your potential customers might use to search for your product.
- Photos: High-quality photos are crucial. They should accurately represent your product and highlight its features. Include different angles and show the product in use if possible.
- Description: Provide a detailed and accurate description of your product. Include information about materials, measurements, color options, and any other pertinent details.
- Price: Ensure your pricing is competitive yet profitable. Consider your costs, time, and the market average when setting your price.
- Shipping: Be clear about your shipping policies. Include information on processing times, shipping methods, and any shipping costs.
Promoting Your Etsy Shop
Promotion is essential to increase your shop visibility and attract potential customers. Here’s how you can promote your Etsy shop:
- Social Media: Use platforms like Instagram, Facebook, and Pinterest to showcase your products and engage with your audience.
- Etsy Ads: Consider using Etsy Ads to increase your products’ visibility on the platform.
- SEO: Optimize your shop and listings with relevant keywords to improve your search engine rankings on Etsy.
- Email Marketing: Collect email addresses and send out newsletters with updates, new products, or special offers.
Remember, the key to successful promotion is consistency. Keep your social media accounts active, regularly update your product listings, and continuously engage with your audience.
Providing Stellar Customer Service
Excellent customer service can set your Etsy shop apart from the competition. Respond to inquiries promptly and professionally. Be polite and helpful, even if the customer is not. If issues arise, resolve them quickly and fairly.
Also, consider the following:
- Policies: Make sure your shop policies are clear and easily accessible.
- Communication: Keep your buyers informed. Send updates about their order status and be available for any questions or concerns they might have.
- Reviews: Encourage happy customers to leave positive reviews. If you receive a negative review, address it professionally and try to resolve the issue.
Remember, happy customers are likely to return and recommend your shop to others.
I do think Etsy is a great platform to check out and understand if it’s right for you. However, you simply shouldn’t jump right on it because there are a ton of people that use it.
Take a second to think about what you want your shop to become in the future and understand if Etsy can support that vision.