The Pros and Cons of Using Etsy For Your Online Business
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I got so many messages after publishing my latest blog post, so many kind messages telling me that you feel the same way and asking more questions about Etsy. So I decided to take it all one step further and share my experiences. Here are a few pros and cons about using the Etsy Platform for your online shop.
Cons
1 Pricing Competition
As Etsy is so popular and attracts so many sellers, you’ll find yourself going up against a lot of competitors listing the same type of products.
That can have an impact on prices. If your competitors are cutting prices to gain an edge, you could be forced to do the same. That cuts into your profit. And if you’re lowering your prices, how many more items would you need to sell to make a solid profit?
There’s always the likelihood of someone else is ready to take an even lower profit margin than you would.
2 Etsy’s Competition
Yes, many buyers like you and me go to Etsy because we love unique and handmade items that are hard to find elsewhere.
But that’s just us. Customers who aren’t looking for specialised items may bypass Etsy and hit Amazon or eBay instead.
3 Etsy Shares Your Profits
Once you’ve made some sales, keep in mind that Etsy takes % of it for the renting space to you on their site. There’s a non-refundable listing fee of $0.20 for every item you put up, and then pay 3.5 percent (or whatever % it is at the time) on top of that.
Etsy gives you views, space, marketing and their audience and they handle payments etc., so please keep that in mind before complaining about their cut.
4 You’re Renting Space from Etsy
You’re essentially renting space from Etsy. They fully dictate the terms of what they allow, what their website looks like and how it works.
Therefore, you have limited branding opportunities, and a lot is standardised.
5 Handmade Items Only
Etsy allows digital and print-on-demand, but if you want to sell wholesale items, you’re not allowed unless you’re selling craft supplies.
Pros
1 Setting Up Your Shop is Easy
It’s not complicated to open your Etsy shop. No need for your techie nerdy friend to walk you through it.
It only takes a few minutes to set up, it’s free and there’s a great step-by-step guide on Etsy that’s easy to follow (and plenty more out there when you give google and YouTube a try).
2 The Traffic Is Already There
Etsy already has its built-in audience. And Etsy fans are highly engaged fans. Millions of them come to the site every month, looking for more items, gifts, inspiration, and they are people eager to buy. Plus, Etsy is mobile friendly, with the app being easy to use for both sellers and buyers.
And that’s what you want!
And there’s more! Etsy encourages its online retailers to become a collaborative community, where sellers share tips with each other.
3 Unique and Personal
Etsy is THE place for unique, personalised and custom items. Things that only you can do and people will love it!
A lot of the items on Etsy are handmade, and the % of handmade goods sold on Etsy are increasing every year.
Not everyone wants items that are mass produced. Definitely not you and me. We are looking for unique gifts, things that will set us apart, products that are created and made with love and passion.
4 Analytics and SEO
Etsy provides us sellers with great analytics, so you can review your numbers and use them to figure out what works and what doesn’t. Create more of what works, optimise it and get your great work out there!
Find out which keywords work best, what description converts best and so on.
As Etsy is a trusted website for google, you’re getting a lot of traffic from google now compared to a tiny, unknown online shop.
5 Fees are Small
I see many people complaining about listing fees and Etsy fees, BUT, and that’s my big but here, running your own online shop is not cheaper either. You have to pay your online shop fee (for example through Squarespace), you have to pay fees for stripe, PayPal… this adds up over time too. And you’re doing all the work yourself!
6 Ads are Easy to Use and Affordable
Etsy ads are one of the easiest platforms I’ve ever used and they actually make a difference for not that much money.
7 You Don’t Have to Print and Ship Everything Yourself
Every heard of Drop Shipping or Print on Demand?
Print on Demand (POD) is an order fulfilment method where items are made only after an order was placed, which makes it easier for you (you don’t have to plan right and don’t have any useless expenses!) and more eco friendly for everyone. In Printful’s case, you don’t even have order minimums. With 17 fulfilment centres located across the globe, Printful products can be shipped to customers anywhere in the world.
It’s very easy to connect your Etsy shop with Printful and all you have to do then is to sit back and create!
In my opinion, it’s still worth giving Etsy a try, especially if you’re just starting out. Explore Etsy, connect with the community, and let me know what you think!
