Is Selling on Etsy Worth It?
There is no doubt that selling art crafts and handmade products on Etsy is a quick, easy, and cheap way to build a name as a new artisan entering the ecommerce community.
However, with the existence of several online platforms such as Amazon, eBay, Shopify, and other online marketplaces providing services similar to those Etsy offers, you probably wondered on multiple occasions: is selling on Etsy worth it?
Few of these marketplaces specialize in handcrafted and vintage items allowing Etsy to stand out for the longest time.
That said, since Etsy is releasing new terms and conditions, a lot is changing on the platform, further emphasizing this question.
If you are a creative and innovative artist searching for an ideal platform to start a business from your art, it's comforting to know Etsy is truly what you need.
Thus, we'll teach you the ups and downs of opening a shop on Etsy and whether or not it is worth your time and effort.
We'll also introduce you to Alura, a keyword search tool that makes opening an Etsy Shop easier.
The Pros and Cons of Opening an Etsy Store
If you are a creative and innovative artist searching for an ideal platform to start a business and earn money from your art, it's comforting to know Etsy is truly what you need.
Knowing exactly what areas Etsy succeeds and falls short in, will help you clear your thoughts and decide whether Etsy is the right online store platform for you.
The Pros
Let’s start with all the perks and advantages Etsy users will enjoy:
Easy and Quick Set Up
For someone just stepping foot into a brand business investment, you probably just want to start things off as quickly and smoothly as you can. For that, Etsy is a perfect choice.
You may also need to prioritize keeping costs low and under control.
If you were to create a store website from scratch, you might need to pay a developer to design it for you.
Even if you find an easier way to do the work yourself, it is a cumbersome task requiring a lot of time and attention.
That’s without all the money you could waste on premium features, add-on functions, and most importantly, maintenance.
In the long run, having a secure built-in system and a simple sign-up procedure, such as those offered by Etsy, is a definite win.
Not only can you open your store in less than an hour, but the entire thing is also completely free.
Well Established Online Presence
Etsy’s audience is known to almost everyone in the ecommerce industry.
The platform’s policies allow you to sell solely handmade items, vintage products, and craft supplies.
Thus, all stores will be offering products falling within one of these three categories.
If you decide to open an Etsy store, you are very much aware of who you are targeting and how likely you are to be noticed by potential customers.
Being a tight community is also a plus. Compared to Google, which hosts the websites of all the online shops in the world, your store has more chance of appearing in an Etsy search result than in a google search landing page.
Potential buyers are more likely to see your shop and visit your page.
Good Starting Point
Even if your ultimate goal is to expand your brand beyond a single third party server, but you are just not there yet, Etsy can definitely serve as a testing ground.
As a new seller, before professionally investing in an online website, build an online presence and establish a customer base.
Learn all about managing and maintaining a handmade business by selling your craft on Etsy without worrying about not having a clear starting point.
Once settled within the industry, you can easily branch out and launch your separate website and actual store more confidently.
The Cons
The truth is, every platform falls short in a few aspects and cannot please every handcraft business.
Unfortunately, Etsy is no exception. These disadvantages might not necessarily affect your sale’s success and may thus not matter to you as much.
Here are a couple of disadvantages of opening a shop and selling on Etsy:
Tough Competition
With all the perks Etsy stores offer, many sellers decide it's a good idea to start selling mass quantities of their handmade items at low prices.
Doing so not only saturates the market for every category but also makes Etsy a very competitive platform.
Sure, for a well-known craft business and long-running sellers, this is nowhere near an issue.
However, for someone trying to get noticed, it means having a difficult time getting customers to visit their shop and reach their product.
It may take hundreds of product listings, time, and effort to start gaining a solid audience.
Copycat Products
With easily accessible product listings, it is not hard for any scroller to take the idea and copy it into their own product.
Although technically illegal, it is very likely for several sellers to have different versions of the same item known as copycats.
This issue is clearly not exclusive to Etsy but is nonetheless a problem.
Especially when all it takes is clicking on the product listed right next to yours to lose a potential buyer.
Lack of Customer Base and Branding
When a person visits a company’s website or follows its social media account, it means they wish to support your brand and products.
As for buyers on Etsy, it may be less about your brand and their loyalty to it and more about quickly finding the product they need.
If your product has similar competitors, it may be safe to assume the shopper will pick the option with a better price and shipping package.
Adding to this issue is the limited control and independence you have.
Although it is possible to build a sturdy following on Etsy, you are not working under your own terms.
Etsy practically owns your space, directs your traffic, and gets the final say on the regulations, policies, and rules you set for your Etsy store.
Lack of Proper Email Marketing
Ideally, by having most of your customers subscribe to your newsletter, you can allow for repeat trade.
Thus, mailing lists are integral to a business’ marketing plan.
To legally add a buyer to your email list, you must first send an invite and a link from which they could sign-up with their email addresses and add their contact details.
Also, even if it is possible to promote your email list on your Etsy shop, there is no easy and free way of allowing the customer to sign up directly from the Etsy landing page.
Another thing you can not do on Etsy is track customers who abort their cart mid-purchase, something easily done on independent e-commerce sites.
What Are the New Changes in Etsy?
Like other 3rd party platforms, Etsy constantly updates its features and policies. Some remained the same.
To answer “Is selling on Etsy worth it?” or assess whether it is the right marketplace for your business, you need to be aware of these features before investing in an Etsy shop.
Renewal and Listing Fees
What most active Etsy users love is the low cost of uploading listings onto your profile.
A listing is essentially what the viewer sees when searching for a product. It includes pictures, images, and details on the handcrafted or vintage item.
Etsy will charge $0.20 for a listing that expires after four months and will require you to renew it for the same nominal price.
This is where it gets tough on novel artisans and handmade business owners.
Having to constantly pay to renew all their recurrent listings when trying to grow as a business may not be ideal.
Some might even find it difficult to keep up if sales have not been going so well at the start.
Regardless, compared to other fees on different 3rd party servers, this 20-cent fee seems optimal.
Also, if you are still new to Etsy, you are given 40 listings for free when you initially sign up for an account.
Guaranteed Free Shipping Feature
Etsy has launched a new policy update regarding its shipping fees and process, which has left most users pleased.
As of summer 2021, business owners need to add shipping information, zip code, mail class, and processing time in the details section of every product listing to better estimate delivery dates.
You could edit your overall shipping profile instead of going through the trouble of changing each listing individually.
Etsy also recommends marking any product priced at $35 or above as “available for free shipping”, especially when locally shipped within the US.
Any item with an average price of at least $10 will receive a tracking number which helps active sellers monitor the status of each order.
Etsy Ads and Marketing
Etsy offsite ads offer an opportunity for businesses and shops to broaden their outreach and try to appeal to a wider audience through social media and external promotions.
However, it is a paid service and thus does cost money.
Through a built-in advertising algorithm, match ads with users’ search inquiries to optimize the likelihood of them clicking the ad and checking out your store or product.
A percentage of the overall product value sold with the help of an ad will be deducted by Etsy.
The money will only be taken when the buyer clicks the ad before completing their purchase.
You don’t have to sign up for this service since it is completely optional. That is if the annual income rate of your online business is lower than $10,000.
Etsy SEO and Search Algorithms
Etsy has its own algorithm through which it processes and ranks listings according to their product category, relevance, and how rich keywords the product description is.
That is, Etsy search analytics will prefer products whose bets match the customer’s search inquiries.
Accordingly, your listings should be frequently optimized as Etsy often updates its SEO algorithm.
This is done by ensuring the product title, description, and about section of your landing page have phrases and words people are likely to type when looking for a product.
Many commit to this feature since traffic and exposure gained are worth the effort and time put in.
Optimize Your Listings Using Alura
It is always helpful to utilize Etsy’s SEO system to your advantage and maximize your handmade item’s chances of being seen and bought by Etsy users.
You might need the help of research tools such as Alura. Through their various features, you can:
Analyze competitors and other successful businesses
Look for the most searched keywords
Incorporate them in your listing details
Whether you are into physical items or prefer to sell digital products, Alura can show you what products are in high demand.
With this, you can decide on what products might succeed in driving huge sales.
A tiresome and tedious part of opening an Etsy shop is now made easy with Alura.
Related read: Types of Etsy Businesses, Taxes, and Licenses
Is Selling on Etsy Worth it: The Verdict
When deciding whether it is worth selling on Etsy, it is important to remember your short and long-term vision for your shop.
As one of the fastest and easiest ways to sell handmade crafts and items, we can conclude that, yes, it's worth it. Plus, when you sign up, you get 40 free listings.
Additionally, most of what makes new sellers afraid of Etsy can be resolved with the help of Alura and other helpful tools.
There is a platform and server for everyone, and while Etsy might not please everybody who tries it out, it may just be the perfect fit for you.
