Selling on Etsy in 2022 is worth it because it is the hottest and easiest market online to sell anything from handmade products to vintage. Compared to building a website, Etsy is a financially low-risk option. Though it started as a small place for creators, it has gained popularity and become one of the powerful business platforms. But is Etsy worth it?
You can create your shop in a few hours; create your optimized listing using Etsy marketing tips, and all will be ready to go. Though you may not start gaining more revenues immediately, your business will pick up once you make use of the correct Etsy SEO tricks. As soon as your shop is live, you can link it to your blogs and social media platforms. You can even market it through Ads or share it with your friends and family through email.
Creating an Etsy shop is not that expensive as you’ll not deal with domain and hosting fees. So, it’s worth it to sell your crafted items and handmade products on Etsy. Before creating your Etsy shop, ensure you have all ideas to sell on Etsy.
There are various pros and cons associated with the Etsy platform. Please read below to find out why Etsy is worth it, pros and cons, what to sell, and how to set up your Etsy shop.
Pros and Cons of Selling on Etsy
If you’ve been a seller on the Etsy platform, then you may have noticed the changes Etsy has been making. Eventually, Etsy will continue to make changes as its priority is to make more money. So, they will do what is best for them.
The recent changes have affected many sellers, and most are wondering whether or not they should continue using the Etsy platform for their business. Well, you can only determine that if you know the pros and cons of the marketplace. Here are Etsy’s pros and cons that you need to know.
· Quick and Easy to set up
Setting up an Etsy shop is quick and straightforward. You don’t need to pay for creating and running your shop with Etsy. There is no domain and hosting fee charged. Once you set the store, adding, editing, and updating your listing and shop information is simple.
· Has established audience
Etsy is a niche-specific platform, and ranking top on Etsy search results is not complicated like Google. For instance, you may have been running a website for years now but have never ranked #1 in Google. That is because Google is very competitive and uses a different ranking algorithm.
Etsy is not similar to Google. You can set up your shop on the Etsy platform and have buyers see it immediately. This depends on your Etsy marketing and SEO tricks.
· There is no limit to how much to earn
Making profits on the Etsy platform is easy as there are so many things to make and sell on Etsy. And since your marketing strategies and product market determine the performance of your products on the platform, some sellers are making a whopping $65,000/month selling handmade jewelry.
· Good testing ground
Before you invest so much money and time creating a website, Etsy is the best platform to test your business. Since there is much to be done when starting a business, Etsy has reduced website building and maintains struggles from its sellers.
On Etsy, you can make money, build and grow your brand, know your customers, and always beware of what’s trending. These can be great tactics to use before launching your website.
· Increased competition
Etsy has gained popularity over the years, and the market is becoming more saturated. For instance, you can find various listings for handmade products making it difficult for new sellers to rank higher. The market is more saturated than SEO strategies may not influence your shop performance.
Currently, it’s difficult for Etsy to drive buyers to your shop. So, you have to find buyers by yourself. Why not invest your money in a website, and deal directly with your loyal customers?
· No control over site changes
Etsy is a brand focusing on what’s best for its business. You have no say as a seller whenever they decide to make company changes. And this is so frustrating to some sellers, especially if you love to be in control.
· Siding with customers in the dispute
Etsy is more likely to side with buyers in case of any dispute. Meaning they can give a customer a refund forcibly from your account if the buyer decides to lie or say something wrong with your product in good condition.
· No customer loyalty
Customers only visit your website, join your email list or sign up for the newsletter if they are interested in your products or brand. This is the same case with Etsy. People visit the Etsy platform because they love Etsy, and they’re looking for a vintage product, not your vintage product specifically.
Buyers will search for vintage products and may focus on which shop has the lowest price and fastest shipping. Etsy’s platform makes it difficult for buyers to get to know their seller’s shop and brand, making it challenging to get returning clients.
· Lack of branding
In the Etsy platform, buyers will only know your brand through your shop title test uploaded and, most importantly, photos used. Ideally, all Etsy shops have the same color, font, layout, and more. Unlike when you control your website, Etsy limits you from marketing your brand.
The Etsy platform is famous for handmade, vintage, and crafted items. Copycats are on all platforms, Etsy included. The only way to remain outstanding is by establishing your brand and offering unique products.
How much do average sellers make on Etsy?
To be successful in Etsy relies on what you view as success. Nobody would invest in something more likely to fail. There are various ways to build your audience and make more passive income, but a crucial thing to know is to set realistic expectations. With various things to make to sell on Etsy, it can be a good source of income.
As an average seller, employ the following tactics; create a mix of physical and digital goods; don’t focus on one category for a long time. Move with trends. Some Etsy shops are making over six figures annually. However, most of them sell products that are not technically handmade. Or, you will find they have multiple handmade products listed on Etsy. Again, this doesn’t mean sellers have to sell thousands of items to earn over six figures.
Since the success of an Etsy shop depends on the products and marketing strategies used, there is no exact number that you should expect to earn. Also, many sellers are trying to convince customers to return. There is so much competition in the platform that convincing a buyer that your products are legit is difficult. Once you have identified your niche and target market on Etsy, check on competitors.
How to increase your Etsy sales
Though there are various Etsy marketing laws for your shop to strive for, everyone has opinions. First, do thorough research, list your products, and use the tips below.
· Optimize your product Listings for SEO
SEO is an essential tool, no matter the size of your business. When creating an item description, the first and the last ten words are vital. Avoid Keyword stuffing, especially on the titles. Pick a handful of keywords that are relevant to your product and niche.
Also, great content matters a lot. Avoid fluff in your content. The descriptions should be unique and directly answer what the customer is searching for. With quality content, you’ll be able to rank high in your category and set your brand apart.
· Build your social media presence
Working on your social media presence is vital for any business. So, for your brand to be outstanding, you must work on your social media presence. It can be Instagram, Twitter, Facebook, or TikTok. Picking at least two different platforms for marketing will assist in marketing your items.
Select your social media platforms based on what you sell. For example, Twitter and Tiktok are perfect for home décor and design, whereas Tiktok, Facebook, and Instagram are perfect for fashion items.
· Make your Etsy shop unique
You can set yourself apart in a highly competitive platform by having several unique attributes. It is essential to keep your Etsy shop unique by having marketable products within the niche. This will also help your brand be recognizable, thus increasing the possibility of returning customers.
How to estimate how much income you can make on Etsy
Here are some of the steps to follow for approximate estimation.
1. Check your product category.
Go to a niche that your items would fall under. For instance, if you make print invitations, go-to digital printable-> print invitations.
2. Check competitive products
Find out if an existing listing on the Etsy platform is similar to what you have. For instance, if you sell wedding print invitations, you’d look for wedding printing invitations from Etsy. Check all the listings, including the seller’s shop.
3. Find competitors sales
After going through their listings, you’d have a rough idea of what the seller earns yearly. That is, their total Etsy sale dived by the number of years they have been on the platform. This is only possible if the seller has been on the platform for a year.
For instance, you’ll get a seller with over 2500 sales who has been on the Etsy platform for three years. It doesn’t mean their sales have accumulated over the years. They may have sold only a few items and boosted their marketing in the past years, therefore, increasing sales.
4. Analyze their average price
Calculate your competitor’s average price by summing up the prices of their popular products, then divide by their price points. For example, if the seller sold five print invitations at $15, $45, $30, $35, and $60, add the prices and divide 5. The average price point= is $37
5. Multiply Price with their average price point
At this stage, multiply the seller’s price by the average price point to get their total revenue. Repeat the same process, total revenue divided by their years on Etsy. You will get their annual sales. The value you get is revenue. Don’t forget marketing fees, Etsy fees, and so on are deductions from the same amount.
6. So, how much can you make?
Averagely, you can approximate how much you can make from your competitors. Focus on your product images, branding, item descriptions, and so on to check if you can compete. If you are not good at wedding print invitations, find someone to help you out if you want to beat or be close to your competitor. Also, try to find out what marketing strategies they are using to market their shop.
Are they using Ads, Facebook, Instagram, or Twitter? They may have linked to their social media platforms, thus driving more traffic to their Etsy shop. And even if they have linked their websites or blogs or social media platforms, how active are they on those platforms? Check out how many followers they have on those accounts. But, if you’re a beginner, it may take you a while to reach your competitor’s level.
How do you boost sales on Etsy?
Various factors contribute to the success of your Etsy store. The success of an Etsy shop means there your products are selling and you are getting good profits. Consider these main factors;
For your Etsy store to be successful, it’s not only about the type of products you sell, but the strategies used also play a vital role too. You can learn more about Etsy SEO and Etsy Marketing strategies to promote your business.
The Etsy platform is known for handmade, vintage, and crafted products. Always research and identify the most selling profitable products on the platform. Most important, offer products and prices that customers can easily access.
Your photos must be of high quality as it’s the only real connection a buyer can have with your product. Buyers can’t pick up or try or touch items online, but customers will be able to make a purchasing decision with high-quality photos and product descriptions. Without more detailed information about the product, shoppers won’t purchase.
Good sales strategies use great product descriptions, photos, and effective sales strategies to market your products. Also, the most popular trend right now is the use of a sales funnel. You can research how to create a sales funnel. It’s the best method to stay in touch with customers and even more convincing because not all customers buy during the first visit to your shop.
Work with Etsy
Etsy as a brand is making constant changes. You as a seller should be ready to adapt to those changes if you need to continue gaining profits on the platform. Check out what is new on the platform and how your shop will adapt to it.
How does the Etsy Shipping Process Work?
Etsy’s shipping process is straightforward. The ideal question should be who pays for Etsy shipping fees? Whatever case, customers pay for shipping. They are buying the item, a lot of procedures follow before the product is ready for sale.
The money you earn from your business must cover all your business costs. This includes the time you take photos, upload, and edit the item’s images, the cost of the label and box for shipping, and more.
The money paid by buyers must cover all those costs, which is the purpose of business, to make more profits. As we had earlier seen, offering free shipping gives you an upper hand over your competitors; the truth is the entire shipping fee in product prices.
But, it’s your choice; you can maintain the prices and reduce profits; increase prices, including the shipping cost; increase your price to cover some shipping cost and reduce profit to cover other things.
First, look at the numbers and ensure the prices listed can cover all your expenses and leave you with profits. If you don’t make additional charges, you may end up going at a loss. Lack of healthy profit margins in your business can make it difficult to offer discounts and adjust prices to buyers.
Once the products are well priced, you can adjust the shipping cost, which favors customers, therefore helping your business.
Should you Charge Buyers Taxes on Etsy?
It would be best to consider sales tax, expenses, and income tax to avoid confusion when it comes to taxes. As a seller, understanding and adhering to laws is vital. Tax laws vary depending on your sales, business location, shipping locality, and so on. You can check out Etsy’s laws of selling handmade goods.
Some states have implemented some laws governing online marketplaces. Etsy has already started collecting, calculating, and remitting seller taxes when shipping products to some states. Though Etsy is not collecting, calculating, and remitting taxes for all locations, it doesn’t mean your business should not do the same.
A business expense depends on the type of business and jurisdiction. There are various indirect business expenses that you can write off, like using a personal car for business, working away from home, traveling for trade shows, and more. The more you can legally write off as a business expense, the less you will spend paying taxes, so tracking your business expenses is essential.
If you sell products and earn profits, that’s a business, and reporting your income while filing income taxes is essential. Reporting your income depends on the type of business you are running. Is it a partnership, sole proprietor, corporation, or LLC?
A tax on your income is the money balance after you’ve deducted costs and expenses of the items sold. To avoid reducing how much you spend on taxes, keep track of your expenses and costs.
Right now, as a seller, you might have found the answers you were looking for: Is selling on Etsy worth it. Since you now have an in-depth understanding of the Etsy platform, let’s look at consideration factors for easy things to make and sell on Etsy.
As an Etsy seller, you should always be ahead of trends. Trends significantly influence what buyers are looking for and how many sellers offer the same product. If your products are tend-focused, you’ll be the first seller selling trendy products. With trendy items and positive reviews, your items will be very attractive to customers.
There are various reasons that people shop online
· Looking for specific items
A person may be interested in a product they saw their mentor or celebrity wearing once in a while. At that moment, they begin searching for what they saw. So, while selling on Etsy, consider what people ask about what they need. With specific titles to your niche, people will find what you are selling.
· Comparison shopping
Buyers research and compare products only when they don’t know which business or the features to look for. Understand your business targets and compare the features they are looking for. This way, your listings will stand out, therefore, selling better.
· Convenient shopping
Online shopping tends to be more convenient than local shopping for busy people. Essentially, you’ll find them ordering things that are easily accessible in their local shops. But, since they are busy driving to the nearest shop, they will prefer to pay extra and get their item delivered to their doorstep. If your Etsy shop can be more convenient to buyers, you’ll make good sales.
· Shipping fees
Etsy is encouraging sellers to give free shipping to their customers. If you have not priced your products for profits, it’ll be challenging to cover costs, including shipping costs. As mentioned before, the best way is to include the shipping cost fee in the product price. Ensure all of your expenses, and you’ll still get profit after selling the items.
You can check out eBay vs. Amazon vs. Etsy and compare how people price their products that fall in your niche. Besides that, sites like Amazon sellers expect cheap and fast shipping, which is also a good move.