Plus: Etsy Store vs. E-Commerce Website & A How-to Guide to Setting Up an Etsy Store
Etsy’s undergone a lot of changes lately, with algorithm and advertising changes as well as the restructuring of their seller’s fees. So, is Etsy worth it for businesses in 2020?
Maybe.
How to Know If Etsy Will Work for You
Etsy may be a waste of resources for some businesses and a great choice for others. Here are a few ways you can determine whether Etsy is worth your time and energy…
You Have Time to Let Your Store Grow
Successful stores don’t grow overnight. They take time, often months of presence to gain traction. You have to put in the time and effort… and at least a little advertising money. More on that below.
You Have Extra Cash for Advertising
Etsy offers an on-site advertising platform for sellers. The minimum daily budget is $1, and the maximum is $100. Sellers are advised to give their advertising time as most sellers won’t see positive results for at least 30 days. Ads are shown on Etsy and on Google Shopping, sometimes with mixed results.
You Have a Digital Fan Base to Support Your Store
Etsy rarely succeeds in a vacuum. You’ll need to drive traffic to your new Etsy store from your highly-engaged social media followers. Treat your Etsy shop as a brick-and-mortar store, aiming to drive “foot traffic” to your store, with the ultimate goal of converting your fans into customers… and eventually brand superfans!
You Have the Time to Nurture Your Shop
Etsy stores take time to manage. You’ll need to curate new items, take high quality attention-grabbing product photos, monitor your ad performance, answer customer questions, fulfill orders—in other words, your Etsy store, if successful, will act as a totally separate online store.
Your Goods Make Sense for Etsy
Etsy’s main categories are as follows: Jewelry & Accessories, Clothing & Shoes, Home & Living, Wedding & Party, Toys & Entertainment, Art & Collectibles, Craft Supplies, and Vintage. If your goods don’t fit one of those categories, Etsy may not be right for you.
Etsy vs. E-Commerce Website
There is a trade-off with using Etsy vs. creating your own e-commerce website. Etsy provides you with a ready-made platform and infrastructure to handle payments, shipping, and other logistics. On the other hand, you have limited control and are placed next to 100s of competitors, which makes it more difficult to stand out.
Here are some other pros and cons:
Selling on Etsy
Pros…
Etsy is ready to go “out-of-the-box” and provides you with a store design layout, freight tracking, page insights, and payment processing platform.
Customers trust you quicker because they trust the Etsy brand.
You can get help from their responsive customer support or through community help boards.
Can be beneficial for beginners who may want to “test the waters.”
Cons…
You have lack of control and you’re at the mercy of the company’s policy changes and administrative decisions.
Branding can be hard because of the lack of control over design choices and layouts, making it difficult to market your shop effectively and stand out from other shops.
Potential customers can get easily distracted and lured away from your page by ads from competitors and the “You May Also Like” section.
You have to pay a small fee per product listed, in addition to transaction fees, which means that if you’re not selling a product, you’re losing money on it.
Selling on Your Own E-Commerce Site
Pros…
You have full (or at least more) control over marketing, web design, and (very importantly) SEO, which means that you can really roll up your sleeves and help your website achieve it’s full potential.
A professional looking website can go a long way building credibility and helping others take you more seriously. Some may see an Etsy seller as someone who does it on the side or as a hobby, but a well-designed website shows that you’re investing on your company and are serious about it.
You control what’s on each page and what isn’t (such as competitor advertising—get that outta here!), so there are fewer customer distractions.
Cons…
Competition is still very much a reality and you will have to have a solid and comprehensive marketing plan to help your website stand out and succeed.
You have to invest on your website. This is key. You have to have a great, professional-looking, user-friendly, search-engine-optimized website. You’re competing with the world wide web now. This is the big league.
The initial monetary investment might be higher, since you have to purchase a domain, hosting, and potentially recruit the help of professionals.
So, if you think Etsy is the way to go, how do you go about getting started?
How to Start an Etsy Store
1| Understand Current Fees
There are quite a few fees to get acquainted with for your Etsy store. You’ll be charged a listing fee of $0.20 per item. When you make a sale, you’ll be charged a transaction fee of 5% for the price you display for each listing plus the amount you charge for shipping and gift wrapping. Read more about that here.
2| Register for an Etsy Account
It’s easy! Start here.
3| Set Your Shop Preferences
These preferences include language, country, currency, and more.
4|Choose a Name
Pick something descriptive and memorable.
5| Add Items, Fill out Listings, and Publish
Upload photos, add listing details and tags, complete pricing, set a shipping price, and more. Get more details here.
6| Choose How You’ll Accept Payments
Options include PayPal, check or money order, “other,” or Etsy Payments.
7| Set up Billing Information
U.S. sellers can have Etsy automatically charge a credit card for any selling fees that are racked up.
8| Open Your Store
Go you!
9| Customize
Upload your shop profile and cover photos, customize your policies, and add sections. Here’s a great example store to check out.
10| Spread the Word!
The key to your success will be to promote your store effectively. Don’t be shy—share your store on your social media accounts (you can even create accounts for your new store!) and ask friends and family to share it with their network. They want to see you succeed!
Final Thoughts
So, to Etsy or not to Etsy? It really depends on your business goals. If you’re looking to just make some extra cash in a way that’s relatively easy to manage, an Etsy store is the clear choice. If you want to start a business that may some day become your full time job, a professional website decked out with beautiful graphics, professional copy, and SEO may be worth the investment.
If you fall somewhere in the middle or if you’re unsure about what you want out of this new venture, you can always start on Etsy to earn some experience, gather customer data, and practice marketing yourself, and then move to your own e-commerce website once you have some traction and business intel under your belt.
Whether you’re creating an Etsy shop or thinking about your own e-commerce site, the key is to get your hands dirty and put in the work. Make quality products. Be creative. Be responsive. Tell everyone about your business. Ask for feedback. And if you get stuck and need a little help, let us know. We’re rooting for you!