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Etsy is best known for home decor, jewellery, vintage items and crafts, and it’s this niche that makes the platform stand out among e-commerce competitors.
However, more than half of Etsy’s nine million sellers use other e-commerce platforms as well.
If you’re ready to start selling online but don’t know whether Etsy is the right platform for you, try asking yourself these simple questions to make sure.
1. Where are you on your business journey?
Why Etsy could work for you
Etsy’s user-friendly platform serves as a popular entry point into e-commerce for artists and makers considering monetising their craft, and can be a good platform to experiment.
“I started on Etsy because I didn’t know if I even had a brand, or if my designs would be loved… I didn’t even have a business plan,” says Paulomi Debnath, owner of a jewellery business called Handmade by Tinni.
“In the first year, you’re trying, learning, pivoting, changing things,” says Paulomi, who thinks Etsy is a “really easy marketplace” for beginners. She still finds it easier and cheaper to update her Etsy shop than her own website.
Angie Stewart, who makes quilted Christmas stockings, feels similarly about the cost of building and maintaining a good quality website. “Even if you’re able to build it yourself using a template, you’re going to be looking at £360 per year before you even start, without any guaranteed sales,” says Angie.
Setting up your own e-commerce site involves purchasing and registering a domain name, plus web hosting as a minimum. Additional services, such as email hosting, can add further ongoing costs. “That’s where the bonus of going to Etsy is…it’s a cost-effective starting point,” Angie adds.
Why you might want to consider other options
Growing your business may require you to build your brand outside of Etsy as diversifying your sales channels can help sellers reach more customers.
After opening her Etsy shop in 2019, Paulomi waited until 2021 to launch her own site, having proven that her products could attract buyers. She then invested in branding and marketing, to build on her Etsy success. “When you have an established brand or you’re growing, that’s when you need your own website,” she says.
2. Are your products handmade?
Why Etsy could work for you
Etsy’s reputation for handmade goods is of the utmost importance to many sellers.
Paulomi runs her jewellery business as a side hustle to her career in corporate events, but describes designing and making textiles and jewellery as her “passion” and her “calling”.
She describes her handmade products – made with organic cotton using a knotting technique – as “very niche”, “crafty” and “quite intimate”. Five years on, she still believes Etsy is the best global marketplace for handmade items.
» MORE: How to Open an Etsy Shop in 8 Steps
Why you might want to look elsewhere
All business owners need to understand who their target market is and where their potential customers shop.
When it comes to reach, Etsy offers exposure to buyers in more than 200 countries, but even the most beautiful products won’t sell if shoppers have other priorities.
Angie thinks Etsy shoppers “tend to have an appreciation for handmade” and are prepared to pay higher prices, whereas “people go on eBay to get a bargain.”
3. Are you willing to learn about SEO?
Why Etsy could work for you
Success on Etsy may come down to keywords, which can dramatically increase the chance of your listings appearing in a buyer’s search. Etsy provides sellers with resources to help them learn the ropes, so you don’t need to be a Search Engine Optimisation (SEO) expert before you start.
Lauren John describes herself as a small-scale craft maker who began selling papercraft and textile items after making them for friends and family.
Lauren found Etsy’s resources helpful, including tips and guidance for sellers on how to run seasonal sales. “I learned a lot about the importance of titles, tags, keywords, and taking clear photos that best show off your products,” she says.
Why you might want to look elsewhere
Understanding how to optimise listings takes time, which some small-scale sellers may not be able to justify.
Etsy Ads fees operate on a cost-per-click basis, meaning sellers are charged when their ad is clicked, whether or not the user completes a purchase.
If you decide to give Etsy a go, be prepared to put the work in and allow plenty of time to set up your store, learn from all the resources, and market yourself as a seller, says Angie, who has since opted to sell her products mainly on her own website, craftmakingideas.com, with a few products on Etsy and eBay.
She adds: “If I was just using Etsy, then I would spend an awful lot more time actually bothering to really try and SEO my stuff, or I’d take a hit and say, ‘Okay, I’ll pay for their marketing’ which bumps the fees up.”
4. Do you know how much Etsy charges in fees?
Comparing Etsy’s fees with other e-commerce sites is not straightforward, as each platform’s fee structure varies.
- Etsy charges a listing fee of £0.16 per item (renewed every four months) and takes a transaction fee of 6.5% of the total order value, including shipping. A payment processing fee of 4% plus £0.20 is also taken from each sale.
- Shopify requires a subscription which starts at £19. Transaction fees depend on the payment gateway used, for example, 3.1% plus £0.25 is taken on payments made using American Express. If a customer chooses to pay with Klarna, the fee jumps up to 4.99% + 30p.
- eBay offers free listings up to 300 items per month, then charges £0.35 per listing. Upgraded listings (such as listing in multiple categories) incur additional fees, and a 3% international fee is taken if the buyer is outside the UK.
Sellers need to take the time to understand how Etsy’s fees will impact the profitability of their business, as seemingly small amounts can steal a significant chunk of your margin – particularly when you’re just starting out.
Why Etsy could work for you
Paulomi told NerdWallet she thinks Etsy’s fees are very reasonable and are “a lot cheaper than running your website”.
However, her business is larger and more established than the other makers we spoke to. And for Paulomi, it’s her website, handmadebytinni.com, which brings in the highest number of sales. Her Etsy shop comes in second.
Why you might want to look elsewhere
For very small businesses and side hustles, it can be difficult to justify Etsy’s fees.
Lauren told NerdWallet she felt “pressure” to compete with sellers whose listings ran onto multiple pages. She also believes that Etsy disadvantages smaller scale sellers, or sellers selling lower-priced items. “I didn’t feel it was worth it for the amount I was selling,” Lauren explains.
Ultimately, selling online can be a numbers game, which may not always sit well with creative entrepreneurs.
You may find it helpful to speak to other sellers who use Etsy, either through Facebook groups or at local networking events.
Image source: Getty Images
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