Chapter 1: The Value of Selling on Etsy

Many people dismiss Etsy as a fruitless endeavor, but I find that hard to accept. Typically, these are individuals who have either never attempted to sell on the platform or those who opened a shop without a clear strategy, expecting immediate financial success. I was once in that position, so I understand the mindset.

Starting your Etsy shop is undeniably easy. Yes, the market is crowded—100% saturated, in fact. However, what business isn't facing competition? Consider the countless coffee shops around the globe; new ones still open every day. What sets them apart from established chains like Starbucks or Tim Hortons?

Setting up a shop on Etsy is akin to launching a new cafe in an already bustling mall. If you can carve out a niche and implement a solid strategy, you can achieve success. But remember, treating your Etsy business as a serious venture and playing the long game is crucial.

In a moment, I’ll share the results from my seventh month of selling printables on Etsy. But first, let’s take a closer look at my journey.

I began my Etsy venture in 2020, eager to sell handmade goods. It was the obvious choice for me, even though I had no prior experience in online sales. I opened my shop with high hopes, lacking any real strategy or understanding of market demand. I assumed that if I created quality products, sales would follow.

Initially, sales were sluggish, and I largely neglected my shop for six months, yet I still received a few monthly orders. Over the years, Etsy has transformed into a platform that accommodates digital products. This prompted me to reconsider it when I sought to diversify my income by selling printables.

While I explored alternatives like Gumroad and Payhip, I found them less suitable. Gumroad demanded that I drive traffic myself, which was challenging without an existing audience. As for Red Bubble, the fee structure confused me, leading to frustration before I even began. Ultimately, I returned to Etsy, resolved to approach it with renewed seriousness.

To strengthen my skills, I enrolled in a course and engaged with the community, which helped me regain confidence. I launched my first printable shop on February 28, 2023.

Pros and Cons of Selling on Etsy

After several trials, I’m back on Etsy. While it’s not without flaws, there are compelling reasons to consider it, especially for newcomers without large followings. Here are some statistics to ponder:

• As of Q2 2023, Etsy boasts 6.3 million active sellers.
• There are approximately 90.6 million buyers on the platform.
• Around 88% of Etsy sellers operate their businesses independently.
• Etsy enjoyed over 465 million visits in August 2023, with its app downloaded over 80 million times.
• Fee updates have increased from 5% to 6.5% as of April 2022, still reasonable compared to Gumroad's 10% and Creative Market's staggering 40%.

Pros

These statistics should motivate you, especially if you lack a built-in audience. You have access to Etsy's vast pool of 90 million buyers. The platform actively promotes itself, partnering with high-profile figures like Martha Stewart and John Legend, and even had Sarah Jessica Parker as a judge for their design awards.

Recently, Etsy introduced two initiatives: the first covers $5 on orders over $25, encouraging purchases; the second is the Share & Save strategy, which rewards sellers who drive their own traffic with a 4% rebate, effectively reducing their fee to 2.5%. Additionally, listing a product costs only $0.20, and many bloggers provide tips for acquiring free listings.

Cons

That said, no platform is perfect, and Etsy has its drawbacks. When you sell on a marketplace like Etsy or Amazon, you have to navigate their algorithms. While you maintain ownership of your store, you don’t truly "own" it.

I encountered significant challenges when I moved from Australia to Canada; I had to create a new store, losing all my previous sales data and reviews. Starting over meant rebuilding my momentum, which took nearly a year.

Another challenge is building your brand. Most customers search for products rather than brands on Etsy. Thus, establishing an email list and considering a dedicated e-commerce site like Shopify can be beneficial. This strategy worked for me; I used Etsy to gauge the market and then transitioned to building my own brand and website.

Competition isn't a negative aspect; it indicates demand. If you find yourself overwhelmed at the prospect of launching a few listings, you might not see the traction you desire.

Time and Effort Required on Etsy

In business, expecting high returns for minimal effort is unrealistic. The same applies to Etsy. To succeed, you must commit time and energy. Initially, it will be challenging, but with hard work, results will manifest.

In the beginning, expect to invest hours into product development, listing uploads, and possibly advertising for insights. Successful sellers often create 1-2 new products daily until reaching around 100 listings. This volume helps improve your store's indexing and visibility on the platform.

The time you dedicate will depend on your product type. I initially spent around 15 hours weekly due to the complexity of my products. If your creations are simpler, you can save time. Before diving into product creation, thorough research is essential to ensure demand exists.

Though keyword research may seem tedious, it’s critical for online success. Like writers who analyze trends before creating content, Etsy sellers must do the same. Research tools like eRank, Arura, Marmalead, Sale Samurai, and Everbee can provide valuable insights into what products are in demand, competitor pricing, and effective keywords.

Admittedly, life’s obligations can hinder rapid progress. However, even with fewer listings, you can still achieve sales; it may just take longer. I started with seven products and created variations to reach 49 listings. While my growth wasn’t as swift as I envisioned, I’m still happy with my progress.

My Results on Etsy

As of September 21, here’s where I stand. I launched my shop at the end of February and made my first sale just five days later. Although my earnings aren’t life-changing, they indicate potential, especially given my limited product range and minimal time investment.

Typically, June to August are slower retail months. As my offerings are somewhat seasonal, I anticipate an uptick in sales during the upcoming months. I’ve already begun seeing daily sales, even without any discounts.

What does this suggest? If you’ve been contemplating starting an Etsy store, now is the perfect time. The busy season is upon us, with Halloween, Thanksgiving, and Christmas approaching. If you act swiftly, you could ride the wave of increased sales.

TL;DR

Etsy is a fantastic platform for launching your online business. As a beginner, you benefit from the traffic it generates. With 90 million buyers available, even capturing a tiny fraction can lead to significant earnings.

Etsy serves as an excellent testing ground for building your confidence before establishing your own brand. However, treat your Etsy venture seriously. Invest time in keyword research, platform learning, and product creation. Once you navigate the initial hurdles, your digital assets will accumulate, paving the way for passive income in the long run.

Explore the challenges and benefits of selling on Etsy after a decade. Is it still a viable online selling platform in 2024?

Analyzing the current state of Etsy—Is it still worth it in 2024? Insights for new sellers and seasoned veterans alike.