Everything You Must Know About Making Money on Etsy
What is Etsy?
Etsy is an e-commerce website, for people to purchase and sell goods. The goods include handmade products and crafts supplies, such as jewelry, bags, clothing, toys, art and craft products. This website has made an online exchange of trade easier and allows anyone to sell whatever they wish to. Etsy became extremely popular during the late 2000s, due to people who started selling their handmade products from home, like homemakers, seniors and also side-hustlers to make extra money. Today, it is the biggest platform for side-hustlers to showcase their art and products and make it easily accessible to people globally. Some people who had started doing part-time have gone on to become full-time Etsy shop owners, emerging into entrepreneurs.
To start an Etsy shop, you have to work out your brand logistics. That includes the name, logo, pricing, marketing, etc. Now that your brand is well thought out, you have to list your products. Listing of products requires a certain amount of fee and creative design and layout. You put in keywords, and you’re ready to go. Etsy will curate the buyer’s search engines. You will need to calculate your products’ price as well as their shipping costs. Your popularity will increase depending on the number of ratings, reviews, and sales you have, although they have to be positive reviews.
Pros
Easy to Setup:
Creating an Etsy shop is extremely easy and less overwhelming. They have kept a simple step-by-step procedure to create an Etsy shop. Just keep following through the steps and in five minutes, you will be an Etsy shop owner. For the shop creatives, you have a range of options, but you can always customize your banners on other platforms like Canva or Adobe.
SEO and Analytics:
Etsy has made it simple for sellers to maximize profits by including SEO. They let you insert keywords so when people search for something, they can find your shop. The feature allows you to do something to make your shop visible amongst all the other shops. Besides SEO, they also allow you to see the sales, views and reach of your listings and products.
Mobile Apps and Communication:
The platform has a mobile app that caters to user-specific needs, like curated recommendations. It has also made it easy for the sellers to connect to the buyers through an in-built chat system. The app makes it simple for the seller to track the sales and answer queries with a mobile, instead of having to switch on a laptop often.
Cons
Saturated Market:
Etsy is a huge platform that has surfaced various sellers and shops over the decade. Amongst all these sellers, it is difficult for new shops to get recognition in such a saturated market. Etsy is only a platform to sell your products, and thus, it should not be the only platform on which you rely entirely. With the rising market, various platforms are emerging too.
Seller Fees:
Etsy takes approximately 5% transaction fee and another payment processing fee. Even when you are listing your product, you are required to pay a $0.20 fee. For small sales, this does not sound that bad. But for more massive sales, it keeps adding on and is not quite profitable to the seller.
Low Shop Recognition:
Sellers do not get directly recognized on Etsy. Since Etsy is the distribution channel, the first name that people see is Etsy and not the seller’s shop. For instance, a buyer will often recommend the product to a friend by telling them that they bought it on Etsy. The seller’s name could be least to not recognized at all. Besides this, the platform suggests similar products by your competitors, rather than your other products. Since its main focus is buyer satisfaction, the platform does not have valuable benefits for an Etsy shop owner.
Tips for Doing Better as an Etsy Shop Owner
Finalize a Name:
Etsy has a lot of shops on their platform, and you have to do as much as possible to make your shop stand out on the platform. It has to be a perfect and catchy name. As we know that Etsy does not provide as much recognition that is required when customers are buying the products. So if your shop has an extraordinary name, it will be stuck in the buyer’s mind.
Keep Specific Goals:
Everyone tends to have big plans for their businesses. To achieve a long-term goal, you need to overcome smaller goals. Instead of making a long-term plan for your shop, make short-term goals you want to complete in possibly one to three years. Short-term plans help on being realistic about sales and keeping attainable goals. Besides, it will only boost your confidence once you start checking things off from your list of goals, and make you work better.
Use Keywords:
Since Etsy is a concept built on SEO similar to all digital channels in today’s world, you should make use of as many keywords given in the limit. Words relating to your product and categories will easily curate the buyer’s feeds. It will also gather more traffic.
Appealing Pictures:
Photos are the first thing on which the person or buyer will determine the product’s appearance. Make sure your product is focused instead of the background in the photo. To get a proper click, you do not have to invest in a DSLR. Try to read tips on highlighting the product and its features rightly in one picture, such as using a neutral background instead of a noisy one or using fewer props but the right ones.
Treat it Like a Real-Life Shop:
Walking into a shop and being appealed by so many things that you end up buying almost everything you see is the best feeling for the shop owner. That is the feeling that you should be aiming for even digitally. Make use of the customization features on the platform. Put yourself in the shoes of the buyer and try to envision what you can keep improving.
Now that you know everything about establishing your shop on Etsy, why wait? Get started with your new business.
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