Avoid these 3D printing expenses that can ruin Etsy sellers

Table of Contents

1. Introduction
2. The Importance of Knowledge for Starting an Etsy Store
3. The Five Expenses You Need to Manage for Success on Etsy
   1. Expense 1: The Cost of 3D Printers
   2. Expense 2: Filament Costs
   3. Expense 3: Packaging and Shipping Costs
   4. Expense 4: Advertising with Etsy Ads
   5. Expense 5: Platform Fees
4. Other Overhead Costs to Consider
5. Conclusion
6. FAQ

Article

The Five Expenses You Need to Manage for Success on Etsy

If you're looking to start an Etsy store to sell your 3D printed models, avoiding failure starts with knowledge. As someone who has been selling 3D models on Etsy for the past 4 years and has achieved top 1% seller status with over 9,000 sales, I understand the importance of managing expenses. In this article, I will share the five expenses that you need to have a handle on if you want to find success selling your models on Etsy. I will also provide some of my best tips on using Etsy ads to boost your sales.

Expense 1: The Cost of 3D Printers

You can't have a print farm without 3D printers, so the first expense we need to address is the cost of the printers themselves. Your printers will likely be your largest single transaction cost. However, over time, your other costs will cumulatively end up being way more than the cost of a single printer. When it comes to printers, you generally get what you pay for. Initially, I started with Creality machines, but I found that they often required repairs and resulted in downtime. I then switched to Prusa machines, which were more reliable but still had occasional breakdowns. Finally, I transitioned to using Bamboo Labs printers exclusively, and I have experienced zero breakdowns in the last 12 months. Keep in mind that the frequency of repairs and maintenance will depend on the quality of the machine you choose. While higher-quality machines may be pricier, they can save you money in the long run by minimizing downtime and repair costs.

Pros:

• Higher quality machines result in less downtime and repairs
• Long-term cost savings
• Improved efficiency and productivity

Cons:

• Higher upfront cost for quality machines

Expense 2: Filament Costs

Contrary to what some beginners may think, spending too much time focusing on the cost of filament and negotiating bulk discounts can be counterproductive. When starting out, it is more important to focus on other aspects of your Etsy shop and 3D print farm. Spend your time on improving your product photography, optimizing your SEO, and creating products that people actually want to buy. While filament costs are a factor to consider, it is better to walk before you run. Bulk discounts and worrying about filament costs can come later when your shop is generating sales and you have a clearer picture of your needs.

Expense 3: Packaging and Shipping Costs

For every 3D print farm and Etsy shop, packaging and shipping costs are inevitable. It can be frustrating to discover that the cost of packaging materials often exceeds the cost of the plastic itself. However, there are ways to manage these costs effectively. One strategy is to offer free shipping to customers who order a minimum of $35 worth of goods. This encourages larger orders and helps offset the cost of packaging and shipping. Additionally, consider sourcing your packaging materials from local suppliers instead of relying solely on larger companies. Local suppliers often offer competitive prices and the convenience of quick pickups when needed.

Expense 4: Advertising with Etsy Ads

Effective advertising can significantly impact your sales on Etsy. While there may be differing opinions on advertising, I have found success with Etsy ads over the past four years. The key is to be strategic in your approach. Instead of advertising every single listing in your shop, focus on new listings for a period of 2 to 4 weeks to gauge their performance. A general rule of thumb is that your return on investment (ROI) should be at least 3x. This means that for every dollar spent on advertising, you should generate at least $3 in revenue. Consider using the 80/20 rule, where you advertise approximately 20% of your shop listings that are likely to generate 80% of your revenue. By carefully managing your ad spend and tracking your overall shop revenue, you can ensure that advertising is a beneficial and cost-effective strategy for your Etsy shop.

Expense 5: Platform Fees

While platform fees may be frustrating for many sellers, it is important to recognize their necessity. Leaving Etsy solely due to platform fees may not be a viable solution, especially if Etsy is responsible for a significant portion of your sales. Building the cost of platform fees into the pricing of your products and focusing on increasing overall sales can help mitigate the impact of these fees.

Other Overhead Costs to Consider

Apart from the five main expenses discussed, it's important to remember that there will be other overhead costs associated with running your 3D print farm and Etsy shop. These costs will vary based on factors such as storage space, utilities, packaging supplies, equipment maintenance, and software subscriptions. It is crucial to analyze and plan for these expenses to ensure the profitability of your print farm in the long run.

In conclusion, managing expenses effectively is key to the success of your Etsy shop and 3D print farm. By understanding and optimizing the costs of 3D printers, filament, packaging and shipping, advertising with Etsy ads, and platform fees, you can position your business for profitability. Remember to continuously evaluate and adjust your strategies to adapt to market changes and maximize your potential for success.

Highlights:

• Starting an Etsy store requires knowledge and understanding of expenses to achieve success.
• Managing 3D printer costs is crucial, as investing in quality machines can minimize downtime and repairs.
• Focusing on product quality and optimizing SEO is more important than obsessing over filament costs.
• Strategies like offering free shipping for certain order values and sourcing packaging materials locally can help reduce packaging and shipping costs effectively.
• Strategic advertising through Etsy ads can generate positive ROI when implemented correctly.
• Platform fees are an unavoidable reality, and incorporating their costs into product pricing is necessary.

FAQ

Q: How can I minimize downtime and repairs for my 3D printers? A: Investing in higher-quality machines from reputable brands can significantly reduce the frequency of breakdowns and repairs.

Q: When should I start worrying about filament costs and bulk discounts? A: It is important to prioritize other aspects of your Etsy shop, such as product photography and SEO, initially. Focus on generating sales and understanding your market before delving into filament cost negotiations.

Q: How can I manage packaging and shipping costs effectively? A: Offering free shipping for orders above a certain value can encourage higher-value purchases and help offset packaging and shipping costs. Additionally, sourcing packaging materials from local suppliers can offer competitive prices and convenient pickup options.

Q: Are Etsy ads worth the investment? A: Etsy ads can be beneficial for generating sales, but it is essential to track your return on investment (ROI). Aim for an ROI of at least 3x, ensuring that your ad spend generates significant revenue.

Q: How can I deal with platform fees? A: While platform fees can be frustrating, it's important to factor them into the overall pricing of your products. Focus on increasing sales and diversifying your revenue streams to mitigate the impact of platform fees.