Boost Your Handmade Business with Etsy

Table of Contents

1. Introduction
2. Pros of Selling on Etsy
   1. Low barrier to entry
   2. Access to a large customer base
   3. Free to sign up
   4. Useful tools and analytics
   5. Discounted shipping rates
3. Cons of Selling on Etsy
   1. Lack of control and restrictions
   2. Influx of non-handmade items
   3. High fees and rising costs
   4. Poor customer support
4. The Story of a Bad Buying Experience on Etsy
5. Alternatives to Etsy
   1. Shopify
   2. Selling through Square
6. Conclusion

Is Etsy Still Worth it for Handmade Business Owners?

Etsy is often regarded as a popular platform for handmade business owners to sell their products. However, with increasing competition and changes in the platform, many business owners are questioning whether Etsy is still worth it. In this article, we will delve into the pros and cons of selling on Etsy, share a personal story of a bad buying experience, and explore alternative platforms for selling handmade goods.

Pros of Selling on Etsy

Low barrier to entry

One of the biggest advantages of selling on Etsy is the low barrier to entry. Unlike other e-commerce platforms that require technical skills or a significant upfront investment, Etsy is designed to be user-friendly and accessible to everyone. Setting up an Etsy shop is straightforward, and within a day, you can have your products listed and ready for sale.

Access to a large customer base

Etsy boasts a vast customer base, with millions of active buyers actively searching for unique handmade items. With 90 million active buyers in 2021, the potential for sales is significant. Selling on Etsy allows you to tap into this large and diverse market and expose your products to a wide range of potential customers.

Free to sign up

Signing up for Etsy is free, making it an attractive option for those just starting their handmade business or wanting to test the waters before investing in a dedicated website. There are no upfront costs or annual fees, making it an affordable choice for small business owners on a tight budget.

Useful tools and analytics

Etsy provides a range of tools and analytics to help sellers manage their shops and gain valuable insights. From sales reports to customer analytics, these features make it easier to track your performance, identify trends, and make informed decisions to grow your business. Additionally, Etsy offers convenience by handling the payment processing, allowing sellers to focus on creating and delivering their products.

Discounted shipping rates

Etsy offers sellers discounted shipping rates, which can be particularly beneficial for those who rely heavily on shipping their products. By partnering with shipping providers, Etsy provides sellers with reduced rates, saving them money on shipping costs. This can make a significant difference, especially for sellers shipping internationally or selling larger and heavier items.

Cons of Selling on Etsy

Lack of control and restrictions

While Etsy provides a platform for sellers to showcase their products, it also comes with limitations and a lack of control. Sellers have to abide by Etsy's policies and guidelines, which can restrict creativity and business decisions. The recent introduction of the "Star Seller" program, which imposes strict requirements on sellers, has caused frustration for many. Additionally, Etsy's acceptance of non-handmade and mass-produced items has diluted the platform's original focus on unique and handmade goods.

Influx of non-handmade items

Etsy's growing popularity has led to an influx of non-handmade items on the platform. Print-on-demand products and reselling have become more prevalent, undermining the authenticity and uniqueness that initially attracted customers to Etsy. This saturation can make it harder for genuine handmade business owners to stand out and differentiate themselves from the competition.

High fees and rising costs

One of the biggest drawbacks of selling on Etsy is its fee structure. Etsy charges a transaction fee of 6.5% for each sale, along with a flat rate fee of 20 cents per listing. Additionally, there are processing fees and other costs that can quickly add up. As a result, sellers may find that the fees eat into their profit margins, especially for lower-priced items. Moreover, Etsy's fees have been consistently increasing over time, making it less financially viable for some sellers.

Poor customer support

Customer support on Etsy has been a point of frustration for many sellers. Issues with communication, lack of response, and ineffective problem resolution have left sellers feeling unsupported. This can be problematic when sellers encounter problems with orders, need assistance with account-related issues, or require clarification on policies.

The Story of a Bad Buying Experience on Etsy

To illustrate the frustrations some people face on Etsy, let's delve into a personal story of a bad buying experience. In this case, the author decided to order a wedding dress from a seller on Etsy, drawn by the allure of supporting a small business and finding a unique dress at an affordable price. However, due to unforeseen circumstances and Etsy's actions, the dress never arrived, and the author received little assistance or communication from either the seller or Etsy's customer support team. Eventually, the author had to seek a refund through PayPal, which fortunately, they were able to obtain after weeks of stress and uncertainty.

This story showcases the challenges and lack of control that some sellers and buyers face on Etsy, highlighting the importance of considering alternative platforms and options before committing to selling or purchasing on Etsy.

Alternatives to Etsy

If you've had a similar experience or have decided that Etsy is not the right platform for you, there are viable alternatives to consider. Here are two popular options:

Shopify

Shopify is a comprehensive e-commerce platform that allows sellers to create their own websites without the limitations of a marketplace like Etsy. While Shopify requires an upfront cost and additional technical skills, it offers greater control over branding, customization options, and potential for growth. With Shopify, sellers can build their own customer base and have more flexibility in their business operations.

Selling through Square

For sellers looking for a more straightforward and user-friendly option, selling through Square is worth considering. Square provides a free platform with features specifically designed for small business owners. This option is particularly useful for sellers who also sell at craft shows or have a physical storefront, as it seamlessly integrates inventory management and payment processing. While Square may not offer the same exposure as Etsy, it provides a streamlined and cost-effective solution.

Conclusion

Deciding whether Etsy is worth it for your handmade business requires careful consideration of the pros and cons. While Etsy offers a large customer base and convenient tools, it also comes with restrictions, rising costs, and customer support challenges. If you have had negative experiences or prefer more control over your business, exploring alternative platforms like Shopify or selling through Square may be a better fit. Ultimately, the choice depends on your unique business needs and goals.