Is Etsy still worth it? Here's what you need to know!

Table of Contents

1. Introduction
2. Pros of Selling on Etsy
   • Low cost and low risk
   • Improved fee breakdown
   • User-friendly website
   • Buyers trust Etsy
   • High traffic
   • Assistance with taxes
3. Cons of Selling on Etsy
   • Offsite ads
   • Star seller badge
   • Saturated platform
   • Resellers and dropshippers
   • Customer service issues
4. Conclusion

Pros and Cons of Selling on Etsy

Etsy has become a popular platform for individuals looking to sell their products online. With its unique marketplace for handmade, vintage, and craft items, Etsy offers sellers a platform to showcase and sell their creations to a wide audience. However, like any other online marketplace, there are both pros and cons when it comes to selling on Etsy. In this article, we will explore the advantages and disadvantages of selling on Etsy, giving you a comprehensive understanding of what to expect.

Pros of Selling on Etsy

1. Low cost and low risk

   • The fees and costs associated with running an Etsy shop are relatively low compared to setting up and maintaining your own website or being on another platform. Despite the fees, when priced correctly, they should not pose a significant problem for sellers, making Etsy an affordable option for starting out.

2. Improved fee breakdown

   • Etsy has recently made changes to how they present fee breakdowns, aiming to be more transparent and clear. While there is still room for improvement, the new breakdowns are a step in the right direction, offering sellers better visibility into the fees they are charged.

3. User-friendly website

   • Etsy's website is known for its ease of use, making it enjoyable for both sellers and buyers. With a clean and intuitive interface, navigating the site becomes a seamless experience, enhancing the overall shopping experience for buyers and potentially leading to increased sales for sellers.

4. Buyers trust Etsy

   • Etsy has built a reputation for trust among buyers. Compared to having your own website, where buyers may have reservations about purchasing from an unfamiliar seller, Etsy provides a safety net for buyers. They know that if anything goes wrong with their order, Etsy has their back, ensuring a positive buying experience.

5. High traffic

   • One of the significant advantages of selling on Etsy is its vast amount of traffic. Etsy attracts a large number of visitors, giving sellers the opportunity to tap into an existing customer base. While standing out among the competition may be challenging, a fraction of the massive traffic on Etsy can still result in substantial sales for sellers.

6. Assistance with taxes

   • For sellers in certain countries, such as the UK, Etsy collects and remits the necessary taxes on their behalf. This streamlines the process for sellers, eliminating the burden of calculating and managing taxes. By handling tax-related matters, Etsy further reduces the administrative tasks for sellers, allowing them to focus on their craft.

Cons of Selling on Etsy

1. Offsite ads

   • Etsy's offsite ads have been a contentious issue for sellers. While sellers can opt out of these ads initially, once they reach a certain annual revenue threshold, they are automatically opted in. This means that sellers may have to pay a significant fee if a sale is made through these offsite ads. The lack of control over this aspect can be seen as a con for some sellers.

2. Star seller badge

   • The star seller badge is intended to distinguish sellers who excel in areas such as quick responses to queries, prompt shipping, and positive feedback. However, the implementation of this badge was met with confusion and technical issues. The lack of clarity surrounding the badge's impact on search rankings added to the frustration experienced by sellers. Despite its potential benefits, the flawed rollout of the star seller badge remains a con for many sellers.

3. Saturated platform

   • Etsy, like any online marketplace, has a considerable number of sellers, leading to a highly saturated platform. Competing for visibility and attention among the vast number of listings can be challenging for sellers, requiring them to put in more effort to stand out from the competition.

4. Resellers and dropshippers

   • The presence of resellers and dropshippers on Etsy is an ongoing concern for many sellers. Handmade items are expected to dominate the platform, but the inclusion of mass-produced items listed under the handmade category deviates from Etsy's policies. Sellers who genuinely create unique handmade products may find it difficult to compete with these mass-produced alternatives.

5. Customer service issues

   • One area where Etsy falls short is in its customer service. While sellers are encouraged to respond to messages within 24 hours, Etsy's own response time is often slower, leaving sellers frustrated. The lack of prompt customer support can be a drawback for sellers who rely on efficient communication to address buyer inquiries and resolve issues quickly.

Conclusion

Selling on Etsy comes with its own set of pros and cons. The low cost, improved fee breakdown, user-friendly website, buyer trust, and high traffic make Etsy an attractive platform for sellers. However, sellers must be aware of the challenges posed by offsite ads, star seller badges, market saturation, resellers, and customer service issues. Ultimately, the decision to sell on Etsy should be based on an individual's unique circumstances and business goals. By considering these pros and cons, sellers can make an informed choice and navigate the Etsy marketplace with confidence.