Founded in 2005, Etsy,com is an online e-commerce marketplace for independent makers, DIY crafters, and collectors who can open virtual storefronts to sell their products. Around 80% of sellers are women, and all are independent creators.
It’s a little like Amazon for independent sellers who are selling handmade, unique, or niche products. The goal is to create an expansive marketplace of products from different sellers so that customers can find great vendors. There are over 7.47 million sellers on Etsy as of 2022 and over 95 million active buyers.
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How Etsy Works?
Etsy is pretty simple to navigate, whether you’re a customer or a seller.
The first step on Etsy to get up and running is to make an account, pick a username, and then click ‘Sell’ on the Etsy site to open up your shop (something we’ll be talking about).
They will describe their store, set up a profile picture, load their inventory, and make product listings. As you choose, you can customize shipping costs, carriers, and delivery times. You can also do everything on Etsy’s website or app, depending on which you prefer: sell to the buyers, communicate with them, and keep an eye on the sales.
What is the Downside of Etsy,com?
There are lots of good things to Etsy for selling from, like a ready international audience already wanting to purchase things that are handmade. But, there are a few downsides to selling on the platform, such as:
Fees: The fees Etsy charges you to list and sell your items are based on how you list and sell your items. That takes fees on fees, and the total can add up, especially if you have slimmer profit margins.
Competition: First, Etsy is a competitive marketplace with millions of sellers. It’s hard to stand out among the legion of listings—especially if you’ve got good SEO (Search Engine Optimization), great product photos, and original products.
Dependence on Etsy’s algorithm: Etsy uses a complex algorithm to determine how products are displayed in search results, just like Amazon. Changes to this algorithm can significantly impact your listing’s visibility and sales, and it’s often without warning.
Limited customization: Etsy doesn’t let you customize your store like having your own website. You’re confined to the layout and design constraints set by Etsy, which can limit how to show products and tell your brand story.
How to start an Etsy store
- Sign in or create an Etsy account
- Create a listing
- Choose how you’ll get paid
- Set up your security
- Optimize your profile
- Keep your shop policy simple
- Add relevant categories and attributes
- Maximize your tags
What selling on Etsy is like?
On Etsy, crafters can sell physical goods like home goods and clothing, digital downloads, vintage items (which must be 20+ years old), and craft supplies through either organic search or promoted listings.
They can do so on their terms, choosing when they’ll ship out items, what shipping carriers they want to use, and how much they want to charge. They can also enable or disable different third-party payment options, giving sellers a lot of control over their storefronts while still granting buyers high levels of flexibility that benefit them.
Meanwhile, users can scroll through different product categories to find exactly what they’re looking for. After choosing what they want, they can read about the product itself, see images of the product, read reviews of it, and view the seller’s profile.
What buying on Etsy is like?
As a customer, you can create an account or check out as a guest and then become a customer on Etsy. If you know what you are looking for, you can browse products by category, or you can order one that suits just you.
Once you find what you are looking for, you can see detailed product descriptions, customer reviews for the product and for the seller, and shipping options. Payment options vary based on the seller, but credit card, PayPal, and Klarna payment options are almost always available.
Customers and sellers can communicate back and forth. This allows customers to ask about products before purchasing, request updates about order tracking, and discuss concerns or further questions once the item is received. Sellers can also reach out to ask for reviews.
