Why Sell on Etsy – Introduction
As you have probably already noticed, demand for handmade goods and crafts has exploded over the past few years. Demand has increased so quickly that the supply of handmade items has lagged behind. If you are looking for a way to make some extra money, opening a handmade shop on Etsy is a perfect place to get started. If you are unfamiliar with Etsy, or you want to know more about it, check out my Etsy Overview. I opened my handmade shop on Etsy, and I am definitely glad that I did. Many members of this community have asked me, “Why Sell on Etsy?” This post details why Etsy is a great place to sell handmade products online and why now is the perfect time to open your shop! I include concrete examples and include detailed graphs. I’m a little bit of a research nerd, and I actually enjoy looking at financial statements. At least that means you don’t have to! 🙂
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This Post is Unbiased
I previously owned stock in Etsy, but I decided to sell all of my shares prior to creating this community and making it public. I wanted to make sure that all of the stances and reviews I have on this community are seen as they actually are, unbiased and independent. I want to make sure that you value this free information and you can trust it, and I will always remain open and honest. If you ever have any questions regarding my intentions, feel free to send me a message. I respond to all emails and messages.
Why Sell on Etsy: The Ultimate Guide
There are several very important reasons that Etsy makes a great place to open your new handmade shop, and now is definitely the perfect time to start. I have detailed the supporting factors below, but they are in no particular order. Each factor impacts people in different ways, so it would be impossible for me to order them by importance.
1. Worldwide Reach of Online Marketplaces
Etsy is the perfect place to open your handmade shop, and this is due to several factors. The first reason for opening your shop on Etsy is the worldwide reach of this expansive marketplace. Selling items online allows your product to reach all over the world. Etsy was the first online marketplace that mastered selling handmade goods worldwide. Recently, other large online retailers (cough Amazon) have attempted to follow in Etsy’s footsteps and ultimately hope to surpass Etsy. The brand recognition of Amazon is probably greater, but most people don’t associate Amazon with handmade. Etsy is an online marketplace that is definitely known for selling quality handmade goods.
2. Ease of Use
The second reason to open your shop on Etsy is ease of use. I can tell you from experience, opening a shop on Etsy is much easier & startup costs are much cheaper than opening up your own website. I’ve spent hours researching how to create and optimize a website from scratch, and I would still consider myself a beginner. Time is an extremely valuable resource for courageous people trying to open a new business. I would argue time is the MOST valuable resource. Most people can open their Etsy shop in a couple hours or less, but it takes more time to get your shop optimized. I would estimate that Etsy completes 90% of the work that it takes to open an online website for your handmade shop. They also make the last 10% very easy, and the tips on this My Handmade Hub community makes it even easier!
The third factor that I would like to detail is cost. The fees Etsy charges are minimal in comparison to the value the company provides. For example, if your shop is located in the United States, and you sold a $50 item + $20 Shipping, your total fees would be $4.30. This works out to roughly 6% of the total sales price in this example. Even if you owned your own website, there would still be processing costs for accepting payment, and you also have monthly hosting fees. The fees for running your own website add up fast. It might be worth starting your own website if you already have a successful handmade shop and you’re selling thousands of dollars worth of goods every month. If you’re just starting out, the Etsy fees are minimal and well worth the service that they provide. If you would like to learn more about Etsy fees, I suggest reading my detailed summary of Etsy fees.
The fourth reason you should open your shop on Etsy is demand, or more specifically, the growing number of buyers relative to sellers. I wanted to do more than just state that demand is high, so I decided to do some research. I spent a couple of hours digging through Etsy’s latest quarterly financial statements, and I created the following graph:
The number of active buyers has grown steadily over the past couple of years, while the number of active sellers has stayed relatively flat. This has resulted in a shortage of sellers on Etsy, and the gap doesn’t seem to be closing anytime soon. This means that if you select a good category and product niche, you are very likely to have success! In fact, this is one of the biggest gaps in supply in demand I have seen. In case the first graph wasn’t enough, I created a second one:
This graph shows that as of 3/31/17, there were roughly 16 active buyers for every seller! You can tell that unless something drastically changes, there will be an even bigger shortage of sellers going forward. The trend is going in one direction, and it will be difficult to stop. This is a huge benefit for people with existing Etsy shops and those looking to get started.
Discover why handmade goods are important to our economy (outside website).
Why Sell on Etsy: Summary
If you are selling handmade items, Etsy is the perfect place to open your shop. It has an expansive reach, is known as a handmade marketplace, is easy to use, requires low start up costs, and has a large number of buyers especially compared to sellers. If your shop grows substantially, you can always create a website in the future. There is no better place to start a handmade shop, and there is no time better than now!
If you would like to learn how to open your Etsy shop, click here.
Why Sell on Etsy: Comments
Do you have other questions regarding the topic, Why Sell on Etsy? Can you think of other benefits of selling on Etsy? Are you glad that you have recently started your business on Etsy? Please help this community grow by leaving a comment or question below!
Thanks for taking the time to read this post, and keep growing!