Is Etsy Still Worth It?
Especially for small businesses
Is it worth it to sell on Etsy?
When Etsy started in 2005, I was one of the first sellers. I joined them only 4 months after they opened. Back then I was selling jewellery, and handmade beads.
So when it comes to Etsy, believe me, I know how things were, I mean how things REALLY were, as opposed to today.
A lot has changed since then. I remember even holding townhall mettings online where you could chat with the founders, they were young guys riding the subway like regular people. Now they make millions of dollars every year. So yes, a lot has changed.
Etsy was really handmade back then. You could buy supplies as well, but they were little mom and pup shops or individuals like myself. Now, ladies and gentlemen, we are running up against big wholesalers. Not only that, we are dealing with scammers, thieves, you name it. So it is not a fair game anymore.
When it comes to things being handmade, a lot has changed there as well. We now have print on demand companies doing dropshipping for you. We have now the artificial intelligence designing things for you. Then we have real artists and crafters, and they sometimes see their designs stolen by some overseas wholesaler, and shamelessly put on Etsy next to theirs.
I STILL SELL ON ETSY
I must be crazy, or maybe I just like hurting my brain. I still sell on Etsy. Because, truth be told, many other companies were born in the last 19 years, but none of them was able to catch the same wave Etsy did. Most of them disappeared, maybe one or two of them are still around, but barely making it. I tried Artfire and Dawanda (yes I am that old), but neither one of them brought me enough money. They didn't even come close.
Before Etsy, I was selling my crafts on Ebay, and I was doing fine, but Ebay wasn't really the kind of platform to sell handmade things either. I used to also sell used books on Amazon when Jeff Bezos was still operating his business in his garage. Now he takes his brother up to space for his birthday. So, I have been around for a while.
Why should you sell on Etsy?
- It is still a growing community.
There are nearly 8 million sellers now, and the number is growing. Etsy saw an incredible growth in seller numbers during the quarantine. This also brought in many new shoppers. It does mean the competition is getting more and more fierce, but the company is still strong. From time to time they might see ups and downs in the stock market, but it doesn't affect the buyers too much.
2. Fees are not the best but are manageable.
When you list an item on Etsy, you pay a flat fee of 0.20 cents. Your item will remain active for 4 months. Then comes the transaction fees. It might change depending on your country but it is around 6.5% of your total item price. And then payment processing fees. etc.
In my case, I pay around 18 to 20% of my total Etsy income all Etsy fees combined. I sell digital products, so shipping fees or expenses is something that I do not deal with.
I list a lot of items, I renew existing listing to boost them, I also pay $10 each day for advertising on Etsy. So, I spend a lot. Yours might be a different case. The average price of my items are around $13 to $14. In the end, I still make a generous five figure income, after all the fees and expenses.
You would spend on average 20% of your earnings on any platform nowadays. So Etsy fees are not outrageous in my opinion.
3. They have great ranking on Google.
This is important. Even if a buyer is not searching anything specifically on Etsy, they will see Etsy products on the first page of Google. I got several customers click on my listings through Google search, and they bought my items on Etsy. So, it works.
I sell some of my designs on other platforms like Redbubble, etc. but they don't have the same rankings as Etsy does, unfortunately. I sell on other platforms every once in a blue moon.
4. Etsy constantly invests in marketing.
First one being Google ads, they put ads on social media, on TV, and magazines. As a result, the number of buyers constantly keep increasing. When I first started selling on Etsy, even five or six years after selling there, many of my friends had no idea what Etsy was. I used to always explain. Now, it is rare for me to see someone who never heard of Etsy before.
5. Category options are diverse.
Over the years, Etsy added many new categories and subcategories for the sellers to list a wide variety of items. From fine art to digital downloads and printables, from audio meditations to tarot readings, from handmade jewelry to vintage outfits, you name it.
The large selection of categories gives both sellers and buyers the possibility and the motivation to stay on the platform and buy different things without leaving the platform.
6. Etsy makes accounting and taxes easier to deal with.
Etsy partnered with Turbo Tax, Quick Books, Tax Jar, and Tax Cloud to easily manage your taxes and keep track of your earnings and expenses. They send you a 1099 form (this might change if you are outside of the USA) at the end of the year. You can get it in paper or digitally.
I remember the days when I used to sit down and add everything one by one. Now I can see how much my gross income is, how much my fees are (all categorised), and see the grand total for every single month. This is such a big relief.
7. There are many online courses or educational materials out there.
Go to Amazon, you will see lots of books on how to sell on Etsy. YouTube is full of information videos. There are thousands of articles on the internet. You won't feel like you are walking in the dark. Just spend a few days groing through some of them, and you will already have gained enough knowledge to get you started.
So yes, Etsy is still profitable. The competition is much tougher, but if you educate yourself a little bit before you get started, you will definitely find a way to build a working Etsy store. After 19 years, this is still the only platform that brings me most of my actual income.
If you want to keep updated on my Etsy articles, please follow me here and subscribe to my mailing list. Here is the link to my most recent article:
Thank you for reading! Let me know in the comments if you have any questions.