Etsy has been a leading source of one-of-a-kind gifts and unique clothing for over a decade. It is often the first name people think of when looking for something personalized or handcrafted So, is selling on Etsy worth it.
In the eyes of a new seller, Etsy may appear to be the ideal marketplace particularly since its customer base increased by 78% during the pandemic. You probably have considered joining the Etsy community if you run a small business that sells custom products.
You might wonder: Is Etsy still worth it in 2024 when other eCommerce options have become easier to access and some sellers are questioning Etsy’s future?
We will compare Etsy with the most popular alternative, setting up your own online store to determine which is the best option for your business.
The future of Etsy in 2024
Despite its popularity as a custom and handmade marketplace, Etsy is still a small player in the ecommerce space compared to Amazon, WooCommerce or Shopify. In 2023, Etsy had just 0.13% market share, with about half of its sellers based in the United States.
Etsy also saw its biggest growth during the pandemic, like many other online platforms. There have been 95-96 million buyers so far this year, but the number of active sellers has increased by 21% after a brief decline in 2022, showing promise for more growth in 2024.
The majority of Etsy shoppers are women, but Etsy’s annual report shows that the male customer base is growing rapidly. This means there’s an opportunity to reach more buyers by offering products for men. You should, however, keep in mind that women often purchase gifts as gifts, such as couple’s t-shirts.
Choosing a target audience based on their age is also important. Nearly half of Etsy’s visitors are between 18 and 34 years old. So, in 2024, creating products that appeal to young adults, young professionals and parents of young children could be your best strategy.
The most popular categories on Etsy, like jewelry, craft supplies, paper goods and wedding items, are likely to stay in demand in 2024. Additionally, household items and wellness products have been rising in popularity, offering a great opportunity for sellers looking to explore new niches.
Should you sell things on Etsy in 2024?
In 2024, it is worth it to sell things on Etsy, especially if you use it along with other sites, like your own website and social media. As soon as your Etsy shop is open, you can see thousands of possible customers right away.
One of the best things about Etsy is that it focuses on custom and handcrafted goods. This helps small sellers stay out of direct competition with big names.
How hard is it to sell on Etsy?
It’s simple and only takes a few steps to open an Etsy shop. This is the hard part: picking out what to sell and how to make your shop stand out. To do well, you’ll need to know Etsy’s strategy and SEO.
It can be even easier to sell if you work with a print-on-demand service like Printful or use Etsy’s drop shipping choices. So, you can focus on making your goods and getting the word out about them while someone else makes, stores and ships them.
Etsy is the biggest market for one-of-a-kind and custom-made things, giving artists and small business owners a unique place to sell their goods.
Etsy is better than selling on your website or other options in a number of ways. For one, it lets you show off your work to people all over the world.
Pros of selling on Etsy
Etsy is the biggest market for one-of-a-kind and custom-made things, giving artists and small business owners a unique place to sell handmade items.
Etsy is better than selling on your own website or other options in a number of ways. For one, it lets you show off your works to people all over the world.
Access to a large audience
One of the biggest reasons for opening an Etsy store is its huge customer base. Etsy has nearly 100 million active buyers. It’s a big pool of potential customers, even compared to Amazon’s 300 million users.
When you start your own online store, you’ll need to build your audience from the ground up. Without a strong social media presence or brand, this can take much more time and money than using Etsy’s active customer base.
Quick and easy set-up
Setting up an Etsy shop is fast and simple, taking less than 10 minutes. You don’t need any technical skills and there are no monthly or yearly fees for creating an account. You only pay when you’re ready to sell and list your first product.
If you create an online store, you’ll need to hire a web designer or build it yourself using platforms like Squarespace, WordPress or Shopify. Plus, you’ll have to pay for the site, even if you aren’t making sales.
Etsy’s easy setup also lets you test new product ideas with little risk. Digital products have a low entry barrier. It is easy to spot trends and sell across platforms without a big upfront investment.
Low starting costs
While it does cost money to sell on Etsy, the fees are much lower compared to other platforms. For example, Amazon Handmade takes 15% off each sale, whereas Etsy charges just $0.20 per Etsy listing fee.
You don’t need a large upfront investment to start selling on Etsy. If you create your own online store, you’ll have to pay for design, hosting and a domain name before showing your products to customers.
By learning Etsy SEO, you can increase your visibility without spending too much. Etsy’s algorithm is simpler and changes less than Google’s or social media’s. So it’s easier to reach the right audience and stay visible longer.
Multiple marketing opportunities
Etsy makes it easy to list your products. But, the real challenge is marketing and selling them. Luckily, Etsy provides several tools to help promote your shop and reach more customers.
You can use Etsy ads, offer discounts and run free shipping promotions. You can also use offsite ads and social media integrations. Etsy’s promotion guide makes it easier to market your shop, even if you’re not a marketing expert.
Advertising on Etsy takes time and practice to succeed. Promoting your own website usually requires much more effort. You may need a marketing expert to get your Etsy listing noticed on Google or social media.
Extensive learning resources
One often-overlooked benefit of selling on Etsy is its wealth of helpful resources. The Etsy Seller Handbook covers everything. It includes optimizing your listings for search engines. It also includes building an audience and a content strategy.
You can use Etsy’s resources and online tools like EtsyHunt, eRank and Alura. They can help with market research and improve your listings.
Etsy also offers a dedicated community page with forums where sellers can collaborate and share insights. It’s hard to find a sense of community when selling on your own. You need to seek out online groups or attend events to connect with other sellers.
Cons of selling on Etsy
Etsy seems like a great opportunity for small businesses to sell handmade or vintage items. But, it has its challenges.
While the platform is user-friendly and easy to join, there are many rules to follow. Plus, with growing competition, it can be harder to stand out and reach profitability.
Numerous Etsy seller fees
Listing a product on Etsy costs less than a dollar, with a $0.20 listing fee per item, but there are several other Etsy fees to consider and many sellers have noted that these costs are increasing. This can negatively impact profit margins, especially for smaller shops.
On top of the listing fee, Etsy charges a 6.5% transaction fee on every sale and sellers also need to account for payment processing fees, which vary depending on the order amount through Etsy Payments.
Shipping fees are another consideration, as sellers may need to cover the cost, though some may pass this on to buyers if they don’t offer free shipping.
Additionally, Etsy sellers can opt to use advertising options like Etsy Ads or offsite ads, which come at an extra cost based on their budget. For those looking to grow their shop, there’s also the Etsy Plus package, which costs $10 a month and provides more advanced tools. With rising Etsy seller fees, it’s becoming essential for sellers to carefully monitor their costs to maintain profitability.
Tough competition
Although major international brands can’t sell on Etsy, that doesn’t mean there’s no competition. In 2023, there were over 9 million active sellers. Some categories are especially crowded, making it harder but not impossible, to stand out. For example, a search for “custom mugs” brings up thousands of similar listings.
This intense competition leads many potential sellers to question if selling on Etsy is worth it. You’ll need to regularly adjust prices and run promotions to stay competitive. Plus, even unique designs aren’t fully protected from copycats who can mimic your ideas and sell them at a lower price.
Idea theft can happen anywhere online. But Etsy makes it easier to spot top-selling products through customer reviews and badges like “Popular now” and “Bestseller.”
Influx of mass-produced items
Etsy was once a platform for artists, craftsmen and collectors to showcase their unique creations. However, many categories are now filled with cheap, factory-made items. This drives prices down and hurts small, local artisans.
Some Etsy users have raised concerns on forums about products falsely labeled as “locally made.” They are actually resold items from sites like AliExpress.
Etsy doesn’t allow reselling, except for vintage or craft supplies. It takes time to catch and ban rule-breakers. However, you can still work with a production partner, like a print-on-demand service, if you design the product yourself.
Limited brand control
When you have your website, you have complete freedom to design and control how it looks and works. On Etsy, you can’t customize or brand your shop as much. You must follow the platform’s rules.
You can only personalize your Etsy shop by changing the banner and shop description. It’s like other marketplaces, such as Amazon and eBay. This isn’t a big issue for most Etsy sellers. The limits apply to everyone. But some worry about the lack of control over their shop.
Because you don’t own your Etsy store, you’re more like a renter of space you can’t control what happens on the platform. Etsy might change product categories or marketplace features. This could hurt your business or even shut down your shop.
Unexpected suspensions
Etsy is clear about possible policy violations and reasons for suspensions. However, many community members report surprise at repeated account suspensions without valid explanations.
Most suspensions stem from issues with ID checks or selling copyrighted elements in your designs. Etsy usually sends a warning. It tells you how to fix your shop. Yet, the procedure may not be clear. You’ll need to contact Etsy support to resolve the issue.
As long as you follow the rules and use the platform as intended, your Etsy business should be fine. However, consider diversifying your sales channels for extra safety.
Selling on your own website: Pros and cons
Small businesses and store owners everywhere choose to run their websites in addition to their Etsy shops and their profiles on other platforms.
Pros of selling on your own website
Complete control over branding and design
Owning your website allows you to craft a distinctive brand image. You can customize every element to reflect your brand’s values and personality. This includes the color scheme, logo, layout and user experience.
Design your site for a smooth, easy shopping experience for your target audience. This includes personalized navigation, product displays and checkout processes.
Higher profit margin
Etsy competitors or Amazon, which charge fees, selling on your website can be more profitable. You only pay for hosting, payment processing and marketing.
You can set your own prices and don’t have to follow third-party marketplaces’ pricing rules.
Direct customer relationships
Owning your website gives you valuable customer data. It includes contact info, purchasing behavior and preferences. This data can be leveraged for personalized marketing and improving customer service.
Direct interaction with customers builds better relationships. This is done through newsletters, personalized emails and responsive support.
Flexible marketing strategies
Implement comprehensive marketing strategies without the constraints of marketplace policies. Use email marketing, content marketing and social media to boost traffic and sales.
Your website should share your brand’s story, mission and values. This will connect you with your audience.
Scalability and customization
As your business grows, easily add tools and features. Examples include advanced analytics, loyalty programs and multi-channel sales integrations.
Adaptability: Change and grow your website’s functions to meet evolving business needs. Don’t be limited by a third-party platform’s capabilities.
SEO and organic traffic
Optimize your website for search engines to attract organic traffic. Good search engine optimization can boost your website’s visibility. This can increase traffic and sales, without ad costs.
Create valuable content, like blog posts and videos. It will drive traffic and build your authority in your niche.
Data ownership and insights
Advanced tools for deep insights into customers, sales and web performance. This information is crucial for making informed business decisions.
Control how customer data is collected, stored and used. Comply with data protection laws to build customer trust.
Cons of selling on your own website
Initial setup and technical challenges
Technical Expertise Required: A professional, functional website needs technical skills. Or, you must hire web developers and designers.
Platform Selection: Choose the right eCommerce platform (e.g., Shopify, WooCommerce, Magento). Understand their features, costs and how they fit your business needs.
Ongoing maintenance and updates
Your website needs ongoing work to stay secure, up-to-date and running smoothly. This includes software updates, security patches and content management.
Fixing technical problems, like site downtime or bugs, can be time-consuming. It may also require specialized knowledge.
Marketing and traffic generation
Unlike marketplaces with built-in audiences, you must market your site. It takes effort to drive traffic to your own website. To stand out in a crowded online space, you need a well-planned and executed marketing approach. It is key to compete for visibility in search engines and social media.
Higher upfront costs
Setting up a website has costs. These include domain registration, hosting and design. You may also need to buy premium themes or plugins.
Hosting, security and marketing tools can cost a lot. This is a concern for small businesses with limited budgets.
Security and compliance
Protect your website and customer data from cyber threats. Use SSL certificates, firewalls and regular security audits.
We must follow data protection laws (like GDPR, CCPA) and eCommerce rules. This requires ongoing attention and possible legal advice.
Limited built-in audience
Unlike third-party online marketplaces, customers search for products. Your website relies on your marketing to attract and keep visitors.
Building brand recognition from scratch takes time and resources. It requires consistent branding and marketing efforts.
Strategies for success on Etsy
Selling on Etsy can be a highly rewarding endeavor for artisans, crafters and small business owner. To thrive in this market, you must use effective strategies. They must address key aspects of your business. Etsy sellers often review these critical factors. Here are strategies to make your shop stand out and stay profitable.
Optimize your listings for SEO
Keyword research
Good SEO (Search Engine Optimization) is vital. It boosts your shop’s visibility on Etsy and Google. First, find keywords that potential customers might use to search for your products. Use tools like Etsy’s search bar, Marmalead or eRank. They can find popular, long-tail keywords like “sell handmade,” “vintage items,” and “digital products.” Using these keywords in your listings can boost their search visibility.
Descriptive titles and tags
Craft clear, descriptive titles that naturally incorporate your primary keywords. Place the most important keywords at the beginning of the title to enhance search ranking. Additionally, utilize all available tag slots with relevant keywords and phrases. This mix of broad and specific tags helps capture a wide range of search queries, making it easier for potential buyers to find your products.
Leverage social media platforms
Promote your products
Use social media, like Instagram, Pinterest and Facebook, to show your products. It will drive traffic to your Etsy shop or website. High-quality images and posts can attract followers interested in your handmade or vintage items. Use Instagram Stories, Pinterest Boards and Facebook Shops. They will help you create a cohesive, appealing brand presence.
Engage with your audience
Building a community around your brand is essential for long-term success. Engage your followers. Respond to comments, share behind-the-scenes content and run promotions or giveaways. Engaging content builds connections and loyalty. It encourages customers to return and recommend your shop.
Utilize Etsy ads and offsite ads
Boost visibility
Investing in Etsy ads can significantly increase the exposure of your listings. Etsy offers various advertising options that allow you to promote your products within the platform, ensuring they appear prominently in search results and other key areas. This targeted exposure can lead to higher click-through rates and more sales.
Monitor performance
Regularly review your ad performance metrics to optimize your ad spend and maximize return on investment (ROI). Track key metrics like click-through rates (CTR) and conversion rates. Also, check the cost per click (CPC). These will assess your campaigns’ effectiveness. Use this data to refine your ads. Focus on high-performing keywords and adjust budgets.
Provide excellent customer service
Prompt responses
Timely and professional responses to customer inquiries build trust and encourage repeat business. Aim to answer questions within 24 hours and provide clear, helpful information. Excellent customer service can lead to positive reviews, which enhance your shop’s reputation and attract more buyers.
Quality products and packaging
Ensure your handmade items are of high quality and well-packaged to enhance the customer experience. Durable, attractive packaging protects your products in transit. It also creates a memorable unboxing experience. Add personal touches, like thank-you notes or branded packaging. This will delight your customers and encourage positive feedback.
Engage in the Etsy community
Participate in forums
Active participation in Etsy forums allows you to connect with other sellers, share tips and stay updated on platform changes. These discussions can offer valuable insights. They can help you overcome challenges and create a supportive community. Learning from the experiences of other Etsy sellers can inspire new ideas and strategies for your own Etsy shop worth well.
Collaborate with other sellers
Teaming up with other Etsy sellers for joint promotions can help. It can expand your reach and introduce your products to new audiences. Collaborations can take many forms. They include co-hosted giveaways, shared marketing campaigns and creating complementary product sets. These partnerships use the strengths of multiple sellers. They increase visibility and sales for all parties involved.
Who is Etsy best for?
Etsy is the go-to for those seeking unique, handmade or vintage item, not mass-produced products found elsewhere.
This makes Etsy ideal for new sellers or designers and artisans. They want to show their creativity to a global audience. It’s also a great option for beginners who find managing a Shopify store too overwhelming or aren’t ready to invest in their website.
In short, Etsy is a great place to start. It helps build brand recognition and understand your target market before you expand your online business. It’s also a good side hustle for those looking to add another income stream or sales channel for a physical store.
However, Etsy isn’t for everyone. Success doesn’t come overnight. You’ll need to invest time in researching the market, refining your products and marketing them.
Also, you must offer excellent customer service. Patience and persistence are key to thriving on Etsy.
How Bluehost WooCommerce is the best alternative to Etsy
For those seeking Etsy alternatives, Bluehost WooCommerce is a strong option for artisans and small businesses. Unlike Etsy, Bluehost WooCommerce has no limits on customization. It also doesn’t charge listing fees.
It offers complete control over branding, design and customer relationships. Use Bluehost’s strong hosting and WooCommerce’s flexible platform. You can build a secure, scalable online store that meets your needs.
It has AI site creation tools, advanced security and 24/7 support. Plus, it has improved marketing options, like Yoast SEO. Bluehost WooCommerce also eliminates Etsy’s transaction fees, allowing you to retain more profit.
Use tools like Cloudflare CDN and Wondercart’s Sales Builder. They can optimize your site and marketing to attract customers.
In short, Bluehost WooCommerce is a great, flexible option. It is for anyone wanting to move from Etsy to a more customizable online store. Bluehost WooCommerce helps both new and veteran Etsy sellers. It gives you full control and strong support to drive success.
Start your eCommerce journey with Bluehost WooCommerce. It offers great freedom and growth for your online store.
When is it better to sell on your own website vs. Etsy?
Choosing between Etsy and your own online store depends on your business goals and product range.
Sell on Etsy
Etsy is ideal for selling a few high-priced items, as it charges fees per listing. This makes it suitable for artisans looking to offload select products without managing extensive inventory. Etsy listings provide visibility to millions of buyers, making it a great option for sellers who want to reach a broad audience without the need for a large product catalog.
If you’re starting a quick side hustle, Etsy provides a built-in marketplace with immediate visibility, allowing you to reach active buyers without significant setup time. This can be beneficial for those who want to test new products before committing to creating a personalized storefront or an extensive inventory.
Create your own website
Extensive product range: If you have dozens of handmade products, creating your website avoids the cumulative Etsy listings fees, making it more affordable and scalable. With your own site, you can also have more control over branding and showcase your successful Etsy shop as part of your broader business strategy.
Business expansion: Planning to grow your business? Your own site bypasses Etsy’s high transaction fees, offering better profit margins. Additionally, you can customize your seller’s shop to reflect your brand and provide a personalized storefront experience for your customers. Using your own online store also allows you to create and print shipping labels directly, simplifying order fulfillment.
Digital products: Selling digital downloads on your website involves a one-time setup. You won’t worry about running out of stock, shipping or managing inventory and you save on Etsy’s transaction fees, while also maintaining full control over pricing and promotions.
Bluehost cloud web hosting offers an affordable solution for building and managing your website. It provides the flexibility and full control you need to customize your site to fit your vision. With easy-to-use tools, Bluehost ensures a smooth experience for both beginners and advanced users.
Final thoughts
While Etsy is worth it for some, especially those with limited products or starting out, building your own online storefront offers greater control, flexibility and higher profit margins. If setting up a website sounds intimidating, Bluehost WooCommerce provides an easy and affordable solution.
With features like AI site creation tools, free SSL, SEO optimization and 24/7 support, Bluehost WooCommerce is a top alternative to Etsy. Embrace the freedom to customize your store and grow your eCommerce brand effectively.
FAQs
Yes, many sellers find success by using both platforms. Etsy provides a built-in marketplace with a large audience, while your website gives you control over branding and customer relationships. Combining both allows you to benefit from Etsy’s visibility while building a more personalized and scalable business on your own platform.
Etsy charges a listing fee of $0.20 per item, a transaction fee of 6.5% of the sale price and payment processing fees, which vary based on the order. Additionally, sellers may incur shipping fees, advertising costs and optional Etsy Plus membership fees.
Yes, Etsy remains a strong platform for selling handmade and unique items in 2024. It continues to attract millions of buyers and offers a niche marketplace for creative products and handmade sellers. However, sellers should be aware of increasing competition and rising fees and may also consider diversifying with their website.
Bluehost WooCommerce offers full control over branding, no listing fees and flexible customization. It’s a great choice for sellers looking to have online stores and avoid Etsy’s rising fees and transaction costs and it allows for more advanced marketing strategies and business scalability. With Bluehost’s robust hosting and tools like AI site creation and SEO optimization, you can easily build and grow your online store.