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by UpPhoto Team

Jul 05, 2024

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Etsy is a third-party e-commerce platform that makes it easier for small creators and businesses to expand their reach, showing (and hopefully selling to) a wide audience that may not have ever found them otherwise.

For many, this allows them to turn a side hustle into a lucrative business, building momentum and collecting reviews on a trusted site that customers are willing to purchase from.

In this post, you’ll learn everything that shop owners need to know about how to sell on Etsy so you can see how to open up your Etsy store and position it for success.

What is Etsy?

Founded in 2005, Etsy 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.

How Etsy works

Etsy is a straightforward platform for both customers and sellers.

To get started on Etsy, you just need to create an account, choose a username, and then head to the "Sell" section of their site to open up your shop (which we'll talk more about).

Sellers will set up their store with a description and profile picture, upload their inventory, and create product listings. You can customize shipping costs, carriers, and delivery times as you choose. You can also manage your shop via Etsy's website or app, tracking sales, communicating with buyers, and updating listings.

Etsy mobile app

For buyers, they can browse or search for items by category, keyword, or directly by shop name. Etsy's marketplace offers a wide range of products, from handmade jewelry and clothing to vintage items and craft supplies.

When a buyer decides to purchase an item, they can add it to their cart and proceed to checkout. Etsy offers various payment methods, including debit and credit cards, Apple Pay, PayPal, and Etsy Gift Cards.

What is the downside of Etsy?

Selling on Etsy has many benefits, like access to a global customer base already interested in handcrafted items. But, there are a few downsides to selling on the platform, such as:

  • Fees: Etsy charges several types of fees, including listing fees, transaction fees, and payment processing fees. These fees can add up, especially if you have slim profit margins.

  • Competition: With millions of sellers on Etsy, the marketplace is very competitive. Standing out among the growing number of listings is challenging, requiring good SEO (Search Engine Optimization), high-quality product photos, and unique product offerings.

  • 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.