How Etsy Can Help Your Small Business

Etsy, business

For those of you who are unfamiliar, Etsy is an online buyer and seller community that focuses mainly on handcrafted and vintage goods. Etsy allows sellers to customize online shops with full e-commerce capabilities. This platform has allowed many people to turn their hobbies into full on businesses. If you are a small business or someone who simply wants to turn their hobby into a source of income, here are a few reasons why you should have an Etsy shop.
 

  1. It’s user-friendly

You don’t need much technological knowledge to operate your Etsy shop.  For your website you would have to do a lot of design and coding in order to get a layout as professional and clean as Etsy’s. To start your shop you simply need to follow a few easy steps that takes just a few minutes. The difficult part is the decision making with regards to pricing, when to offer promotions, how often to add new listings, etc. But these are difficult decisions you will have to make no matter the platform you choose to operate on. Etsy also has an iPhone app, which will help you manage your shop and stay organized. The app’s features will help you manage your orders, access shop statistics, communicate with other buyers, update listings, get alerts when making a sale, and much more.

 

  1. It’s affordable

Starting a shop on Etsy is free. However there are three small selling fees. You have a listing fee, a transactional fee and a payment processing fee. It will cost you $0.20 to publish a listing. A listing lasts 4 months until the item is sold. Once you make sale there is a commission fee of 5% and a payment processing fee of 3% + CA$0.25 for Canada (domestic orders or orders from the US) and 4% +$0.25 for international orders.
 

  1. Access to a large yet targeted customer base

>Etsy has approximately 54 million members all specifically looking for hand-made goods and more than 2 billion views every month. The average Etsy consumer is an adult woman between the ages of 18 and 34. She is a member of the working or middle class. Most of her yearly Etsy purchases include jewelry that cost between $21 and $40, often purchased as gifts. She values the variety offered by Etsy in terms of handmade and eco-friendly goods. If your product remotely caters to such a demographic, there is no other platform that will allow you to reach your clientele in such a targeted manner.
 

  1. Test your new ideas

Being active on Etsy is a good way to see how receptive people are to your new ideas. You won’t feel as tied to keeping products that don’t sell as you won’t need to call up designers or web developers to make the necessary changes to your platform. If you have an existing business and website and are not sure whether or not a particular product or product line will sell, testing it on Etsy first and reading the reviews on the discussion boards can also help you make your decisions.
 

  1. Can Be Used as a Cheap Marketing Tool

Contrary to popular belief, you do not have to use Etsy exclusively. Your website and your Etsy shop can work hand-in-hand. Once you’ve gained traction to your Etsy shop, you can redirect your visitors to your website. If you getting a decent amount of sales on Etsy, you can stay there but also consider working on your website behind the scenes. In order to lead your Etsy clients to your website offer incentive. This can potentially include offering lower priced goods on your website, including website promotion cards when you ship your orders to customers, or including your website URL to your product descriptions on Etsy.
 

If your target market consists of the people visiting Etsy on a regular basis, give the platform a try. Whether you are an artist, someone with a hobby, or already have an existing business, many advantages and learnings can come to you by operating an Etsy shop. The worst thing that can happen is that you don’t enjoy your experience. But even in this worst-case scenario you tried out a platform and you’ve learned what works and what doesn’t work for you.

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This entry was posted in Best Practices, Growth Hacking, Start-ups, Trends by Katherine Korakakis. Bookmark the permalink.

About Katherine Korakakis

Katherine has spent most of her life working alongside start-ups in various verticals. For 10 years, she was responsible for the development of entrepreneurial initiatives and projects under the auspices of the Youth Entrepreneurship Challenge, a Youth Secretariat program of the government of Quebec. She has authored and co-authored guidebooks on entrepreneurship education. Katherine first developed her passion for building businesses when she co-founded Glambiton. She was instrumental in the development of the first National Entrepreneurship Day for the province of Quebec. Katherine has served on the Boards of numerous non-profit organizations and currently sits on PMEMTL Centre-Ouest and EPCA. She sits on the investment committees of PME MTL Centre and PME MTL Centre-Ouest. These entities are the decision making bodies with regards to business financing with the city of Montreal. She currently is Manager of Entrepreneurship for ProMontreal Entrepreneurs (PME), an early stage VC fund and entrepreneurship program that invests in multiple verticals. The fund has a social business model and has been around for 20 yrs.

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