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Etsy – Business Set Up for Creative Entrepreneurs

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I. What is Etsy?

There are many online marketplaces to help create an online storefront and sell products online. Etsy seemed to be a “child” compared with giants in E-commerce field: Amazon, Alibaba, Ebay…when launched in 2005. Etsy has been around for 10 years now and has a strong following BUT it is still new enough to have plenty of opportunity. Simply that NOW is the perfect time for you to get into the Etsy business!

Etsy logo

Basically you can think of Etsy as a popular online marketplace where art buyers, craft buyers, and vintage collectors come together with sellers of same. Art pieces, crafts, craft supplies, and vintage collectables are sold through “fixed price listings”.

Fixed price listings

As other E-commerce sites, feedbacks, reviews are backbone of any online store. Etsy is an 'open' marketplace that also allows buyers to give feedback ratings that are made public.

Etsy review

II. Why you should sell on Etsy?

Products on Etsy can listed in 3 main categories:
- Handmade Art (or Crafts)
- Vintage Items (over 20 years old)
- Art/Craft supplies
You are a creative entrepreneur, you have creative products, Etsy is the best place for you to start selling to more than 19.8 million active buyers in nearly every country in the world. Statistics of Etsy demographics showed that :

Etsy demographic

+ Two-thirds of the registered members on Etsy are women.
+ The percentage of Etsy members that don’t have any children in their household is 69%.
+ The percentage of Etsy members that make less than $60,000 per year is 48%.
+ Half of all Etsy members fit into the 18-34 age demographic.
+ Handmade craft shops typically max out on sales at $25k per year.
+ The three biggest ways to stand out on Etsy are to be different, take amazing pictures, and write detailed descriptions of the goods that are being sold.

What do the numbers mean? Those numbers, once again affirm the potential of selling creative, hand-made, vintage items on Etsy. The young women who love hand-made, art and craft items are dominated Etsy traffics.

III. Some incredible advantages of selling on Etsy:

Everyone sees the potential of Etsy through appealing statistics above. Now, we will discover features on Etsy that facilitate selling activities on Etsy.

1. Easy to setup:

It’s easy to create an Etsy shop like register an account in any forum. With several steps, you will have your own an Etsy store.

2. Cost-effectiveness:

When selling on E-commerce marketplace, it should be taken sale fee into account. But, your burden of sale fee is lightened. Etsy takes 3.5% of the net sell price (not including shipping or taxes) as a sale fee. So say you were selling your cards for $10 each. Then each time one of your vintage postcards sold, Etsy would deduct 35 cents on the sale as sale fee.
Oops, I nearly forgot the listing fee because it seems to be negligible. Listings cost just $0.20 (20 cents) each [at the time of this writing] and the listing remains up for a full 4 months (or until the item(s) are sold). After 4 months, (if you still have items left) you can renew your listing(s) for another 4 months (for just another 20 cents). You have the option of canceling a listing anytime.
For example: you have an Etsy store offering 20 different items with a separate listing for each item. It would cost you just $4 to list everything and you're good for 4 months ($1 per month). There is no fee for editing a listing.

3. Marketing and Promotion:

'Social sharing' of listings is encouraged on the Etsy site, which can hugely increase your sales & profits!

Etsy allows sellers to acquire “followers” who can “favorite” items that they like (later in this guide you'll learn how to easily and efficiently build a list of powerful followers and get many “favorites” to boost. No need any technique skill, your Etsy stores and your listings are ready to get social.
Etsy also lets users create “treasuries” that feature well liked items. You can't create a treasury that features your own items, but when other people feature your items in their treasuries, it earns you lots of extra exposure!

4. An option for reducing risk for digital product sellers:

Etsy now lets you sell DIGITAL art that your customers can download instantly! And, Etsy lets you host these digital products right on their website! This way, you DON'T have to build your own download pages or any of that cumbersome stuff!
This means you have NO shipping costs, NO running to the post office, NO “physical inventory” taking up space, etc. Just list, promote, & profit!

Recommendation: If you decide to tap into Etsy's “digital” markets, you may well still want to sell “physical products” too! This gives you added credibility, lets you access a much wider market.


Etsy comes with many advantages for entrepreneurs, but pros always come along with cons. And one of the most disadvantages is that there will be a lot of competitors. How to be outstanding in a lot of competitors? 3 tips that you should always keep in your mind: Be different è Take good pictures è Write detailed descriptions.

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