Etsy, an online marketplace for the sale of handmade, unique merchandise, vintage and craft supplies, was founded in 2005 and has grown from 56,000 sellers in 2007 to more than 1.8 million active sellers in April 2017. Etsy defines an active seller as someone who regularly shops and has had at least one product for sale in the past 12 months. The family credits Etsy and its marketplace with helping customers search the site for products they can sell to make their business possible.
Etsy is an e-commerce platform specializing in buying and selling works of art, crafts, accessories, and vintage items that are hard to find in traditional online shops. In addition, it is a marketplace for independent artists to sell handmade and vintage products.
Etsy is quite different from other eCommerce marketplaces
People buy them for personal use, as gifts for family and friends to buy and sell as gifts, or to list and sell them in stores on Etsy. If you’re looking for products on Etsy, you’ll find vintage and handmade items, bespoke artwork, hand-printed clothing, custom children’s toys, and more. Etsy is a platform where people can make products and not sell items from an Etsy store.
Like other e-commerce marketplaces, Etsy makes money by charging sellers fees for every item listed and sold. Another way the company makes money is to charge vendor fees when listing and marketing products.
Like eBay and Amazon, Etsy has a fee that sellers pay to maintain their online business. Sellers pay Etsy a transaction fee of 5% on the selling price of each item sold. If you sell specific items on Etsy, there is no fee for listing, but you must add the Etsy transaction fee.
Creating and selling your account on Etsy involves:
- Setting up your product lists.
- Configuring payment methods.
- Designing your shop landing page.
Before you open an Etsy store, it is wise to get a clear picture of the total cost of listing and selling your products. The total price of starting a shop on Etsy includes list fees, transaction fees, payment processing fees, shipping costs, and all promotional products you participate in.
If you use Etsy Square for your multiple listings, the discount rate is 0.20%, but it refers to the selling fees per person, so the Square handling fee applies. Transaction fees are 5% of the selling price, shipping costs are the Etsy Advance Sales Fee, and the amount to convert your payment account currency to the market rate of your listing in that currency may vary. In addition, if you use this feature on Etsy, there is a VAT charge: payment processing fees are included in the currency conversion, the VAT is 2.5% (market rate), advertised listings (Google shopping ads, targeted offers) are 0.10%, and targeted emails are sent.
Your own domain makes difference on Etsy
We recommend purchasing a custom domain that matches the name of your Etsy store if you decide to expand in the future. It only takes a few minutes to take clear, attractive photos of your items (this is especially important on Etsy, as it is on eBay and Amazon where your products may never be seen). Still, a good photo can make the difference more than the name and logo of your shop. Choose one that matches the products you sell and is not used by all Etsy store owners. Your Etsy store should have its landing page (similar to a one-page website) where customers can visit your products, learn more about you and your business, read the policies of your stores, find out what they want to know, and view your items.
Etsy is used as a unique showcase for Etsy sellers to list their products for a fee. You can list digital downloads (audio, image, and text files) on Etsy like you would a list for a physical product – you upload a file, and your customers receive it when they make a purchase. However, when you list a product category on Etsy and sell an item, Etsy gets a transaction fee of 5% of the total selling price (including shipping).
Etsy Seller App
Sell on Etsy With the Seller app; you can manage your business on the go. Etsy is a marketplace for creators and sellers worldwide to create, sell and buy unique products. Customized storefronts and online stores parked on Etsy allow aspiring merchants to list their items in one place, mark their store, create a logo, create a personalized slogan, and build their policies.
Many Etsy sellers maintain their Etsy Shop online and use it as a marketing channel to sell it directly to buyers. You can tweak product lists to reach potential customers through Etsy’s search engine and marketplace, know precisely what buyers want, and add fuel to the fire of customer acquisition. Etsy sellers can also charge for their products via offsite ads.
Various Etsy sellers have developed tactics to make their products more thematic and clear, and selling items on Etsy can bring a personal touch. While a typical eBay or Amazon customer enters a search term and receives a low or high prices list, an Etsy buyer should not expect their search results pages to be full of identical products.