Selling on Etsy should be one of your top choices if you make unique, original, and creative pieces. Because? Etsy is the largest marketplace specialized in the sale of handcrafted items and vintage products, therefore one of the most demanded e-commerce platforms.
During 2019, more than 45 million people visited this marketplace and around 40% returned to buy on Etsy, according to Statista data. This shows that it is a benchmark for all online buyers interested in acquiring something exclusive.
How can I sell on Etsy? Do I have to register as a self-employed person to sell on Etsy? What are the conditions for selling on Etsy? What do I legally need for it? How much does it cost to sell on Etsy? In this guide we tell you EVERYTHING. Here are the points to be discussed:
Selling on Etsy: Practical information for your online store
The annual study on e-commerce carried out by IAB showed that 66% of online shoppers use marketplaces to search for and buy a product on the same channel.
As of today, more than 40 million users visit Etsy in search of exclusive items, which puts it on the list of the best marketplaces. So your products will be exposed to a large number of visitors.
Selling on this marketplace is not complicated if you meet the platform's requirements. Otherwise, your online store on Etsy will not last long, since the marketplace will take care of closing it.
In this guide you will find detailed information about the conditions to sell on Etsy, the importance of incorporating a good shipping strategy and tips and tricks to increase the turnover of your online store.
Selling on Etsy or Amazon Handmade: Pros and Cons
There are many who are dedicated to selling on Amazon, but Amazon Handmade is one of the unknowns. Before we dive into what you need to know for your Etsy shop, we'll explain the differences between Etsy and Amazon Handmade. So you will have all the information to choose the best for your online business:
Etsy pros:
- The rates are cheap.
- In less than 10 minutes you can upload products to your lists.
- Etsy gives you a hand with techniques and tips to increase your sales.
Cons of Etsy:
- The design available for online stores is limited.
- You cannot create a custom URL for your online shop on Etsy.
- The range of products you can sell on Etsy does not span many categories.
Amazon Handmade Pros:
- Your products will be visible to the millions of users who visit the marketplace.
- Your items may be available for Amazon Prime, which would increase your sales.
- You can contact the Amazon Handmade customer service team by phone if you have any problems.
Cons of Amazon Handmade:
- The fees are a bit higher than Etsy's.
- It's hard to stand out from the competition.
- Amazon has the power to modify the price of your products if it believes that it is not adequate.
As you can see, both options can help you sell your craft products. But Etsy may be a better option if you're just starting out.
What is sold on Etsy?
Now that you know the pros and cons of selling on Etsy, let's move on to the products section.
The items that can be sold in this marketplace must belong to one of these three categories:
- Handmade products
- Vintage items
- Craft materials
Handmade Products
This category includes all products made exclusively by the seller, either by creating them yourself or by designing and producing them with a partner.
Within the category of handmade products, Etsy does not accept the resale of items. That is, if you do not participate in the creation or design process, you cannot sell those products.
Vintage Items
To sell vintage items on Etsy, you need to make sure they are at least 20 years old.
If you decide to sell products within this category, Etsy may ask you:
- How do you find your suppliers?
- The origin of the item you want to sell.
- The designer of the product and the collection and the year to which it belongs.
- How did you decide the age of the item? The material with which the garment is made (in case of selling clothes).
Please have any photographic documentation available to indicate that the item you wish to sell is vintage, as Etsy may ask for this as proof.
Craft Supplies
This category includes any ingredient, material or tool that is intended to manufacture an article or that serves as decoration for a special occasion.
Etsy allows the sale of handmade materials, whether commercial or vintage. For example, some products that you can sell within this category are:
- Fabric
- Paint
- blank canvases
- patterns
- beads However, mass-produced clothing that is ready-to-wear, such as blank T-shirts or sweatshirts, is not allowed for sale.
Who can sell on Etsy?
To sell on Etsy you need to be a creator or designer. This means that creative photographers, dressmakers, designers, or crafters, to name a few, can sell their products on Etsy.
Remember that to put an item up for sale you have to be part of the production process, either in the design or in the creation.
The advantages of opening an online store on Etsy
In addition to being the quintessential marketplace for handmade products and attracting millions of visitors, selling on Etsy has several advantages. These are some of them:
- By opening your online store on Etsy you will be able to manage your business from anywhere
- Allows you to accept payments without complications
- You can analyze and optimize your online store to increase your billing
- Grow your number of followers with ease
- Improve your visibility thanks to the tools available for sellers
- Attract new customers with Etsy Ads
- Receive advice from the Etsy team to grow your online store
- Read new tips in the seller's manual and put them into practice
- The possibility of contacting the customer service team whenever you have questions
What do you need to know before selling on Etsy?
If you want to start selling on Etsy, you should keep these three points in mind:
1.The originality of your products. Before launching your online store of handmade articles, you should stop for a moment to think if they are original and creative enough to stand out from the competition.
Please note that Etsy is an international marketplace. Therefore, your online store will receive visits from potential customers from all over the world and will compete with companies from different countries.
2.The scalability of your company. Do not open an online store on Etsy without thinking about this point. Can your hobby become a stable source of income? Or maybe you already have clients but want to increase your billing? Perhaps we are a bit ahead of ourselves at this point, but it is worth remembering that it is important to have a shipping strategy for your online store.
Regardless of your situation, Etsy recommends that you envision a goal before opening your shop. So you will know the steps you have to follow to achieve your goal.
3.Please answer honestly if you enjoy creating or designing the products in your online store on Etsy. If you do, your business has all the potential to generate income and you will have more success with buyers.
What it takes to sell on Etsy: legal requirements
The next step to start selling on Etsy is to make sure you meet the legal requirements of the marketplace.
For example, one of the requirements you must meet is that you have to be transparent with the information you provide and that you will represent your business honestly.
Also, to register as a seller, you need to enter a credit card or your PayPal account. Please note that Etsy will not charge you anything until you open your online store and start listing your products.
Another requirement for selling on Etsy is that you are responsible for legally processing your customer information and data.
Conditions for selling on Etsy
In addition to legal requirements, Etsy expects sellers to comply with these conditions:
- The products you sell must belong to one of the three categories that the marketplace allows (handmade, vintage or materials).
- All content you upload must align with Etsy's policy. You may not upload material that is offensive, violates Etsy's non-discrimination policy, or violates another person's privacy or intellectual property rights.
- You agree to provide an excellent sales service to all users who make purchases on the platform.
- You will be aware of the return policy of Spain and that of the country of your buyers.
Selling on Etsy without being a freelancer
As you may have seen, the legal requirements to sell on Etsy do not specify that sellers have to be self-employed. So many people decide to open an online store on Etsy without being one.
But can you sell on Etsy without being a freelancer?
Despite the fact that the marketplace does not ask you for any document to verify that you are registered as a freelancer, the laws in Spain require something else.
In legal terms, before you start selling on Etsy, you do need to be registered as a freelancer; regardless of the amount you bill or plan to bill each month.
With this you will avoid having any problem with the Treasury, since if your business begins to prosper you will be able to make the pertinent declarations.
Prices to sell on Etsy
As well as knowing the legal requirements and conditions for selling on Etsy, you should be aware of the prices so you don't have any unexpected surprises.
Etsy fees for sellers are fixed. For each publication you make you will have to pay $0.28.
Your listings will be active for four months or until you've sold all the stock.
When you make a sale, Etsy will charge you 5% per transaction and 4% plus $0.30 for payment processing.
When opening your online store on Etsy you will have to choose between the Standard plan, which is free, or the Plus, with which you will pay a monthly fee of €9.00.
With the Plus plan you will have at your disposal a set of tools to grow your business and stand out from the competition
3 Tips for Successful Selling on Etsy
As we have mentioned before, the marketplace receives millions of visits from users looking for an original product. So you will have to outperform your competition for online shoppers to choose your store.
With these three tips you will make your e-commerce sell more:
1. Focus on SEO. Optimize your online store on Etsy so that users can find it easily. Investigate what are the keywords that your customers use to search for products and add them to the description of your articles.
2. Create ads with Etsy Ads and reach a larger audience. Etsy uses the user experience in its marketplace to optimize campaigns to reach more online shoppers.
3. Offer an attractive shipping offer to your customers. Make sure your shipping strategy includes international shipping, competitive prices, and short delivery times.
Bonus: Some tricks to set up your shop on Etsy
Opening a shop on Etsy is one of the best decisions you can make for your business if you are in the business of making handcrafted products. However, succeeding in such a competitive marketplace is another story.
There are some tricks you can implement to sell more on Etsy and make your online store stand out from the competition.
Here are some of them:
- Write down key dates to create special offers. For example, for Valentine's, have products that are ready to ship and capture last minute shoppers.
- Offer an unboxing experience that is memorable. Give that plus to your shipments with a unique experience that shows your customers that they are special. An example that you can implement is to use packaging that buyers can reuse and that is in tune with the colors of your brand.
- If you sell clothing, set up campaigns on Etsy Ads to advertise fashion trends like spring linens and floral prints.
- Add a thank you coupon for your customers to buy again in your e-commerce or a small gift, such as a key ring.
- You can also include samples of your products in your orders if you sell cosmetics. But make sure they're related to what your customer has purchased so they can try them alongside the products they've purchased.
- Include recipient phrases to make it easy for customers to find your products. You can add, for example, “best friend” or “gift for him” in the labels and the title of the product.
- Highlight the new items that you include in your online store to keep your regular customers up to date. You can also add best-selling products in your ads.
Start your Etsy shop and grow your business
During 2019, shipping was a key point in the decision of online buyers when they had to choose an e-commerce. And that trend will continue to grow this year.
Offering shipping options with shorter delivery times will set you apart from the competition and you will sell more.
Therefore, automating your shipping process is an important piece of your Etsy shop. This way you will attract more visits to your e-commerce and your business will grow.
If you sell on Etsy but you are also interested in opening an online store in other shopsystems for greater visibility, perhaps these blogs will help you opt for one.
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