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the pros and cons of selling handmade goods on etsy

The Pros and Cons of Selling Handmade Goods on Etsy

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The online marketplace Etsy is a great place to sell handmade or vintage items, as well as art and craft supplies. There are nearly 30 million buyers on Etsy, which gives your products a wide reach. And because it’s an established platform with a built-in infrastructure, it’s easy to get started selling on Etsy.

However, there are also some downsides to selling on Etsy. First, you’ll have to pay fees to list and sell your products, which can eat into your profits. And because Etsy is such a popular platform, you’ll be competing with other sellers for buyers’ attention. Plus, Etsy doesn’t offer the same level of customer support as some other ecommerce platforms.

Overall, selling on Etsy can be a great way to reach a large audience of potential customers – but there are some drawbacks that you should be aware of before getting started.

Pro: Etsy Offers Built-In Analytics

pro etsy offers builtin analytics
pro etsy offers builtin analytics

Etsy offers a lot of data about your store that can be really helpful in understanding your customer base, what items are selling well, and where you might want to focus your marketing efforts. The information available includes things like page views, favorites, carts started, and completed purchases. Con: You Might Be Charged More in Fees.: Etsy has a fairly complex fee structure. In addition to the listing fees (20 cents per item), you’ll also be charged a 3.5% transaction fee on every sale, as well as a payment processing fee (between 2% and 3% + $0.25). So if you’re not making very much money on each sale, the fees can eat up a significant chunk of your profits. Pro: There’s A Large Community Of Supportive Sellers.: One of the best things about selling on Etsy is the community of supportive sellers that you’ll have access to. There are forums where you can ask questions and get advice from more experienced sellers, as well as plenty of blog posts and articles with tips and tricks for running a successful shop. Con: You Might Get Lost In The Crowd.: With over 2 million active sellers on Etsy, it can be tough to stand out from the crowd. Unless you have some really unique products or put forth a lot of effort into marketing your store, it’s easy for potential customers to overlook your shop in favor of one of the millions of other options available to them.

Con: Etsy Charges Listing and Transaction Fees

con etsy charges listing and transaction fees
con etsy charges listing and transaction fees

When you sell on Etsy, you will be charged a listing fee as well as a transaction fee. The listing fee is 20 cents per item, and the transaction fee is 3.5% of the total sale price. This can eat into your profits, especially if you are selling lower-priced items. In addition, if you accept payments through Etsy’s Direct Checkout system, you will also be charged a processing fee of 2%.

Another con of selling on Etsy is that it can be competitive. Because there are millions of active sellers on the site, your items may get lost in the shuffle and never be seen by potential buyers. To stand out from the crowd, you’ll need to invest time and effort into marketing your shop and products effectively.

Overall, selling on Etsy can be a great way to make some extra money or even turn your hobby into a full-time business. However, it’s important to be aware of the fees involved and understand that competition is fierce. If you’re willing to put in the work, though, Etsy can be a great platform for growing your small business.

Pro: It’s Easy to Setup and Maintain an Etsy Store

pro its easy to setup and maintain an etsy store
pro its easy to setup and maintain an etsy store

Setting up and maintaining an Etsy store is easy. You don’t need to be a tech expert or have any previous experience with website design or ecommerce platforms. All you need is a good internet connection, some time, and a bit of creativity.

Etsy provides all the tools and resources you need to get started, so it’s easy to create a professional-looking store that reflects your unique style. There are no monthly fees or minimum purchase requirements, so you can start selling right away.

There’s also no risk involved in starting an Etsy store. If your business doesn’t take off the way you hoped, you can simply close your shop and move on without losing any money.

Con: Selling on Etsy Requires Some Upfront Investment.: While there’s no monthly fee to sell on Etsy, there are some costs associated with setting up and running your store. For example, you’ll need to pay for listing fees when you list new items for sale (which start at 20 cents per listing), as well as transaction fees when an item sells (3.5% of the total sale price). You may also incur costs for shipping supplies and other incidentals related to running your business.

Con: The Seller’s Market Could Be Saturated

Etsy is a platform for creative entrepreneurs to sell their handmade, vintage, and unique goods. It’s often lauded as being a great place to start and grow a small business. However, there are some downsides to selling on Etsy that should be considered before taking the plunge. One of these is that the seller’s market could be saturated.

With over 2 million active sellers on Etsy, competition is stiff. And because anyone can sell on Etsy, the quality of products varies widely. This makes it hard for buyers to find what they’re looking for, and it can be tough for sellers to stand out from the crowd. Additionally, because there are so many sellers on Etsy, prices are often driven down by competition. This means that margins can be slim and it can be difficult to make a profit selling on Etsy.

So if you’re thinking about selling on Etsy, keep in mind that the seller’s market could be saturated and competitive. Consider whether you have a niche product or unique selling proposition that will allow you to stand out from the rest of the pack before setting up shop!


Hi, I'm Steve, and I'm an internet marketing expert. I've been making a living online for over 15 years, and I know the ins and outs of the industry. I'm passionate about helping people find financial freedom, and I believe that internet marketing is a great way to do that. I'm always on the lookout for new and innovative ways to make money online, and I'm excited to share what I've learned with you.