When you’re just starting out wanting to sell the products you make, Etsy is an obvious first choice. It’s low cost, low risk, and it lets you test the waters of the marketplace. Add to that a growing legion of fans and a built in sense of community and there are plenty of reasons to sell your work on Etsy.
But if you’re serious about growing your business, then it’s time to face facts: having an Etsy shop is not a business model.
I mean no disrepect to Etsy. In fact, Etsy has played a role in my success. However, if you’re hoping to develop a full time business from selling products on Etsy, it’s unlikely to happen. An overwhelming majority of the makers on Etsy do not make anything close to a full time income.
If you really want to take your business full time (or to the next level) it’s time to get serious about putting together the multiple revenue streams that make a well-rounded business. An Etsy shop can certainly be a piece of that puzzle, but growth will be challenging if it’s your only sales and marketing strategy.
So what does a growth strategy beyond Etsy look like? Here are some suggestions for building your business beyond Etsy’s virtual walls:
- Don’t use Etsy as a benchmark for pricing. I’ve vented here before about the artificially low prices on Etsy. The problem is compounded when people use Etsy as their only sales strategy and feel like they must keep their prices low to compete. If you want to grow your business, you need to develop realistic pricing that factors in costs, labor, and profit.
- Market beyond Etsy. Even if you still use Etsy as your primary e-commerce site, success on Etsy is a result of getting press and recognition outside of Etsy that directly drives traffic back to your Etsy shop. Build a killer mailing list. Use social media. Most importantly, develop a strategy for targeted outreach to both print and online press.
- Create multiple revenue streams. A successful business is built on income from multiple sources, so that if one source is slow, the entire business doesn’t collapse. Your Etsy shop should be a part of a multi-pronged revenue generating system. This system will most likely include some combination of retail craft shows, wholesale, and possibly your own e-commerce site. Many makers derive a large portion of their income from custom and commission work. Trunk shows, studio sales, opening your own boutique – the possibilities are endless when it comes imagining additional revenue streams. Some makers even augment their production business with skills like teaching, writing, or design consultancy.
As I’ve talked about before, it’s important to match your growth expectations to your lifestyle choices. For many people, an Etsy shop is an opportunity to fit in a business around your schedule. But if you goal is to develop a consistent, full time income, or a revenue generating business, it’s time to move beyond Etsy as the only strategy, and start putting together some of the other pieces of the puzzle.
* * * * * * * * * * * * * * * * * * *
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Very well put!
Etsy has helped reach a large target audience which we would never have accessed so quickly. However, the cost for keeping up with marketing on Etsy has made us reevaluate how much it continues to suit our needs while we start to grow and expand.
While we will continue to keep a shop on Etsy and let people know we have a shop, our store will be downsized and we’ll focus on our own website for retail sales while expanding our wholesale side of the business.
Ditto to your reply…You are right on and I am doing the same.
This is a really great blog!
Great article, Megan and SO true! I’ve been thinking more about big picture and the limitations of Etsy. I think Etsy is great for beginners, but it really doesn’t work for 99% of folks long-term/full-time.
I also find myself avoiding the forums and whatnot on Etsy because I think the people who get all worked up over the shortfalls and issues of Etsy are folks who are too dependent on Etsy for whatever meager income there is too be made. I’d rather put that energy towards looking for other outlets to sell my goods and services.
This is a great and useful post, Megan! Thanks for sharing. I am relatively new at Etsy, but I thought I have to start shortly my own webshop too. I use social media, so I hope I am on the right way!
Megan
Great post! What happens when Etsy provides most of your sales but you still want to grow beyond just that? I mean keeping up with Etsy has become full time for me. In addition to that my e-commerse site is bringing in sales as well as some wholesale accounts. I understand Etsy might not bring the same sales for everyone, but there might be people/sellers out there who do make most of it via Etsy.
Yes, I agree as well. I started on Etsy, but introduced my own company website over two years ago. I will keep my Etsy shop because of the unique traffic that the site gets, but I prefer to have customers who know me from other sources (fairs, wholesale, blogs, etc.) connect with me on my own site. It’s a better representation of my business and my products (visually) and there aren’t a gazillion other people who sell a similar product there.
Yes! Spot-on on so many levels!
I recently sat down and mapped different ways I can pursue multiple revenue streams and am now working toward doing so. craftMBA’s post on using Etsy as a tool/resource rather than the end-all-be-all was a big motivator for me to shift my thinking. I also know that I’ve got to review/look at my pricing structure (especially after the formulas posted yesterday). So very helpful! So thanks (for the millionth time), Megan!
Very good post! I’m wondering if you could address how to go about getting wholesale accounts. Beyond doing trade shows, is there a good way to attract wholesale buyers? Have you ever worked with a rep?
I’m in several galleries (consignment) as well as having my own website and an Etsy shop, but I need to line up more concrete sources of income for my business now.
Thank you for this timely post. Last week, my bf and I got into a heated conversation because he doesn’t see the amount of time and effort I put into Etsy for the return I get as being sustainable, realistic or profitable long term. Deep down, I knew what he was saying was true, but taking the next step (starting a wholesale line, approaching stores, participating in fairs) is also frightening because of the prospect of immediate, in your face rejection. It’s easy to hide behind Etsy, but it’s not very smart.
Very well-timed article – the Etsy forums yesterday had me thinking about this exact topic. I appreciate the fact that Etsy allows me to sell my jewelry without leaving the house and avoid the scary process of really putting myself out there. However, I think I do have unrealistic expectations of what I can achieve on Etsy and those expectations are preventing me from exploring other selling avenues like I should be. I’ll be exploring the links in this post and more of CraftMBA today!
Yes…Etsy is an artifical market place where sellers other than the “suppliers” will never make enough money to actually claim to be in business. Beginners at Etsy get “ruffled” when this is stated, but when you see very good crafters/designers will few or no sales, it is obvious that real quality is not being perceived by the Etsy shopper.
I find that more views on Etsy seem to be to get ideas of “what I can make myself” than actually purchase.
I love this forum becuase it is promoting real business instead of faux business.
Thanks for such a great article Megan. I’ve been relying on my on-line venues too much, and this month decided to dust off my half written business plan and refocus my efforts on creating a well rounded business.
You’re articles this week have given me a lot of food for thought…thank you!
I think Etsy is the best place for lots of folks though. Think about how much it costs to sell an item on Etsy… 3% (plus another 2% or so for Paypal). What does it cost to sell an item wholesale… 40-50%? Craft fairs are about the same (if you include travel costs, time spent, etc). I want to sell as many slippers as I can on Etsy because I make the most money there. Maybe at some point I’ll outgrow it, but for now (while I’m also a stay-at-home-mom), it’s my main source of income.
ditto to stinkybomb. We are doing exactly the same thing! By the way, LOVE this blog!
Well said Megan. I work with many retailers and wholesalers who sell only on Etsy and I tell them that if they want to grow their business, they have to take the leap and create their own identity online.
I suggest Webs.com to create a simple website and quickly and easily buy a unique domain name.
As a business owner, you must remove every road block for your customers to make a purchase. Etsy requires you to “register to buy” and then confirm your account via an activation email BEFORE you can make a purchase. How many steps do you want to make your customers take before they can buy your product?
Excellent post. The thing I really like about building my own products and brand is the freedom of choice in profits and route to market. The “middle man” model is one of tradition and will never go away regardless if its brick&mortar or online. Understand that “middle men” strategy is for purpose of distribution coverage and that comes with a price; distributor margin+reseller margin. Selling via own website or sites like Etsy whereby cost of doing business is lower will give better margins to the business owner but the coverage model is compromised. To be successful, the business owner must juggle both to give better route to market strategy. When the business gets too overwhelming, its not a bad sign but rather the opportunity to grow to the next exciting level of the venture.
I agree with your points Megan. It’s also hard to develop your brand image within Etsy. Your brand gets diluted.
I am currently exploring offering workshops to develop a consistent income. Although I did wholesale last year, this year I’m not so sure. The expectations of wholesale is to sell at 50% which for me still does not translate into profit. So I’ve started quoting wholesale at 60% for some items. My goal is to work on a marketing strategy to increase direct sales.
Very interesting article.
Etsy can be challenging to use to steer people to your own website since they won’t allow links nor allow you to edit HTML to create links. But it can be a good tool just for visibility as you are getting your own site off the ground. At the very least you can list your URL for folks to cut and paste into their browser.
When you go to look for a site host to break out on your own, make sure that the templates you are using to build your sites are in a language readable to search engines. I’ve just started reading about this and it’s amazing how much I didn’t know!! Check with the site host to see what kind of language the templates are using. Most of the time you won’t be able to edit the HTML on the pre-made templates, but you can at least control the text and placement of pictures. Also, check to make sure that your web host has shopping cart features on the templates- much, much easier than building from scratch!
Creating multiple revenue streams can be a great idea, just don’t overdo it and let one or more suffer. Better to have enough inventory and time to do each one efficiently. Great article.
Very well said Megan! I started, and the BULK of my sales continue to be, at local art/craft shows. When I started blogging, it seemed logical to open an Etsy shop, and I have made some sales to random people that way (just had a convo this morning with someone who found me via searching on Etsy), but the time I spend online is hardly ever promoting my Etsy shop…that type of forum talking, treasury tweeting way of marketing is too impersonal to me. So my move to my own website (off a free wordpress blog) was partially motivated by being able to sell directly from my website!
Please more pricing rants. They are such a motivational point for me as I always struggle with being one of the more higher-priced fragrance shops on Etsy. Etsy is not where my business ends, it’s merely where it began, and I know what my items are worth in the world beyond. <3
This post could not have come at a better time. As Etsy sales drop, I have reached out to local galleries and consignment shops in order to get my fine art prints out in the eyes of the public. I think Etsy is a great place but you can’t put all of your eggs in one basket. As a fine artist, I want to thank you for inspiring me today! You are my hero of the day!!
Excellent article!
I’ve just set up a store through Big Cartel, and I can really recommend it! It’s easy to customise to fit your brand and there’s even a permanently free plan for up to five products, that you can use to try it out. There are two pay-for price plans that accommodate different amounts of products.
You bring your own customers, but that might also mean that your blog gets more professional into the bargain!
Here’s the link
http://bigcartel.com/
Megan, thank you for continually providing valuable information.
I went from local craft shows to online markets to my own website and then to Etsy.
That was a bit backwards in a way, but I am reaching an audience that I wouldn’t have reached without Etsy. Now I have come full circle and want to concentrate on my website and shows again, possibly even wholesale to shops. I appreciate your article immensely!
Thank you for this well-expressed post, Megan! I’m so glad to see this discussion happening. I agree with you that Etsy is a wonderful thing for the new entrepreneurs in our craft community – and I completely agree that a truly sustainable, full-time business must incorporate income from other sources.
Thankfully, there are wonderful open-source website and shopping cart options for those who want to build their own web presences. Drupal (http://www.drupal.org) and UberCart (http://www.ubercart.org), once you’re through the learning curve, can be a flexible, free alternative to listing and sales fees.
Wonderful post! I would love to see a followup on how to price outside of the Etsy market! I am just starting to move away from Etsy and am not sure how to differ my pricing for a less artificial market.
Thanks!
Jen
You are totally awesome. No two ways about it.
Thanks for the reminder and kick up the pants ~ it’s exactly what I needed!
Great post!!
While I do have an Etsy shop, I definitely find that a lot of my business comes from custom orders, and most of my sales are made in person. Sales on Etsy have actually been pretty sluggish, but as I’ve still managed to make a profit on the sales I’ve made after factoring in the fees, I feel like it’s a worthwhile venue for getting more exposure.
Definitely agree with the part about not using Etsy as a benchmark for pricing, too. When I sell at craft shows, many people tell me they think I could probably charge more for my pieces, but when I compare prices on Etsy it’s sooooo tempting to lower my prices to keep up with the competition. Hopefully now that I have my own website and am trying to establish an online presence independent of Etsy, I can move toward directing people to Etsy from my website to make purchases rather than relying entirely on Etsy for people to find me.
Another great post Megan, thanks! This is exactly how I feel. Although I have yet to move my business beyond etsy, I am working on putting together a plan to do just that. Your advice is very helpful and assures me that I’m on the right track with my preparations.
Have you come across any businesses who provide consultations to designers/ crafters/ small businesses specifically looking to take the next step after Etsy?
I went about it totally backwards! I started selling my work online before Etsy existed, so I had a friend build me a site with a really rudimentary paypal buy it now button. It’s not fancy, but it worked, although since there wasn’t a cart, I couldn’t do international shipping charges, or have products taken down automatically once they sold. Now, my site is broken, and my friend isn’t interested in fixing it for me, (you get what you pay for folks, lesson learned) so I have moved all my products over to Etsy.
I resisted Etsy for the first few years, even though I shopped on it, I didn’t want to sell my work there. I was discouraged by the cheap pricing, not to mention all the copycats of my work popping up! But then I realized, if I don’t list my work on Etsy, someone searching for it there would only find my copycats, and never find me. So, I’ll keep my Etsy shop even when I get my new site with a proper cart back up and running.
It’s been a great resource since my site started to die, but I get a lot of older customers who are pretty new to the internet, and Etsy can be very confusing to them. I hope Etsy revises their procedure for buyers, it seems crazy to make new customers register and jump through all these hoops before they can buy just one thing.
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I really agree with what you are saying. Etsy is so great, but it truly is limited and isn’t the only thing anyone should depend on.
Thanks for this article, it has really gotten me started on thinking about other revenue streams for my products, and I am feeling encouraged!
Great newsletter/blog, too by the way. :^)
Heidi (AlpineGypsy)
A wonderful article! I just made my business official 2 weeks ago today and have already booked 2 craft shows for May and one wholesale request for these exact reasons. Etsy is wonderful for me and will continue to be a great place for exposure but it can not be counted on as my income.
Great Post! I totally agree. I am a jewelry artist who has my foot in many doors. I wholesale, retail at craft shows, have my own website as well as an etsy site, teach classes and workshops in my craft, have an annual trunk show in my studio and do home trunk shows where I come to you and your friends. I have been in business now for over 10 years and when one side of my business is slow something else kicks in and picks up the slack. I would not be where I am now if it wasn’t for my multiple revenue streams. Thanks for the great post and I look forward to reading more!
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Any thoughts on marketing indie craft businesses specifically to a European or Japanese audience?
OH SO TRUE! I have had excellent success on Etsy but cannot survive in only one online marketplace which is why I sell my art on over 25 other sites. They all bring in income and when you are a full time artist surviving solely on your original paintings, then it is essential to join as many selling sites as you can that have a GOOD REPUTATION for sales. I also have a blog and website that helps tremendously and facebook too is great for acquiring new clients….GOOD LUCK TO EVERYONE…Awesome Blog ~ Cheers BarbosaArt
Thank you SO much for this article and the other links, especially the from Slate! It was so eye opening to read that Etsy isn’t the only way (or even a viable way) to go full-time. I’m going to focus my energy on a business plan that includes wholesale and other revenue streams.
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Thank you for this wise advice to temper my enthusiasm. In South Africa the local market is also depressed so going to fairs, supplying shops is not generating much business. I made my first sale 1 hour after opening Etsy shop, so felt really enthused, but no sales since. The international postage costs added to product costs make my handmade tiles prices non competitive. People will copy my ideas as well. So I will try the site out for 4 months and see how it goes.
What a great article! I’d like to throw out another idea – Get your products listed in a beautiful, professional, online product catalog. This can help you sell to current and prospective business customers much more easily.
Check out the platform http://www.rocware.com. It lets you easily and privately share your online product catalog with current and prospective customers. If they’re interested they can create & send a Purchase Order with just a few clicks.
Basic idea here is to make it easier for customers to place orders with you! You look professional, and customers will love how easy you are to work with.
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You guys should try selling on your facebook page too. There are new apps that allow you to do this that are free.
heres one-
http://apps.facebook.com/paystand/?ref=ets003
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