Etsy is an American e-commerce platform founded on 18th June 2005. For 15 years, Etsy has been functioning as a public e-commerce website. The headquarters of Etsy is located in Brooklyn, NY, in the US. This platform is quite trustworthy due to its vast experience in this industry.
Etsy is primarily focused on vintage items or handmade products. It serves as a marketplace for different users to sell their handmade or craft supplies easily.
- Craft supplies
- Home decor
- Toys, etc.
Due to a wide variety of vintage products, Etsy stands apart from other similar e-commerce platforms.
You may think that selling on popular e-commerce marketplaces like Flipkart, Amazon, etc., is better than selling on Etsy. But the advantage of Etsy over these platforms lies in the fact that it deals in unique vintage products.
So the platform drives the target audience who are interested in such products.
Let us say you want to sell your handmade cards on a marketplace. It is better to sell your handmade cards on Etsy rather than on Flipkart, Amazon, or other e-commerce platforms.
This is because Etsy attracts people who are intrigued by unique handmade products. You will rarely gain any profits by selling such products on other marketplaces. This is because the target audience that visits other marketplaces does not have a taste in vintage products.
Lastly, the revenue generated by Etsy in 2018 was $603.7 million. These figures are enough to exhibit the credibility of this e-commerce platform.
The website of Etsy is etsy.com. You can visit this website for 2 purposes – buying and selling. Etsy helps the users purchase and sell various vintage products, craft materials, and handmade items. Let us have a look at the different features of this e-commerce platform.
Features and Tools
1. Powerful Tools
Etsy has several tools that help you to manage your online store. Regardless of whether you are a beginner or making your thousandth sale, Etsy will help you manage your shop in less time.
2. Manage Your Store from Anywhere
Etsy helps you to manage your online store from any corner of the world. You can easily connect with your customers, update items or manage orders on the Etsy app from your smartphone.
So, no matter if you are traveling or staying far away from your workspace, you are just a click away from managing your online store on Etsy.
3. Promotional Tools
Etsy also has many promotional tools that can help you to attract a greater target audience towards your products. You can promote your listings and share your items on social media and Etsy using the platform’s free promotional tools.
4. Data Analytics
Etsy has the feature of data analytics. Data analytics can help you to improve your sales and stat on top of your business. This is because it provides detailed statistics that help to exhibit your performance and traffic.
5. Seamless Payments
You can accept payment via PayPal or other methods on Etsy. This will help the buyers to pay in the way which suits them.
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6. Different Plans
Etsy has several tools for different kinds of businesses. Such tools will help you to achieve the main objective of your business. You can also get access to the advanced tools by subscribing to the optional monthly subscription of Etsy.
The Standard plan is the basic plan. All the users of Etsy get access to the features of the Standard plan. The Standard plan has all the features necessary to help users start and grow a creative online store. Moreover, the Standard plan is free of cost.
As the name suggests, a Plus plan is an additional plan. The Plus plan has many other tools that will help the users leap forward in their business.
It has all the features of the Standard plan and some additional features as well. The cost of the Plus plan is $10 per month. Let us have a look at some of the characteristics available in the Plus plan.
The plus plan provides users with different customizable options. These options will help you to govern the look of your online store. Some of the Plus plan’s customizable options include the featured listing options that can help you highlight your website’s listing or the new banner templates.
Back in Stock Option
As the name suggests, the back in stock option will help your customers to know that a particular product is back in stock. You can inform your customers when the item is back in stock through emails.
Moreover, to avoid the shortage of stock, you should always plan your inventory according to the popular listings.
Advertising and Bonus
The plus plan also helps you to receive $5 in credit and other 15 listing credits. These credits will help you to promote your products monthly with the help of Etsy advertisements.
The Plus plan provides a custom .com domain at 50% less or a .store domain for free. These web addresses will help you to promote your listings on Etsy. The customers can easily find your online store on Etsy using your web address.
So, these are some of the additional features of the Plus plan. Apart from the plans, the users need to pay the basic or the standard fees needed to operate your online store on Etsy. Before having a look at the standard fees, let us know about this platform’s customer support.
7. Customer Support
Etsy provides customer support to more than 1.7 million sellers of the software. They provide education, information, and support to small and big businesses. This information is related to starting an online store.
8. Connect with Etsy
The users can easily talk with the customer service of Etsy using email or phone call. This will help them to clear their queries.
Etsy also has a successful newsletter that contains different tips to improve your online business. You can get this newsletter directly in your inbox.
10. Success Tips
Etsy provides its users with an updated seller Handbook. This Handbook will help you to know the best practices and strategies to grow your business.
11. Forums and Teams
This option helps you to solicit questions from a community of sellers on Etsy.
If you like the different features of Etsy, you can start selling on this platform. But before that, you should know about the various fees and taxes required for selling on Etsy. This fee will help you to estimate the profits which you can earn using this platform.
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Fees and Taxes Incurred on Etsy
Etsy works as a middleman between the sellers and buyers of different corners of the world. In the capacity of a middleman, this platform earns fees or commission from such sales and purchases. So, if you sell on Etsy, you will have to pay some fees to this platform.
Etsy will automatically deduct its fees from the sales which you make. But in case you do not make any sale or have a negative account, you will have to pay the fee amount to etsy.com.
This amount is paid to the platform on the first of the next month. You will receive an email from the company to pay them the required amount in such a case.
There are different types of fees and taxes on etsy.com. You can always view your Payment account from the application. Follow the following steps to view your payment account.
This payment account will include the different fees and taxes that you need to pay to Etsy.
- Sign in to the platform, etsy.com.
- Click on the ‘Your Account’ option.
- Now open the ‘Shop manager'.
- Click on the ‘finances' option.
- From the finances window, you can choose the ‘payment account’ option.
- A new window will open, which contains your payment account. You can view the fees and taxes under the heading ‘Recent activities and fees and taxes'.
The fees and taxes in your payment account are published in US dollars. You can see the fees in US dollars of a particular category in the description. This fee is also converted into your currency at the market rate from Etsy. The currency conversion depends upon the currency exchange rate.
Different kinds of fees or taxes that are incurred on the users on Etsy are as follows.
1. Listing Fees
The listing fee is $0.20 per listing. The users need to pay this fee for each listing regardless of the result of their sales. Each listing expires after every four months, according to the Seller Handbook of Etsy.
Each listing can contain an innumerable number of pictures of the product. For example, you want to sell bags in your listings. In the first listing, you put a handbag.
You can click different pictures of this handbag from different angles. You can also click pictures of the different colors of the same product. All such images are put into the listing. Different pictures help the viewers to get a better understanding of the products. This will, in turn, help you to increase sales.
2. Auto-Renew Expired
Auto-Renew Expired fees are also $0.20 per listing. This fee is paid by the users when a listing is auto-renewed. The users need to pay this fee regardless of their performance and sales. So it doesn’t matter if you have a negative payment account, you still need to pay the Auto-Renew fee.
As mentioned above, each listing expires after every four months. So your listing is auto-renewed after every four months for $0.20. But if you want, you can also perform this process manually.
Renewing manually provides you with the option to either renew or avoid continuing. Renewing your listings manually makes more sense from a financial perspective. If a product is not getting sold, you can save this fee by not renewing it.
3. Auto-Renew Sold
When you sell several quantities of a single listing, you can pay a multi quantity fee. This multi quantity fee is paid for each additional quantity that is sold from your listing.
The cost of this fee is $0.20 for each additional piece. So if you sell more than one item in the order, then the first item is not charged. This is because you have already paid a fee of $0.20 for the listing. So you are charged the same amount for each extra quantity which you sell.
4. Private Listing Fee
The cost of a private listing fee is $0.20 per private listing. If a buyer purchases your private listing product, then the fee is included in the payment account.
5. Postage Label Fees
The sellers in some particular countries can purchase Etsy shipping labels. The price of these shipping labels depends upon the type of label which you select.
6. Transaction Fees
Etsy works as a middleman between the seller and purchaser, and it takes a certain amount of the products’ selling price as its fee. This fee is known as the transaction fee, which is in the form of a commission.
The transaction fee is 5% of the total item cost. This cost includes both the gift wrap and postage expenses. The fee is deducted in the relevant currency of the seller.
This means the platform first converts the fee in the seller’s payment currency at the market rate.
Apart from the transaction fee, a delivery transaction fee is also charged on Etsy. This fee is also 5% of the postage cost of different items. The delivery transaction fee differs from the postage label fee.
The value-added tax or VAT is incurred on two fees: the processing fee and the seller fee. The VAT on both these fees may differ based on the amount.
8. Advertising Fees
The two types of advertisements on which a fee is incurred include offsite ads and Etsy ads. In the offsite ads, you will be charged approximately a 15% fee on the total of your order.
But this fee is charged only if you had earned less than $10,000 on Etsy in the last year. But if you had made $10,000, then the advertisement fees charged is 12%. One of the most important aspects of the offsite advertisement fee is that it never exceeds more than $100 per order.
On the other hand, the fee for your Etsy advertisements can vary. You can highlight some particular products in the search bar of Etsy using these advertisements.
9. Payment and Deposit Fees
Etsy Payment Processing Fees
Etsy payment processing fee is incurred only on the sellers who accept their payments on Etsy. You can view your Etsy payment processing fees in the payment account. It is visible under the fees and taxes section of this account.
Etsy Payment Deposit Fees
The deposit fee is also accrued only on those sellers who accept their payments through Etsy. Moreover, this fee is applicable only in certain countries. You can checkout your Etsy payments deposit fees in the Payment Account section whenever you generate the sale.
Currency Conversion Fee
There can be a possibility that the sellers list their items in a currency different from the currency of their bank account. In such a case, the platform may convert your fund to the currency of your bank account. For this, a 2.5% fee is charged for currency conversion.
After knowing all the expenses that you are likely to incur on Etsy, you can start your Etsy shop. Many steps can help you to create your online shop on Etsy. Let us have a look at them.
Steps to Get Started
Etsy.com is the digital marketplace that will help you to sell your products. After opening this platform, you can click on the “sell on Etsy” link. This link is located in the top right corner of the screen.
After clicking on this link, you are redirected to a new window. Move to the bottom page of this window, where you will find the option of “Open your Etsy shop.”
After clicking on this option, a small screen will appear on the previous window. This screen will ask users to sign in to the platform. You can sign in by using three options.
The first option is to sign in using your email. On the other hand, the last two options let you sign in using your Facebook or Google ID. You can choose any of these options to continue creating your online store.
After signing up for the platform, the users will receive a window showing five steps. The users need to complete these five steps to start their online shop and sell on Etsy. Let us have a look at these five steps.
Step 1. Shop Preferences
As the name suggests, your shop’s preferences include different features like your business’s language, currency, and nature. The nature of your shop option asks whether selling is your part-time or full-time job.
Another option about nature includes selling a part-time job for you, but you want to pursue it full time. The software also asks about the shopping country.
After entering all the relevant details, you can save and continue in the first step. This will lead you to the second step.
Step 2. Name the Shop
This is one of the most crucial steps of creating your Etsy shop. The name of your shop will be a reflection of your brand. So, it is very crucial to select a name with the utmost wisdom and care.
The name of your shop should also align with the products which you sell. It should help the visitors to get an idea about the items in your shop.
You should also remain careful about the length of your shop name. Etsy requires its users to keep the name between 4 and 20 characters. Moreover, the name of your shop should not have any spaces or special characters.
After entering the required name, you should click on the “check availability” option. This is because, at times, the name which you may be looking for is already used.
In such a case, the platform will display a message regarding the same. It will also provide you with additional names that you can keep instead of the previous name.
After keeping the required name, you can click on the save and continue option to enter the next window.
Step 3. Stock Your Shop
After keeping the name of the shop, you are ready to fill your shop with your products. You can do this by entering the products in different listings. After clicking on each listing, you will enter the manual listing window.
From here, you can add the pictures and other important information like inventory, color, price, etc., of your product. Let us look at the different features of this step, which are necessary for the sellers to fill in.
The sellers should add pictures of their products. The platform advises these sellers to input at least 5 pictures of a single item. The sellers should take these pictures from different angles.
This will help the buyers to have a better understanding of the product. Moreover, the pictures which the sellers take should have a clean background.
Thumbnails refer to the first picture of your listing. This is the picture that the visitors come across while purchasing your products. So, it is essential to keep an appealing and intriguing thumbnail that can attract visitors. Thumbnails dominate the look of your shop.
So, it would be best if you were consistent while selecting the thumbnails, and they need to be a reflection of your brand. Moreover, thumbnails should also exhibit information about the product of a particular listing. So, adjusting thumbnails is also a crucial part of your listings.
After adding the particular pictures in the listing and thumbnails, you need to fill in the listing information. This information includes the product description and title.
The buyers will purchase the product only if they are satisfied with the description of your product. So you should thoroughly describe your product to the buyers through the product description.
While filling in the listing information, it is also important to make use of the 13 tags. These 13 tags are available for each listing. The tags help the buyers to look for your products based on the keywords easily. So, the 13 tags are generally 13 keywords that can attract traffic towards your product.
Inventory, price, and quantity
Price is one of the most important factors behind the sale of your product. You should enter the price of all your items in the product listing. While choosing a price, make sure that you take into account different costs.
This will enable you to earn enough profits to help your business grow. You should not lower the price too much. Though this will attract traffic towards your product, it will lead to a loss in your revenue.
Besides the price, you should also enter the quantity of your stock. Moreover, you can enter information about your product variants such as different materials, sizes, colors, etc. If your product has the option of restocking, you can mention it in this section.
The inventory section also has an SKU option. SKU is the code that you want to allot to your particular product. In case you are beginning your listing, you can choose the SKU code for the first product as 001. But filling in the information in the SKU option is not compulsory.
This step also requires users to enter the shipping fee for their products. While entering the shipping fee, you also need to enter other relevant details. These details include the country of origin of the product, its size, weight, processing time, etc.
The sellers can also modify these pieces of information according to their requirements later.
In the end, you can preview your listings. This will help you to have a look at your shop from the customers’ point of view. You can always modify the flaws of your shop by previewing your listings.
But in case you feel that your shop is good, it will boost your morale and confidence to start selling. Once you click on the finish button, you are done completing your first product listing. Now, you can repeat the above steps to add the second listing in the same way.
Once your listing is ready, click on the ‘save and continue’ option to land on the 4th step.
Step 4. How You’ll Get Paid
After your listing is completed, you have to decide on the payment options or the methods. These payment methods will allow you to receive your income from Etsy. There are different electronic payments available on this platform. But the most commonly used payment method on Etsy is PayPal.
There are even other alternatives available for the sellers. The sellers can earn their revenue through debit cards, credit cards, store credit, or Etsy gift cards. Thus, the 4th step helps you receive the fruits earned from the above 3 steps’ hard work.
Once you input the relevant information, you can click on the save and continue button. This will take you to the 5th and the last step of starting your online store on Etsy.
Step 5. Set up Billing
Setting up billing information requires the users to provide their information from which Etsy can charge for their taxes and Commission. This information can include any credit card info.
The billing information primarily depends upon your country of origin. The platform requires your credit card information for authorization. Once you provide this information, your last step is over. Your online shop is created, and you can sell your vintage products from here.
Now you are ready to optimize your shop and promote your products. The promotion will help your online business to grow.
Market, Promote, and Optimize Your Shop
It is imperative to create particular marketing and promotional strategies to help your online shop grow. Marketing will help your customers to remain updated about your new products.
It will also help to attract new customers to your online store and hence, increase your sales.
Some of the ways that can help you to market and optimize your online store are as follows:
- Optimize your shop search on Etsy. This will help the users to find your shop easily. You can do this by adding your location. The location will help the local users to find your store.
- Paid advertisement.
- Link your shop with different social media accounts.
- The sellers can also make use of different discounts and coupons. Such deals serve as an incentive for potential buyers to make their purchases.
- Etsy Teams is a great feature of this e-commerce platform. This feature can help you to link with other sellers and shoppers. In this way, you can have a look at your competitors and perform strategically.
- Another feature that can help sellers be at an advantage over their competitors is the profile feature. The sellers can create their profile on Etsy by including a short bio about themselves along with her picture. The description will help your visitors to know more about you and hence will increase your credibility. This will help you to build personal connections with the users and tell them about your products.
- Apart from adding your personal profile, you can also add a store bio. As the name suggests, the store bio is the section that requires the sellers to write about their online store. The store bio can be of a maximum of 5000 characters. You should create a store bio that helps your visitors to feel a personal connection with you.
- Besides describing yourself and your store, you can also add various shop policies to your Etsy profile. Shop policies include different FAQs and other questions that your customers may solicit about your online store. These questions may include return policies, delivery time, shipping timelines, etc.
- Etsy has certain marketing tools that can help you to increase your target audience through social media. One of the newest marketing tools of Etsy allows users to share their products on different social media platforms. The sellers can share the links of their products on Pinterest, Twitter, Instagram, Facebook, etc. So, you can use this platform to attract the target audience from several other social media accounts.
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Let Us Wrap It Up!
Thus, you can use Etsy to increase your earnings by selling some products. These products may be a reflection of your talents, like craft items or handmade products.
Moreover, you do not need a team to start working on this platform. According to researchers, approximately 79% of the sellers run their Etsy account single-handedly. Also, 97% of these sellers work from home.
So you can easily work from the comfort of your houses to earn greater revenue. But you should make sure to learn Etsy SEO techniques while using this platform.
These techniques will help you attract a greater target audience by improving your production access search bar’s ranking. Moreover, keeping an eye on the data and statistics regularly will also improve your selling strategies and techniques.