Have you discovered a passion for handicrafts? Or maybe you collect unique antiques instead? Put your hobby to work for you through an Etsy shop!
Read on to find out how to sell successfully on Etsy and what you need to open an Etsy account.
What is an Etsy shop and how does it work?
Etsy is a global e-commerce platform where sellers can build their own shop. What sets Etsy apart from other e-shop platforms is its focus on unique handmade or vintage products.
Etsy is a great platform for turning your hobby into an extra source of income, since its intuitive, user-friendly interface makes it very easy for sellers to build and manage their shop.
What products can you sell on Etsy?
Etsy is best known as a platform for selling various handmade or antique items, as well as craft supplies.
Etsy covers a wide range of products, from handmade clothing and jewelry to mugs, bags, stickers and candles. Popular products also include things like handmade party items or wedding accessories.
Etsy is also a great platform for selling small batches and limited-edition products, which help create an exclusive, unique feel.
What should you keep in mind before setting up an Etsy shop?
Opening your own shop on the Etsy platform is fairly simple, but there are still a few steps worth thinking through first, so that setting up your shop and reaching your first sales goes as smoothly as possible.
1. Products
This might sound obvious, but before you start opening an Etsy account, review the products you plan to sell. Your products should be high quality and unique, to stand out from competitors and attract more buyers.
Make sure you have enough products in stock, and that the items you're selling still look presentable.
Study Etsy's selling terms and make sure your products meet the requirements. This helps avoid potential problems down the line. For example, if you plan to sell vintage items, keep in mind that Etsy considers an item an antique only if it's at least 20 years old.
2. Pricing
Think through the pricing of your products. It can help to look at the prices of other similar products when setting your own. Set prices so that all your costs โ materials, packaging and shipping โ are covered, but keep in mind that your final price should also include an amount for profit.
For handmade products, don't forget to also factor in the time spent making the item.
3. Product photos
Product photos should give a clear picture of the product's appearance, size and features.
Invest in quality product photos, since they're the buyer's first encounter with your products. If you have the resources, you might also consider hiring a professional photographer to ensure your photos are high quality and appealing. If you take the product photos yourself, keep good lighting and a clean background in mind, so the product stands out as well as possible in the picture.
4. Packaging
Think through the packaging for your products. Consider both the product's own packaging and the packaging needed for shipping. Is one layer of packaging enough, or is it important to protect the product with more secure packaging for shipping?
Keep in mind that the customer evaluates the whole shopping experience, including unboxing the product. Give your customers a pleasant experience with beautiful, well-thought-out product packaging.
To make your products even more personal, it can be a good idea to include a personal note with every purchase, thanking the customer for their order and perhaps sharing an interesting fact about how the product was made.
Setting up your Etsy shop
Think of a unique, memorable shop name that reflects your brand and products.
Set your shipping and payment terms. For example, the platform lets you accept credit card and PayPal payments, as well as Etsy credit and gift cards.
Think through your policy on returns and order cancellations. Good practice is to let customers cancel their order within, say, 6-12 hours, though this isn't mandatory. Also keep an eye on requirements specific to your market โ for example, in the European Union, customers have the right to return goods bought from an e-shop free of charge within the first 14 days and get the full purchase amount back.
Think through your costs
Every business requires an initial investment. Running an Etsy shop can involve material costs, such as product packaging, or service costs, such as hiring a photographer. Add up all the costs involved and think through whether you already have all the money you need on hand.
To get your business up and running quickly and offer buyers a first-class shopping experience right away, you could consider an ESTO credit line for your starting capital.
You can open a credit line with no contract fee and pay the amount back on a flexible repayment basis. You can use the amount paid to your bank account exactly as you wish.
Review the terms before signing a contract and consult a specialist if needed. The annual percentage rate of charge on an ESTO AS credit account is 49.22% under the following sample conditions: credit limit 4000 EUR, variable initial (maximum) interest rate 40.70%, contract fee 0 EUR, monthly administration fee 0 EUR, total amount of credit and repayments 5467.67 EUR, assuming the credit is drawn down immediately in full and repaid over 60 months in equal monthly instalments.
In summary, Etsy offers a great platform for marketing certain items to a wide audience. With proper planning and preparation, Etsy can be an effective channel for introducing your brand and selling your products in the international market.
Read more on our blog: What is dropshipping and how does it work?