When you set out to build an e-commerce empire, there’s every chance that you can read plenty of guides from so-called “gurus” and not hear a thing about Etsy.
In general, Etsy is ignored by a lot of sellers. There are some people who assume it is only for arts and crafts, or more importantly assume that Etsy’s sales won’t bring in any significant income.
We’re here to tell you otherwise. Plenty of people out there make a living on the platform, and it is becoming a more serious proposition for even more sellers.
Check out the number of active sellers on Etsy, and how it has continued to grow.
This doesn’t mean the market is becoming over-saturated, either. Etsy’s revenue doubled in 2020, and their growth shows no signs of letting up.
Etsy seems to be moving into other markets, too. Etsy paid $1.6 billion to acquire Depop, a second-hand clothing retailer. Vintage clothing has always been a part of the Etsy marketplace, but making these huge strides shows that the company is set on expansion.
No doubt about it, Etsy experienced a boom during the pandemic.
The graph below shows that their revenue more than doubled in 2020.
A number of factors contributed to the growth:
Etsy’s growth in sales is not just a side-effect of the pandemic. Continued growth shows that this is anything but a flash-in-the-pan, and Etsy has continued to bloom and grow into 2021.
It’s fair to say that the Etsy boom is here to stay.
A lot of people have misconceptions about Etsy. Maybe you’ve only ever shopped on the platform once or twice. A lot of items that are traditionally crafts or gifts are sold on the item, but this isn’t just about selling a cool item that you have learned how to crochet.
As long as your items fit (loosely) in one of the categories below then you should be fine to list it on Etsy with no backlash:
We would also say that Etsy are pretty flexible with their definitions. You may well notice that there are items on the platform such as print-on-demand tee shirts. Whether this counts as being “handmade” is really something that is up for debate.
We don’t have official word from Etsy, but we’d suggest that if it loosely fits a definition, e-commerce sellers are safe to list it.
Etsy doesn’t have any expensive barriers to entry or membership schemes for sellers, so it is very popular for those who are just getting started in e-commerce.
There are three different types of fees you will regularly pay when listing on Etsy. To avoid confusion, we’ve used Etsy’s own definition as of November 2021.
“The listing fee is a flat rate charge of .20 USD per listing. This fee is charged regardless of whether or not the item listed sells.”
“Etsy collects 5% of the total item cost (and gift wrap, if relevant) in your designated listing currency.”
“If you choose to charge buyers a separate delivery fee, Etsy collects 5% of the total delivery charges.”
We suspect that most sellers are building these transaction fees into their profit margins. In terms of the initial outlay to start selling your products, we’re talking about a fraction of a dollar per item you list. Talk about low-risk.
There are many reasons why Etsy represents an opportunity for sellers in 2021 and beyond.
Ready for some inspiration? Check out the top sellers on the platform according to Market Pulse. If you’re still unsure of whether it’s possible to build a successful e-commerce business on Etsy, seeing that some brands are selling tens of thousands of items a month will probably change your outlook.
With Etsy doubling its revenue in 2020, it is fair to say that the site is becoming a huge player. If you’re selling products that fit one of Etsy’s categories, ignoring this selling channel could come at a large cost to your business.