Walmart Embraces Amazon MCF: A New Era of Cross-Platform Fulfillment for eCommerce
Walmart Embraces Amazon MCF: A New Era of Cross-Platform Fulfillment for eCommerce
In the list of top online marketplaces in the world in 2024, the name ETSY emerges as an undisputed leader in eCommerce platforms dedicated to vintage or handmade goods. In this beginner’s guide, we will provide you not only with detailed knowledge on major topics such as ‘how to sell on Etsy marketplace’, ‘why to sell on Etsy’, and ‘what to sell on Etsy’ but also cover every aspect of selling on Etsy, including selling fees, permits, eligibility, challenges, payments, guidelines, dos and don’t, Etsy store setup process, etc. So buckle up as here we go.
Etsy distinguishes itself from other online marketplaces through its diverse yet unique array of product categories, such as clothing, photography, arts & crafts, wedding essentials, jewelry, handmade, vintage, and a lot more. Etsy curates a unique space for enthusiasts and creators alike. This opens up endless opportunities for both veterans as well as new sellers to build and grow their businesses. In addition to this, Etsy is also compatible with Open Source and SaaS-based platforms like Shopify, Magento, and WooCommerce. Therefore, sellers (based on such platforms) look forward to connecting their online stores with an Etsy store.
Note: Aren’t you here for the full guide and wish to read only specific sections? No worries!! You can conveniently navigate to specific sections of this guide by accessing the hyperlinks associated with the relevant text in the introduction or through the index.
Keep reading along, as by the end of this guide, you will get to know how to sell stuff on Etsy successfully in 2024.
This guide is a gateway for all the sellers aspiring to start selling on the Etsy marketplace and for those who are already Etsy sellers. This guide aims to answer all the prominent queries to simplify the selling process and increase profitability.
Let’s begin with some statistics.
Now let’s discuss a few interesting topics about Etsy.
Earlier, artisans used to sell their products at fairs, open markets, and on consignment. While the internet opened ways to attract buyers even in their neighborhood, the professionals didn’t feel the need to set up their particular websites.
Then came Etsy; it enabled every dealer to set up a modified online “shop” with full Internet business abilities and manage their business by utilizing its basic set-up wizard. It’s simple, quick, moderate, and an effective method to achieve customers.
Like few other marketplaces, Etsy offers – a customized storefront, a sort of online store parked at Etsy. It enables aspiring merchants to list all of their items in one place, brand their shop – put a logo, and personalized taglines, and create their own policies.
Etsy sellers dealing with Garment Printing have branded their storefronts. They put products in their cover photos, along with the cause they believe in – plant trees, change lives, with their motto being – Tees for trees. They’ve also put their Instagram handle on the cover photo to engage their audiences on a personal level.
Esty has now introduced the option for Etsy POD(print-on-demand) products, to sell on its platform. Now you can sell your own custom designs on various types of products, custom printed T-shirts, Mugs, Cushions, etc.
As already mentioned, Etsy has an exceptional 96 million+ active community, and among them, 36.6% are repeat buyers. It is a testimony to the customer’s love for Etsy. These are great metrics that compel merchants to open their Etsy store and start selling as soon as possible.
Another flexibility that Etsy offers to 3rd party sellers is to engage their visitors. It allows 3rd party sellers to leave their social media handles, drop coupons, and collect emails to enable them to engage with their targeted audiences personally.
Etsy sellers are in charge of their listings. It allows sellers to devise shipping, return, and exchange-related policies. Since the majority of the sellers are part-time, therefore, they can’t offer competitive shipping or refund policies like the e-commerce behemoths, and Etsy completely understands it. It lets them decide their policies.
Etsy’s Free shipping guarantee on orders enables an Increase in Sales and motivates shoppers to shop in bulk while they collect festive items during these months. Shoppers actually love to see these magical words “Free Shipping” and do not want to spend a hefty amount to bring the products home.
Etsy has a great mobile app that also benefits third-party sellers. The share of the mobile visitor traffic on Etsy was 62.39% in February (source: SEMrush), and the Mobile share of Etsy Inc.’s GMS (gross merchandise sales) volume was also 68% (Source: Etsy). In the last 10 years, the Etsy GMS being generated from smartphones and tablets has increased twice. Therefore, it offers an excellent m-commerce presence to online Etsy sellers.
In the latest announcement, now shoppers can easily buy things and pay in installments(easily manage your business). Etsy sellers will receive the full payment of the order so that they can dispatch and process delivery in time. It’s just that the customer has the leverage of paying in installments. Both sellers and buyers will benefit from this. If you are a US-based business, you can avail of this update to garner more buyers. It will be subsequently rolled out covering more regions.
With the new Offsite Ads, Etsy has reformed the ETSY Ad Tool. Earlier Sellers had to invest in Promoted Listings, and Google Ads. But with the new update, sellers need not do that. The new Etsy offsite ads, promote your products on Etsy and other sites listed under the Offsite Ads. The best part is, that you pay only when the buyer clicks on the Ad and buys within 30 days of the Ad. In short, with Etsy off-site ads, Budding sellers can easily amplify their sales by garnering a huge audience.
Etsy is a marketplace designed for the creators, where sellers from around the world connect to make, sell, and buy unique products. You must be wondering exactly what to sell on Etsy. The top categories available to Etsy sellers primarily are:
As per Statista’s report, 80% of Etsy sellers identify as women, which brings us to the fact that the most popular items are customized unique handmade items comprising Stickers, Custom Jewelry, Crafts, and supplies.
The more creative and eye-catching the product is, the more it tends to show up in the search results. Different Etsy sellers come up with tactics to make their products thematic yet straightforward; the top-selling items on Etsy usually carry a pinch of personal touch in them.
There are different types of fees applied when you sell on Etsy. These are the following:
To make a listing online on the Etsy website or on the Etsy app costs $0.20, and is available for four months (variations excluded). Etsy automatic renewal feature will renew the listing every four months, charging $0.20 each time unless you cancel any listing.
After the listing expires, you have the choice to either enable an auto-renew option or manually renew the listings. Regardless of the method chosen, a fee of 20 cents per listing will apply for each renewal.
It also charges $0.20 for each of the ADDITIONAL quantity(ies) that sells within a single transaction. It means if you sell multiple listings in 1 order, $0.20 will be charged for each item. Learn more about the Listing and Multi-Quantity Listing Fee here:
If you want to list a private/custom status for a particular listing, you need to pay $0.20/listing. Once a custom fee is applied, it shows as follows:
This is the fee set to deliver an item. It includes several factors such as distance, dimension, weight, and shipment carrier. Etsy sellers in the U.S., Canada, UK, and Australia who accept payment by Etsy Payment or PayPal are eligible to use Etsy Postage/Shipping labels.
The major shipping carriers of Etsy are USPS, FedEx, Canada Post, Royal Mail, and Australia Post. Etsy sellers can buy postage labels from these carriers at the rate offered by them.
Shipping fees also include Primary and Secondary fees, which means the applicable shipping fees for an individual item plus when it is shipped combined with other products by any of the shipping carriers, respectively. You can reach for the carrier’s terms and guidelines through Etsy’s help.
All fees for the postage label appear separately on your payment account and will specify the name of the service provider and the postage label number.
The Transaction fee constitutes 5% of the total value of a product. Also, if a seller chooses Etsy’s “Immediate Checkout,” a 3% fee is levied.
Contrasted with the costs of setting up a website with a shopping cart, and getting a merchant account (which likewise charges handling expenses), Etsy is a reasonable option. Etsy is not only feasible but also flexible enough to allow you to sell products from your online store, helping to manage your business.
Etsy Plus offers numerous tools for growing your brand or increasing your brand recognition, Etsy sellers with Etsy Plus membership have to pay $10/month as Subscription fees, with an advantage of 15 listing credits.
If you use Etsy Square to get your multiple listings at a discounted rate of $0.20, it will be termed as an In-person selling fee where the square payment processing fees will be applied.
Value Added Tax is the tax levied on every new stage of production to the point of sale. Wherever an additional value is added to the product or services, the rate of tax is added to the cost of production. The rate varies from product category and the region it is being manufactured.
Then there are miscellaneous fees involved; however, these are subjective. It will be levied only if you use features like Etsy payment processing fee, deposit currency conversion (it is 2.5% of the market rate), promoted listings, Google Shopping ads, and Targeted offers ($0.10 for every targeted email sent).
The primary goal of Etsy as a marketplace is to have a platform with buyers get positive experiences at last. It aims to offer its buyers what they don’t get anywhere else, so quickly. It lays down various categories as per what can an Etsy seller sell and what they cannot.
a) What can be sold: Etsy is a unique marketplace that allows the sale of handmade products designed by you, vintage items, and craft supplies that include tools, ingredients, or materials.
b) What cannot be sold: Even if you meet all the marketplace terms and criteria, there are specific categories of prohibited products and services that are not allowed on Etsy.
As said, Etsy is an open marketplace, but there is always confusion among sellers on what to sell on Etsy. Etsy has specific rules and marketing strategies for the Manufacturer as well as for their Business permits.
Etsy offers a level playing field to all. This information will be crucial to those who are just getting started. So there are three things to know:
As discussed earlier, the final location of the manufacturer depends on where the product took its final shape. On drilling further down, there are two situations:
Note: These rules apply to sellers who live outside the US territory as well.
As already mentioned, business licensing also depends on the state, country, or municipality where your business is located. However, overlooking these regulations will cause the seller to pay a fine. Many states require Etsy sellers to collect sales tax. Depending on the state where you run your business, these rules are applicable.
In this regard June 2018 declaration by the US Supreme Court is crucial. The court directed states to enforce sellers to collect sales tax even if they do not have a physical presence in that state. Online sellers will be required to register for a license and collect and remit sales taxes in all states that impose a sales tax where they satisfy the tax law’s nexus requirement.
Your Shop’s About section is an opportunity to tell the Etsy community about your shop’s unique story and the people behind your items. In the shop policies section, you should provide brief descriptions of what your buyers expect from you.
Sellers need to get a detailed overview of Etsy Business Licensing and Manufacturing Rules before onboarding on Etsy.
It is as easy as it gets. Etsy is an open marketplace, which means you don’t need to be pre-approved or an experienced seller to sell on Etsy. Therefore, whenever you feel like getting started, all you need to do is visit Etsy’s page, fill in the required information, set up your Etsy shop, and get started. So if you were looking for answers to the question ‘How to start selling on Etsy’ or ‘How to open an Etsy shop’- your search ends here. The below steps contain all the details you need:
This concludes one of the major steps of opening your shop on Etsy.
Once your shop is created, move to the next step.
Tips: You can check out the best Etsy SEO and Social media practices to make your brand stronger.
This completes your Etsy store setup.
You can also go through this video for a step-by-step guide on how to open Etsy shop. Have a look:
To attract traffic to your Etsy store, it is paramount to understand “How Etsy search algorithm works.” This, in turn, will help you create a listing that not only attracts visitors but also converts them into paying customers. So, let’s get to the bottom of the Etsy search mechanism. Here are five factors that influence Etsy search:
To get the complete picture and how to implement the factors mentioned above, read tips to rank your products up in Etsy search rankings.
First and foremost, you need to be smart while creating the title for Etsy as it only allows 140 characters. Furthermore, Google, Bing & Yahoo also display the first 66 characters in their search results. Therefore, the essential terms (keywords) should be put at the beginning of the Title.
Some of the examples are:
Therefore some of the general observations to create a search-friendly title are:
I’m sure the above explanation makes it easier for you to find an answer to “How do I sell on Etsy” by using the right titles for listings.
Before we move on to our next point, let’s learn about some of the common mistakes that Etsy sellers make while selling on Etsy. Know these and refrain from it to rise as an ideal Etsy Seller.
There are several ways to get paid from your Etsy store:
The straightforward answer is NO. You can’t sell any products that include copyright, trademark, or patent that belongs to others.
Etsy can/will remove your listings if they’re reported for this, and repeated intellectual policy infringements may ban you from Etsy. Read Etsy’s Intellectual Property Policy guidelines
It varies from product to product. Some of the products are offered with free shipping, where sellers bear the cost of shipping, whereas some require buyers to pay for shipping. It depends upon the order value, shipping destination, and the shipment method chosen by the buyers.
The Free Shipping boon started in late 2019, ensures Etsy sellers a priority placement in the Etsy search results as cited by Josh Silverman through a mailed letter to Etsy sellers.
Etsy free shipping tags products above $35 with free shipping, sellers opting for it, may get placed high in the search results. It’s a big bait for small or medium-level sellers to grow their reach and presence.
Etsy shipping carriers have a set of categories and fees accordingly for each product. Sellers have to purchase postage labels directly from Etsy or specific shipping carriers. However, shipping faster on Etsy can help you sell more, and with satisfied customers, the ultimate ROI can be achieved.
If you’re concerned more about “How to increase the sales of the Etsy Shop, go through 17 Less Familiar Etsy Tips & Tricks tricks to boost sales on Etsy .
Below is a list of Do’s and Don’ts for sellers to consider when they sell with Etsy. These will paint a clearer picture of how does Etsy work.
As Etsy is a global platform with great community support of largely supportive and like-minded people, it gets quite easy for new and upcoming store owners to get familiar with trends and policies.
With Etsy forums:
Being a part of the community will help you immensely as there are several groups to help you effectively tap into the get-going state of your store.
Q. Is it worth it to sell on Etsy?
Yes Indeed. However, it is to be noted that Etsy is a marketplace that limits products from a specific niche. If you are among those creative enthusiasts who have something unique to offer, and you want to come up with a brand out of your creativity. Etsy is worth your try and time.
Q. Is it free to sell on Etsy? How much does Etsy charge?
No. Creating an Etsy shop is Free but selling on Etsy is not free.
There are two types of fees on Etsy:
Listing Fees: Etsy charges $0.20 per listing for creating or renewing listings
Transaction + Payment processing fees: Etsy charges about 20-25% of your online sales in various fees, including transaction (6.5% of the total transaction value) and payment processing fees.
Q. Can you resell on Etsy?
Reselling on Etsy is only allowed in a single product category ie. vintage and craft supplies. Other than this, everything you sell on Etsy must either be made or designed by you.
Q. Is the transaction and payment processing fee fixed on Etsy?
No. The Etsy transaction and payment processing fee ranges between 20% to 25% depending on the shop location, other regional fees and tax rates may apply.
Q. When is the Renewal Fee charged on Etsy marketplace?
Etsy charges a $0.20 fee to renew a listing after every four months.
Q. Who pays for shipping on Etsy?
It depends on you! The Shipping fee is your call as Etsy gives you the option to pay for shipping or have your customer pay in addition to the item cost.
Etsy is a global marketplace. Selling here means getting worldwide exposure for your brand and generating cross-border sales. And if you’ve any other queries concerning How to sell on Esty, do write in the comments. We will be glad to help.
The past couple of years, marked many major updates for Etsy, Free Shipping, Etsy Ads, Etsy awards, Etsy Shop stats change, and many more. The modifications are yet to see a long-term impact on the sellers and buyers. However, it seems fruitful; Etsy ensures no artist’s interest is compromised. And that makes this marketplace unique.
Facing trouble in deciding whether to sell on Etsy or not? Here are some reviews from sellers who are currently Selling on Etsy which will help you figure it out:
If you are fully convinced and are ready to take the first step towards selling on Etsy, you can do it even better with the CedCommerce Etsy Integration app. With us, you’ll get access to the best marketplace tools and features for your business growth which will boost your Etsy revenue multifold – visit here to learn more.
Disclaimer– Etsy is a trademark of Etsy, Inc. This content is not created or endorsed by Etsy, Inc.
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