Pros and cons of Etsy. What are the best platforms for creative businesses?

If you are considering selling handmade goods or art, it’s possible you’ll have an interest in opening an Etsy shop. The popular online marketplace provides a space for artists and designers to sell their unique products without having to create a website and business model from scratch.

Etsy has been a pioneer in the online marketplace since 2005 and has established itself as a popular alternative for many sellers. That said, there are pros and cons to using this platform as the foundation for your creative business. For your creative shop to thrive, it’s essential to remember of the pros, cons, and alternatives online.

Advantages of Etsy

Etsy has a good repute among many sellers and consumers. Throughout its existence, Etsy has maintained standards that have ensured its functionality and appeal.

1. Simple interface

Starting a business is stressful enough, so the final thing you wish is to be overwhelmed with organising your store or creating offers. Fortunately, Etsy has one of the simplest online interfaces. You can discuss with the seller’s manual and follow the instructions to get began easily.

2. Large number of users

When building a website from scratch, it might probably be difficult to get traffic at first. Selling on Etsy can provide you with more exposure due to its existing user base and search features. Active buyer base on the market reached a peak of 96.34 million users in 2021. Buyers are showing interest in various categories, and you possibly can exploit niches similar to jewelry or graphic arts.

3. Useful tools and resources

Another advantage of Etsy is its variety of resources for beginners and hustlers, making it an ideal training ground for online sellers. Once you get the hang of running your store and land your first deal, there are several tools available to you. On the platform, you possibly can, for example, analyze sales statistics and monitor the progress of your enterprise.

Disadvantages of Etsy

While Etsy may seem to be the best deal, each platform has its drawbacks. Creative businesses should consider these issues before opening a store.

1. Service Fees

It’s free to open a store, but Etsy has service fees. This charges a fee of 20 cents for each item listed, so apart from sales and promoting, it involves an investment. Whether you must sell your foremost income or keep it as a side business, fees can make it less profitable.

Etsy publicly discloses service fees for creative businesses. This way, sellers can adjust their prices to take care of their desired profit margin while paying fees.

2. Increased competition

Etsy has been around for almost 20 years. In addition to amassing a wide buyer base, there are also many competing sellers on the platform.

Although Etsy prides itself on selling handmade and unique items, it’s possible you’ll still come across listings selling supplies or products just like yours. For example, a shopper looking for handmade jewelry may flick through thousands and thousands of search results. You might also have to compete with counterfeit products or users selling at much lower prices. As a seller, it is advisable find a method to show that your items are top quality, unique and price the price.

3. Difficulties in promotions

Etsy works like a marketplace, so buyers will only know about you based on your listings and descriptions. Building a brand could be difficult if you possibly can’t connect with consumers beyond transactions.

Sellers use various networks to advertise themselves and their stores. There are options to customize your banner and add a website, but the guidelines could be tricky. Please read Etsy’s guidelines rigorously to avoid any violations.

Alternative platforms for creators

There are various options for finding an online marketplace where you possibly can sell your creative products. Like Etsy, they have their pros and cons. When selecting the best platform, consider which aspects are most vital to you.

1. Personal page

Instead of engaging with marketplaces, some creators are turning to website builders to create a hub for their products. Here are some examples of the hottest website building tools:

• Shopify: Shopify offers many resources that allow users to create a site under a custom domain. The company also gains more control over the store and marketing. For example, sellers can add a customer to their email list after a sale.

• Wix: Wix works on the same premise, allowing professionals to create their very own business web sites. The site offers various templates that help you complete the look of your web sites from scratch. However, it provides fewer e-commerce capabilities and customization features.

• Independent execution: IndieMade is a website builder built exclusively for creative business web sites. It is cheaper than Shopify and Wix because it has lower setup and maintenance fees. However, gaining traction can take time and require search engine marketing effort.

2. Social media

Another alternative is social media stores. Linking these chain stores to your profile can provide buyers easy accessibility when working on marketing on their very own. Creating offers is also relatively free. Here are some popular options:

• Facebook Marketplace: Facebook Marketplace is a diverse hub for various products. There are also groups for buyers and sellers for a specific area of interest.

• TikTok Store: TikTok rolled out its online shopping feature in the U.S. in 2023 after testing it in countries including Thailand and the Philippines. Content creators can now promote their products to their followers.

• Business on Pinterest: While Pinterest is less popular than its peers, it might probably function a good marketing and sales tool for creators. You can upload various catalogs for pinners to browse and add to their shopping lists.

• Instagram: If you are just starting out, selling products through Instagram is a low-effort option. You can post photos of your products and accept orders via private messages. This method will not be sustainable for large enterprises, but it might probably work for those that just wish to sell goods for fun.

3. Wish

Wish is an e-commerce application that has aroused the interest of many people. It has gained popularity in online shopping and could also be the perfect setup. However, creative firms may have difficulty reaching their buyer base. The platform is known for low prices, so handmade goods that do well on Etsy face challenges on Wish.

4. AliExpress

AliExpress is just like Wish. From a seller’s perspective, AliExpress charges a lower commission on sales. However, you’ll face the same obstacles in competing with dropshipping firms selling inexpensive products. Consumers will expect lower prices on this site.

5. Smear

Poshmark is a more reputable platform that is on par with Etsy. This site could be useful for building a presence if you sell products in the clothing, footwear and accessories categories.

Poshmark also charges a flat commission selling for $2.95 under $15. Prices above this threshold qualify for a 20% commission.

6. Amazon

Amazon is an e-commerce giant known for selling anything you possibly can think of. Diving into the platform as a regular seller could be daunting, but the company has introduced Amazon Handmade accounts.

Amazon Handmade promotes artisan-made products, separating sellers in this category from mass-produced products. Shoppers may easily filter out these offers, which implies you are on par with other creatives.

7. eBay

Many people use eBay to purchase vintage and used items, so it might probably be a great option for anyone interested in resale. It has similar popularity to Etsy, but is not as widely used to sell handmade goods or art.

Additionally, eBay has no specifications to differentiate between sellers in different categories. Additionally, there is a risk of not receiving compensation if customers refuse to pay or encounter problems during the payment process.

8. Red Bubble

Redbubble is an Australian print-on-demand brand with a presence in the US. It advertises itself as a website for artists and creators to submit their designs to be featured on stickers, T-shirts, mugs and other merchandise. While this is a trusted brand, there is some gray area regarding the site’s use of the artist’s work and the overall quality of the products.

9. Imagine

Goimagine is one other platform that Etsy users can consider migrating to. The market primarily promotes handmade products from the U.S., although commissions are charged, in accordance with the website 100% of your profits go to charity partners like Horizons for Homeless Children and Relief Nursery.

Diversify your market

Starting a business means analyzing the risks and advantages of every decision. Considering its pros and cons, Etsy provides a well-rounded experience for many creators seeking to start selling. It’s also a good idea to diversify your presence on different platforms and make the most of their unique benefits. This way you’ll make the most of your online presence.