1- Etsy competition is high

Etsy is HUGE. There are over 9 million sellers on the site, so many categories are already oversaturated. Of course, it is still possible to get found on Etsy, it just takes a lot of work. I say this not to scare you or discourage you, I mean, I’ve done it with two Etsy shops and I’m working on my third, but it is tough going. In order to increase Etsy listing visibility for your shop, you need to put in the work- that looks like listing optimisation, keywords, tags, photography, attributes and brilliant product descriptions. It also looks like excellent customer service, consistency and regularly adding new, high quality products.

With new sellers signing up daily around the world and categories becoming even more crowded, it would be madness to solely rely on Etsy for your income.

2- Marketplace websites carry risk

Picture the scene…

You’re a small business owner with a fantastic product. You sell your products on a marketplace website and have never, ever advertised because you never needed to. The orders simply arrive in your system every day.

Then, one day, something changes for that marketplace website and the orders stop coming in. Perhaps their algorithm suddenly stops putting your work on page 1, or maybe they reduced their ad spend in your category. It doesn’t really matter because it’s all completely out of your control and your orders suddenly drop.

This happened to us.

Not with Etsy, but a different marketplace website. And it hit us HARD.

That’s the problem with relying on an external source for orders. It is a risk.

If I were starting from scratch with a small business, I would spread my eggs across several baskets and get on a few different marketplace websites. Marketplace websites are great for getting your name out there, but you don’t actually own your shop or your customer contact list.

That’s why, from day one, I would also focus on building my own brand and getting a name for myself. I would have my own website and build my own list of newsletter subscribers.

3- Brand Identity

“Oh, I like your fancy new mug”

“Thanks! I got it from Etsy.”

That’s what people say. I got it from Etsy.

With 9 million sellers on Etsy, how are customers going to remember your brand name? Building a brand comes from having your own social media accounts, website, blog and brand identity.

You want your brand to be recognisable, to stand out from the crowd so people can say, “thanks, I got it from this fabulous handmade small business called (insert your brand name here). I found them on Etsy but I just had to look them up”.

Summing Up

Etsy and other marketplace websites can be an amazing way to get your products in front of new people. However, as someone that has experiences first hand how devastating it can be when things go wrong, it is so important to not put all your eggs in one basket. Find the perfect balance for your small business, grow your own brand, and, most importantly, spread your eggs, people!