Crafting Concerns: The Drawbacks of an Etsy Business

Crafting Concerns: The Drawbacks of an Etsy Business

I bet when you think about selling your handcrafted wonders or vintage treasures online, Etsy might be the first name that pops into your mind. It’s like this giant online craft fair that never ends! Trust me, I get it. The allure of a marketplace that champions the creative spirit is hard to resist. But as someone who's been there, let me share some behind-the-scenes realities of this seemingly perfect platform.

1. It’s a Big, Big World Out There

Okay, let's start with the sheer scale of Etsy. The last time I checked, back in September 2021, the platform was home to over 4.3 million active sellers. That's like being in the world's largest craft fair with a multitude of dazzling stalls vying for attention.

Imagine this—you've created these beautiful silver earrings. You list them on Etsy, only to find there are over a million other "silver earrings" on the platform. So, my friend, you really have to find a way to make your creations shine above the rest.

2. The Unavoidable Bite of Fees

Fees! Those pesky fees. They might not seem like much at first—a listing fee of $0.20 per item, a transaction fee of 5% on the sale price, and a payment processing fee of 3% + $0.25. But they can add up and take a serious bite out of your profits.

Let's say you sell a handmade scarf for $20. You’d end up paying Etsy $1.40 in fees. Now, if you're selling hundreds of items, that can really start to hurt your wallet.

In 2022 we sold $509.42 of products on Etsy. We paid $332.77 in fees. That means we only made $176.65. That is worse than selling wholesale. We lost money, because not only did we not make enough to cover our COGS, you also have to remember we have to pay for shipping labels, boxes, shipping fillers etc. 

3. Your Shop, Their Rules

Now, here's a truth that's a bit tough to swallow: Selling on Etsy is like renting a spot at a craft fair—the organizer can change the rules at any time, and you just have to go with the flow. Etsy can shake things up with a new fee structure or tweak their search algorithm at any moment. And that can mean extra time and energy on your part to adapt and keep up. And unlike at a craft fair where there is a limited number of vendors allowed, Etsy allows anyone. So instead of being one of maybe 3 candle makers at a fair, you're now one of 1 million. 

4. Meeting Sky-High Customer Expectations

With the rise of online shopping giants like Amazon, customers have grown to expect lightning-fast shipping, instant customer service, and picture-perfect packaging. But let's be honest, as a micro business owner or a solo artist, meeting these expectations can feel like you're trying to scale Mount Everest.

5. A Thicket of Copycats

Oh, the frustration of intellectual property issues! There’s nothing more disheartening than discovering someone else is selling products that look eerily similar to your original designs. While Etsy does have policies to protect your creative rights, navigating this terrain can be incredibly time-consuming and stressful.

6. The Puzzle of Etsy SEO

Etsy SEO is like a puzzle within a puzzle. It's not just about optimizing your product titles and descriptions or having stellar photos. Etsy's search algorithm takes into account customer reviews, shop policies, and so much more. Mastering this art can be a tricky task, especially when you’d rather spend time creating than figuring out keywords and tags.

A Final Thought

Etsy may be a great platform for showcasing your creativity and passion, but it’s not without its share of challenges. There's competition to beat, fees to consider, ever-changing rules, high customer expectations, copycats to thwart, and the cryptic world of Etsy SEO.

But hey, don't let these challenges deter you. Every entrepreneurial journey comes with hurdles—it's about understanding them, preparing for them, and turning them into stepping stones for your success.


Please note that the information contained within this blog is intended for general informational purposes only. It does not constitute legal advice, nor is it intended to replace professional counsel. We encourage readers to consult with a qualified professional or legal advisor for specific advice tailored to their unique circumstances. Ghost Poppy assumes no responsibility for any actions taken based on the content of this blog.

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