Are you an artist who creates special, one-of-a-kind handmade items? We know how much time crafting each of your items by hand can take. Making your items isn’t the most challenging part – it’s selling them.
The pandemic has encouraged a lot of people to shop small businesses rather than giving more money to the corporate world. In a survey of 1,500 Americans, “70% of consumers are supporting local business to keep money local”. This is an entirely different trend than what the world was seeing pre-COVID-19. Although small businesses typically have higher price tags, people feel good about where their hard-earned money is going.
The world of online businesses is an industry growing at an extremely rapid pace, causing many business owners to feel like they won’t make it, or won’t stand out. Don’t let this fear stop you from chasing your dreams of selling your handmade items online. We are here to help you determine which e-commerce platform will help you achieve success selling your handmade items online.
1. Etsy
Everyone has heard of Etsy at this point, and people trust it, which is one of the major perks of using this platform. If you aren’t familiar with it, Etsy is an American e-commerce website that specifically focuses on handmade, crafted, or unique items – you won’t find anything commercialized on this site.
Pros:
With Etsy, you don’t have to rely solely on yourself to market your brand and business. The site already has well over 47 million active users, and Etsy helps show your products to the relevant customers. The Etsy algorithm will help bring your store traffic and show your products to consumers looking for items that you sell.
The startup cost is meager. When starting your Etsy shop, you don’t have to come out of pocket much. There are no monthly fees that you are responsible for – which is why most business owners love to use the site to start their business.
They have an excellent messaging system between seller and buyer. Customer service is something that can either make or break your business. Being able to communicate with your buyer is something that makes consumers feel more comfortable – if they have any questions or issues with their order, they know they can easily reach out and get it resolved.
Cons:
Not only are there a lot of buyers on the site, but there are also just as many sellers. With well over 2.5 million sellers on Etsy in 2020, you’ll have quite a bit of competition. But don’t let this steer you away. You just have to ensure you are offering quality products at a competitive price. It’s always good to drive traffic to your site through social media. So, if you gain a following on social media, that’s a great way to become a huge player in the Etsy world.
The most apparent and well-known issue is the Etsy fees. Every time you list an item on Etsy, you get charged a .20 cent fee – which is also charged to you anytime someone purchases an item from you. If you “relist” an item in your shop, you will get charged the fee again. If you are a bigger shop, the little costs add up and can become a considerable expense. On top of that, Etsy does take a percentage of your earnings from each sale, and there are some other transaction fees you will see. When pricing your items, make sure to price them correctly and consider these fees. Remember – people are going to Etsy to find unique products, so they don’t mind spending a couple of extra bucks to support a small business.
Etsy can suspend your account. If something happens where Etsy decides they want to suspend your account, they can do so. This is one primary reason why people are afraid to sell on Etsy – if they decided to stop your account, your whole business is out of work until further resolution. Always make sure to read and follow guidelines and rules when creating an Etsy shop.
Etsy Overview
Etsy is suitable for those starting and who are looking to build their brand. Etsy helps its sellers get their products to their relevant customers. Etsy sellers don’t have to spend much money on starting the shop and marketing their shop. But, it does have a fair amount of fees you have to consider when pricing your items. People are going onto the Etsy site knowing that things are priced higher, but they want items that are made specifically for them.
2. Shopify
Shopify Inc. is a Canadian international e-commerce platform where you can sell pretty much anything you want. Shopify is gaining momentum in the e-commerce world, and more and more people have been using this platform to sell their handmade items.
Pros:
With Shopify, you have full control to fully customize your website– from design to domain name. Most businesses like having the option to customize their site so that they can set themselves apart from their competitors. Having a website that stands out will help people to enjoy their experience and remember your brand – resulting in them coming back to shop from you again.
Shopify gives you plan options. Shopify has 3 different plans, at 3 different prices:
- Basic Shopify: $29/mo – 2.9% + 30¢ for online credit card rates (per transaction)
- Shopify: $79/mo – 2.6% + 30¢ for online credit card rates (per transaction)
- Advanced Shopify: $299/mo – 2.4% + 30¢ for online credit card rates (per transaction)
Analytics: Shopify is fantastic if you like to see insights on how your site is doing. You can see how many visitors you have per day, orders per day, and how much money you’ve made each day. You can also look on a weekly or monthly basis. Shopify also shows you which products people are looking at and how well those products are doing, as well as which products aren’t selling. This is extremely helpful when growing your business and achieving success.
Shopify is useful if you have a bigger scaled business and sell a large number of items. On Shopify, you don’t have any fees per item in your shop. You only pay the monthly payment and the online credit card fee per transaction.
Cons:
You are the only person who is bringing traffic to your website. Unlike Etsy, Shopify doesn’t push products to consumers for you. You are entirely responsible for driving your traffic to your site, so if you are a new shop, it can be difficult to bring traffic and sales to your shop. But, if you already do have an audience and following on other social platforms, you can bring those users to your shop. You need to get your audience to know and trust your brand, and this can be more difficult on Shopify.
Content marketing. This is a concept that is huge for online-only businesses. Shopify does come with built-in blogging software, but it isn’t the best. If you are used to WordPress or SquareSpace, you most likely won’t like Shopify’s blogging software – Shopify is geared more towards selling.
Shopify Overview
Shopify is the best option if you have already grown your business and have a good social following. Not to say that smaller companies can’t use it, but you must remember that you are fully responsible for driving your traffic to your Shopify site. Most people start on Etsy and transition over to Shopify once they have a good following. Shopify is the cheaper option if you have a bigger-scale business, and you’ll see more of a return with it.
3. Amazon Handmade
Amazon handmade is a branch off of Amazon that is for Artisans only. It is a sales platform within Amazon. This is a great platform to sell your handmade items because Amazon is one of the most well-known names in the e-commerce world, and everybody already trusts the platform.
Not everybody can be a part of this program, you must meet specific business requirements. You must apply and be approved for the program before you can start selling.
- Items must be created, altered, or assembled entirely by hand
- Items must be handmade by you (or employee)
- Hand tools and light machinery are allowed in a home studio or workspace (no mass-production allowed)
- It’s okay to add your designs to pre-made items, such as fabric or porcelain
- Upcycling and repurposing are allowed
- Dropshipping and reselling are off-limits
Pros:
No hidden fees. With this platform, you won’t be blindsided when it comes to fees. The only fee you will see is a 15% ‘referral’ fee with every transaction. It’s a higher percentage than other sites, but it’s the only fee you have – there’s no listing fees, commission fee, or transaction fees.
Your audience is already browsing for your product. Everyone has an Amazon account these days, right? The biggest pro to selling on Amazon Handmade is that your audience is already there waiting to come across your product. Amazon is already a trusted site, so once your product is shown, your sales are there.
Only handmade items are allowed, and it’s Artisans only. This allows for a more competitive but personal shopping experience. When consumers are browsing Amazon Handmade, they know they are getting handmade items only, whereas, on Etsy, it isn’t just handmade items. People love the idea that what they’re purchasing was explicitly made for them, encouraging them to shop handmade more than commercial.
Cons:
Not all handmade items are allowed. Like any other site, Amazon Handmade does have limitations. As your business grows, you may want to add on new items, but Amazon may change the list of items you can sell on the platform. Always make sure to read and follow Amazon Handmade rules and regulations.
Amazon can dictate your pricing. Amazon is known for offering pretty much anything you can imagine, fast shipping and low prices, which is great until it comes to your handmade items. Creating something by hand takes a lot of time and effort, and like any business, you want to be paid properly for those hours. Some vendors have received pressure from Amazon to lower their prices – so just be aware of that when choosing a platform.
Customers expect fast delivery. Again, Amazon is known for offering anything and getting it to you within as little as 24 hours. You can set your timeline for shipping and include details in your product description, but people turn to Amazon when they want something specific, and they want something quickly.
Amazon Handmade Overview
If you have a production system where you can produce your items quickly and for a low cost, Amazon Handmade might be the best option for you! People know and trust Amazon, so they usually never think twice when it comes to purchasing from that platform. But remember, people expect things fast!
If you make handmade items, and you’re unsure about where to start selling your products, here are some common questions you may ask yourself and our answers on which platform we suggest:
- Have I sold these items before? Does your brand have a big following? Do I have enough of an audience to drive to my site?
- If you find yourself answering no to these questions, we recommend using Etsy. Etsy is fantastic for beginners solely on the fact that it markets your brand for you and brings your audience to your shop on its own.
- I have a good following. Can I use that to my advantage? Will my current followers go to where I direct them?
- I want to sell my handmade items somewhere where I reach a lot of customers. Do I have a procedure and system when I create my products? Can I create my products quickly and for a low cost?
- If you answered yes, try out Amazon Handmade! If you can create your products quickly, Amazon may be an excellent opportunity for you to reach a huge audience without much effort.