Is Selling on Etsy Worth it in 2024?
Is selling on Etsy worth it? Yes, it is. Etsy is a world leading marketplace for art supplies, artisans, unique and creative items. In Q2 2024, the marketplace has got an impressive revenue of 648 million dollars, and Q3 is even more promising.
Given this state, does the thought of selling on Etsy cross your mind? If yes, you’re at the right place. Now, we’ll tell you something about it:
- Selling on Etsy is rewarding but competitive
- Perhaps you don’t need a high market entrance to start selling
- Policy changes may get you struggle at some points
And there is more. Keep scrolling and learn all the pros and cons of Etsy, then we’ll leave you to decide: Is Etsy worth selling on?
Let’s get the ball rolling!
Pros of Selling on Etsy
Based on our observation with Etsy, there are multiple benefits for sellers, which include its built-in audience, ease of use, product perspective, selling fees, and more. We’ll now go into details for each section and answer our big question – Is it worth it to sell on Etsy?
Etsy is filled with millions of buyers
A large built-in audience is one of the biggest advantages of Etsy. However, we wouldn’t be taken aback since Etsy is a world-leading marketplace for creative goods and craftsmanship.
In Q2 2024, Etsy reported that it has 91.50 million active buyers. This figure has increased by 1%, compared to 90.60 active buyers back in 2023. Such a rise in the total shopper quantity has shown that more people are going to Etsy for unique and creative goods.
That’s for the overall active buyers. We have also discovered that there is a good chance more international buyers are shopping on Etsy since the international sales is up to 45% of the total (it was 44% by the end of 2022).
Is selling on Etsy worth it? We believe it is. From those numbers, we think Etsy is a potential sales channel for domestic sellers in the U.S. and international sellers as well.
You don’t compete against in-house brands on Etsy
It is a relief that an individual seller or a small business owner doesn’t have to compete against in-house brands by the marketplace. On Etsy, you will only compete with other sellers, and especially those who are selling the same items as you are.
If you are still not convinced, take a look at Amazon. For every item listed on Amazon, there is an Amazon-owned brand selling it along with online merchants. The most popular examples are Amazon Basics and Amazon Elements.
It’s easy to start an Etsy shop
There are many marketplaces that require strict verifications, but Etsy isn’t one of them. It is quick and straightforward to open a store on the marketplace and start selling. The overall selling process includes:
- Create your Etsy account and provide necessary personal information.
- Follow Etsy’s instructions to open a shop on desktop, then you can manage simply from the Etsy Seller app.
- List your items
- Set up shipping and payment (profile templates are provided by the house)
- Promote your shop through SEO, advertising, social media, etc.
Besides its simple process, Etsy Shop Manager (a seller dashboard) is easy to maneuver, and it’ll only take a short while to get used to.
Etsy is a haven for unique goods
Is selling on Etsy worth it? Yes, for sellers with unique goods. Any seller with art supplies, creative goods, and vintage items, this marketplace is a haven.
Ever since its establishment, Etsy has raised the spirit of creativity and guided its community accordingly. Whenever you browse on Etsy, ordinary or plain would be the last terms you’ll ever catch up on.
If you want to know more about Etsy products, here are some trends in 2024, summed up by the marketplace itself:
- Healthy intentions are gaining more popularity, making wellness-oriented goods sell better than ever. Products you may want to list are meal plans and cooking tools.
- Goal-setting items are still in hot searches like every year round. Journals, notebooks, and stationeries are on the list.
- Practical and personalized items are likely to take over. Some popular items categorized in these terms are customized charcuterie boards.
Still curious about Etsy shopping trends? Read more here.
This marketplace is still a “reasonable” sales channel
Is it worth selling on Etsy? Yes, it is, especially when it comes to selling fees.
Although Etsy has raised its seller fees a few times, most recently in April 2022 (transaction fee goes from 5% to 6.5%), it is more reasonable than many. The basic Etsy seller fees are: transaction, payment processing, and listing fees.
Apart from these ones, you will only pay extra if you use its services and tools such as Etsy ads, Etsy Plus (subscription), or Etsy Pattern. Comparing Etsy seller fees and Amazon or eBay, Etsy is the winner. Not to mention, Etsy’s fee structure is quite simple.
With this pricing tier, is it profitable to sell on Etsy? We’ll say it depends. In many cases, selling on Etsy items even with low-margins is still profitable. Clearly, a low-cost structure saves sellers more. You just have to raise your order quantity and perform well with your store promotion (SEO, ads, etc.).
You can always join the Etsy ecosystem
Selling on Etsy means you not only list and sell on the result pages but also join its ecosystem with Etsy Plus and Etsy Pattern.
- Etsy Plus: A subscription service by Etsy that provides sellers with more perks than a casual selling plan. The perks may extend to listing optimization tools, free shipping, educational sources, etc.
- Etsy Pattern: A tool to build your own website, just like Shopify. Etsy Pattern lets you customize and promote your store to your likings, exceeding the limitation on the Etsy marketplace.
This is quite a competitive edge Etsy has over leading marketplaces like Amazon, eBay, or Walmart. What do you think? Is selling on Etsy worth it?
Etsy is supportive towards shipping
We think Etsy is a sweet selling spot due to its supportive shipping. In detail, here is what Etsy has to offer:
- Shipping profiles (Rules and templates devoted to shipping that save you time on the set up part)
- Smart pricing (Etsy smart pricing tool helps determine the shipping price for your item)
- Shipping labels (You can purchase labels right on Etsy for discounts)
- Order tracking and management (All details are in one screen)
- Shipping notifications (Etsy sends automated notifications, keeping you updated about your item shipping status)
In addition to all the mentioned points, Etsy allows you to set up a free shipping guarantee, as long as your customers’ orders value $35 or more and are shipped to the U.S.
You have lots of tools for store promotion
We once mentioned – Is Etsy profitable to sell on? It depends. First of all, with such an enormous audience built in, you have high chances to tap into million buyers, and perhaps make a fortune out of it. But it’ll take some work. This is where Etsy selling tools come in.
Speaking of the matter, we’d say it’s worth selling on Etsy since you can easily start and sell while utilizing many of its tools to promote your store such as:
- Etsy ads (onsite and offsite): Helps you reach millions of shoppers in and outside of Etsy
- Etsy listing optimization tools: Optimizes your listings for SEO and get it on the top result pages
- Shop analytics: Tracks and reports, getting you every detail to make data-driven decisions.
- Etsy Plus: Adds more selling perks, free shipping offers, priority customer support, and many more.
A selling tip on Etsy: Choose your best pictures for listing. Customers love them, and surely Etsy search algorithms too.
There are multiple learning sources on Etsy
Is selling on Etsy worth it for newbies? Yes, it certainly is!
Etsy offers every new seller with lots of learning sources, which are:
- Etsy Seller Handbook: It covers everything from setting up your shop to managing orders and customer service.
- Seller Community: Etsy builds this online community, allowing all sellers to connect, share experiences, and get advice.
- Etsy Blog: The marketplace delivers the latest news, trends, and best practices.
- Etsy Academy: You can access free online courses and tutorials on various topics related to selling on Etsy.
Cons of Selling on Etsy
Answering “Is it worth it to sell on Etsy” means we are going through both pros and cons of the marketplace. We’ve talked about the pros, now let’s get to the cons!
It’s fiercely competitive
Etsy has a lot of active sellers. Numbers show that there are 6.6 million active sellers in Q2 2024. Even though this number decreased, compared to Q1 2024 and 2023 (7 million), the competition rate is rough. Once again, you aren’t competing with Etsy, but you’ll be competing against 6.6 million others, so we’d advise you to prepare a proper selling strategy.
Etsy has a lot of policy changes
One obstacle for any Etsy sellers or soon-to-be sellers is that it has a lot of policy changes.
In 2022, Etsy updated its fee structure (the transaction fee), reinforced its focus for handmade items, and added up its prohibited item list. Moving forward to 2023, Etsy created Regulatory fees for Canadian digital items. It also updated its mature content policy, you may go and check its seller handbook.
In 2024, this marketplace got a new seller verification process and some changes to listing management. In 3 years, Etsy has had a lot of changes, some of them set Etsy back but many were to keep its shopping space safe and aligning.
There is unexpected suspension
The last thing any seller wants is to be suspended. If you choose to sell on Ets, you may get unexpected suspension. Such suspension may happen because of matters related to intellectual property or copyrighted elements.
Our Recap: Is it Worth it to Sell on Etsy?
Are Etsy stores profitable? Yes, they are. We have witnessed so many merchants making money from Etsy and you won’t be an exception. With more than 90 million active buyers, various niches for creative goods, and lots of promoting tools, Etsy is truly a sweet selling spot for many business owners.
Is it worth selling on Etsy? Yes, it definitely is! Like any marketplace, there would be challenges ahead, and the three most obvious are competition rates, policy changes, and unexpected suspensions. However, we believe you will be navigating through when choosing the right products and selling strategies. That’s all we’ve got for this topic.
Last but not least, in case you need a platform for shop analytics for trends, product optimization, and more, consider using Masstic. We’d be more than happy to consult with you and accompany you with our team of Etsy experts!
