Etsy maintains a very unique place amongst eCommerce websites. While it’s an online marketplace much in the tradition of eBay and Amazon, the company focuses solely on handmade and vintage goods. Factory-manufactured items are only allowed if they meet very strict requirements set forth by Etsy. Sellers can open up shop on Etsy and sell just about anything that falls under the company’s bylaws for only $0.20 an item. Countless people have made a lot of money and gained a lot of exposure thanks to Etsy. If you’d like to begin doing the same, keep reading.
First, begin by making a small purchase on Etsy to get a feel for how the operation works. You want to run through everything from looking at products to paying to dealing with their eCommerce shopping cart. Etsy makes everything, especially their eCommerce shopping cart, extremely user-friendly, but it’s still important to experience it all firsthand.
Next, begin researching your market. You may know how to make a truly beautiful jasper necklace. However, if Etsy already has a number for sale, you’re banking on your product being so far superior above the other options that you can’t be touched. Instead, consider making a necklace that you see operates in a less competitive market. Gain some ground there and then use the exposure to push the product you’re more passionate about and/or will make more from.
Now you need to price your products. Conventional wisdom, especially when you’re just starting out, is to make sure you cover your costs. It’s incredibly risky to sell at a loss at first just to drum up interest. So make sure your costs are covered and then base your prices on the competition. Selling for less than they are, at least at the onset, is sensible so long as it won’t break the bank.
All right, now it’s time to build up that inventory. You don’t want 10 orders to come in one day when it will take you a week to make that many necklaces, bars of soap, etc. Stick to a budget you can afford and then begin buying supplies and converting them into product.
Next, consider software that will work with Etsy and its eCommerce shopping cart platform. Given the website’s popularity, it won’t be hard finding one. This type of software will make managing orders and shipping easy, which is incredibly helpful when your business begins growing.
Even though Etsy caters to the DIY market, that doesn’t mean there won’t be costs involved in getting started selling on the site. However, between your materials, software to manage their eCommerce shopping cart and your own labor costs, you can stay within a reasonable budget if you follow the above plan.
Source:
http://blog.intuit.com/marketing/the-basics-of-setting-up-an-etsy-shop/