10 Reasons Why You Should (or Shouldn’t) Sell on Etsy

That’s why today’s blog is all about 10 reasons why you should sell on Etsy, versus 10 reasons why you might not want to. Curious? Keep reading!

10 Reasons Why You SHOULD Sell on Etsy

1. The whole world is within reach Etsy is a worldwide platform, meaning you could suddenly sell your handmade item to someone on the other side of the globe.
2. The platform is easy to use. You can have multiple listings online in no time. The setup process is simple and beginner-friendly.
3. Upload products via desktop or mobile. No more transferring photos to Dropbox first. With the Etsy app, you can upload products directly from your phone or desktop.
4. Selling digital patterns is almost passive income. If you sell digital crochet or knitting patterns, there’s barely any work after the listing goes live. Customers can instantly download the files after payment.
5. You decide where you want to sell. You can easily choose whether to sell only within the Netherlands or internationally. You also control your own shipping prices, helping you cover packaging and postage costs properly.
6. No need to build your own website. With Etsy, you don’t need to build a website or integrate payment systems yourself. That saves a lot of time, money, and stress.
7. Etsy already has a lot of traffic. Because Etsy has millions of visitors, there’s a good chance people will find your products there faster than through Google.
8. Running sales is super easy. Want to launch a discount campaign? Within just a few clicks, your sale can go live.
9. Easy communication for custom orders. Through Etsy’s messaging system, you can easily discuss custom colors, sizes, or special requests with customers privately.
10. You can give your shop its own style. You can personalize your shop to reflect your brand and showcase exactly what you sell.

10 Reasons Why You SHOULDN’T Sell on Etsy

1. Etsy charges fees for everything. Etsy charges fees on almost everything: listing fees, transaction fees, and even fees on shipping costs. On a €40 sale, you can easily lose around €5 in Etsy fees alone. Always calculate your fees before setting your prices.
2. You need many listings to get found. Opening a shop with only five products usually won’t get you far. To perform well in Etsy’s search engine, many sellers recommend having at least 25 active listings.
3. Etsy requires constant maintenance. Selling on Etsy isn’t something you set up once and forget about. You constantly need to update tags, descriptions, SEO, and listings to stay visible in search results.
4. Competition is extremely high. There are countless sellers on Etsy. Sometimes customers need to click through several pages before finding one of your products.
5. American shops often get priority. Since Etsy is a US-based company, many international sellers feel that American shops are favored in search rankings.
6. Etsy changes its rules regularly. A listing that is perfectly acceptable today could suddenly violate Etsy’s policies a few weeks later after rule updates.
7. Copyright complaints can destroy your shop. If your products resemble copyrighted characters or designs too closely, people can report your listings. After several warnings, Etsy may permanently remove your shop. Always stay original and avoid copying brands like Disney or other major companies.
8. Commission fees keep increasing. Etsy’s fees have increased significantly over the years. What used to be 5% has gone up, forcing sellers to regularly adjust their prices.
9. Etsy ads often work only temporarily. Advertising can give your shop a short boost, but many sellers notice the effect fades quickly. Don’t get tempted too easily by paid promotions or subscriptions.
10. No VAT number? Etsy may still deduct taxes. If you don’t have a VAT number, Etsy may still collect VAT on your behalf. This can seriously impact your profit margins. Of course, you can apply for a VAT number yourself, but remember that this also means filing taxes every quarter.

My Personal Experience with Etsy

Again, don’t let this scare you away. These are simply my personal experiences and things many other sellers also discuss online. The main reason I still sell on Etsy is because of the digital side of my webshop. Digital products are easier because there are no shipping costs and the commissions have less impact on smaller-priced items. Selling physical handmade products is a different story. Always calculate your Etsy fees first before determining your prices. I’ve personally made the mistake of pricing handmade amigurumi too low in the past. After all the fees, I sometimes ended up with only €6 profit on one handmade plushie. Definitely a lesson learned.

Final Thoughts

Thinking about starting an Etsy shop? I hope this blog gave you a better understanding of both the pros and cons. Want to know more about Etsy or talk about selling handmade products online? Feel free to contact me anytime!

With love,
Adinda