What Is Etsy, and How Do People Make Money On It?

Etsy is an online marketplace where owners of handmade goods are able to sell their products. While the site can be a great resource on its own, it's going to take promotion in other places outside of Etsy to garner customers. You'll have to work not just hard but smart if you want to make money on Etsy. It may also help to read our guide on How to Sell on Etsy.

What is Etsy and how does it work?

Etsy is an online marketplace that allows people to buy and sell handmade or vintage items, as well as art and supplies. Etsy operates as a peer-to-peer platform, meaning that buyers and sellers can interact directly without going through a third party. This makes it unique from other online marketplaces, such as Amazon or eBay. Etsy was founded in 2005 and has since become one of the most popular ways to buy and sell handmade goods. In 2015, Etsy had over 1.4 million active sellers and 22.6 million active buyers. Etsy is available in over 150 countries and supports 20 different languages. Etsy does not directly produce any of the items for sale on its platform. Instead, it provides a space for makers and creatives to sell their products. Etsy takes a cut of each sale, which is generally between 3.5% and 5%, as well as a small payment processing fee.  Many people use Etsy to sell items that they make themselves, such as jewelry, clothing, home decor, and art. Others use Etsy to sell vintage items or supplies. It is also common for people to sell handmade goods that they have created using materials from other Etsy sellers.

Pros of being on Etsy

There are a number of clear advantages to setting up shop on Etsy. For one, it’s a very established platform with a large user base – meaning there’s already a built-in audience for your products. Unlike other ecommerce sites, Etsy has more of a focus on handmade and vintage items, which can help your items to stand out from the crowd. And finally, because Etsy is so focused on creative businesses, the overall tone and feel of the site is very positive and supportive – something that can be very valuable for small businesses.

Cons of being on Etsy

While Etsy can be a great platform for selling handmade goods, there are some drawbacks to using the site. One downside is that Etsy charges fees for listing and selling items. For each item that is listed, Etsy charges $0.20. If an item sells, Etsy also charges a 3.5% commission on the sale price. This can eat into your profits, especially if you are selling lower-priced items. Another potential drawback of using Etsy is that you are competing with a large number of other sellers. Because of this, it can be difficult to stand out from the crowd and attract buyers to your listings. To be successful on Etsy, you need to have good photography and descriptions of your items, as well as competitive pricing.

How do people make money on Etsy?

There are a few different ways people can make money on Etsy. The most common is through selling handmade goods, vintage items, or craft supplies. People can also sell digital products like printable and templates. Others make money by offering services like event planning and web design. Many people who sell on Etsy do so part-time, but there are also a lot of full-time sellers. Some people make a decent side income from their Etsy shops, while others are able to support themselves entirely through their businesses. If you're curious about making money on Etsy, the best way to start is by opening up your own shop and seeing what sells well. You can also check out the Etsy Seller Handbook for more tips and advice.

Alternatives to Etsy

There are many other places where you can sell your handmade or vintage items, but Etsy is definitely the most popular option. However, there are some great alternatives to Etsy that you may want to check out if you're not having much success on that site. One option is Art Fire. This website is very similar to Etsy, but it has a few key differences. For one thing, Art Fire doesn't have nearly as many users, so it can be harder to get noticed. But on the flip side, that also means there's less competition and your items are more likely to be seen by potential buyers. Another option is Handmade at Amazon. This is a newer selling platform that is quickly gaining popularity. Like Etsy, it's focused on selling handmade and vintage items, but it has the added benefit of being part of the massive Amazon ecosystem. That means buyers are more likely to trust purchases made through this site, and you also have access to Amazon's powerful marketing tools. Finally, don't forget about Craigslist! This may not be an online marketplace specifically for handmade or vintage items, but it's still a great place to sell those kinds of things.