Why you need to have Etsy AND your own website

We keep seeing blogs and questions in facebook groups about whether etsy is worth it and if setting up your own website or a shopify store would be a better option. We felt the need to address this, because it seems everyone is looking at etsy from the wrong angle.

If you need help on understanding what any words mean, take a look at the glossary.

What is Etsy?

Etsy is a platform on which you can sell your own handmade products.

Etsy is NOT your website, you don’t have control over it and they can and do change the rules when they want to and as a user you have to like it or lump it.

How should Etsy be viewed?

It is a marketing platform

A way to bring in new customers

An additional income stream

What are the costs of Etsy?

Listing fee

Etsy charges 20 cents, converted in to GBP at the exchange rate at the time which is roughly 16p per listing after you have used your first 40 free listings*. Listings last for 3 months, and if you haven’t sold in that time you will have to pay another 16p to renew. If you do sell and have another to sell then you will pay a new listing fee for that item.

Transaction fee

There is a transaction fee of 5% of the whole order value including postage.

Payment Processing fee

The payment processing fee is then 4% + 20p. Keep in mind that this is pretty comariable to any payment processing you would have to pay if you sell on your own site.

I tend to think of it as 10% to round things up and simplify it. However if you are selling very low value items then this will be a higher % due to the 2 fixed fees of 16p and 20p.

What do I need if I have my own site?

You’ll need a domain name, hosting a plugin to add your products that people can purchase from and a payment processor. You will also need to design your own site, depending on which platform you use is likely to take minimum of 5 hours.

What is Shopify?

Shopify is not an alternative to etsy, it is literally just a website building platform that you can build fairly easily on your own. It is created for ecommerce sites where as other platforms like square or wix have the ability to sell on but were not created solely for that.

What are the costs of your own website?

Selling on your own website isn’t free. Card processing or paypal fees are around 3% + 20p fixed fee. Then you have to pay for a domain and hosting. Potentially you will also need to buy a theme, some plugins and some developer assistance. At a minimum you are looking at about £100- £150 a year for your own site if you can do it all yourself.

Shopify charge a monthly fee to use it as do wix and many others.

Why you need Etsy AND your own website

• You have the control on your site, so if things change on etsy you can keep your income on your site consistent.

• You own the access to your customers on your site and can communicate with them, if you set up an email subscription. Whereas those coming through etsy are their customers and you cannot communicate with them outside of their platform.

• You are in control of how your site works, meaning there isn’t the same danger of a platform just shutting up your shop.

• Customers will stay on your site and not get distracted by other products, or your competition where you may miss out on a sale.

• You can bring in your own repeat customers from social media or events without paying etsy a fee for the work you have put in to getting them.

• If you just have your own site, you need to bring in ALL of your customers on your own. Pay etsy just to bring in customers you wouldn't otherwise reach.

• If you’re thinking of ditching etsy work out how many customers have they brought you to ensure you aren’t going to loose a lot of money.

• If you’re thinking of just having etsy, consider if you would still have a business if they unexpectedly shut down your shop tomorrow?

How to make Etsy work for you

• Make sure your products are priced to ensure you still make the % profit you want AFTER the etsy fees have been removed.

• Ensure your listings look great and are using all the tags available to attract as many customers as possible.

• Don’t send etsy customers you have brought in, make sure the links from your socials and on your business card are for your own website.

• In every etsy package include a note/ leaflet which encourages people to use your website next time. Make it irresistible by offering a discount code or a free extra item if they come direct.

Have your cake and eat it

By having your own site, you keep your customers, stay in control and have a lower cost. Stay on etsy too and bring in those extra customers who wouldn't have found you otherwise and bring in more money!

Want to set up your etsy shop? Get 40 free listings using this link!

Think you need your own website and don’t know where to start? get in touch with Emma who would be happy to help!