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The Dangers of Selling on Etsy



Like any other pre established e-commerce platform, Etsy has its benefits. Unfortunately, the dangers of selling on Etsy are starting to outweigh the benefits. Is it worthwhile to have an Etsy shop for your business?



The Benefits of Etsy 	Some people claim that Etsy is dying, and no one is shopping on the platform. These rumors are simply untrue. According to Wallstreet Zen, in 2020 there were over $10.28 billion dollars in sales conducted on the platform. The sales in 2020 more than doubled the statistics for 2019. As of current trends, Etsy is on the rise. A second common but incorrect claim to Etsy is that it is oversaturated. Yes, there are more than 85 million items listed on Etsy, but there will be huge competition regardless of where you host your business. No one is reinventing the wheel, and your best option as a business owner is to offer your customers a unique experience that makes your business stand out from the competition. While there are a notable number of benefits to using Etsy, there are also a grave number of dangers.


The Benefits of Etsy

Some people claim that Etsy is dying, and no one is shopping on the platform. These rumors are simply untrue. According to Wallstreet Zen, in 2020 there were over $10.28 billion dollars in sales conducted on the platform. The sales in 2020 more than doubled the statistics for 2019. As of current trends, Etsy is on the rise. A second common but incorrect claim to Etsy is that it is oversaturated. Yes, there are more than 85 million items listed on Etsy, but there will be huge competition regardless of where you host your business. No one is reinventing the wheel, and your best option as a business owner is to offer your customers a unique experience that makes your business stand out from the competition. While there are a notable number of benefits to using Etsy, there are also a grave number of dangers.





The Dangers of Etsy

Etsy can close your shop at its own discretion. Yes, they can close your shop and freeze all of your money. An obvious reason for having your shop closed is due to copyright infringement. The issue with Etsy is the fact that a competitor is able to make a copyright claim on you, and your shop is immediately frozen for an investigation. When a listing is claimed to be a copyright infringement it is removed, and your shop is not shown on Etsy’s feed until the case is resolved. Please understand that we believe that stealing someone else’s work is wrong, and we absolutely believe there should be a punishment. The problem with Etsy is how they’re handling copyright infringement cases.


Etsy fees

There are both benefits and drawbacks to the fees on Etsy. Unless you’re selling in-person and only accepting cash, there are going to be certain fees involved with selling your goods. If you choose to use Etsy, you can expect to pay between 8-23% of your income back to them. Between the listing fee, transaction fee, payment fee, and processing fee you’re looking at 8%. If you choose to purchase Etsy’s off-site ads, then you can expect to pay an additional 15% in fees. There are fees involved with owning your own business, and you have to decide which ones you are willing to pay for. There are less expensive options like Spouse-ly for people who want an e-commerce store and aren’t ready to create their own website.


For some people looking to start an e-commerce business, Etsy might be the right platform. We aren’t in a position to say what is good for every business and whether or not Etsy can meet your needs as a business owner. If you see the dangers in selling on Etsy and are interested in opening your own e-commerce store, feel free to reach out if you need help. The team at Wild Optix Designs offers beautiful website designing that can help drive business to your store through optimized SEO pages and listings.