What is Etsy: Platform Overview and Tips for Working With It

What do an Irish knit sweater, a postcard from Paris, and a ceramic mug from Italy have in common? All of these can be purchased on Etsy. Etsy is an international platform for selling handmade items, vintage goods, and craft supplies. DiFFreight shares helpful insights for beginners thinking about opening their own shop.

All About Etsy: Facts, Registration, and Promotion

Etsy is a platform acting as an intermediary between the creator and the buyer. As of 2024, there are 7.5 million active sellers on the platform in the following categories:

• tableware;
• jewelry;
• clothing;
• shoes;
• accessories for electronics;
• pet supplies;
• home decor;
• cosmetics;
• vintage items;
• digital products: tutorials, planners, various how-tos, and even videos.

Etsy’s main feature is its focus on unique, exclusive, and customized goods that you can’t find elsewhere. Some advantages include:

• A niche audience that values handmade goods and is willing to pay for quality.
• An easy start for creators who don’t want to invest in a website but want to grow their business beyond social media.
• Shop customization: sellers can personalize storefronts, add banners.
• Marketing and branding. Etsy offers advertising tools, promotional strategies, and integration with social networks.

Sellers and buyers are located in nearly every country in the world. In addition to standard categories, the platform also offers extremely unusual and unique items — from dressed-up taxidermy animals to absurd design concepts.

How much does it cost to open a shop

No Etsy overview is complete without some numbers. Since it’s a marketplace, it charges fees and commissions:

• One-time shop registration fee of $15.
• One listing costs $0.20 + a 20% Google tax, totaling $0.24. Listings expire after 4 months and must be renewed for a fee.
• Transaction fee: Etsy takes $6.5 + Google tax, also 20% of the order total.
• Payoneer/PayPal takes their own fee upon fund withdrawal.
  

Thus, the total fee percentage per sale is around 20–21%. Another fact about Etsy — the platform doesn’t organize shipping, so all logistics are the seller’s responsibility. Don’t forget income taxes — creators must handle that themselves.

Marketplace policy for sellers is strict. Etsy monitors ownership of visuals, photo quality, and has several limitations: shop name cannot be changed after registration, and only one shop per phone number is allowed.

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Promotion tips

Heavy emphasis is placed on visuals. Every seller can customize their storefront. The platform also prefers:

• Original high-quality photos and videos. You can also use banners with customer reviews, promos, and product variants.
• Personalization options for buyers.
• Informative and SEO-optimized listings.
• Curated product collections for holidays or events. Etsy emphasizes gift-giving: many customers come for that specifically.

Just like other marketplaces, Etsy assigns a shop's position in search results. After a recent update, Etsy now considers service quality: response time, delivery speed, and positive feedback.

A new feature — the Search Visibility page. This tool lets sellers analyze the performance of their listings (views, clicks, sales) and get tips for improvement.

Etsy Alternatives — Where Else to Sell Handmade

Significant competition, high fees, and strict rules are reasons to look for an Etsy alternative. While Etsy positions itself as the leading platform, there are also other options:

• Amazon Handmade

A segment of the e-commerce giant dedicated solely to handmade items. Sellers must apply and pass an approval process. The sales commission is 15%. There is no monthly fee for a professional account for approved artisans.

• eBay

A well-known online auction and marketplace. The catalog includes collectibles, works of art, handmade products, and consumer goods. The commission varies, averaging around 10% plus optional fees.

• Bonanza

A marketplace often compared to eBay and Etsy. You can sell handmade and vintage items. The final value fee is typically 3.5% for sales up to $500, which is lower than competitors.

If you are not targeting international markets, consider Ukrainian alternatives: Skrynya.ua, Crafta.ua, Zolotiruky, HandemadeUA.

A comprehensive analysis of Etsy leads to a few important conclusions for aspiring entrepreneurs.

Verdict and Etsy Reviews

Let’s summarize the platform’s main drawbacks:

• Fees. It’s unprofitable to sell low-cost items or handmade goods with high production costs. Your profit margin will be minimal.
• Communication, shipping, and marketing are on the sellers. In 2024, the platform updated its ranking algorithms. For example, US-based shops get ranking benefits if shipping costs are below $6.
• Lack of seller support. Etsy does not provide warehousing, fulfillment, or return management. Competition is increasing, promotion is becoming more difficult, and sellers must constantly adapt to changes.

That’s why Etsy reviews are mixed. Before getting started, study all the platform’s nuances and understand how to efficiently process and ship orders.

For international trade, DiFFreight offers a parcel delivery service. We deliver small-sized shipments to European countries within 7 days. Weekly shipments from 10 parcels per sender. This is much more cost-effective than using postal operators. The service is suitable for medium and large businesses on Etsy with clients in the EU.

If you’re selling in commercial volumes, consider other options:

• ocean freight shipping;
• air cargo transportation;
• international road transportation.

Now you know what Etsy is and what conditions the platform offers. We recommend studying the terms and policies of any marketplace to evaluate the business benefits. And DiFFreight is ready to consult you on all logistics matters!