THE DISADVANTAGE TO SELLING ON ETSY
Etsy is usually the first go-to place for anybody to sell handmade items. The biggest question is whether or not it is as easy to sell on there as everyone makes out and is it worth your money and time?
ETSY Platform — When you are selling on Etsy, you are selling on their platform. This means that for any reason, Etsy can decide to ban you from their platform and kill your business. Let’s say you sell handmade handmade gloves on Etsy. Etsy can update their policy tomorrow and prohibit the sale of gloves. That is a huge downside to selling on etsy platform.
Competition— You’re not the only one selling handmade gloves on Etsy. There are thousands of other competing with you. 87% of the Etsy sellers do not sell anymore than 30 products a month. This isn’t because they don’t have a great product, it’s just a competitive platform.
Related products- As your business or product becomes more and more popular, there will be more and more competitors. Having competitors can be good, but having competitors that produce fake alternatives to your product can be bad. These “fake items” can go for a quarter of your actual price and appear in the same search category. That can get pretty creepy.
Cost- The basic fees are 20 cents per item listed and 3.5% of the selling price when an item sells. This may not sound like much, but think of it like this. If you are making $5,ooo monthly on Etsy, you are losing 3.5% of your actual revenue to Etsy. Those fees could be used on advertising your brand on social media or importing new materials.
No freedom — Have an awesome marketing plan for your new Gloves? Unfortunately, Etsy does not allow you to install third party plugins in within your shop. You can change a banner , but you can’t edit the layout. You can’t capture your audience’s email and you cannot shoot them them offers. Ecommerce sellers that aren’t using cart abandonment prevention tools are losing 45% of their potential business.