eBay Alternative Watch: Etsy Readies For Holiday Sales
Popular niche alternative site, Etsy offers crafty sellers a platform for selling all things handmade. The site actively supports those who choose to create and buy alternatives to mass-produced objects.
Conceived by Rob Kalin in early 2005, Etsy was born out of the founder's desire to exhibit and sell his own creations online. Since its official launch in June 2005, this unique online marketplace now boasts more than 1.5 million members of which 170,000 are sellers. Last year Etsy says its total gross merchandise sales reached $26 million and Etsy expects that gross sales figure to reach $87 million for 2008.
Online marketplaces are currently in full holiday swing, and Etsy is no exception. In an interview with ECommerce-Guide.com, Adam Brown, who handles the marketing details for Etsy, said that while the site helps its sellers with holiday marketing, most store owners also run their own promotions.
This year, with the global economic crisis putting finances in a squeeze, Brown said that Etsy is a great way to maximize a holiday budget for both buyers and sellers as the marketplace offers shoppers an amazing variety of unique, quality handmade gifts and provides e-tailers with an affordable way to expose their wares in a supplemental channel.
Brown also said that many Etsy sellers are prepared to meet the consumer's shrinking holiday budget by offering free shipping and gift bundles, two popular trends we're seeing in e-commerce this year.
Another feature that Etsy is promoting this holiday season is its Shop Local search. The local search helps shoppers who want to support individual artists in their own geographical area. It also benefits consumers who may be worried about gifts arriving in time. When you shop local, you have more time to buy as shipping distances are much shorter so delivery is faster.
For sellers, Etsy offers a variety of online seller handbooks that are designed to help them increase holiday sales as well as prepare for 2009. While Etsy only allows sales of handmade and vintage items, any online seller can make use of the knowledge contained in the Etsy seller's guides. For instance, there is useful information on how to use social networks to promote your business, tips for self-promotion, shipping and more. And, though Etsy is known for its focus on handmade wares, Brown said you can also list vintage items (over 20-years-old) and commercially-made supplies.
Etsy also has an area called Alchemy, opened earlier this year, that's perfect for artisans who want to make customized creations on request. Etsy members can request a custom item and sellers bid on the opportunity to fulfill the requests.
Setting Up Shop on Etsy
To create a store on Etsy, sellers must sign-up with a credit card that will be used for paying any fees owed to Etsy. The site currently charges its' sellers a 20-cent per item listing fee. That fee will enable you to keep the item active for up to four months (unless sold), plus include up to five images and an unlimited text description. When an item sells, Etsy takes a flat 3.5 percent commission of the sale price, excluding shipping fees. Regardless of how much or how little you list and sell on Etsy, all sellers pay the same fees.
If you have been considering moving to Etsy for the holidays and beyond, here is a quick tip that may help you get started selling. Brown, who said that key search terms change frequently, has noticed that this holiday season stockings and winter scarves are popular searches. He also added that birds and owls are popular for theme searches.
Vangie Beal is a seasoned online marketplace seller, frequent contributor to ECommerce-Guide.com and avid online bargain hunter. She is also managing editor of Webopedia.com.
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