Online craft selling is a big business.  Just ask Etsy founder Robert Kalin, who was quoted earlier this year as saying the Etsy marketplace sold $100 million worth of goods in 2008.

Craftsman, author and Sell your Crafts blogger, James Dillehay believes that crafts are gaining in popularity in online shops and the craft industry is gaining consumer support. 

Dillehay began creating and selling his own hand-woven pieces in 1984. Since then he has moved his craft business online, focusing on handmade woven home décor and ladies clothing pieces. He has also authored eight books and has taught craft-business skills around the country.  

His most recent e-book, Sell Your Crafts Online offers sellers more than 500 free and low-cost business ideas to help boost traffic, links and sales.

Crafty Tips for Getting Started

Dillehay said that most artisans who are just getting started tend to look at one of two options for online craft sales;  creating their own Web site or setting up a new Web shop on an existing marketplace.  Those new to selling their crafts online tend to choose Web shops simply because it’s easy to get started—most Web shops have automated processes that let you list and sell in minutes with no previous online selling experience required.

1000markets is one of five online craft markets that delivers good traffic rank and attracts shoppers. (Click for larger image).

Despite the popularity of using existing marketplaces, like eBay, Etsy, and other eBay alternatives, Dillehay recommended that crafters also invest in their own domain name and Web site, since the craft business online is largely connected to one’s own presence.

“It’s no longer a case of deciding if you should set-up shop here or there,” Dillehay said. “It’s a growing need of the ands. You need to show your product here, and here and here.”

 In addition to using your own Web site for branding, Dillehay said that you can also invest in opening a Web shop and link to it from your own domain.

 In his e-book, Dillehay reminds sellers that there is no guarantee of a sale just by listing on popular selling platforms, but five online marketplaces he recommends that  have a good traffic rank and attract shoppers looking for crafts and unusual items include; eBay, Etsy, Artfire , Silkfair  and 1000markets.

Can You Afford to Sell Crafts Full-Time?

For most crafters, managing their own business selling product they create would be a dream-come-true. Dillehay said that many market their crafts to supplement an existing income. He mentioned a column on the Etsy Web site where successful sellers talk about how they had to quit their day job to fulfill orders, but  Dillehay cautioned that this is not what happens for most people.

“Having little or no sales is rough for a seller, and that’s why many people get discouraged so quickly,” he added.

Sellers who really want to make online craft selling their full-time business really need to put a full-time effort in to it. Dillehay noted that online sellers need to try different marketplaces, build a trustworthy online presence and experiment with new technologies—like social media— to market their crafts.

Tips for Aspiring Craft Sellers

Dillehay suggested that novice online craft sellers need to focus on the business aspect and also create a brand and product people will trust.  Here are five tips for those who are thinking about launching their own craft shop online:

• When you offer a craft for sale online, you need to ensure you are listing the item with the best photo you possibly can. Crafts are unique and your photo has to show that. Also, be sure you spell-check your listings. You never ever want to list an item with errors in the descriptions.
• Be honest in your listing and don’t exaggerate. Always include exact size and weight measurements, and add color and materials information for your shoppers.
• When you sell online through Web shops and marketplaces it is extremely important to read their terms of service—and different sites will have different terms. There is nothing worse than wasting time creating listings only to have them removed because you didn’t abide by the terms of service.
• Create a story around your craft. This helps you give your work a story and bring it to life for shoppers. This will give customers a higher perceived value of your crafts.
• Always collect your customer’s contact information and build a customer list.  Down the road you can encourage more sales from shoppers who have already bought your product and who are familiar with your name and branding.

Selling crafts online is not just about sales. In order to truly be successful, Dillehay said that artists have to focus on building their brand and creating an Internet presence that shoppers can identify with. 

Dillehay's "Sell Your Crafts Online” e-book with hundreds of tips for online craft sellers is available for download from his Web site ($12).

Vangie Beal is a veteran online seller and frequent contributor to ECommerce-Guide.com. She is also managing editor of Webopedia.com. You can tweet with her online @AuroraGG.