Etsy vs Website - Part 1.

When considering the difference between our website and the Etsy marketplace, our journey was anything but straightforward. Lacking a background in website development, I faced weeks of research to find the right website provider. Even now, uncertainty lingers about whether I made the optimal choice.

Over three months, I immersed myself in learning how to build a website. Crafting the design and gathering information consumed additional months. Our website, while imperfect, reached a point where I knew it was ready for publication. The process involved countless days and nights of work.

Etsy vs Website: Visibility

The driving factor was product description visibility. Surprisingly, it wasn’t the fees that concerned us most. We offered a novel product—one that didn’t exist before—and I noticed that Etsy’s listing designs or shoppers’ habits often led to 50% of people ignoring our product descriptions. This posed a challenge, especially for items requiring special care, like our innovative micro cutter. To address this, I began sending manuals after each transaction, carefully monitoring new versus returning customers.

The decision to prioritize visibility has paid off, leading to better-informed customers and fewer broken cutters.

Nowadays, customers are familiar with micro cutters and know how to use them. However, during our early days on Etsy, we encountered challenges. Messages poured in, describing issues like clay getting stuck and seeking guidance on proper usage. Within the first month, we faced five broken cutters. But over time, we adapted, learning from our mistakes. We tweaked materials, constantly redesigned, and even issued a product recall. I'm not saying it was solely the customers’ fault; we needed to improve too.

But the real turning point came only when we prioritized information. We embedded detailed descriptions right from the start, and the flood of “broken cutters” and “I can’t use it” complaints decreased by more than 80%. This shift wasn’t coincidental.

Now, let’s talk about our website. Yes, it requires scrolling through substantial information before adding the pen to your cart. Some users find it less intuitive, but there’s a purpose. As you explore, you’ll discover valuable details that save you money and time in the long run.

Contrast this with Etsy: People swiftly add the PAC-PEN Solo to their carts based on the first photo—a pen accompanied by 250 cutters. They often overlook the description and the subsequent images showing the pen alone. Even my warning message about receiving only the pen (not the full set) goes unnoticed.

Is it misleading to showcase the 250 cutters alongside the pen in that initial photo? Not at all. In a world of countless items, I have one second and one photo to convey the tool’s potential. It’s a delicate balance while users scroll through a sea of options.

Etsy vs Website: A Cost Analysis

The second reason for moving to a website was the fee. Nowadays this is the main reason.

Website Costs:

• Annual Cost: Owning a website typically costs around £200 per year.

• Inclusions: This fee covers your website domain and a business plan.

• Payment Flexibility: You can choose to pay annually or even monthly.

Etsy Costs:

• Monthly Fee: Etsy charges approximately £8 per month, which amounts to £96 per year.

• Benefits: With this fee, you receive 15 free listings and a promotional discount of around £4-5.

• Consideration: If you run your business full-time, these benefits may not be significant.

Listing Fees:

• Website: Listing products on your website is free. This allows you to sell individual items, like we do with individual cutters, without additional costs.

• Etsy: Listing on Etsy incurs fees. For your approximately 400 products, listing them all would cost around £64.

Sales and Transaction Fees:

• Etsy:

• Transaction Fee: 6.5% of the sale price.

• Payment Processing Fee: 4% + £0.2 per transaction.

• For £5000 in sales: £325 (transaction fee) + £200 (payment processing fee) + £200 (annual fee) = £725.

• Website:

• Payment Options: Your website accepts various payment methods (e.g., card, PayPal, Klarna).

• Klarna (third-party): Approximately 6.5% of total sales (few transactions).

• PayPal (primary): 2.9% + £0.3 per transaction.

• For £5000 in sales: £145 (Klarna) + £300 (PayPal) = £445.

Total Fees:

• Etsy: £885

• Website: £445

Conclusion:

• The difference is approximately £440 per month, which accounts for almost 10% of your sales.

• Keep in mind that this analysis doesn’t even touch on promotional efforts.

Remember, choosing between Etsy and your own website depends on your long-term goals and business strategy. Each platform has its advantages and trade-offs, so consider what aligns best with your vision!

Etsy Fees Break Down

As previously mentioned, I have additional insights to share. I’m eager to hear if you’d like to delve deeper. Feel free to express your thoughts in the comments. If you’d like further fee breakdowns or a comparison of pros and cons between Etsy and our website, just give me a heads-up. And if you spot any math discrepancies, I’m all ears!

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Take Care & Keep Creating!