Online Business - Page 3 of 6

How do you make money on Etsy? What you first need to keep in mind: How much does it cost to make money on Etsy? Many sellers confuse themselves with how to pay the $ 0.20 fee when the sale comes in. They forget that a list differs from a product and that the fee for listing and the renewal fee for the store depends on the number of sales items. See these examples for clarity: Example 1: A seller has an Etsy handmade tableware. In that shop there is only one handmade table for sale. The table sells and the seller chooses not to renew the list or create another table again. The seller pays is $ 0.20 to list the table. As the table has been sold, the seller will not be charged a listing fee. What happens when you create a list on Etsy? Example 2: A seller creates handmade sweaters available in five different colors. When the seller creates a list, there are six pairs of the shirt in stock. So over the next four months, the seller will pay $ 0.20 for a list of these six pairs of shirts. If there are no sales within that period, the seller will receive a $ 0.20 fee to renew the list. Can the list be renewed on Etsy? But if the seller sells one of the shirts, everything returns to zero and the list will automatically be renewed for another "fresh" four months for the remaining five shirts. If the seller adds more shirts to the available quantity, or if the seller has new colors on the shirt and wants to show new pictures of these colors, the seller can edit the list at no extra cost. What happens when the seller makes a sale on Etsy? Each time the seller makes a sale, the stock is renewed again and again until they sell all available shirts or the 4-month period ends without a sale. However, if a buyer buys three pairs of shirts from the seller in an order, the seller will receive an additional fee of $ 0.40 along with the previous $ 0.20 for three listing fees. Finally, the list is automatically renewed again even though three shirts were paid for in a transaction. https://www.youtube.com/watch?v=3FJfevIN5Lo&t=17s How can I earn money on Etsy? With Etsy, you can set up your own online store where you can receive orders from customers. Then you fulfill the orders yourself and receive payment via PayPal or through another method. The cost of using Etsy is quite low and many people have the opportunity to earn a good second income or even a primary income by selling things through the web site. To start using Etsy to make money online, follow these simple steps: 1. Decide what you want to sell The very first thing you need to do is decide exactly what you want to sell on Etsy. To get an idea of what types of items sell well, you can spend some time checking out the site. You can browse by category to get a feel for all the different types of things that people sell. There really is no rule for what may or may not be successful. As long as it is vintage or handmade objects, it probably fits the place. You just want to make sure that what you are selling is well made or in good condition. If you offer arts or crafts, you will also want to be sure that you will be able to easily produce the items when you receive orders. 2. Open your store Once you have decided what you want to sell, it is time to start your store. Start by choosing a name that somehow matches what you want to sell. Then write a profile for your store that welcomes people to it and explains what the deal is about. Make sure your content sounds professional and free of spelling and grammatical errors. Then fill in your "About us" page. Connect with customers by explaining who you are and how it came about that you started producing your art or craft or how you became interested in vintage. 3. Take photographs These are the most important parts of selling on Etsy. You need to have good photographs of your objects. Even very unique products often fail to sell if they do not look attractive on the spot, making photographs crucial to your success. You do not need a nice camera to take good pictures. You can use your smartphone to get good pictures if you keep a few tips in mind: Make sure the background is the same for all your photos and use a similar set-up to give your store a clean look. If you sell clothes, you can have a model try on the clothes or use a mannequin to display the item. You may need to attach the clothes to make it fit nicely. Use a regular background that does not detract from what you are selling. White is usually best for most items but if you are selling something that glows or sparkles you should try a black background. View close-up detail photographs to highlight the beauty of your articles. 4. Write a good description Photographs are very important, but they can not tell your buyer all about your products. This is why you need a detailed description that explains all the functions of the object. Tell your customers what items are made of. Describe things that cannot be seen in the photographs. Be sure to describe the size carefully, especially if you sell clothes. Also, be sure to tell your customers how long it will take you to make their item, if you will be producing products on demand instead of keeping a stock. If customers have the ability to customize their purchases, make sure you explain all customization options and tell your customers how to request custom features. 5. Set price The final step in selling an item is to decide how much to sell it for. It is a good idea to check what other people are selling similar products for, but you also want to make sure that the price is high enough to cover the cost of making or buying the item and to give you a profit. Keep in mind that Etsy charges fees. You will have to pay a certain fee by mail each month the item will appear on Etsy until it sells or until you remove it. Etsy also takes 3.5 percent of the sales price of the item. If you give your customers the opportunity to pay with PayPall, there will be another fee charged by PayPal. https://www.youtube.com/watch?v=bm_ymsT9VcU How much does it cost to sell on Etsy? 1. How much does it cost to sell on Etsy? It costs $ 0.20 to set up an Etsy account and list an item to market. According to the seller's manual, a list remains active for four months or until the item is sold. When an item sells, a transaction fee of 5% of the selling price occurs. Many people pack store after just one month due to little or no sales. And the worst part is that you continue to run expenses based on your lists. Therefore, it is crucial to take into account the long-term income to the cost ratio. 2. Is $ 0.20 the cost all? Many sellers confuse themselves with how to pay the $ 0.20 fee when the sale comes in. They forget that a list differs from a product and that the fee for listing and the renewal fee for the store depends on the number of sales items. See these examples for clarity: Example 1: A seller has an Etsy handmade tableware. In that shop there is only one handmade table for sale. The table sells and the seller chooses not to renew the list or create another table again. The seller pays is $ 0.20 to list the table. As the table has been sold, the seller will not be charged a listing fee (although there are other fees that we will explain later). Example 2: A seller creates handmade sweaters available in five different colors. When the seller creates a list, there are six pairs of the shirt in stock. So over the next four months, the seller will pay $ 0.20 for a list of these six pairs of shirts. If there are no sales within that period, the seller will receive a $ 0.20 fee to renew the list. But if the seller sells one of the shirts, everything returns to zero and the list will automatically be renewed for another "fresh" four months for the remaining five shirts. If the seller adds more shirts to the available quantity, or if the seller has new colors on the shirt and wants to show new pictures of these colors, the seller can edit the list at no extra cost. Each time the seller makes a sale, the stock is renewed again and again until they sell all available shirts or the 4-month period ends without a sale. However, if a buyer buys three pairs of shirts from the seller in an order, the seller will receive an additional fee of $ 0.40 along with the previous $ 0.20 for three listing fees. Finally, the list is automatically renewed again even though three shirts were paid for in a transaction. 3. Cost for Etsy Store. An advantage of Etsy is that it costs a seller nothing to start a store. Yes, it's free to open your store on Etsy. But that's where the free stuff ends - at least for now. This is because Etsy has a standard listing fee of $ 0.20 per item. This listing fee is for four months. But let's talk about the list. Etsy has a list that is different from other online market giants. For this online marketplace, a list and a product are not the same thing. This is because a list can contain multiple products. For example, if a seller sells a hat, and the hat has different color schemes, the seller is only required to create "a list" to cover different colors and at the same time give buyers the choice to choose a hat with one of the colors. So if the seller has 100 items of that hat, and they are available in different colors, the seller just creates a list to cover them all, updating the quantity when the sale comes in. Every four months, the validity of a list expires. It is now up to the seller to either renew the list automatically or manually to the same $ 0.20 per list. Although allowing the store to renew automatically may make sense for a first seller who has not yet understood the financial basics of running an online store, it makes even more sense - at least from an economic point of view - to renew the store manually. In this way, you can study the information to find out which products sell and make a profit and which products lose a loss before you renew your listing for another four months. Note that the cost of each listing remains $ 0.20 per list. This means that if there are 100 listings in your store, you are required to pay $ 20 every four months. This will be a problem if you do not make any sales as $ 20 continues to add to your cost sheet, which may also include the cost of creating your product in the first place. https://www.youtube.com/watch?v=nnbkvpEYXeI 4. What does it cost to market on Etsy? Etsy users can also choose to create promotional lists and advertise their products. The minimum to get started is $ 1 / day and is based on a cost-per-click model. When a user performs an Etsy search, there are both paid and unpaid lists. The only difference buyers can see in promoted listings is the little white "ad" in the upper left corner of the image: It is usually challenging for a new salesperson to make waves on Etsy out of the gate, especially when launching a new product. Investing in ads to increase visibility may not be a bad idea to test the product's marketing ability. When you start marketing, you get access to a dashboard where you can see your statistics. I recommend setting a maximum cost-per-click (CPC) between $ 0.10 - $ 0.50 per click to begin testing your results. 5. What is the Etsy transaction fee? Like eBay and Amazon, there are other types of fees that a seller must pay to continue doing business on Etsy. First, an Etsy seller pays a transaction fee of 5% of the sales price each time an item is sold. 6. What are the Etsy Payment Fees? When a buyer checks out directly on Etsy and uses the Etsy payment system, Etsy charges a 3% + $ 0.25 payment processing fee per transaction. Depending on the seller's location, there may also be additional costs in the form of taxes, including the cost of converting the local currency where the listed items are not in US dollars. 7. Final thoughts on Etsy pricing. It's tempting for you to think that it's only 20 cents to start selling on Etsy and hurry to open a store. Before you sell your products on Etsy, it is smart to have a clear understanding of the total fees required for both lists and sell your products. The total cost of setting up a store on Etsy includes the listing fee, the transaction fee, the payment processing fee, the shipping fee and all the promotions you participate in. Also remember that none of this includes cost of goods sold (COGS). So if you price your goods too low to attract more buyers, you can eat in your profit margin and sell products at a loss. There are always external fees to keep in mind if you want to manage your business properly. Get a spreadsheet ready to track your inflows and outflows to get enough information about what's going on in your business. Try not to go ahead until you see a decent return on investment (ROI). It is important to gradually increase your business rather than becoming too aggressive with pricing right away. When you continue to sell on Etsy, you will get the fees and adjust your business accordingly. Conclusion Remember that the most successful salespeople on Etsy started small and grew over time. The biggest obstacle to Etsys sales is usually the reluctance to start. You do not need a large team - 79% of the companies on Etsy are run by individuals, with 97% run from home. With millions of potential buyers and the opportunity to share your own unique products with the world, why not take this advice on how to sell on Etsy and get started today? Is it worth to sell on Etsy? You probably wont see any success in the begining, but with enough patience and hard work, then yes. Keep in mind that no business i guaranteed. Also, check out this video to get more of a perspective if it really is worth to start selling on Etsy: https://www.youtube.com/watch?v=xKzXn-tYdVA