Etsy is a rapidly growing online marketplace specifically for sellers and buyers of handmade, unique and customised products. But what exactly is Etsy, how does it work, why is it growing and who is it for? In this blog, we explore these questions and also consider what opportunities and threats Etsy offers to product manufacturers, especially in Finland.
Read also: Amazon v. Etsy – differences and similarities
What is Etsy?
Etsy is an e-commerce platform founded in 2005, specialising in handicrafts, vintage goods and customised products. The platform offers individuals and small businesses the opportunity to sell their products on the global market. Unlike Amazon, which covers almost all product categories, Etsy focuses in particular on lower-volume unique and creative products.
Read also: Which kind of business are best suited for selling on Amazon?
How does Etsy work?
Etsy is very straightforward. Sellers create an account, set up their own shop and list their products for sale. The platform offers a range of tools for marketing products, including search engine optimisation tools and paid advertising. However, sellers need to manage their own inventory and product deliveries. Etsy does not currently have support services to help sellers with delivery and stock management, as some competing platforms do.
Read also: Amazon FBA-model – What it is and why do we recommend it to our customers?
Why is Etsy growing?
Etsy has seen significant growth in recent years. In 2019, the platform had 2.6 million sellers and 46.3 million visitors. By 2023, the figures had grown to 8.3 million sellers and 96.2 million visitors.
This growth is due to a number of factors:
- Unique products: Etsy offers products that are not easily found elsewhere. This is particularly attractive to shoppers looking for unusual gifts or home furnishings.
- Customisation options: Many sellers offer personalisation of products, which adds value and appeal.
- Community: The Etsy user base is often made up of like-minded people who value craftsmanship and small business.
Read also: How will buying on Amazon evolve in 2024?
Who is Etsy for?
Etsy is the ideal platform for individuals and businesses looking to sell handmade or vintage items. It is also ideal for artists and designers who want to reach a wider customer base without having to invest heavily in their own online shop.
Read also: Why Amazon: the world’s largest shopping site opens up opportunities for businesses of all sizes
Will Etsy come to Finland?
Etsy operates globally and sellers and buyers can also be found in Finland. Although Etsy does not have a local office in Finland, Finnish sellers can easily set up shop and sell their products on international markets. For Finnish entrepreneurs and craftspeople, Etsy already offers an excellent platform to reach customers around the world. Finnish buyers can also order products from Etsy to Finland.
Read also: Amazon vs Temu: How will Temu challenge Amazon in Europe?
Threats and Opportunities for Sellers
Opportunities
- Broader customer base: Through Etsy, Finnish sellers can reach a global customer base. This is a particularly good opportunity for companies producing customized or handmade products, which can use the platform to reach a global audience already looking for similar products.
- Low start-up threshold: Registering on Etsy is quick and easy compared to many platforms. Sellers can start selling without a large time investment or upfront costs.
- Building your brand: Etsy offers tools for building your brand and the visual identity of your shop.
Read also: Marketing on Amazon – stand out with show stopping content using Amazon Storefront
Threats
- Competition: Although there are fewer sellers on Etsy than on Amazon, competition in the handicrafts category is fierce.
- Costs: There are also costs associated with selling on Etsy, such as listing fees and sales commission. However, the overall costs of the platform are relatively low.
- Logistics: Unlike Amazon, Etsy does not provide warehousing and logistics services. This can be a challenge, especially for international shipments.
Read also: The most common tripping points when going to Amazon – and how to avoid them
Etsy offers Finnish artisans and product manufacturers an excellent platform to expand their business and reach new customers around the world. As the popularity of the platform grows, so does the competition, so it is important for sellers to stand out from the crowd with high-quality, unique products and expert marketing.
Our expert tour guides will be happy to discuss your company’s potential in the e-commerce jungle with you – contact us for a low threshold.
