When it comes to creative home businesses, there is no mistaking the impact that websites like Etsy have had in recent years. These online marketplaces have made it possible for so many more entrepreneurs to pursue, and become successful with, their home business dreams. When it comes to creative business owners, there is often a divide between those that give these sites full credit for their success and those that warn beginners to stay away. Today I wanted to take a look at both the pros and cons of selling through online marketplaces.
Pros
You are able to reach a far wider audience than you may be able to reach on your own or inexpensively.
The marketplace does a lot of the marketing. Less time marketing on your end means more time for creating.
Marketplaces are often an affordable alternative to creating a website. In many cases there is only a small setup fee or fees are waived in exchange for a split commission of each sale.
Cons
There is always fear of the unknown when relying on another for your business success. What if they change the rules? What if they go out of business?
You also need to consider the lost income that results from giving the marketplace a percentage of each sale. If you don’t price your goods correctly, you may suffer a loss.
You have more freedom to create content and connect with your customers when selling on your own site.
Is Hybrid the Way to Go?
Thankfully, most sites do not have an Exclusivity Clause in place. You are free to market and sell your goods through a variety of avenues. You can have both a marketplace store and self-hosted shopping cart of your own. You will need to be extremely organized and vigilant with inventory when working with a hybrid business. Duplicate items may be listed in multiple spaces without issue, but single inventory items may need to be put where inventory is automatically updated with each purchase.
Be careful with your time and energy. Don’t spread yourself too thin.
Options for Selling Handmade Goods
Artfire
Etsy
Big Cartel
Bonanza
Shop Handmade
Big Commerce
LilyShop
SilkFair
YouCanMakeThis.com
Hyena Cart
Zazzle
CafePress
eBay
Luulla
Woocommerce
Are you selling on Etsy or through another online marketplace? What has been your experience?
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