$603.7 million (31.1% increase from 2017).
Etsy focuses on hand-crafted or vintage goods including stickers and printables.
It also has a customizable Store page for sellers.
In this kind of website, you’ll own your own store. However, you’ll have to build up your own traffic in order to have a decent customer base.
I. Shopify
Shopify’s total 2018 revenue is $1.073 billion (59% increase from 2017).
Shopify integrates with top marketing tools such as Yoast, an SEO tool.
Hard to sell downloadable or digital products such as printables.
Pros | Cons | |
---|---|---|
MarketPlace Website | Large number of visitors | Visitors are undefined and are not likely looking for your branding. Difficulty in making your own brand. You do not control your own platform and your account can be terminated upon their discretion. |
WebStore Site | Will have visitors who are looking for your brand and are most likely to buy. Ability to create your own brand. Ability to build a loyal and growing customer base. | Will need a killer marketing strategy to create traffic. |
MarketPlace websites have a lot of traffic, however, that traffic is undefined. It means they’re not looking for your brand.
You do not own your business in a marketplace website. Even if you don’t break the rules, even if you’ve been selling for a long time, your account can get suspended or even terminated without notice.
A bubble of negative feedback, a misunderstanding or being associated with another banned account can cost weeks of lost business as you try to get back your account. In Amazon, some sellers would leave fake negative reviews on their competition, causing Amazon to ban the account.
If you’re looking to have your sticker printing business as one of your main streams of income, having a webstore is a must. But you can build a customer base from MarketPlace websites then lead them to your webstore where you can give them a better experience of what you have to offer.
You don’t have to start with both an account in a marketplace website and a webstore at the same time. You can build audience first in a marketplace website then build a webstore.
NEVER forget that you’ll have to build your brand. Marketplace websites can give a rush of instant money gratification, and sellers can get too comfortable that they forget they don’t own their own business if they lay all their eggs in marketplace websites.
In your WebStore, you can build an email list and social media presence where you can build customer loyalty and making your brand name a household name in their minds.
The question now is, which marketplace site would be the best platform for you?
Before we compare all channels, let’s compare first between being a seller in a large online shop or having your own online shop.
Getting higher traffic increases sales and customer-followers that you would soon lead to your future webstore.
AMAZON | EBAY | ETSY |
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Pros: Tend to show up in Google searches 15% of all commerce related searches start on their platform Large visitor base | Pros: Second largest visitor base. Visitor base is more defined by their search for unique/specific items. | Pros: Visitors are most likely looking for handmade items such as stickers and printables. |
Cons: High competition Visitors are either undefined (simply browsing) or looking for standard items of your product category Seller has more difficulty standing out. | Cons: Customers are huge bargain hunters and will haggle with seller and seller’s customer service. | Cons: 25x smaller than eBay |
As one can see, Amazon has the biggest visitor base from the website itself and Google. The drawback is the difficulty of building a brand. eBay and Etsy visitors are more defined in their searches. But eBay visitors are haggle hunters while Etsy’s drawback is having the smallest visitor base.
The easier you can use your sales channel, the higher you’d be able to sell your stickers.
AMAZON | EBAY | ETSY |
---|---|---|
Pros: FBA stores products and fulfills orders Amazon Customer Service handles returns and questions of customers Marketing: has a wide array of marketing tools. | Pros: Easy to use, can be set up in a few hours Marketing: has promotion boxes in the left side navigation bar of the seller’s eBay store which helps the eBay search engine find them through the seller’s use of keywords Shipping: has an eBay online shipping calculator for sellers | Pros: Easy to get started and set up shop Marketing: intuitive marketing tools: easy to create coupon codes and other promotions Easy to move to another platform |
Cons: Tracking inventory can be difficult since you can’t keep an eye on your product’s storage. Sales tax can be difficult depending on the state where your business is located and the states where Amazon shuffle inventory in warehouses Commingling less-than-quality merchandise can be mistakenly sent to your customers | Cons: Shipping: you will have to store and deliver your stickers yourself (USPS, FedEx and UPS). You will have to handle customer inquiry and returns. | Cons: Shipping: Sellers are responsible for calculating shipping costs as well as shipping the item to the buyer. Sellers are responsible for making their policies clear (shipping, returns, refunds, etc.) to customers Sellers will have to answer customer inquiries |
Amazon has the convenience of FBA and having a lot of marketing tools to boost sales. Its drawback is the lack of control over your inventory.
eBay and Etsy sellers would’ve more control over the delivery of their goods but will have to make extra effort in handling policies and customer service.
It’s also important to take note how much you’ll have to spend in order to earn.
AMAZON | EBAY | ETSY |
---|---|---|
Pros: If the seller ships on their own, Amazon pays a Shipping Credit on every sale to cover shipping costs. | Pros: Basic eBay account has 50 zero listing insertion fee. Past 50 items, the listing fee is $0.35 PayPal integrated Upgrades: Optional fees such as Optional Listing Upgrades, Optional Promoted Listings, Classified Listing Fees | Pros: Has the lowest listing fee and sale fee. |
Cons: Shipping credit is comparably lower than what seller spent on shipping costs FBA storage fees ($0.69 per cubic foot for January to September) and fulfillment fees ($2.41 for 1 lb or less per unit) can chip away profit Seller will have to pay for referral fees ($0.99 per item for individual seller accounts) | Cons: Seller will have to pay for the Final Value Fee when a sale has been made (10% for most items of sellers with basic eBay account) Shipping fee is based on the shipping method chosen by the buyer Sellers may also pay a Punitive Fee if they don’t abide eBay’s rules. If customer chooses to pay through Paypal, seller’s Paypal fees are 2.9% plus $0.3 of the total selling price within US | Cons: Seller will have to pay for listing fees ($0.20), sale fee (3.5%), shipping label fees, shipping fees, transaction fees (5%), VAT, payments processing fees (3% + $0.25) Paypal transaction fee is 5% |
Etsy have the lowest listing fee and sale fee. Even if it has the most number of expenses, the expenses are comparably smaller than Amazon. eBay has a good feature of 50 zero listing insertion fee for beginning business people. But sum of fees may not be as constant based on shipping fees and the punitive fee.
Amazon has the most predictable sum of costs.
The end goal of having being a seller in a MarketPlace website is to lead them into your webstore. One way to do that is to put the link of your webstore and social media channels to your Store Page.
AMAZON | EBAY | ETSY |
---|---|---|
High competition, more difficulty standing out. No means for brand visibility. | Can include a logo, description, color scheme, layout and customer ratings Can include Custom Pages about your Brand Can arrange items by gallery view or list view by price, date or other options Can arrange items into galleries Can include a search box | You can put in a logo and banner. Advanced customization options allows you to create a collage and/or a carousel of product images Advanced customization options can add featured items on the top part of the shop page Can include a video in the About Page Store page has no page links, all sections form a lengthy scrolldown |
You can buy templates for eBay and Etsy for those who are not very familiar with HTML coding.
For Exposure and Ease of Selling, Amazon wins.
For Seller Fee, Etsy is more preferable. While both Etsy and eBay got a tie on Customization for Brand Visibility.
For someone who has never sold online before, Amazon can be advantageous because they will handle shipping for you while having a large customer base. You can put your Webstore name in your product images and product landing pages for brand visibility.
However, if you want to start small and and are more ready to handle shipping and customer service as practice to having your own webstore in the future, Etsy could be for you. But with the smallest traffic among the three, expect to have lesser sales.