The things you learn from running an online store are things they just don’t teach you in business school. Sometimes there is just no way to learn except through trial and error. Other times, however, there are mistakes that could have been stopped ahead of time, if only you knew. Here’s some common mistakes you might be making with your Etsy shop.
Not doing the math. A lot of sellers end up with an Etsy shop because they decided they wanted to take their hobby to the next level and maybe (hopefully) get paid to create something. Unfortunately, many shop owners don’t do the math to see if they are making as much money as they need to be. They may have a good niche with a lot of demand, but aren’t taking into account the cost of creating the items they are selling or the fees involved in selling their items online. Take some time to analyze your costs to ensure that you’re making a profit and not actually losing money. Don’t forget to add in your time as a cost as well.
Wasting too much time on the small stuff. If you are like most sellers, you probably try to save money and do everything yourself. You create your listings, take your photos, and in between that, you’re creating new items to sell. The problem with this is that while you are saving money, you’re eating up a lot of valuable time. Time that could be spent elsewhere, either brainstorming about new products to create or even spending the time with you family.
Although you may not initially be able to hire someone to assist you, at some point you need to start relying on someone else and hiring people to do the nonessential tasks for you. Margie, a mother of two teenage girls keeps it in the family during the summer and pays her daughters to do many of the tasks for her, such as finding the items and getting them ready to ship. In the fall, she has a part-time assistant that work for her three days a week. During the time the assistant is there, she works on her new creations and designs.
Not understanding who your buyer actually is. There are two parts to claiming a niche when you have an Etsy store. The first part is creating your product to sell. The second part is knowing who to sell to. As an example, Janine was often complimented on the bracelets that she made, but when she decided to sell jewelry online, she had no idea who to market her items to. It took a couple of missteps before she finally found that the demand for her jewelry line was actually highest with older women who wanted to accessorize. Once she shifted from just general marketing to targeting her desired clientele, her sales begin to increase.
Have you been making any of these mistakes? Leave a comment below.