Why Start on Etsy in 2022: Beat the Trend and Thrive!

Why Start on Etsy in 2022: Beat the Trend and Thrive!

Table of Contents

  1. Introduction
  2. Why Start Your Business on Etsy
  3. Types of People Who Want to Start a Business
    • Side Hustlers
    • Full-Time Income Seekers
  4. The Importance of Getting Traction Fast
    • High Sell-Through and Turnover
    • Building Momentum with Sales and Positive Reviews
  5. Comparing Etsy Fees with Other Platforms
    • Amazon and eBay Fees
    • Additional Fees on Etsy
  6. The Value of Etsy's Warm Leads
  7. Considerations for Etsy Advertising
    • Etsy Plus and Off-Site Ads
    • Opting Out and Using Etsy Advertising Strategically
  8. The Speed of Success on Etsy
    • The Impatience Factor
    • Avoiding Shop Failure and Fizzling Out
    • Managing Time and Effort
  9. The Benefits of Having Both Etsy and a Shopify Store
    • Focusing on Etsy First for Rapid Success
    • Expanding and Improving Profitability with a Shopify Store
  10. Conclusion

Why You Should Start Your Business on Etsy

In today's competitive e-commerce landscape, deciding where to start your business is a critical decision. While there are various options available, this article will make the case for choosing Etsy as your business platform. As an experienced Etsy seller with six years of experience, I have also explored other platforms like Shopify and Instagram. Through this article, I will share insights into why I believe Etsy is still the best place to begin your entrepreneurial journey.


Etsy has faced its fair share of controversies, such as the seller strike and criticisms in the stock market. Many sellers have boycotted the platform, aiming to establish their own websites or sell through social media channels like Instagram. Despite these challenges, I firmly believe that Etsy continues to outshine other options, especially for those aiming to achieve significant success and substantial income. Whether you are looking for a side hustle or seeking to replace your corporate job with a thriving business, Etsy provides the ideal platform to kickstart your entrepreneurial dreams.

Types of People Who Want to Start a Business

Before delving further into the advantages of starting on Etsy, let's consider the two main types of individuals who want to launch a business: side hustlers and full-time income seekers.

Side Hustlers: These are individuals looking to earn extra income on the side. They may aim to make a few hundred or a few thousand dollars per month. While side hustles may not be their primary focus, they still desire reliable and consistent earnings.

Full-Time Income Seekers: These individuals are committed to turning their business into a primary source of income, surpassing what they earn in their corporate jobs. Their goals may range from reaching five-figure monthly revenues to achieving extraordinary success, such as earning tens of thousands of dollars per month.

As someone who operates at a thirty to forty thousand dollar per month level, I will primarily address full-time income seekers. My advice caters to individuals who aspire to make substantial amounts of money in a short span. With that said, the strategies and insights shared can still be valuable for side hustlers seeking to maximize their earning potential.

The Importance of Getting Traction Fast

When you start an e-commerce business, speed becomes a crucial factor in your success. Your goal should be to gain traction rapidly, ensuring both high sell-through and product turnover. Building momentum with sales and positive reviews is vital to establish yourself within the competitive marketplace. Simply listing your products and hoping for buyers to find them will not suffice. You must be proactive and aggressive in your approach. Additionally, meeting potential customers where they are is more cost-effective than trying to redirect them to your own website.

Comparing Etsy Fees with Other Platforms

One of the common concerns raised about Etsy relates to its fees. Currently, Etsy charges 20 cents per listing, a 6.5 percent transaction fee, a three percent credit card processing fee, and a 25 cent payment fee. In total, this amounts to 45 cents per transaction, plus an additional nine and a half percent. When compared to platforms like Amazon and eBay, however, Etsy's fees are competitive. Amazon and eBay both take a 15 percent cut, making Etsy a more budget-friendly option.

The Value of Etsy's Warm Leads

Another essential aspect to consider is the type of customers you will find on Etsy. Users who navigate to Etsy and search for products are considered warm leads. These individuals are more likely to buy compared to customers on other platforms. Etsy excels in driving high-converting traffic to your products, essentially acting as an outsourced marketing team. The nine and a half percent fee charged by Etsy covers the expertise and efforts that go into generating such targeted and ready-to-buy traffic.

Considerations for Etsy Advertising

While Etsy offers additional advertising options such as Etsy Plus and off-site ads, it is crucial to evaluate whether investing in these features aligns with your business goals. Etsy Plus is not recommended for beginners, and off-site ads become mandatory once you reach $10,000 in sales. However, you can opt out of off-site ads initially, allowing you to control your expenses. Etsy advertising, on the other hand, can be useful when launching a new product. However, keep in mind that you cannot set your maximum bid per click with Etsy ads.

The Speed of Success on Etsy

One of the most compelling reasons to choose Etsy is the accelerated path to success. If you are driven by speed and aim to make money quickly, starting on Etsy is the ideal choice. Many shops fail due to a lack of traction, leading to dwindling motivation and ultimately quitting. To avoid this fate, it is vital to prioritize getting traction and establishing a solid customer base early on. By starting on Etsy, your success rate will skyrocket, giving you the opportunity to pull levers that improve profitability down the line.

The Benefits of Having Both Etsy and a Shopify Store

While starting on Etsy is crucial for rapid success, I highly recommend considering the expansion to your own website or a Shopify store in the long run. Nevertheless, it is essential not to start both simultaneously. By focusing on Etsy initially, you build a strong foundation of customer demand and momentum. Only once you have achieved significant success can you strategically introduce a Shopify store to improve profitability. This approach mirrors the strategies employed by successful companies like Amazon, who first establish robust customer bases before optimizing profitability.


In conclusion, starting your business on Etsy offers numerous advantages over other platforms. Etsy's fees, when compared to Amazon and eBay, are reasonable, especially considering the warm leads and high-converting traffic offered by the platform. By prioritizing traction and momentum, success becomes inevitable. Nonetheless, I also recommend considering a Shopify store in the future to enhance profitability. Remember, success loves speed, and by opting for Etsy, you gain the valuable opportunity to fast-track your entrepreneurial journey.

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