etsy business

We all love Etsy for a variety of reasons. It’s easy to use. It has a built-in community of passionate buyers. It helps creators share their creations with the world. For many Etsy sellers, that’s probably all they need to know.

Still, to the uninformed or inexperienced, Etsy is still “that little craft shop” where customers go to buy one-of-a-kind, handmade items made by hobbyists.

Nothing could be further from the truth.

In fact, if you’re here at Sale Samurai, you’re serious about expanding and optimizing your Etsy business. It’s the mall where you opened your shop. It’s the trade show where you raised your kiosk. In the brick-and mortar world, you’d want to know if that mall is going to being in foot traffic or if that trade show is going to have a high attendance. Why wouldn’t you want to know more about where you entrust your digital business?

We’ve gathered a comprehensive guide of important facts about Etsy: its business, its customers, and its buyers. Whether a buyer, a seller or a shareholder, this information shows a robust platform for anyone starting a product-related business on their own.

Product Category Statistics:

  • The most popular category on Etsy is housewares and home décor, which bring in $3.2 billion in sales every year. That is more than twice as much as the second-largest category, which is jewelry and personal accessories.
  • On the Etsy marketplace, there are more than 50 different types of items.
  • Etsy has more than 60 million items for sale.
  • Eighty percent of the total gross merchandise sales come from the top six categories.
    • Housewares/home furnishings
    • Jewelry/personal accessories
    • Craft supplies
    • Apparel
    • Beauty and personal care
    • Paper and party supplies

The pandemic not only raised Etsy’s profile as ecommerce soared, but it was also a place where artists used a new necessity as a canvas. In August of 2020 “face masks” was the top Etsy search. Face covering sales skyrocketed in 2020, earning $743 million dollars.

Sales and Revenue Statistics:

  • In 2020, international buyers made up 36% of Etsy’s gross merchandise sales, which added up to $3.7 billion
  • Etsy became a public company in the United States in 2015, 10 years after it was started
  • Etsy makes most of its money from the marketplace, seller services, and other Etsy fees
  • The marketplace brought in the most money, $1.3 billion in 2020, or 75.58 percent of all revenue
  • Sixty-one percent of Etsy’s gross merchandise sales, or $6.27 billion per year, are made through mobile devices
  • In 2020, Etsy’s Seller Services, which include advertising, shipping labels, and the Pattern site, brought in $422.5 million
  • Etsy is used by 4.36 million active sellers and 81.9 million active buyers, for a total of 86.26 million active users
  • Each month, more than 32 million people use the Etsy app on their phones.
  • 43% of sellers use the Etsy mobile app as well as the website to keep track of their sales

Who Are Etsy Sellers?

  • Most of the sellers on Etsy are in the U.S (62%)
  • California, with 14%, has the most Etsy sellers in the nation
  • Women make up the most Etsy sellers at a whopping 83%
  • The United Kingdom is the second-highest group of sellers outside the U.S., with 30% of international sellers residing there
  • The highest-earning sellers make $10,000 or more annually
  • The average seller is 39 years old
  • 82% of Etsy sellers surveyed said that they intend to grow their business
  • Since opening, the top Etsy seller in the US has made more than 1.2 million dollars
  • Multi-channel retailers sell their goods through a number of different channels – 61% percent of Etsy sellers are multi-channel retailers.

How Much Does The Average Etsy Seller Make?

About Etsy Buyers

  • In 2020, there were 38 million new buyers, twice as many as the year before
  • In 2020, more than 61 million new and reactivated shoppers
  • In 2020, 46.91% of Etsy’s users were first-time buyers, but they only bought 16% of the total amount of goods sold
  • From 2019 to 2020, 35.55 million more people purchased on Etsy
  • Even though there were so many new users in 2020, 84 percent of the gross merchandise sales came from people who already used Etsy
  • Half of Etsy buyers said that the cost of shipping would affect their decision about whether to buy an item

Lastly, Here Are Important Metrics To Know As An Etsy Seller:

The following KPIs (MBA-speak for “key performance indicators”) are the most critical to monitor in order to ensure success for your shop:

Conversion rate – This shows how many people come to your shop and buy something. Divide the number of orders by the number of visitors to get your conversion rate. In Etsy Stats, you can keep track of this.

Visitors – It’s important to know how many people come to your site because that has a direct effect on how much money you make. Both Etsy Stats and Google Analytics can be used to keep track of visits. Google Analytics is the only way to keep track of each unique visitor.

Traffic source – It’s important to know how people find your shop, whether it’s through a direct link, a referral, or a search engine, so you can tailor your marketing efforts. Use Etsy Stats or Google Analytics to keep an eye on this.

Bounce rate – This KPI is the number of people who leave your website after only looking at one product. You want people to look around your shop, not just leave right away. So, a low rate of people leaving your site is a good goal. Google Analytics can keep track of this.

Numbers and cryptic abbreviations aside, none of this information is worthwhile unless your own shop is properly set up for success. Sale Samurai’s proprietary tools will optimize your store and listings for better searchability, show how you fare against your competition and more.

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