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6.1

Overall Score

Author: Kalicia Bateman

LAST UPDATED: March 27th, 2022

Etsy was originally launched in 2005 by a small company known as iospace. The name of the platform was carefully picked because the executives wanted a "nonsense word that could be built into a brand from scratch." Etsy garnered attention within its first year due to the added tools and functionality that allowed business owners to see improved traffic and exposure. After seeing tremendous growth and rapid revenue and sales increases, Etsy finally went public in April of 2015. Today, Etsy is valued at $1.8 billion. Etsy is designed to help both sellers and buyers, allowing business owners to connect with their niche markets.

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The Good

  • Business Management Tools
  • Hassle-Free Shipping
  • Seamless Payments
  • Search Features
  • Additional Features

Business Management Tools

While simple, Etsy has created a number of tools and provides resources to maximize exposure and traffic based on targeted searches by prospective buyers. These tools increase flexibility and potential to maximize profits. Resources include the following:

  • Business management from anywhere: Etsy has the "Sell on Etsy" app which allows business owners to manage orders, update items, and respond to customers from mobile devices.
  • Promotional tools: Whether it is through social media or other forms of exposure, Etsy provides sellers with the ability to promote their listing to drive and even increase traffic.

Hassle-Free Shipping

Sellers do not need to worry about the logistics of shipping because shipping labels can be printed directly from Etsy. Sellers who use Etsy also receive discounted pricing on USPS postage. Etsy also previously rolled out a buyer Free Shipping Guarantee for U.S. orders over $35.

Seamless Payments

Etsy takes care of all payment processing so the seller does not have to worry about it.

Search Features

Etsy isn't just for those looking to host an online shopping cart. It has created a platform that is easy for consumers to navigate and purchase products. Consumers can search the entire e-commerce platform and browse through various categories and products to find exactly what they are looking for at a price they are willing to pay. Not only does Etsy come with descriptive categories, consumers can also use advanced search options to narrow results and cut down on browsing time. Each category also comes with sub-categories to provide a more targeted shopping experience.

Additional Features

Etsy also offers order and negative feedback management, which can help a lot in the marketplace if a problem arises. It also leaves the ability to leave a review, for a customer to express their opinion. The general idea of these features seemed to be based on feedback from merchants, to improve the website. 

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The Bad

  • Fees
  • Privacy
  • Third Parties

Just like any other e-commerce platform, there are some areas that could be improved.

Fees

There are additional fees that come with selling on Etsy. After a "store" is created by business owners, it will cost them $0.20 per listing. There are no limits to these listings, but the seller will need to cover listing costs. This listing will remain on the market for four months or until the item is sold. After the four months is up, the seller will need to pay for the listing again. Etsy costs include the following:

  • Transaction fees - 5 percen of the listing price (this includes the charge for shipping and gift wrapping)
  • Shipping costs - to be covered by buyer or seller
  • Quarterly listing costs - 20 cents

Privacy

Users have expressed concerns regarding their privacy. In late 2013, Etsy created a feature that allowed users' buying and selling histories to be searched which traced transactions. This meant that Etsy users were now connected to others who had similar buying or selling histories. However, this feature was automatic and no permission was/is obtained by the user.

Third Parties

Customers who purchase products on Etsy should also be aware that sellers are now able to use third parties and factories. That also means that products can be drop shipped directly from manufacturers and no longer go through the seller. This can be deceiving since Etsy is known for being a platform for selling handmade products.

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The Bottom Line

Etsy was originally designed to help people sell their homemade products, functioning as a side business. However, it has grown to the point where some business owners strictly conduct all of their business online through the Etsy platform. Benefits of using Etsy as an e-commerce platform include the following:

  • No monthly payments
  • Secure and seamless transactions
  • Automatic deposits
  • Seller protection
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Star Rating

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4.4

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106 Reviews

Review Breakdown

5 grade

62%

4 grade

25%

3 grade

7%

2 grade

1%

1 grade

5%

Sentiment Criteria

Value

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Cheri Sconce Imperial, MO

I like to support other companies however I will be more cautious on what I order and where. Its my own fault but should of checked Amazon. The product I ordered on Nov 6 is still sitting in China. Yeah big mistake. I couldn't tell you how many ports it's gone thru. And it's Dec 2 and still in China. Seriously they must be walking with the package to ea place. Amazon has it and I could of had it 2 weeks ago. Now I want my order canceled and refunded. Not getting much help with that. Next time I'll do better on my research.

4 years ago

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sab

shut your shop without notification, opposition copied my whole shop yet they allow these theives to sell while my shop was shut down even after proof and snap shots of everything. My business was started three years before the opposition decided to download my whole page yet I was told my items dont comply with handmade even though all my items are handmade from start to finish. And the people that copied my page continue to sell funny how their items which are my items are compliant. They wont listen , dont listen and dont care

9 years ago

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BLINK WB Lansdale, PA

I ordered 2 items from ETSY seller and I did not receive them. When I reached out to the seller she basically said “yes it was delivered”. I AM HOME ALL DAY WITH A DOG THAT WILL BARK IF A CAR DOOR CLOSES. The seller so far has not made me financially whole. Shame on ETS

4 years ago

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Juan vega New Haven, CT

The worst customer service experience I’ve ever had I purchased some shoes on this website I never received my order however the company told me that I had to wait 2 months after 2 months never got the order try to contact customer service and it was really bad I don’t recommend anyone to buy anything from them

5 years ago

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Amy Steidle Canandaigua, NY

If you want to buy from an e-commerce company that takes unauthorized charges and scams seriously, steer clear of Etsy. Useless customer service.

4 years ago