Whenever you think of Etsy, knitted scarves and hand-painted mugs are some of the things that come into your mind. Although Etsy offers many handmade goods, it also provides a much more extensive range of products.
With millions of sellers, from new creators to well-established retailers, Etsy has recently become one of the most famous ecommerce names.
If you are thinking about joining this massive online marketplace or are simply interested in ecommerce, you have come to the right place.
- More than 4.3 million active sellers are on Etsy.
- Nearly 69% of Etsy sellers consider their online shop a business.
- Women sellers account for 83% of Etsy sellers.
- As of 2020, the UK constituted 30% of the global sellers on Etsy.
- Successful businesses on Etsy can earn over $10,000 per year.
- On average, the income of Etsy sellers amounts to more than $56,000 per year.
- There were 81.9 million active buyers on Etsy in 2020.
- 40.1% of Etsy buyers are repeat customers.
- High shipping costs are the main cause for about 50% of buyers who don’t purchase on Etsy.
This platform is considered the go-to ecommerce website for millions of craftspeople. The following statistics will demonstrate that the marketplace’s current success is not slowing down any soon.
1. Etsy had over 4.3 million sellers at the end of 2020.
This staggering figure suggests how many sellers are on Etsy in 2020. Compared to the 2.6 million reported in the previous year, the number of active users has more than doubled and is expected to further increase over the next few years.
2. The US made up 62% of Etsy sellers in 2020.
It shouldn’t come as a shock that Etsy sellers come from all over the world, and more precisely from 234 countries. Etsy facts suggest that the majority of sellers are in the US, accounting for more than half of the worldwide population.
3. Around 69% of sellers consider their Etsy shops as businesses.
Many sellers see Etsy as an opportunity to start their online business. Etsy seller statistics prove that an astonishing number of sellers consider their shops to be their primary source of income. Additionally, 97% of marketers run their shops from their homes, while 82% of sellers aspire to increase their business.
4. In April 2021, gifts represented the most searched keywords on Etsy, with a 69% year-over-year growth.
While gifts-related keywords are on top of the Etsy search ranking, the marriage industry is the second-place winner. Unexpectedly, engagement rings and other wedding decorations rose from the ashes in February but gradually went down. According to the Etsy market research, home decor and accessories are still dominating the market.
5. In 2019, Etsy’s GMS of $5 billion gave the platform a 5% market share.
With the adoption of mcommerce during the pandemic, Etsy’s active sellers increased by 43% to $3.5 million and active buyers by 56% to $6.7 billion. Likewise, Etsy market share gross merchandise sales (GMS) boosted to 101%, earning a staggering $6.7 billion in the first nine months of 2020.
The new culture of handmade, vintage, and original designs focuses mainly on a specific target audience—females with money to spend. Although this demographic represents a staggering majority, we will see that’s not always the case.
6. A whopping 83% of Etsy sellers identify as women.
As of 2015, 86% of women were sellers on the platform. Etsy statistics suggest, however, that the number of male creators increased by 3% in the last five years. Women and people identifying as such still dominate the crafting world, yet men are gradually penetrating the handmade industry as well.
7. 15% of females buying on Etsy are under 25.
According to Etsy buyer demographics for 2020, 81% of females support smaller companies than bigger corporations—if their budget allows it. Among them, the majority of buyers are aged between 25–40. The younger generations feel indeed they need to invest more in new and unpopular creators.
8. In 2020, the UK accounted for 30% of the entire world’s sellers.
As of June 2020, Etsy analytics prove that the UK is the country with the highest international distribution of sellers. Canada came in second place with 11% of the total sellers, followed by Australia and Germany at 7%.
9. About 47% of traffic on Etsy is focused on direct.
These interesting Etsy traffic statistics show that Etsy’s marketing strategy mainly focuses on direct traffic. Search ranks in second place with 39% of traffic, and social is third with nearly 9%. Referrals only account for 1.45% of the total traffic on Etsy.
Surprisingly, Etsy is growing even faster than predicted. During the first six months of the pandemic, the platform profited from customers turning to online shopping.
The sales coming from Etsy are not showing any signs of decreasing any soon.
10. The most successful Etsy shops make $10,000 per year or more.
Etsy’s top sellers have to pay a fee of 12% without any possibility of opting out. Since its launch, changes have been made to boost sales. However, Etsy sales data reports that many sellers, especially small business owners, feel frustrated with high fees, as it seems that only Etsy’s bottom line benefits from the platform.
11. In the beginning, Etsy reported only $1 million in gross merchandise sales.
Before discussing the site’s gross merchandise sales, the first question that comes to your mind is when was Etsy founded, and how old is it? The company was first launched in June 2005 and is now about 16 years old. By 2019, the GMS figure has increased up to $5 billion.
12. Amazon Handmade subtracts a 15% fee for each sale.
Considering Amazon Handmade vs Etsy, Amazon Handmade is a store within the Amazon framework that, similarly to Etsy, focuses on handmade products only. These platforms charge a referral fee for each sale. Amazon will take 15% or $1 on each sale, depending on how large the order is. But, what percentage does Etsy take? Once you sell an item on Etsy, there is a 5% transaction fee, with an additional 3% + $0.25 processing fee.
13. The average household income of an Etsy seller is over $56,000 per year.
Although the report is not clear about how much is the average income from an Etsy shop, the number shown is staggering. However, about 65% of Etsy sellers gain much less than $100 per year from their online stores. This makes many people rely mostly on their spouse’s salaries.
14. In 2018, Etsy made $441.55 billion from transaction fees, seller service revenues, and third-party payment fees.
2018 was the most profitable year for Etsy’s marketplace. Moreover, the average Etsy income registered in Q1, 2021 was around $413.64, up by 165% year-over-year from $155.692 million. It’s no wonder that the figure has doubled during the pandemic. The Etsy revenue amounted to about $1.7 billion per year, a 120% increase from $818 million registered in the previous year.
We have read about statistics, demographics, and fascinating facts regarding Etsy sellers and their income. Now, we will briefly look at some interesting trends about the people who support these businesses—the buyers.
15. In 2020, 81.9 million users purchased on Etsy.
The pandemic has undoubtedly increased the number of online buyers, especially on Etsy. According to Etsy trends, this figure shows an increase from 46.35 million buyers in the previous year and 39.45 million in 2018.
16. The latest statistics indicate that 40.1% of Etsy buyers are repeat customers.
Statista sorted the number of total purchases on Etsy in the preceding year. Less than half of Etsy target audience are repeat customers—they bought two or more days in a row from the platform. In comparison, the remaining 59.9% purchased only once a day.
17. 50% of buyers won’t complete a purchase if shipping costs are too high.
It’s only natural that half of the shoppers do not feel enthusiastic about paying higher prices than they’re used to. So, does free shipping increase sales on Etsy? Not necessarily. Free shipping does not guarantee the growth of your shop’s revenue. On this marketplace, you can have free shipping for orders over $35 or more.
18. The pattern cost amounts to $15 per month.
Building a Pattern site has, of course, its costs and fees. First, Etsy will offer a free 30-day trial. Generally, the Etsy Pattern cost also considers the applicable tax and additional fees. This can be a sweet deal for many sellers—you get your own domain and branded storefront for your Etsy shop at an affordable price.
Now that you have a better knowledge of Etsy sellers, buyers, and demographics, you can use this info for your online Etsy shop.
Here are some steps on how to increase sales on Etsy. First of all, make sure to motivate repeat customers to purchase from the platform. To do that, make sure to add a brand story to your page and enhance your listings with specific descriptions and captivating images of your products.
This platform has grown exponentially, so why don’t you take the opportunity of opening an Etsy shop if you haven’t yet?
Many sellers complain about Etsy’s costs and fees. Although Etsy only takes 5% of the total order, including the shipping price charged to the buyer, the platform comes with many hidden fees. Ultimately, Etsy buyers feel overwhelmed by the excessive number of expenses. For example, when the transaction is processed via “Etsy Direct Checkout,” the company will charge an additional 3% plus a $0.25 fee. What’s more, the platform takes a flat $0.20 for each listing published on the website.
Although the percentage of the most successful items on Etsy is not entirely clear, it’s evident that not a lot of goods sell well.
Crafts, handmade products, jewelry, wedding clothing and engagement rings, party supplies, clothing, and home decor are among the best-selling items on Etsy. While the platform has plenty of advantages, sellers might feel the weight coming from the astounding number of hidden fees and taxes.
Despite the high number of hidden fees, Etsy is absolutely worth it. Especially during the pandemic, it can be an excellent opportunity to create unique crafts and sell them on the platform. This way, potential sellers can make use of their hobby and gain extra cash that might come in handy during these troubling times.
When it comes to selling on this platform, only the sky’s the limit—you can sell an unlimited number of items to a targeted audience.
Ever since the strike of the COVID-19, more and more artists and craftspeople have turned to online shops such as Shopify and Etsy. The lockdown and the high unemployment rate caused people to see Etsy as a new and fresh opportunity to earn more cash.
The top Etsy categories include art and collectibles, which constitute 357%, followed by accessories (179%), self-care and beauty (123%), outdoor and gardening (68%), and barware (51%) monthly growth.
Etsy will allow you to have an unlimited number of online shops. You can indeed register a new account and, therefore, open a new store. This platform is convenient for companies that have several brands or items to sell.
Not only does Etsy allow you to log in with an unlimited number of accounts, but it is also easy to use, affordable, flexible, user-friendly, and convenient for sellers and buyers.
It’s still unclear how much Etsy sellers make on the platform. While many successful shops make over $10,000 per year, about 65% of them don’t even reach $100 for their online sales.
Moreover, many of these sellers entirely depend on their household income, accounting for an average of $56,000 per year. As a result, sellers feel discouraged by the numbers shown in these Etsy statistics, as the platform doesn’t guarantee a decent revenue for your business.
There were a total of 4.3 million people selling products on Etsy in 2020. The number is over half a million higher than the year before—in 2019, there were 2.7 million sellers on the platform.
Founded in 2005, Etsy didn’t pass one million merchants on the platform until 2013 when 1.074 million people had a store.
While the company was worth around $29.52 at the start of 2021, by the end of the second quarter, its value had dropped to $25.04 billion.
In March of 2020, Etsy’s value was only $3.74 billion, but with the start of the worldwide social distancing and job losses due to COVID–19, the platform’s worth skyrocketed.