I’m Jumping – Update 3

It’s the second week of December and thought it’s about time to update everyone on O Kim’s launch.

So…I opened an Etsy shop.

I haven’t abandoned Amazon; my shop is still there. I opened an Etsy shop because I want my brand on my products on my Amazon store, and Amazon will likely waive the “Generic” brand so I can have my brand, O Kim Jewelry, on my products. Considering the alternative of creating a website from scratch, opening an Etsy shop is easier and faster.

Creating a website for my products is something that I eventually want to have. I read Etsy’s fees, and the percentages are stated up-front:

  • Each listing is $0.20 and lasts for 4 months, then the seller can renew the listing or not
    • (Amazon does not charge a listing fee, rather they charge $34.99 each month)
  • 5% fee for each each listing + the amount for shipping and gift wrapping for each transaction
    • (Amazon charges 15%)
  • 3% + $0.25 payment processing fee
    • (Amazon does not charge a payment processing fee)

Etsy automatically advertises our products on popular sites, such as Google, Bing, and Facebook, and if any sales results from those ads, Etsy will take 15% for that order. Sellers who open their store for their first year are not allowed to opt-out of this; sellers can opt-out after a year. In addition, sellers who sell more than $10,000 per year cannot opt-out, however, their fee is reduced to 12%.

Further comparing Etsy to Amazon, Etsy provides more guidance and makes things easier to understand for regular people. For example, they allow sellers to upload nine images, and they suggest that sellers upload the main product image, three or four images in different angles of the product, a stylized photo, a photo of the product in use, a photo to show the dimensions of the product (such as laying a coin beside the product), and a photo or two for variations (like different colors of the same style). Now those photos from other sellers make sense! It’s because sellers follow that format.

Etsy also doesn’t have the unreasonable “pure white background” like Amazon. Etsy encourages photos to be taken in natural light, whereas Amazon encourages sellers to buy their photo studio and download their photo app. Etsy also estimates the shipping cost based on the size and weight of the package, but they also inform sellers that by buying the shipping label through Etsy, the seller would save a certain amount.

I discovered where the discounts were in Etsy and have set up two discounts for customers. I didn’t see anywhere on Etsy and their fees that they take a portion when coupons are used. Amazon, on the other hand, will collect a fee for coupons used by customers.

I have different products on Etsy and Amazon, because Amazon has requirements on what kind of jewelry can be sold while Etsy does not. I think the most important thing is knowing what your products are made of and being explicit about them, so customers aren’t allergic to the materials used.

Essentially, both Etsy and Amazon find lots of ways to make money off of sellers.

That’s what I’ve been up to. I’m a little further away from launching, but I’m moving forward. Launch should be soon.

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