Etsy Shop Owner’s Guide: How to run a profitable business

Etsy.com is a marketplace for handcrafted products. Here you will find a host of varying products and services. Many of the wonderful shop owners are artists that create custom orders, as well as offer their own original designs. Etsy charges a small percentage of each sale, and a few cents (about $.20) to list each item. One neat feature that differs etsy from other marketplaces is that shop owners have an online shop where they can list their products, gather reviews, favorite items, and network with sellers directly.

As Etsy shop owners (www.WoodyWoodWorks.Etsy.com), Raquel and I have learned the ropes and run a profitable business through Etsy. In an effort to assist other owners (or those aspiring to open their own shop) in remaining profitable, we have written this article as part of a detailed series showcasing some of the industry leading practices to help you achieve continued success.

Lets get down to brass tacks!

1. Begin Planning

2. Make Draft

3. Draft Assign Responsibilities and Policies

4. Complete planning*

5. Execute the plan!

Get Organized
– Develop a plan (business plan is helpful), who, what, when, where, how, measurable goals, and phaselines

Marketing Research
– secondary data vs. primary data

Define your market
who are you selling to? what are the demographics, who is your customer?

– Positioning
how do you want your product to be viewed?
“positioning is the place the product or service will occupy in the hearts or minds f the customers in relation to your competitors.”
i.e. lowest price, uniqueness, all-natural

Developing Products and Services
– develop new products or services based on
* continuous innovations
* dynomically continuous innovations
* discontinuous innovations

Building and Sustaining your Brand
1. Effectively communicates the distinctive value you wish to offer the customer
2. is “relevant” to the customer
3. “Resonates” with the customer
4. Reinforces the company’s intended positioning in the marketplace
5. Is consistent and unifying
6. Serves as an umbrella/future brands in the company’s portfolio
7. Enables you to command premium pricing
8. Can be sustained over time

Develop a Sustainable Pricing Strategy
– Cost based
– Competition based
– Customer based

Promotion
– definition
– role
– promotional mix

Advertisements

Please leave me a note!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s