Starting Your Own Website vs. Selling on Etsy: Which is Best for Your Handmade Business

As an entrepreneur selling handmade products online, one of the most important decisions you'll face is whether to start your own e-commerce website or sell on a platform like Etsy. Both options come with their unique advantages and challenges, and understanding how each can impact your handmade business is crucial for your success. In this post, we’ll dive into the pros and cons of starting your own website versus selling on Etsy, helping you choose the best platform for your handmade products.

Starting Your Own Website: Pros and Cons for Handmade Sellers

Pros:

1. Complete Brand Control and Customization
   When you create your own e-commerce website for your handmade products, you have full control over the design and branding of your store. This freedom allows you to build a unique online shopping experience that perfectly reflects your brand identity. Whether it’s the website layout, color scheme, or product presentation, you can create a space that aligns with your vision.

   • Custom Domain Name: Choose a domain name that matches your brand and is easy for customers to remember.
   • Creative Freedom: Add blog posts, custom product categories, and new features like email newsletters to keep customers engaged.

   Example: Many handmade business owners choose to build their own website to showcase their brand’s story and style, such as a fictional business “Purse Envy,” which uses its website to connect with customers through personalized content and branding.

2. Better Long-Term Scalability
   Owning your website means you have unlimited potential to grow your business online. You aren’t restricted by the rules of third-party platforms, so you can scale your business as needed—whether that’s adding new product lines, integrating technology, or offering services like memberships or exclusive content.

   • Growth Opportunities: As your handmade business grows, your website can evolve without limitations.
   • SEO Benefits: Optimize your website for search engines to drive organic traffic and boost sales long-term.
     
     

3. Keep All the Profits
   On your own e-commerce site, you keep 100% of your profits after paying for hosting and transaction fees. Unlike platforms like Etsy, there are no commission fees eating into your sales. This allows you to keep your pricing strategy flexible and reinvest profits directly into your business.

   Stat: According to the 2023 E-commerce Growth Report, businesses selling on their own websites retain more profits than those using third-party platforms due to lower commission rates.

Cons:

1. Higher Initial Setup Costs
   Building your own website involves upfront costs for web hosting, a domain name, and possibly an e-commerce platform like Shopify, WooCommerce, or BigCommerce. If you want a custom design, you may also need to hire a developer or designer.

   • Costs Involved: While you can start with a basic plan, a professional-looking website will require a larger investment. Ongoing maintenance costs, such as updating content or adding new features, can also add up.
     
     

2. Driving Traffic is Your Responsibility
   One of the biggest challenges of owning your own website is attracting traffic. Unlike Etsy, where customers are already browsing for handmade products, you'll need to put effort into building your own audience.

   • SEO: To drive organic traffic, you’ll need to focus on search engine optimization (SEO) for your website.
   • Marketing Efforts: Paid ads, social media marketing, and content marketing will all require time and money.

Selling on Etsy: Pros and Cons for Handmade Sellers

Pros:

1. Built-In Audience
   Etsy is one of the largest online marketplaces for handmade products, with millions of active buyers browsing daily. This massive audience gives you instant access to potential customers who are already searching for products like yours, saving you time and effort in attracting traffic.

   • SEO Benefits: Etsy has a highly optimized internal search engine. By using relevant keywords in your product listings, you can easily increase your visibility and reach more potential customers.

   Stat: Etsy reported over 90 million active buyers in 2023, offering sellers an extensive, highly targeted audience for their handmade products.

2. Lower Startup Costs
   Setting up an Etsy shop is easy and inexpensive. There are no setup fees, and listing fees are minimal, making it an ideal option for new handmade sellers who want to avoid high initial costs.

   • Low Risk: Etsy’s low listing fees and small commission (5% of the sale price) mean you won’t have to invest heavily upfront. Etsy handles payment processing and some customer service aspects as well.
   • Quick Setup: With Etsy’s user-friendly interface, you can set up your shop and start selling without needing technical knowledge.

Cons:

1. Limited Brand Control and Customization
   While Etsy allows some customization, you’re still restricted to the platform’s framework. You cannot control the overall look and feel of your shop as you could with a custom website.

   • Lack of Full Customization: Your shop will have a similar layout to other Etsy sellers, making it harder to differentiate your brand.
   • Etsy Branding: Since your store is part of Etsy’s marketplace, customers may associate your brand with Etsy rather than recognizing you as an independent business.
     
     

2. Higher Transaction Fees
   While Etsy's listing fees are low, the transaction fees are higher than what you would pay on your own website. Etsy charges a 5% commission on each sale, plus a 3% + $0.25 payment processing fee, which can add up.

   Example: If you sell a bag for $100 on Etsy, you’ll be left with about $91.25 after Etsy’s 5% commission and payment processing fees. On your own website, you would keep the entire $100 (minus payment processing fees).

3. Less Control Over Marketing
   Etsy controls much of your visibility and marketing efforts. While you can invest in Etsy Ads to increase your exposure, your marketing strategy is limited by Etsy’s rules and algorithms.

   • Limited Reach: Your visibility depends on Etsy’s internal algorithms, which may change and impact your sales.
   • Competition: Etsy is a highly competitive marketplace, and your products will appear alongside similar offerings, making it harder to stand out.

Conclusion: Which Platform is Best for Your Handmade Business?

The decision to start your own website or sell on Etsy depends on your business goals, budget, and how much control you want over your brand.

• Start your own website if you’re looking for complete control over your branding, have a long-term plan for growth, and are ready to invest time and money into marketing your handmade business.
• Sell on Etsy if you want an easier, low-cost entry into the world of online selling and prefer to leverage Etsy’s established audience.

Many successful handmade businesses use a combination of both platforms—starting on Etsy to build an audience and then transitioning to their own e-commerce website as their brand grows. Carefully consider your goals, resources, and level of commitment before making your choice. Whichever option you choose, remember that success in e-commerce comes from consistently delivering high-quality products and connecting with your target audience.