How I Used Etsy to Build My Brand and Test Products (But Never Relied On It)

Why Etsy is a Launch Pad, Not Your End Goal

When I first started selling online, Etsy was a fantastic platform to test the waters. It allowed me to get my products in front of an audience without building a website from scratch. But here’s the thing—I never relied on Etsy. It was always a tool to test my brand and products, not the foundation of my business. And thank goodness because when I got booted after 40,000 sales in 2019, it wasn't the end of the world. It hurt, it still does becuase I miss the community.

Let’s talk about why using Etsy as a testing ground, rather than a long-term business solution, can be a game-changer for your handmade brand.

Why I Chose Etsy to Test New Brands and Products

Etsy is great for handmade sellers just starting out or experimenting with new product lines. The platform comes with built-in traffic, and you don’t have to worry about building an entire website or learning complicated SEO techniques right off the bat.

For me, Etsy was a quick way to get feedback on my products, see which designs resonated with customers, and gauge market interest without a huge upfront investment.

Using Etsy as a Launch Pad

Here’s how I used Etsy effectively without relying on it long-term:

1. Product Validation Etsy was perfect for validating new product ideas. Before committing to a large inventory or designing an entire website, I’d list a few products on Etsy to see how they performed. Did they sell quickly? Did I get good reviews? This allowed me to tweak my offerings based on real-world feedback.

2. Market Research Etsy’s search analytics and feedback loop helped me understand my customer base better. I could see what products people were searching for, what keywords brought them to my listings, and even what my competitors were doing. This insight was invaluable when I eventually expanded to my own website.

Real-World Example: When I was testing out a new line of bath bombs, I listed them on Etsy to get an idea of demand and pricing. It quickly became apparent which scents and designs were hits, and I used that data to fine-tune the collection before offering them on my Shopify store.

3. Building Brand Awareness Even though Etsy isn’t great for brand building (customers often think they’re buying from Etsy itself), I used my shop to slowly introduce customers to my brand name and story. I included packaging inserts with my website URL and social media handles so customers would visit my own site later.

Why You Shouldn’t Rely on Etsy Alone

Etsy is wonderful, but it’s not a long-term solution if you want to build a brand and grow your business. Here’s why:

1. Etsy Owns the Customer Data

Etsy doesn’t share customer emails with you, meaning you can’t build your own email list. If Etsy changes its rules or algorithms, your business could suffer because you don’t have direct contact with your customers.

2. You’re at the Mercy of Etsy’s Algorithm

Just like Google, Etsy has its own search algorithm. One tweak to the algorithm could make your best-selling products suddenly invisible to potential customers. You’re also competing with thousands of other sellers, making it tough to stand out.

3. Etsy Fees Eat Into Your Profits

Between listing fees, transaction fees, and additional costs for ads, Etsy’s fees can quickly add up. When you start to scale your business, these fees can seriously cut into your margins.

4. You Can’t Sell Your Etsy Shop

If you ever decide to sell your handmade business, you can’t sell your Etsy shop itself. Etsy owns the platform, and your shop is a space you’re renting, not owning. With your own website, however, you’re building a sellable asset that adds long-term value to your brand.

5. Limited Branding Opportunities

Etsy’s marketplace format doesn’t offer much flexibility when it comes to branding. Your shop looks like every other Etsy shop with limited customization options, making it hard for you to stand out. On your own website, you can design a custom experience that reflects your brand’s personality and values.

6. Risk of Etsy Shutting You Down

Etsy’s strict seller policies mean that one slip-up could result in your shop being suspended or even permanently shut down. This is a risk you don’t want to take if Etsy is your only sales channel. By having your own website, you reduce the risk of being at the mercy of a third-party platform.

7. You’re Not Building a Long-Term Customer Relationship

Without direct access to your customers and control over their shopping experience, you’re missing out on building a strong, long-term relationship with them. On Etsy, buyers may feel more loyal to the Etsy platform rather than your brand. But with your own site, you can create a loyal community and customer retention strategy through email marketing, loyalty programs, and personalized touches. I could go on and on, but I'll spare you. You get the point. I'll hop off my soapbox now :)

Take Your Brand Off Etsy: The Transition

Once I validated my products on Etsy and understood what worked, I transitioned to my own website using Shopify. This allowed me to:

• Own my customer data and build an email list.

• Control my brand identity with custom design, packaging, and messaging.

• Increase profitability by avoiding marketplace fees and directly communicating with my audience.
  

Etsy became a tool in my multi-channel strategy. I still list some products on Etsy to capture a portion of that traffic, but the majority of my efforts and brand-building happen on my own terms through my website.

Invest in Yourself, Not Just in Etsy

Etsy can be a powerful tool for testing your products and getting your feet wet, but don’t let it be your only plan. Invest in building your own website, capturing customer data, and creating a brand that you control. This way, your success is on your terms, not Etsy’s.

Start small if you need to, but make sure you have a plan to transition away from Etsy and focus on building a brand with long-term potential. Trust me, your future self will thank you!

Conclusion: Use Etsy, Don’t Rely on It

Etsy is a great starting point, but it shouldn’t be the end-all for your business. Use it to test your products, get feedback, and understand your market, but always keep your eye on the bigger prize: your own brand, on your own platform.

What’s your next step—sticking with Etsy or moving towards building your own brand?