Etsy Free Shipping Changes 2019 | The Business Newsroom Episode 18

Etsy Free Shipping Changes 2019 | The Business Newsroom Episode 18

people who have their business to an online-only channel have to have contingencies in place yeah because you are not in control of your business everybody knew a winner right here with the matterhorn business development welcome back to the channel hopefully you're having a good day today we are here to talk about Etsy and I am joined by Abby my sister she knows more about Etsy than I do I will admit all I know about Etsy is my wife orders a phone case and I have to go to the post office to pick up a box from either Mongolia Lithuania or Latvia it's done and they arrive and I have to signed for it it's in a weird box with weird markings at postage and stuff on it and that is my experience with Etsy all right what is going on in the Etsy world of outrage okay so there's a lot of Etsy drama happening ah oh no so basically an NC overview for maybe you and others who don't know Etsy is a website where makers people who make handmade goods can go and they can open an Etsy shop and it online platform they can post their handmade animate right and then you as a consumer you can type in you know like crochet hat and then a bunch of different stores pop up in your search results and you can go and buy him and good now when you make the purchase normally you have to pay the shipper for shipping because it's it's a person so I like Amazon basement making stuff right I'm gonna go to the post office and mail it to you exactly so they did as a seller you can decide to do free shipping your if your pricing is totally up to you Etsy takes between processing fees and their cut they take about eight to ten percent so you have the price based on that so basically Etsy sent out this announcement and it says I just want the wording right so starting on July 30th will give priority placement in u.s. search results to items that ship free to shops that guarantee free shipping to US buyers on orders of $35 or more you as a as a seller have decided to offer free shipping over $35 you're gonna get priority placement okay we're gonna show up it's like an Amazon Prime almost right so then it says we'll also begin to prioritize these items wherever Etsy advertises in the US and email marketing social media and television ads so anybody who's gonna be offering free two-day shipping on their store or items that any item that they might have is gonna basically go to the top of the list if it's free shipping over $35 it's not necessarily 2-day okay but also it appears even if you're paying Etsy for ads you're also gonna get shoved down if you Mart so even if you're paying for ads you still might get buried in the results okay I've watched several videos I even did some research myself I crochet personally show everything I don't sell because of this there's so much with like pricing and item people don't understand the effort it takes to make a handmade good and then they see your price and they don't want to pay you for that they also don't understand that you're paying for Etsy fees and now even shipping so let's say just that curiosity yeah I crochet a hat yeah beautiful by the way okay I'm sure yeah and I normally charge $30 for my crocheted hat right plus somebody's gonna pay me shipping yeah let's say it's $7.99 right all in all it's gonna come out to be thirty seven ninety-nine what if I just changed my price to $37.99 now right so that is definitely that's kind of the only solution for these people but that sucks if I have like a five dollar item well the I chain right very right but again it's on thirty five dollars or more so someone would have to buy like six or of your keychains or whatever so I've seen both sides some sellers or like and whatever I don't mind raising my price for some people that doesn't matter I saw what one girl said I actually did see an increase in sales when I did that and started offering shipping and she gets $40 for a hat now their artists are very enraged they're like I'm not rolling this into my prices to them they think it's dishonest to do that which again that's their viewpoint they they don't feel right throwing and hitting costs yeah the other problem is for example some people who make like large paintings right so that could be like a hundred dollars for the painting alone and to ship it cost like forty or fifty dollars so then do they now have to up their prices by fifty dollars and it changes depending on where in the u.s. they ship to there's a lot of variables there's a lot of variables some shops are like this is fine it's not really gonna affect me I don't mind adjusting my prices some people are saying this isn't feasible for me this is not workable for for my product it's interesting because this is the Amazon effect trickling down yeah Amazon has been able to change everything to where and I tell us the people all the time right like even you know dentists offices or whatever right Amazon has convinced everybody that anything you want you can have at 48 hours yeah right and sometimes even less right yeah at least 48 hours like yeah I don't even go to Amazon and buy anything if I don't get it in 48 hours I mean it's I have to wait three days yeah weird for a different one right you're convinced that you can get anything you want 48 hours so what I really see is with this trickle-down effect online markets and online people who have their business through an online-only Channel have to have contingencies in place yeah because you are not in control of your business Amazon or Etsy or your little Facebook group that you're a part of whatever is as soon as they change anything you're screwed and I hate to run into this so many times with our Facebook stuff our Yelp stuff every time one of these guys says oh you know we're gonna change our algorithm you could be effective negatively by that and so it's really hard though to really to get around that it just works the reality of doing business with what does company like a big option or an option is that the sellers start their own sites and sell directly to the consumer the problem is then they're also in charge of their yeah traffic so that's what was great about Etsy was it allowed any anybody to sell and they had that opportunity to show up in search results and be found for me like I said I don't sell but mostly because of this if I wanted to start selling from day one I would have to figure out how to rank at the top of ed C which is its own search engine at this point you have to SEO and so what I'm gonna do as a consumer because because I'm an artist I'm a musician I played the Tampa Bay area for ten years making $0 so I try to support artists and as much as possible is if I find something on Etsy I'm gonna try and see if that person has their own website and buy it through there because then they at least are making a little bit more on it and you feel like you're helping them a little bit more yeah so this guy goes back to we interviewed Natalie with marketing yeah yeah yeah I like everything is start more and more people are starting to try and go local and direct to small businesses and small shop owners right and I think that you have a great idea is if you find something on Etsy you look and see if there's another alternative that you can do there and as an Etsy I'm sure started out with the idea of helping these small businesses yeah the guy in Mongolia making my wife's phone case you know the Lithuanian guy you made your shoes there was right but what happens is is that as it gets bigger and bigger the politics change yeah they get investors well they went public there a lot of Mainers a lot of makers were like however ever since they went public everything has changed and that's what happened with Yelp we talked about it in Yelp as soon as they went public they aren't talking to themselves anymore now they have other people who get to have a say in work and they just want money this doctor or the board members all they care about the money and not the customer or the seller if every seller left Etsy right now they wouldn't exist that's not gonna happen but that's why they all roll they know that right right right so that's why they I don't think they really have the seller in mind I mean they're what they're basing this off of is that shoppers are 20% more likely to complete their purchase if an item ships for free but that's only 20% that's not like a if it was like 80% more likely but like 20% isn't that big it's an interesting thing then I see where they're coming from on it but if the idea of Etsy was to help the small market maker then they're turning away from that initial idea yeah that was their initial idea or not I'm making a crap up over here but you know it seems like that's what they were there for us for the individual makers and it's now moving away into that into other stuff which I'm not a big fan of I love the small idea as well I love knowing who I'm buying stuff from on social media and the CEOs of these companies are and I love that kind of stuff but this starts to move away from all that and make it more difficult so right so I would say as a consumer I would suggest doing what I'm gonna do and try and find these people individually if you are an Etsy seller I would say try and get off get off the platform or not totally off the side of start your own site and people might be able find you there people can find you through Instagram start selling at your local market start a local market if you don't have one you got markets for makers we interviewed Natalie the CEO of that well right there but they have all sorts of trade shows popping up look for stuff like that where you can control what's going on and remember selling is not just done online anymore okay that's what everybody thinks all right this is the wave of the future and it is but that's not what a selling is there's more to than that hopefully if you work hard you can override all this and come up with a pricing structure that works for people on here yeah maybe change your product or do something that adds value to it so that instead of charging $15 plus shipping you can now charge $35 and still have the person feel like they're coming out on top right so alter it around change it around come up with something and we'll see you next time we're running a little long here if you do what one of my crocheted hats just leave a comment down below we'll see you next time [Applause] you


2 thoughts on “Etsy Free Shipping Changes 2019 | The Business Newsroom Episode 18”

  • Amazon shipping is not free. You pay at least $99. per year for Amazon Prime in order to be qualified to get free shipping. People should educate themselves. And Etsy knew exactly what they were doing. This has been researched thoroughly. Also, as new shop owners come in, they will adapt to the free shipping policy. Etsy knows that they will have collateral damage to those shops that have been with them for years – those who helped make Etsy what it is. I want to attract the customer who knows the value of a quality item as well as the value to have that item shipped to their door. The customer will actually end up paying more as I include shipping into each item, as before, I combined shipping of two or more items for far cheaper. But it's wrong to force shops to follow this policy or be dropped in the searches. Shop owners want to make their own decisions as intelligent business owners. Also, some of the Etsy apps have removed the individual shop names in the searches, so it looks like all of these items are made by Etsy, as if we shop owners are working for Etsy. International customers are paying more overall as they will pay for the shipping fees that are now included in the items, as well as the shipping fees to have it sent internationally. All for 20% more sales? Etsy fees have doubled this past year as well. I am tired of all of the changes. I will continue to sell on Etsy as well as my own shop as Etsy just becomes a minor source of income for me.

    Thanks for the video. I enjoyed it!

  • I’m in this drama now. It’s unfair to either make us roll the shipping in the price or take the hit. I paid almost as much to ship as the painting cost because I’m in the U.K. and the buyer was Canada. You really have to have a big ticket items to make it work.

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