Etsy is still a very popular choice for creative sellers looking to market their wares to a wide audience. It’s one of the top digital marketplaces and is specifically intended for selling handmade, crafty or personalised items. But that doesn’t mean it works for everyone. 

With over 650 million monthly visits, and 9 million sellers internationally, Etsy’s market power is undeniable. Since its launch in 2005, Etsy has been the first port of call for people who want to sell their handmade, vintage or one-of-a-kind items without the hassle of building a website.

However, in recent years, the Etsy website has become significantly more competitive. The number of sellers on the platform rose by 21% between 2021 and 2022. It’s not all handmade sellers, either. There has also been an influx of dropshippers using the platform, meaning it can be harder for small businesses to gain traction and rank highly in the search engine.

Furthermore, in 2022, Etsy increased transaction fees from 5% to 6.5%, drawing criticism as many sellers are small businesses, and this had a significant impact on profitability. 

Etsy is a popular choice for established brands and side hustlers alike. In fact, the pandemic saw Etsy sellers increase by 62% as many people turned their idle hands into profitable businesses from home. Even since the pandemic, creative pursuits have continued to grow. 

So, whether you’re a knitting novice, sea-glass savant or an illustrious illustrator, now’s the time to turn that passion into profit and get selling online. But how do you know if Etsy is the right option for your business? 

In this guide, we explore alternatives to Etsy, so small retailers can reach new customers and improve profit margins through a diverse approach to ecommerce. 

Ready to learn more?

Keep reading– and remember, if you are selling anything online, you need to keep an eye on the bottom line. Crunch’s ecommerce accounting solutions are specifically designed for sellers who need support and expertise across the board, combining powerful cloud technology with expert-led accounting. 

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Top online marketplaces for UK sellers

Whatever your reason for looking for an alternative to Etsy, we’ve got you covered. There are so many different online marketplaces available to small businesses looking to find new customers, improve sales, and collect positive reviews.

Let’s take a closer look at the top online marketplaces for UK sellers, starting with Etsy, so you can compare the options available to you:

Etsy UK

Fees: £0.15 listing fee per product, 6.5 % transaction fee, 4%,  £0.20 payment processing fee

Product categories: Etsy has a vast list of categories, you can view them all on their website. 

Pros of Etsy:

• Synonymous with handmade products: Etsy’s brand is so strong that it is often a first stop for anything handmade or personalised. 
• Easy product search: The algorithm makes it easy for customers to find what they are looking for, and even serves them with similar products, so you can reach shoppers when they are in the prime position to buy.
• International audience: You can reach buyers all over the world thanks to the platform’s global presence.
• Wide range of product categories: Etsy allows a far wider variety of products than many other sites, including digital downloads– great news for digital illustrators, for example.

Cons of Etsy:

• High fees: Following fee increase in 2022, Etsy’s rates are typically on the high end compared to competitors
• Beholden to platform changes: Like many ecommerce giants, Etsy’s algorithm is a mystery to sellers, so they are not always in control of what buyers see, or how to rank highly without investing in paid advertising.
• Low brand awareness: Buyers might not remember the name of your shop, and rather tell their mates “I got this on Etsy” – this isn’t great if you want to be known for what you do outside of the platform.
• Competing with dropshippers and other large companies: You don’t have to be a small business to sell on Etsy, so your products will be sitting side-by-side with those sold by big companies. Some brands go as far as copying popular products by small sellers, so you need to keep an eye on your copyright and IP rights.
• Inconsistent support: Some sellers cite great things about support for sellers, while others have mentioned it can take over a week for a reply, which could cause an issue if it impacts your ability to sell or ship an item.
• Lack of marketing potential: Etsy does not allow sellers to access customer data. So, for example, you wouldn’t be able to ask shoppers to sign up for email marketing, which impacts your ability to turn customers into brand advocates. 

To learn more about selling on Etsy in the UK, read our dedicated guide. 
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Now it's time to get onto our alternatives to etsy:

1. Amazon Handmade

• Fees: Free to join and list, 12.24% ‘referral’ fee per sale (increasing for some categories).
• Product categories: Accessories, Artwork, Baby, Beauty & Personal Care, Clothing, Shoes & Handbags, Home, Outdoor & Home Care, Jewelry & Watches, Kitchen & Dining, Pet Supplies, Sporting Goods, Stationery & Party Supplies and Toys & Games.

Pros of Amazon Handmade:

• Huge potential reach: The global leader in ecommerce has a dedicated platform for small, handmade sellers. 
• Additional benefits: Amazon Handmade gives sellers options for fulfilment, product customisation and international sales.
• Good customer service: Sellers cite quick turnaround on support queries

Cons of Amazon Handmade:

• High fees: The platform is expensive, with high transaction fees in comparison to Etsy. 
• Restrictive categories: Amazon Handmade also does not allow the sale of any products outside of the listed categories above, including digital downloads (which are permitted on Etsy).
• Very competitive: Like Etsy, Amazon Handmade makes it easy to sign up, so pretty much anyone can sell there. Amazon is even more competitive, however, because they also sell on there– meaning you are competing with the world’s biggest ecommerce platform for sales. 

2. Folksy

Fees: £7.50 per month and 6% plus VAT commission

Product categories: Jewellery, Clothing & Accessories, Homeware, Art, Cards & Stationery, Weddings, Supplies

Pros of Folksy:

• Exclusive to handmade sellers: Don’t worry about competing with dropshippers on Folksy, as all products must be handmade.
• Affordable fees: Folksy is typically cheaper than Etsy, although this depends on the scale of your operations. 
• Etsy import service: The platform offers an easy solution to bringing your shop from Etsy to Folksy, which will save a huge amount of admin time for busy sellers.
• Events and workshops for members: Folksy wants sellers to succeed, so it offers e-learning courses so you can make the most of your venture.

Cons of Folksy

• Limited to UK sales: If you’re hoping to get your products across the pond, the Folksy isn’t for you. 
• PayPal account required: While Folky allows sellers to choose from a variety of different payment solutions, it does maintain that all shops must offer PayPal as an option.

3. Not On The High Street

Fees: £199+VAT one-off joining fee and 25%+VAT commission on all sales.

Product categories: Gifts, Jewellery, Home, Women, Men, Food & Drink, Baby & Kids, Trending, Summer, Birthdays, Weddings, And More. 

Pros of Not On The High Street

• Exclusively small businesses: NOTHS takes pride in only promoting small businesses.
• Well-known brand: Since its launch by Holly Tucker MBE over 15 years ago, NOTHS has become a very popular brand in the UK
• Less competition than other big sites: There are currently around 5,500 other sellers on NOTHS, which seems like a lot– but it’s preferable when you compare it to Etsy’s millions of sellers.

Cons of Not On The High Street

• Less brand visibility: Like Etsy, consumers will likely tell their mates they “bought it from Not On The High Street” rather than remembering your shop name.
• Strict application process: NOTHS holds high standards for sellers, which is a good thing! But it does mean you might have to wait a while to be approved before you can start selling there.
• Higher fees than other sites: The significant joining fee, in particular, means you need to fork out before you can start earning, which might not be ideal if you are not currently earning elsewhere. 

4. Made By Mums

Fees: No sign-up or joining fees, transaction fees of 7.5% of selling price + 35p

Product Categories: Accessories & Jewellery, Clothing, Home & Decoration, Craft Supplies, Throws & Blankets, Kids Toy

Pros of Made By Mums 

• Only pay when you make a sale: Made By Mums charges no sign-up or listing fees, and transaction fees are relatively low compared to alternatives.
• Supports families: As the name suggests, Made By Mums is specifically designed to support busy parents to make an additional income.
• Members forum: Speak to other sellers on the platform’s forum, and learn how to grow your brand from seasoned pros. 

Cons of Made By Mums

• Less well-known: Shoppers may not be aware of Made By Mums, as it’s a relatively new venture, so this could limit your exposure to new audiences. 
• Lacks sales potential: If you’re looking to boost your income alongside a job, then this could work for you, but the platform doesn’t offer the same sales potential as other larger marketplaces just yet, making it a better solution for small sellers over big businesses.
   

Website-building platforms for creating your own store

Online marketplaces aren’t your only option for selling products online. You could choose to build your own ecommerce website, which will allow you to fully control the design, layout, and sales of your products. With this comes a big responsibility, as even the simplest website builders require initial time and resource investment to get the best results. 

Benefits of your own ecommerce website:

• Maximum control: You can fully control how your website looks and functions.
• No on-site competition: Of course, you’re always competing with other websites on Google, but at least your products won’t be sitting side-by-side with those from other brands on your site.
• Access to marketing data: As long as you seek adequate permissions, you can collect customers’ data and use this for ongoing marketing, such as email newsletters and Google advertising.
• Brand awareness: People will remember they bought from you and not “from Etsy”.

Downsides of your own ecommerce website:

• Hosting and domain costs: Nothing is free in this life, and that lesson applies here. Whichever platform you choose, there will be a fee for hosting your website, as well as the purchase of your domain. You may also need to pay for advertising and other costs simply just to be seen by your target audience.
• Initial time investment: Building a website takes time. Even if you use Wix or Squarespace, you still need to put significant time aside to get the online store up to a good standard. If you lack website-building experience, this could be a frustrating process indeed.
• Higher level of knowledge required: From web development to inventory management, payment processing fees, and search engine optimisation (SEO), an ecommerce store owner has to be a jack of all trades. You need to know your stuff if you are going to venture out on your own and compete with the big guns like Etsy, Amazon, and eBay. 
• Ongoing maintenance and management: Websites are hard work. You need to keep working on your site to ensure it reaches the right people and keeps delivering– this could be a burden if selling online isn’t your main venture or you have other commitments.

If you’re wondering whether it’s even possible to start a business without a website, we’ve got you covered. Feel free to browse our full list of pros and cons of getting your own site. 

Next, we’ll look at some alternatives to Etsy for those wanting to build their own website:

1. WordPress & WooCommerce

WordPress is still the world’s most popular website software, with over 29% of the top 100k websites being built with this CMS (Content Management System.) With WordPress, there are two options: 

• WordPress.com - Hosting your website on WP’s platform, using their software, and paying a subscription fee to access better features, etc.
• WordPress.org - Access to the open-source software, which you can then upload onto the hosting platform of your choice. This is the most common approach for web developers as it gives you the maximum control and flexibility.

WooCommerce is the most popular ecommerce plugin for WordPress users, meaning you can easily turn your WP website into an online store to sell your products as an alternative to Etsy.

Both WordPress and WooCommerce are relatively simple to use, but they do require significant setup and ongoing maintenance. This means you will either have to hire a professional or dedicate considerable time to building and managing your online store. 

Even after launch, you must actively work on your website to give it the best chances against your competitors. You’ll be competing with the likes of Amazon, Etsy, and eBay, so you need to give customers a reason to come to you directly over a big, familiar name.

2. Shopify

As the name suggests, Shopify is a CMS designed for ecommerce store owners. This means that it’s easier to set up and manage than WordPress, although you can’t choose hosting or carry out as much customisation.

Shopify has a tiered subscription model, and you can buy domains through the platform. You can manage your inventory, take payments and send email marketing campaigns from Shopify.

Like WordPress and any other owned website, you will need to manage your own SEO and marketing to be seen by your target audience. That’s why so many sellers opt for Etsy or its alternatives, as you don’t need to manage the whole website, and the site has an established customer base. 

3. Squarespace

Another popular choice for ecommerce store owners, Squarespace offers an accessible and easy-to-use approach to web building. The paid subscription gives the most freedom, and you can buy domains within Squarespace. 

Squarespace users can choose from several ecommerce templates, which will save some time when it comes to establishing a new online store. That being said, you’ll still need to account for ongoing management of the site, as well as marketing to catch the eyes of your ideal customers.
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How to choose the best Etsy alternative for your business

Now we’ve discussed some of the top alternatives to Etsy, you’ve probably got a better idea about the approach you want to take for your ecommerce business. If you’re still not sure, or deciding between a few options, then here’s a debrief to help you decide:

Your audience

Who are your top customers? Where do they ‘hang out’?

Your products need to be in front of the right people, and this will be a big factor when it comes to choosing your platform. Look at all the platforms we’ve listed and determine which is most likely to be visited by your ideal customers. For example, if you are selling handmade products, this might be different from a brand that sells personalised clothing.

Your brand

Are you well-known or just starting out?

Consider if your brand is well-known, or if people just buy from you because they find you on Etsy. Perhaps you have a local market stall or even a bricks and mortar store, this level of brand awareness might give you the boost you need to launch your own website, rather than sell on a third-party platform. 

Your budget

Calculate fees vs website hosting - what’s better for you?

Selling products online will always come with a cost, but you need to calculate what works best for you. Fees and subscriptions will all impact your profitability, so the products you sell, how much you make and the frequency of sales will all help you to work out the best solution. You may pay more to be on a larger site, like Etsy or Amazon Handmade, but then you will have access to a larger customer base. Only you can know which works for your brand.

Your time

Is this your full-time venture or a side hustle?

Some people sell on Etsy as a side hustle, while others have turned their hobbies into thriving full-time businesses. Where you sit on that spectrum will affect your decision. If your company is well-established and you have the time and resources to build and manage your website. In that case, you will likely find greater success on WordPress or Shopify than a seller who is simply hoping to earn a side income for their hobby creations.
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Making the switch from Etsy

If you’re moving away from Etsy, then this guide should have helped inform your next step. Whether you sell handmade items, vintage finds, or personalised goods, there are so many different online platforms where you can find your ideal customer base.

Whatever you sell, your business will only succeed if you prioritise profitability. Understanding fees, costs, profit margins, and projections are all a part of this, so choose an accounting software that can help make sense of the numbers. 

At Crunch, we know ecommerce inside out. Our cloud accounting software offers online store owners an all-in-one solution tailored to your business. From bookkeeping to cash flow management and even access to expert accountants, Crunch is the partner you need as you embark on this next stage of your online selling journey.

‍Book a call today.

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