Friday, April 29, 2011

What happens when you succeed?

Not everyone succeeds with online selling, but there are still countless stories of those whose humble beginnings lead them to incredible success; Etsy.com boasts many of these stories. But for each of these stories, Etsy shop owners have had to make difficult choices about the future of their businesses. Because Etsy is restricted to only handmade items, when the demand becomes greater than one person can handle, shop owners must decide if they want to reduce their business to a more manageable size or if they are willing move away from Etsy in order to mass produce their items. Learning these things, I've really realized that online business owners need to be prepared to make this decision if and when the time comes.

One Etsy success story comes from Mackswell Sherman and Sarah Jones, a pair who now operates a actual clothing store called Ruffeo Heart Lil Snotty in Brooklyn. In just four years, these two were transformed from “dumpster diving college students” to “comers on New York’s indie fashion scene.” They credit their success to their humble beginnings on Etsy.

Su Stella and Stacy Gibs were featured in Louisiana's oldest, continuously operating newspaper, April 27 Etsy article, she was in the spotlight for being as the “owner, operator and entire staff of Opelle Creative,” her shop selling handmade leather bags.

Etsy’s founder Rob Kalin hopes success stories like these “become more rule than exception.” However, there is a problem inherent in Etsy’s framework that makes success difficult for store owners.

In an April 1st article in Inc., a small business resource magazine, Max Chafkin explains:


If [an Etsy store] gets substantial orders…they will probably want to use a factory [to produce the items], which will effectively disqualify them from selling on Etsy, given that the company’s rules require that Etsy members personally make what they sell.
So then, successful Etsy sellers, face the choice of whether or not to stay on Etsy. And if they move on, where do they go? Sherman and Jones chose the route of many successful sellers—they left the Etsy community and opened a physical shop where they mass produce their products.

But other sellers have chosen to scale down their businesses to stay in the Etsy community and to keep their production manageable. Chafkin interviewed Ryan McAbery, the founder of the Etsy shop Littleput Books. Mrs. McAbery’s shop was a huge success, but she was forced to work nearly 100 hours a week to keep up with the demand. Because she decided that she wanted to keep Etsy selling as more of a hobby, she sold her highly successful Etsy business and started a new one with new ideas that aren't as time consuming.

I think the bottom line is that if you become successful selling on an online platform, you have to be prepared to make tough decisions involving the nature of your work and what you truly want to gain from it. You may have to weigh profits against your personal sanity, or come up with creative alternatives to accommodate both.

I wish you the best!



Photo Credit
Etsy Logo:
Scraps
Buy Handmade Image:
Her Outdoors

4 comments:

  1. Hey Alyda, I’ve loved reading your blog over the semester and it’s been a bit of a challenge deciding which ones to recommend you use for your portfolio, but I finally have it narrowed down to four!

    Feb 25th: Your blog essentially follows the progression of thought people might have when starting up a business online, and this post helps readers understand the active (more face forward) side of online business. This helps them emulate what they could be in envisioning for their own business. An added bonus is the examples of marketplaces don’t confuse readers, but allow them to see different options.

    March 4th: How people make money with online businesses is a major topic, and it was important that you covered it and gave readers instructions on how to implement the PayPal system in their own websites.

    April 1st: I still love this post. It is the great encourager to people who think they cannot start up a business and you provided testimonials. These ensured that your readers knew weren’t just promoting the mompreneur community just so that you had another topic in your blog. This post also seems to me like it could give the mom-readers who could be following you with “wishful thinking” of their own business the extra push to making it a reality. That probably sounds beyond cheesy.

    April 29th: This post was such a great wrap up for the end of the semester’s worth of blogging. Not only does it encourage the “you can succeed” viewpoint of online business planning, but it also encourages readers to be active with what you have written. The Etsy stories that you provided gave both sides to succeeding online as well.

    ReplyDelete
  2. a piece of cake, etc - first of, I love the "97 percent of online businesses fail. sorry" part. The humor adds a lot to the piece, which is also smart and well researched, and has a good message (don't start an online business if you are desperately in need of money)

    online marketplaces - great overview, contains lots of good info, arguments both for and against, and links. a good post overall

    Time to pay up! - a hugely important post for those dealing with starting online shopping.

    Online marketing - also important, also does a great job of both research and listing the pros and cons

    what happens when you succeed - a great little denouncement, does a great job of addressing the reality of online business, and provides a great bookend to a piece of cake.

    This was a very interesting blog. good job!

    ReplyDelete
  3. I thought your blog started out great from the beginning and only got better. Would love to read more of your blog posts if you keep the blog up and running after the class. Your post improved over the semester and I always liked your formatting :D

    April 29th
    This was an excellent last blog entry for the semester. I love Etsy! Lol Very good information, flowed well, went well with your blog theme, liked the format.

    April 22nd
    This one seemed a bit long…but I really liked it so am going suggest it anyways and maybe just shorten it up a bit for the final portfolio.

    April 1st
    I found this blog post very interesting to read and thought it was an essential part of your blog and added to the blog theme. Again liked the set up of your blog and thought that links worked well.

    March 4th
    Good information, nice format, good links, flowed well. Overall great blog post :D

    Feb. 25th
    I thought that this blog was well put together and that the topic went well with your blog theme. Would defiantly include this one in the final portfolio.

    ReplyDelete
  4. I have enjoyed reading your blog and its content throughout the semester. I think you have improved from day one on a consistent basis. Therefore I would pick your latest 5 posts. They all have good content. They are visually appealing, AND they have links that have been cited properly. Along with that, the links seem to contain useful and relevant information to your topic and each individual title. Great job and good luck!

    ReplyDelete