Maximizing Etsy and Shopify for Long-Term Success

Should I host my shop on Etsy? Should I have my website on Shopify? The dilemma of choosing between the two often plagues the minds of artisans looking to build their brand for the long haul. But what if we shift the question to how we can effectively use both platforms to our advantage? Let's explore the inspiring story of Kimberly Palmer, a seasoned artisan, and learn how she navigated the world of Etsy and Shopify to propel her business forward.

Kimberly’s Story

Kimberly Palmer has owned several different types of artisan businesses over the years. Her current business is Palmer Yarn Co. Each business she has owned has taught her more and more about how to leverage different platforms. Her first business was a baby clothes site on Etsy. Every major platform periodically updates their algorithm. But as a shop owner, you can experience the downsides of algorithm changes. “I had experienced phenomenal growth on Etsy. I was incredibly busy. Everything was going really well until the Etsy algorithm changed. My results tanked almost overnight as I wasn’t showing up in searches as much. After experiencing that, I realized I didn’t like having to constantly chase an algorithm. I also didn’t want to play the game of having to constantly buy ads.” While she ultimately ended up closing down that shop, there were powerful lessons learned from the experience. 

Her Next Chapter

When she started her hand dyed yarn business, she continued experimenting with Etsy.  But then she started running into some limitations on the platform. “I started a by hand dye yarn business. I created boxes that people could purchase on Etsy. I would release a different one each month. When they were gone, they were done. Then I noticed that about 75% of my buyers were coming back month after month. And sometimes a previous customer would reach out to me because they missed a box. So I was losing sales to these loyal customers. As I thought about it, I realized this would be perfect for a subscription model. But with Etsy what you list is what is available. I couldn’t really publish it as a subscription the way I wanted. I also knew based on my previous experiences I didn’t want my whole business subjected to the algorithm.” 

She also discovered challenges in trying to drive sales for products that would have a long lead time. “I put my advent yarns on sale in April so I understand how much I will need to make for the upcoming holiday season. It’s a very long lead time. Etsy didn’t really work the best for this type of product, as it would hit my seller rating because it takes so long to ship. I realized parts of my business are outgrowing Etsy. It was a great place for these early experiments, but it wasn’t working for what I wanted to build for the long term.”

This led to an idea- embracing building and owning an audience. It requires thinking through how you want your brand to work, as there are now more options than are available on a more standardized platform like Etsy. It is a multi-step process that takes time. It is going to cost more, as there are more costs associated with setting up a website and managing it. There is definitely more work involved to build out your website. Once the website is built, then traffic generated from Instagram can be used to route to the new site.

“First off- do not shut down your Etsy shop when you embark on this journey. Keep your shop running as it has already had time to be factored into the various algorithms. I picked Shopify as a platform as they had a lot of integrations that I knew I would want as I expanded my business. You can even export items from Etsy and load them into your Shopify site to get started on the set-up. While your listings are tailored to Etsy, this at least lets you start working with the Shopify product to familiarize yourself with how it works. I ultimately didn’t use this and chose to build from scratch as I wanted to carefully think through all the aspects of my brand as I worked on the set up. I could also see how Shopify would allow me to keep growing different components of my business. New plug-ins and add-ons could be used to extend the product via their integrations as I worked on new aspects of the business. If you run into trouble while setting it up- ask the platform support team for help. That is what they are there for!

I started with building out my retail shop. It took me some time to get my initial theme set up on Shopify, as I had to decide how I wanted it to look. Once you get that first theme set up, it is pretty easy though to change it to other themes on their platform and have everything update automatically. I finished setting up the shot and it was time to start driving traffic to it. I posted a LOT on Instagram those first six months in order to get noticed and start building an audience. Everyone’s time frame is a little different. My products fit a special niche- they are not for everyone. Once I get someone to my website I encourage them to sign up for my email list. I now have the contact information and am in more control of my contact with customers.

After I got retail working the way I wanted on Shopify I turned my focus to my subscriptions. The software world has subscriptions. It’s the same idea for my yarn business. I added a product integration called Paywhirl to my Shopify set up to manage subscriptions. 

I created a mystery subscription called Nature Club. People sign up and are billed for it monthly. Around the same time each month, I release a picture that inspires the yarn for that month. But they don’t get to see the yarn- that’s the mystery. The colors from the picture inspire the yarn I create.  It’s enough yarn for them to make at least one pair of socks.

Having a release each month creates a little bit of FOMO (fear of missing out). There is also an exclusivity aspect to it. Each release has a limited quantity. So the best way to make sure you don’t miss it is to set up the subscription. It’s worked really well for my business. I love the creative aspect of creating something new each month.”

Retail customers started noticing her posts on Instagram and would buy off her website. Some Etsy customers would also look her up on Instagram and see she had a website in addition to her Etsy shop. Once they have a chance to try the product, they might come back and get a subscription or buy more products from the website. Especially if they felt like they always needed a project to be working on. The different distinct revenue streams of the business started emerging. 

The creation of the subscription also brought some unexpected benefits. Social media on Instagram started to get a little easier as customers are engaging more. “Customers that have the subscription to Nature Club would tell me, ‘I think every month is my favorite until the next month comes out!’. It  also helps because excited customers start posting and tagging me. The business is growing and has gotten busier- having happy customers posting and tagging makes it easier to manage the social media part. I haven’t had to generate quite as much original content.”

This doesn’t mean she has abandoned Etsy. Rather, she is strategically using Etsy as a complimentary product to Shopify. “I use Etsy as a complementary platform to my website. My Etsy shoppers and my website customers have tended to be two distinct groups of people. I’m using my shop for experiments and for trialing new things. I can also use it if I have inventory on my website that is a little slower moving. I still utilize Etsy, but it relieves a little bit of the pressure to always be perfect to keep my Star Seller status.”

With sales continuing to grow, what are the next steps for the business? “I’m using my subscription to create a collection that can be purchased. I’m adding galleries on my website to showcase my work. And the collections are something I can make available for wholesale in the future. More wholesale orders will also add another revenue stream for my business, adding to its stability.”

Tying it all together

Building a sustainable artisan business is a journey that requires finding your niche audience and nurturing their growth over time. While major platforms like Etsy play an important role, it's equally important to cultivate an audience you can call your own. By focusing on long-term brand development, you can maximize your potential for success in the artisan industry.

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