Etsy has released its financial numbers for 2020 and wow, if you thought Etsy was growing at a fast pace before, you should see it now. In 2020 more than ever Etsy is seen as a global platform for creative and unique goods. Etsy is special because it connects creative artisans with thoughtful customers. These buyers are are looking for items that make their everyday and meaningful occasions feel special as well as reflect their sense of style. We will dig in to some simple tips on how you can grow your etsy shop, it aligns with Etsy’s focus in 2021.

GROWTH

So how much did Etsy grow in 2020? How many people are now buying on Etsy? 

80 Million individual people purchased on Etsy in 2020, that’s up from 47 million in 2019. That is AMAZING growth, it almost doubled in size in one year! How much did those 80 million people spend in 2020…. $10.3 billion. That’s up from $4.9 billion in 2019. The amount of money people spent on Etsy doubled in 2020! What does this mean for someone looking to start an Etsy shop or grow the one they have? It means that we are part of a platform experiencing massive growth and can benefit. Creative entrepreneurs growing financially, we’re here for it! 

What categories are shoppers spending the most money in? 

The winner goes to Homewares and House Furnishings, over a whooping $3 billion was spent. Masks would have fallen in to the Beauty and Personal Care category; however, Etsy decided to exclude them from the graph so it wouldn’t skew the numbers because of COVID-19. Have you been thinking about selling home decor, prints, etc.? It’s the #1 category! Maybe you already have a shop in one of these six categories, this is where buyers are spending! Focus on these key categories if you what to really grow your Etsy shop!

ETSY’S FOCUS

Where is Etsy putting its focus in 2021? Etsy is focusing on increasing what they call, “habitual buyers”. Habitual buyers being classified as people who are spending at least $200 a year and buying on six or more days throughout the year. In 2020, habitual buyers rose to 6.5 million people, this is a growth of 157% compared to 2019. Etsy wants to focus on these very loyal, repeat buyers and increase the amount of people falling in to this high spend, high shopping frequency category.

Etsy said it’s going to focus on the way it strategically displays items to customers. People come to the Etsy Marketplace to browse and be inspired, Etsy wants to “surface items buyers didn’t know they wanted.” There’s going to be more than just Etsy search to get customers to the product that they end up purchasing. What does this mean for sellers? Sellers should fill out all attributes in their listings so a listings can fall into categories in which Etsy will display to users via their predictive algorithms.  Make sure all of your attributes are filled out! Don’t miss an opportunity to get found! 

SELLERS

What do Etsy sellers look like? Who are the makers behind the shops that are taking in the $10.3 Billion people spent on Etsy in 2020? Well, 81% of sellers identify as women, 97% run their shops from home, and 65% sell on Etsy as their only selling platform. Finally, 82% of sellers are looking to grow their Etsy shops.

Where are Etsy sellers spending their time? Just over half their time is spent creating products and the other time is spent on inventory management, marketing, shipping, communications, accounting and other activities. Check out this blog post, where we dig in to creating a batch working system, creating efficiencies is important for etsy seller so they can drive profits.

Etsy sellers are the heartbeat of Etsy. Etsy is working to attract and retain some of the world’s most devoted and talented makers. 88% of Etsy shoppers agreed that Etsy has items you can’t find anywhere else. Etsy has one of a kind items that can be customized and personalized. Etsy wants to create human connection and be a trusted brand in order to deliver a “best in class” marketplace experience.

When Etsy sellers succeed, Etsy succeeds. It’s a partnership that continues to flourish. People are jumping on Etsy to open shops and buyers are jumping in to buy. It’s a relationship made in quirky creative heaven!