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Etsy Alternatives: 5 Options for Creative Businesses

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Etsy is an online marketplace for independent sellers of handmade, vintage and craft products. For a fee, creative entrepreneurs can open their own ecommerce shop on the Etsy platform to sell goods and services. But it’s not the only platform artists and craft makers can use to sell their wares. Amazon Handmade, Depop and Zibbett offer similar marketplaces, while eBay is for sellers of all types of goods, not just handmade ones, and has size on its side. Or, you could rely on your own ecommerce site through a provider like Shopify.

We’ll break down the Etsy alternatives so you can determine your best way to share your handmade products.

Selling on Etsy: When to stay and when to go

Stay: Business owners who don’t yet have a customer base.

Etsy has more than 2,300 active sellers on the platform and more than 42,000 buyers; according to Jesse Tyler, marketing director of Classy Llama, an ecommerce agency based in Springfield, Missouri, entrepreneurs just starting out can benefit from that built-in audience that Etsy provides.

Sellers have the opportunity to be featured on the site, as Etsy handpicks shops to highlight throughout the marketplace. If selected, you could benefit from being exposed to hundreds of potential customers. Sellers could also promote their listings through paid ads on the site.

However, Etsy’s sellers are also bound to its policies and must keep up with changing rules to rank high in search results on the site. For instance, Etsy announced in July that it would encourage sellers to offer free shipping for orders totaling at least $35. Shops that don’t make the change to offer free shipping won’t receive priority placement in Etsy search results.

Stay: Those with limited time for site setup.

For creative entrepreneurs looking to sell goods online, Etsy could be an attractive starting point. Etsy provides tools to set up an online store, taking the burden off the business owner to build a site from scratch, Tyler said.

“If you’re using Etsy, it’s about leveraging what already exists,” he said. “There’s a lot less responsibility and a lot less work to get set up.”

If you’re not tech savvy or don’t want the hassle of constructing an ecommerce site, Etsy provides tools to quickly set up a shop. You’d need to provide information about your business and products, as well as how you want to accept payments, and Etsy would populate a website for you to manage. From there, you could rearrange items on your page to customize your store.

Etsy charges fees for listing and selling items — a $0.20 listing fee, 5% transaction fee and 3% plus $0.25 for payment processing — but in exchange Etsy takes on the technical aspects of running an ecommerce site.

Sellers must also adhere to Etsy’s policies, including restrictions on the type of products you can sell and shipping requirements, as mentioned earlier.

Stay: Entrepreneurs with limited marketing budgets.

Generating an audience for a new ecommerce site can be challenging, Tyler noted, especially if you don’t invest in advertising. Selling on Etsy would give you access to the high volume of people who visit the marketplace.

“If you’re a small seller and you’re not spending money on ads, you’re going to be better off sending them to Etsy and letting Etsy do the work,” he said.

Associating the business with Etsy could also increase the credibility of your brand, Tyler said. People may be more willing to interact with a business that appears on a trusted platform, like Etsy. Kickstarter would be a similar example, he said, and these platforms are often an effective “marketing engine” for new businesses.

The longer you sell on Etsy, the more reviews you would collect from customers. Positive reviews can boost your ranking within the Etsy marketplace, increasing the exposure of your shop, said Tyler. A positive reputation on Etsy can be immensely valuable to sellers.

“If you’re doing well on Etsy, it might not ever make sense to leave,” he said. “Your reviews and repeat customers, those are things that are kind of hard to replace if you go.”

Consider an Etsy alternative: Small businesses with greater ad budgets.

If you want to invest in advertisements, it would be best to direct customers to your own website rather than an Etsy domain, Tyler said. Instead of using Etsy’s paid ad campaigns, consider other, free ways to increase your Etsy ranking.

A new site would require you to make a significant marketing investment to gain traction. But if you were already planning to advertise your business, it could make sense.

Consider an Etsy alternative: Own your customer base.

When selling through your own ecommerce business, you could collect valuable information from your customers, such as email addresses. Etsy doesn’t allow sellers to collect email addresses from buyers to conduct further communication. But as a business owner, obtaining addresses allows you to directly connect with customers and generate new leads.

Operating outside of a marketplace like Etsy would allow you to control your communication with current and potential clients.

5 Etsy alternatives for crafty entrepreneurs

Etsy is considered a consumer to consumer (C2C) marketplace, meaning it serves as a neutral platform to sell goods. Etsy facilitates transactions and takes a percentage of sales, and other marketplace platforms do the same. On the other hand, software as a service (SaaS) providers give users their own URL and control of their domain in exchange for an ongoing fee.

Whether you’re looking for another marketplace in which to sell your products or a site to host your own store, here are a few Etsy alternatives to check out for your small business.

 EtsyShopifyAmazon HandmadeDepopZibbeteBay
Subscription feeNoYesNo, for 40 items or lessNoYesYes
Starting costListing fee: 20 cents/item

Transaction fee: 5%

Payment processing fee: 3% plus 25 cents
Subscription: $29 to $299/month

Credit card fee: Starting at: 2.7% plus 0 cents (in-person rate); 2.9% + 30 cents (online rate)
Referral fee: $1 or 15% of the total sale price, whichever is higherFlat fee: 10% on each item sold

Payment fee: 2.9% plus 20 cents
Subscription: $5 or $6 per month, per channel (2 minimum), plus channel feesSubscription: $4.95 to $349.95/month

Insertion fee: 5 cents to 30 cents/item

Final value fee: 2% to 10%
Free trialNoYesNoNoYesNo
Choice of payment optionYesYes, for a feeYesNo (PayPal only)YesYes

1. Shopify

Shopify is an ecommerce platform that allows business owners to create a cloud-based online store. Users can buy their own domain name or connect an existing URL to their store. Shopify’s store builder tool makes it easy to design a site if you don’t have web development experience.

New users can try Shopify for free for 14 days. Shopify requires users to purchase a monthly subscription, offered starting with its entry plan:

  • Basic Shopify subscriptions start at $29 per month and include an ecommerce website and blog, space for unlimited products and full-time customer support. Basic plans include account access for two people and a 64% shipping discount. Shopify charges a fee to accept online credit card payments — 2.9% plus $0.30 for the Basic plan.

As you advance to more expensive subscription tiers, available site features increase, and credit card processing fees decrease.

2. Amazon Handmade

The Amazon Handmade marketplace is designed for artisans and craft makers who sell products online. Sellers must submit an application before setting up a shop. Upon receiving approval, you would choose your business name, payment method and provide your credit card information. You can then list products in categories such as artwork, beauty and personal care, clothing, jewelry and watches, among others.

You would need to register for a Professional selling plan, which is free, though if you plan to list more than 40 items in your shop, you would be subject to a $39.99 monthly fee. All sellers would owe a fee on each item sold. Amazon charges either 15% of the total sale price or $1, whichever is higher.

3. Depop

Depop is an app-based marketplace for creatives with a social component. Users can see what products others are liking, buying and selling. As a seller, you would create a Depop profile that would be featured in the app. You would need to provide a description of what you’re selling and your policy on shipping and returns. Sellers need at least four items to list when launching an account. Depop uses PayPal to facilitate transactions and you would need to connect a PayPal account for Depop to verify before you can accept payments.

Although sellers don’t have to pay listing or subscription fees, Depop charges a 10% flat rate on each item sold. Because Depop partners with PayPal to conduct secure transactions, sellers are also subject to a fee of 2.9%, plus $0.20 for payments. You can ship through Depop and choose whether you or the buyer would be covering shipping costs. You can generate a shipping label through the app, then drop off the item at a post office or with another courier.

4. Zibbet

Zibbet allows creative entrepreneurs to sell in the Zibbet marketplace, as well as through other sales channels — for example, Zibbet can connect to other platforms, including Etsy, letting you manage your sales in one place. Zibbet gives users the ability to customize their shop, list unlimited products and run sales and promotions. If you’ve connected your Zibbet store to other sales channels, all order details would be imported to Zibbet for you to manage, and any changes made to your store through your Zibbet dashboard would be updated on all channels.

Zibbet offers a 14-day free trial for new users. After that, the platform costs $5 per month if you choose to receive a yearly bill, or $6 per month if you’re billed monthly. Each channel that’s connected to your Zibbet account — there’s a two-channel minimum — would cost an additional $5 or $6, depending on your billing schedule. Zibbet doesn’t charge listing or transaction fees, but you would be subject to fees from other channels. For example, if you connect your Zibbet store to Etsy, you would owe Etsy’s fees.

5. eBay

eBay offers a personal or business account, depending on what you plan to sell. A business account is best if you want to sell large amounts of items, handmade products or items that you bought with the intention to resell. Similar to other platforms, eBay allows you to create listings for items you want to sell, including shipping options and how customers will pay you. eBay’s Seller Hub provides tools like sales tracking to help business owners manage and grow their online store.

eBay charges a monthly subscription to run a store, which offers more listings and lower fees than selling without a store. There are a range of subscription tiers, including its entry plan:

  • Starter subscriptions costs $7.95 per month, or $4.95 per month if you sign up for a yearlong plan. The Starter plan also comes with 100 free listings, with each additional listing costing $0.30 per month. eBay also charges all sellers a percentage of each final sale. The final value fee ranges from 2-12% for Starter subscribers. Sellers also get a monthly allocation of “zero insertion fee listings,” which are items you could list for free.

Combining Etsy and alternatives

You can open both an Etsy shop and an ecommerce store on another platform, and it could be a smart strategy to do so, said Tyler. For instance, large enterprise companies typically sell through multiple channels, such as retail stores and their own store or website, he said.

You could take advantage of Etsy’s built-in audience while working on your own ecommerce site. You would likely have more freedom to design and customize your own domain, though you would need to make sure it appeals to customers. People can be hesitant to trust a new site, Tyler said, and it could help if you also have a presence on Etsy.

“If you set up a shop yourself and it doesn’t look great and there’s not a lot of reviews, people might be apprehensive about buying from it,” he said.

The bottom line

There are several places for business owners who want to sell handmade or craft products online to set up shop.

Creating your own ecommerce site on a hosting platform like Shopify would give you an independent domain for your business. You wouldn’t be associated with a larger marketplace and you wouldn’t need to compete with other sellers on the same platform.

But it takes time and commitment to bring people to a new website, and you may find that consumers can be wary of a startup ecommerce brand.

“A Shopify site might bring disappointment,” Tyler said. “You have to do a lot of work to bring traffic and build an audience.”

A marketplace with name recognition, like Etsy, could be a better starting point for new entrepreneurs. Etsy provides tools to simplify the process of setting up an online store. Though you would have to pay listing fees and face high competition, your brand could benefit from the exposure that Etsy provides, Tyler said: “If you haven’t built an audience, this is a great, safe place to do that.”

Still, keep in mind that you could sell products through Etsy and a secondary ecommerce site to see which is best for your small business. As Tyler put it, “it doesn’t hurt to have both.”

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Small Business

Guide to Small Business Funding for Women

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Source: iStock

As the number of women-owned businesses grows across the U.S., women entrepreneurs are increasingly in need of funding for their businesses. While there aren’t specific small business loans for women, there are many lenders and organizations that offer small business help for women entrepreneurs, including SBA loans, term loans and business lines of credit, among other resources.

Small business loans for women: 3 options to consider

SBA loans

Best for: Businesses looking for long-term financing and businesses struggling to get loan approval.

The Small Business Administration (SBA) offers small business help for women that includes business training, counseling and assistance in accessing financing. The SBA can also help you if other lenders have deemed your business too risky. Since SBA loans are guaranteed by the Small Business Administration, lenders may be more likely to approve your application and even offer lower interest rates and longer repayment terms.

The SBA offers multiple loan types, with amounts ranging from $500 to $5.5 million. Requirements to qualify for each loan type are unique, and eligibility varies depending on the lender and the loan program. However, SBA loans are available for most business purposes.

Term loans

Best for: Businesses that can clearly project how much cash they’ll need or for startup capital when a business doesn’t want to forfeit any ownership to an investor.

A term loan is a typical loan arrangement that allows you to borrow a lump sum of money and pay it back in installments, with interest. Interest rates and other fees can vary greatly from one lender to the next, but you’ll likely need to present your business plan, expense sheet and financial projections in order to apply for a term loan at any bank or credit union.

Some lenders are committed to offering small business term loans to women. Learn more about these lenders and their loan product options below.

Business lines of credit

Best for: Businesses that need ongoing access to capital or that have an open-ended project.

A business line of credit is an account that allows you to draw money up to a set limit. Similar to a credit card, each time you pay down your balance you can draw up to the limit again, and fees and interest payments are based on your account balance. Unlike business credit cards, which generally have higher interest rates, business lines of credit tend to have lower interest rates and allow you to make cash withdrawals without any limitations and write checks from your account.

You can take out a business line of credit through a bank, credit union or online lender. Qualification is based on your personal credit.

5 best small business loans for women

To select the top five small business loans for women, we looked at a number of lenders and chose a mix of online and traditional bank lenders. While traditional lenders may be more difficult to qualify for, the two we have listed are among the most active SBA lenders, making them a potentially compelling option for women business owners.

Additionally, the lenders we selected had to meet the following criteria:

  • Transparent websites. These lenders clearly list necessary information on their websites so small business owners can easily find what they need.
  • Wide range of amounts and term lengths. Many of these lenders offer a range of loan products as well as amounts and term lengths, which means they can cater to a range of small business owners’ needs.
  • Lender credibility. These lenders have all been in business for at least a decade and have established themselves in the space through things like positive customer reviews and high approval counts.

1. Kabbage

Type of financing

Rate

Amount

Min. credit score

Best for...

Business line of credit

Monthly fee is 1.25% to 10.00% of principal

Up to $250,000

None

Ongoing access to capital

Although Kabbage often refers to its financing product as a loan, it is technically a line of credit, one the company says is commonly used by women business owners for inventory purchases, office expansion, marketing campaigns, equipment purchase and hiring employees. Kabbage’s monthly fees for business lines of credit start at 1.25% and are only charged based on the amount you draw.

Kabbage offers a simple online application process, and you can manage your line of credit account from a mobile device.

2. Smartbiz

Type of financing

Rate

Amount

Min. credit score

Best for...

SBA loans

5.04% to 10.29% APR

$30,000 to $5,000,000

650 for a $30,00 to $350,000 loan

675 for a $500,000 to $5 million loan

Faster processing on SBA loans

According to Smartbiz, 30% of its 7(a) SBA loans are granted to women-owned businesses. The national average is only 14% for SBA lenders.

Smartbiz helps expedite the application process by submitting your application to an online marketplace of multiple SBA lenders at once. Prequalification is available within five minutes, and funding is available in as few as seven days upon approval.

3. Wells Fargo Bank

Type of financing

Rate

Amount

Min. credit score

Best for...

Equipment Express Loan

5.50% to 9.50% APR for vehicle loans

6.00% to 12.25% for equipment loans

$10,000 to $100,000

Not disclosed

Purchasing vehicles or equipment

In 2013, Wells Fargo Bank committed to lending $55 billion to women-owned businesses by the year 2020. The bank offers several small business loan products, including its Equipment Express Loan. The interest rate on the bank’s secured vehicle loans starts as low as 5.50%.

However, you’ll need to be an existing customer of the bank to apply. Wells Fargo small business loans are only available to customers who have had a checking or savings account with the bank for a minimum of one year.

4. Celtic Bank

Type of financing

Rate

Amount

Min. credit score

Best for...

Express Loan

Variable

$20,000-$150,000

Not disclosed

Wide variety of loans

Celtic Bank is perhaps best known as an SBA lender, but the Utah-based lender offers a variety of loans well-suited to all types of businesses, small to large. The Celtic Express loan offers loans between $20,000 and $150,000 for up to 120 months.

To be eligible, the business must be a for-profit, owner-operated enterprise. Loan proceeds may not be used for construction or tenant improvements. Newer businesses are considered, but you must have a location identified and be able to start operations at funding.

5. OnDeck

Type of loan

Rate

Amount

Min. credit score

Best for...

Short-term loan

11.89% APR and up

$5,000 to $500,000

600

Business owners with lower personal credit scores

OnDeck is an online lender that has funded over $6 billion in small business loans for women. The lender offers business loans for women with bad credit, with a minimum credit score requirement of just 600. However, its APRs start relatively high, at 11.89% and up.

In order to qualify for a loan with OnDeck, your business must be at least a year old and earn at least $100,000 a year in revenue. Those who qualify may receive funding within as little time as 24 hours.

Alternative financing options for women-owned businesses

Grants for female business owners

Small business grants can provide you with funds to start or expand your business — and, unlike loans, they don’t have to be repaid. Grantors who fund women-owned businesses include the federal government, local governments and private funds. The amount of money available and the requirements to qualify will vary depending on the source of the funds.

Here are a variety of women-owned business grants to consider:

  • Amber Foundation Grant. Grants of $4,000 are awarded on a monthly basis to women-owned businesses of all kinds. Monthly grant winners are eligible for an additional $25,000 grant at the end of the year.
  • Cartier Women’s Initiative. This grant is for women-owned, women-run businesses focused on sustainable social and/or environmental impact. Applicants in a select group receive one-on-one business training and cash awards of $30,000 or $100,000.
  • Girlboss Foundation Grant. Grants are available up to $15,000 for women entrepreneurs working in the areas of design, fashion, music or the arts.
  • NASE Growth Grants. The National Association for the Self-Employed (NASE) offers $4,000 grants for female business owners. You must become a NASE member to apply.
  • SBA. Though there technically are not Small Business Administration grants for women (or anyone else), the SBA does facilitate federal grants for all types of business owners through the Small Business Innovation Research and the Small Business Technology Transfer programs.

Equity financing opportunities

Venture capital firms and individual investors, sometimes known as “angel investors,” differ from lenders. Instead of offering debt, these venture capitalists offer to make a long-term investment in your company in exchange for equity. They may also require some form of ownership and/or a seat on your company’s board of directors.

Here are some investing groups and firms that cater to women-owned businesses:

Additional resources for women-owned businesses

  • SBA Women’s Business Centers: The SBA offers over 100 office locations throughout the U.S. where women can receive free training, workshops, mentorship and more. Use the SBA directory to find your nearest location.
  • Women-Owned Small Businesses (WOSB) Federal Contracting Program: This federal program sets aside contracting opportunities for women applicants in industries where women’s businesses are underrepresented or disadvantaged. Those industries include construction, manufacturing, publishing and more.
  • National Women’s Business Council (NWBC): This federal advisory committee advises the president, the U.S. Congress and the SBA on matters affecting women entrepreneurs and women-owned businesses. The NWBC hosts round-table events around the country to gather input and promote women’s STEM-focused and rural-owned businesses.
  • DreamBuilder: This free online program offers interactive courses for women on how to start, build and finance your business. Courses are available in Spanish and English.
  • National Association of Women Business Owners (NAWBO): NAWBO is an advocacy organization that promotes networking events for women entrepreneurs, provides online resources and has local chapters throughout the U.S.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.