Why Farmers Are Turning to Platforms Like Etsy and eBay
In today’s digital age, farmers have more options than ever to reach customers beyond their local communities. Online marketplaces like Etsy and eBay have become popular for selling a wide range of products, including farm goods like handmade jams, artisanal cheeses, seeds, or even value-added products like candles or soaps made from farm materials.
These platforms offer a simple way to set up an online shop and access a large audience of potential customers. However, they also come with risks that farmers need to understand before committing their time and resources. Let’s explore the opportunities and challenges of selling on general marketplaces like Etsy and eBay and how to make informed decisions for your farm.
The Opportunities of Using Platforms Like Etsy and eBay
1. Wide Reach
One of the biggest advantages of platforms like Etsy and eBay is their massive customer base. Millions of people use these platforms every day to search for unique, handmade, or niche items. By listing your products, you can potentially connect with customers far beyond your local farmers’ market or direct-to-consumer (DTC) network.
For example, if you produce organic honey or handmade lavender sachets, Etsy provides an audience specifically looking for artisanal and natural goods. Similarly, eBay’s auction and buy-it-now format can help sell products like rare seeds or unique farm equipment to collectors or specialty buyers.
2. Easy Setup
Compared to building and maintaining your own e-commerce website, platforms like Etsy and eBay are relatively simple to set up. You can create a shop, upload product photos, and start selling in a matter of hours. These platforms also handle many technical aspects, such as payment processing, making it easier for small farms to get started online.
3. Established Trust
Both Etsy and eBay are well-known and trusted by consumers. Shoppers feel more confident purchasing from these platforms because they offer buyer protection programs, verified payment options, and reviews of sellers. As a farmer, listing your products on these platforms can give your business instant credibility.
4. Marketing Tools
Platforms like Etsy and eBay offer built-in marketing tools to help sellers promote their products. From sponsored ads to email campaigns, these tools can help boost visibility for your farm products without requiring advanced marketing knowledge.
The Risks of Using Platforms Like Etsy and eBay
1. High Fees
While these platforms provide a convenient way to sell online, they come at a cost. Both Etsy and eBay charge listing fees, transaction fees, and payment processing fees, which can quickly add up. For example:
• Etsy charges a 6.5% transaction fee on each sale, plus a $0.20 listing fee per item and payment processing fees.
• eBay charges fees based on your product category, which can range from 5% to 12.9% of the final sale price.
For farmers selling low-margin items like produce or small handmade goods, these fees can eat into profits, making it difficult to sustain your business.
2. Limited Control Over Your Brand
When you sell on platforms like Etsy or eBay, your products are listed alongside thousands of other sellers. This can make it harder to stand out and build a strong brand identity. Additionally, the platform’s policies and algorithms control how your shop is seen and ranked, leaving you with limited control over your visibility.
For instance, if Etsy changes its search algorithm, your products could lose visibility overnight. Similarly, if eBay introduces new fees or policies, your profitability could be impacted without warning.
3. Competition is High
Etsy and eBay are saturated with sellers offering similar products. For example, if you’re selling handmade soaps or honey on Etsy, you’ll likely compete with hundreds, if not thousands, of other sellers. This intense competition can drive prices down, forcing you to lower your margins to stay competitive.
4. Risk of Fraud and Returns
While these platforms protect buyers, sellers can sometimes face challenges like fraudulent claims or excessive returns. For example, a buyer may claim they never received your product, even if you shipped it. Without proper documentation (such as tracking information), you may be forced to issue a refund, losing both the product and the sale.
5. Lack of Long-Term Customer Relationships
Platforms like Etsy and eBay often act as intermediaries between you and your customers. This means that instead of building direct relationships with your customers, they may associate your products more with the platform than with your farm. This can limit opportunities for repeat business or building a loyal customer base outside the platform.
How to Navigate the Risks and Succeed on Marketplaces
1. Choose the Right Products
Not all farm products are ideal for Etsy or eBay. Focus on items that are non-perishable, lightweight, and easy to ship, such as:
• Handmade or value-added products (jams, candles, soaps).
• Dried herbs or spices.
• Rare seeds or plant starts.
• Farm-themed crafts or home goods.
These items tend to perform better on these platforms and are less likely to face spoilage or damage during shipping.
2. Build a Strong Brand Presence
Even if you’re using a third-party platform, you can still establish a unique brand identity for your farm. Use high-quality photos, write compelling product descriptions, and include your farm’s story in your shop’s “About” section.
Consider including your social media handles or website on product packaging to encourage customers to connect with your farm directly. This can help you build a long-term relationship outside the platform.
3. Monitor Costs Closely
Be aware of all fees associated with selling on these platforms and price your products accordingly. Calculate your production costs, packaging expenses, and shipping fees to ensure you’re still making a profit after platform fees.
For higher-priced items, consider offering bundles or value packs to increase the average order size and offset fees.
4. Focus on Excellent Customer Service
Platforms like Etsy and eBay reward sellers with great reviews and high ratings. Respond to customer inquiries promptly, ship orders quickly, and package items carefully to ensure a positive buying experience. Happy customers are more likely to leave glowing reviews and recommend your shop to others.
5. Diversify Your Sales Channels
While Etsy and eBay can be great starting points, avoid relying solely on these platforms for your business. Use them to complement other sales channels like farmers’ markets, your own website, or partnerships with local stores. By diversifying your sales strategy, you can reduce the risk of overdependence on any one platform.
Final Thoughts
Platforms like Etsy and eBay offer farmers exciting opportunities to reach new customers and expand their businesses, but they also come with challenges that require careful planning. By understanding the risks and taking steps to build a strong brand presence, monitor costs, and deliver excellent customer service, you can make the most of these platforms while protecting your farm’s profitability.
At Leprendo, we’re committed to helping farmers grow their businesses through smart strategies and meaningful connections. Ready to explore more tailored platforms for selling farm products? Let’s grow together.