Simple Guide on How to Sell on Etsy from the Philippines

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In this post, we’ll guide you through the process of setting up an Etsy store if you’re a seller from the Philippines.

If you’re looking for ways to easily start a business and earn passive income online, Etsy might be the perfect platform for you.

What is Etsy?

To those of you who are asking, is ETSY legit?

Absolutely!

Etsy was established in 2005 and since then, it has become a global brand with over 39 million buyers as of 2018, and over 2.1+ million established sellers from all over the world.

Etsy is a huge e-commerce marketplace where you can, regardless of your location, sell your products. It’s basically like Amazon or Lazada or Shopee, but the main difference is that Etsy is primarily for handmade / vintage items or crafts. Etsy’s sellers are usually independent artists, designers, craftsmen, side hustlers and vintage product resellers who are diving in headfirst into the world of e-commerce.

But even if you are only a beginner, a hobbyist, or a student looking for ways to earn passive income online, Etsy’s easy-to-use interface will help you set-up your store in just a matter of minutes!

Etsy’s Target Market

Etsy’s primary target market are WOMEN aged 18-60.

They usually have higher disposable incomes and they tend to spend more on premium items from independent artists. What they look for is originality and personality in the products that they buy. They go to Etsy to look for one of a kind pieces that aren’t replicated in big box retail stores. Their products of choice are usually vintage clothing, accessories from independent jewellers, home decors, and bridal gifts.

Another demographic that is huge on Etsy are the millennials. These are your tech-savvy customers who first seek out honest reviews from their friends or peers before purchasing a product. They value social causes and they want products that define their identity. Their brand loyalty is fleeting, but if you properly communicate your value proposition with them, they’re more likely to stick with your brand.

Pros of Selling on Etsy

You can set-up your store in just minutes.
Etsy has an easy-to-use interface that lets you track and manage your inventories and orders.
Even if you don’t have programming or SEO knowledge, Etsy is SEO optimized for SERPS (Search Engines Results Pages) like Google, Bing, Yahoo, etc. so customers will easily be able to find your products.
They already have millions of loyal customers from all over the world so you don’t have to shell out on high customer acquisition / advertising expenses even if you’re just starting out.
Even if you’re from the Philippines you can earn in dollars or euros from your international customers.
You can start your own brand from scratch. Build up a huge global following and expand from there.

Cons of Selling on Etsy

Finding cheap and reliable international courier / shipping services that ships from the Philippines to abroad can be quite a challenge. Fed-ex, DHL, LBC, etc’s shipping fees are expensive. You can have your customers shoulder half the shipping costs but it’s still quite costly and you can’t compete with other Etsy sellers with those high fees. Philpost offers international shipping that is a bit cheaper but they can be quite unreliable.
Etsy fees can be expensive if you’re just starting out. There are fixed fees for listing out your products and they also deduct transaction fees on the selling price plus the shipping fee.
Like with any business, you will have to deal with customer service yourself, but the challenges in dealing with customers from abroad are complaints from delayed shipping, refunds and returns.

Requirements in Setting up an Etsy Store from the Philippines

Starting September 16, 2020 sellers based in the Philippines are required to set-up for Etsy Payments.

But before you can be enrolled to Etsy Payments, you’ll need to set-up an account with Etsy. The initial process of setting up an account is pretty simple. You’ll just need a valid email address and have your account verified from the link they’ll send in your email.

Next, to be able to set-up billing as a SELLER from the Philippines, the requirements are as follows:

You must be 18 years old and above and have a TIN (Tax Identification Number)
A credit card. If you don’t have a credit card you can also use your debit card with VISA or Mastercard logo in it.
I tried using my RCBC MyWallet Visa card but unfortunately they don’t accept prepaid visa debit cards.
A bank account in the Philippines.

Breakdown of Etsy fees in the Philippines

Listing fee of 0.20 cents or 9 Php
2nd listing fee after the first product has been sold – 20 cents or 9 Php
Commission fee of 5%
Processing fee of 4.5% plus 25 Php

Total Etsy Fee is approximately 10% of your gross sales.

How to set-up your Etsy store

Create an Etsy account with a valid e-mail address.
Once you’ve registered and verified your account, set your shop preferences like default language, home country, and currency in which you’ll list down your items. Since you’re selling from the Philippines, it will be more convenient to set your currency in Philippine Peso. Don’t worry, your customers from abroad won’t necessarily see your products in Php; they’ll see those in their default currency depending on their IP location.
Choose a memorable Etsy shop name/brand.
Add products in your shop. Add high quality pictures of your products, set inventory levels, prices and shipping fees. Publish your product listings.
Set-up payment preferences or how you’ll accept payments from your customers. For sellers in the Philippines, Etsy will ask you for your bank account details where they’ll send customer payments.
Set-up billing information or how you’ll pay for etsy fees. Etsy will ask for your credit card information. Debit cards. with Visa or Mastercard logos are also acceptable.
Your shop is officially open!

Tips on how to sell on Etsy

Competition is still very cut-throat even on Etsy. In order to stand out, it’s important to know your NICHE and to know your target demographics. What would my potential customers type in Etsy search?

Do keyword research on Etsy and look for top-selling products per categories. If you have a high competition, of course, chances are your customers won’t see your store. So it’s important to gauge on the level of competition per product category.

I can’t also stress enough the importance of uploading high-quality images of your products! Post more than 3 pictures of your products in different angles and make sure that the background is well-lit and the images are professional looking.

Respond to your customers in a timely manner. If there are any hiccups with the delays in manufacturing, order processing or shipping especially for sellers in the Philippines, it’s always best to communicate with them. Shipping is out of your control but your customers will still think that it’s your responsibility to expedite it for them.

Calculate your costs accordingly. You might get overly excited with all the orders forgetting that the most important part of selling is making actual profit! So calculate all your expenses, including Etsy fees (which can be quite confusing), and set a margin for your products!

Research on your competitor’s price points and compare it with yours. Are my products more expensive than them? Are my products cheaper? What extra value do I offer my customers that would justify a higher price point?