TikTok Shop and Etsy are two different platforms for online sellers. For TikTok Shop, it integrates e-commerce directly into the popular social media app. On the other hand, Etsy is a well-established marketplace specializing in handmade, vintage, and unique goods. One main feature of TikTok Shop is its seamless integration with viral content, while Etsy offers strong community support for crafters and artists.
TikTok Shop
TikTok has younger users and a high engagement rate in content consumption.
Leverages video content for marketing and sales.
Sellers can utilize viral marketing, influencer partnerships, and trending challenges to reach a broad audience.
Earnings primarily through sales made directly via in-app purchases.
Etsy
Etsy attracts a more diverse age range but is particularly popular among crafters, artists, and those seeking unique, artisanal products.
Provides a robust set of tools for listing products, managing orders, and SEO optimization to enhance visibility within the marketplace.
Relies on search engine optimization within the platform, promoted listings, and external marketing efforts (social media, email marketing).
Sellers earn through direct sales on the platform, often at higher profit margins for unique, handcrafted items.
Buyers and sellers need to know that TikTok Shop leverages the platform's high engagement rates. According to Baclinko, users spend an average of 95 minutes per day. This high engagement translates into a substantial opportunity for impulse purchases. What drives this increase is the seamless integration of entertaining content and shopping.
In contrast, Etsy caters to a niche market focused on handmade, vintage, and unique goods. Based on Digital Commerce 360, Etsy earned an increase of 96.4 million active buyers. Plus, 88% of buyers consider the items they purchase on Etsy to be unique. Sellers on Etsy benefit from the platform's reputation for unique, high-quality products. This allows sellers to implement higher pricing compared to mass-market goods.
In this article, we will insights on which platform is more suitable for different types of sellers to maximize their success. We will also learn how a established business model can help new sellers boosts the success of their business.
TikTok Shop vs Etsy
FEATURES
TIKTOK SHOP
ETSY
Overall Rating
Positive feedback among influencers and brands leveraging TikTok's audience for e-commerce.
Highly rated for handmade, vintage, and craft items.
Ease-of-Use
TikTok shop is convenient for existing users who are familiar with the platform. This is because it is integrated within the TikTok app.
Etsy has a user-friendly interface designed for both buyers and sellers.
Seller Protection Policies
The seller protection policies for TikTok shop is it depends largely on TikTok's overall policies and community guidelines.
Etsy has established seller protection policies, including dispute resolution and fraud protection.
Primary Audience
The customer base of TikTok shop includes young, tech-savvy users, primarily Gen Z and millennials.
Etsy has a broad demographic, with a strong focus on niche markets like handmade and vintage items.
In-App Shopping
Seamless integration with TikTok videos, allowing users to shop directly from content.
Separate app experience (App is not integrated with social media in the same way).
Ease of Setup
Simple for existing TikTok users; requires linking to a Shopify account or similar.
Straightforward with clear steps to set up a shop, but more complex product listings.
Sales & Marketing Tools
Leverages TikTok's powerful algorithm and influencer marketing capabilities.
Various tools for promotions, ads, and analytics but not integrated with social media.
Product Discovery
High due to TikTok's algorithm pushing viral content.
Strong through Etsy's search and category system, but more traditional.
Cost Structure
Transaction fees vary; influenced by third-party integrations (e.g., Shopify).
Listing fees ($0.20 per item), transaction fees (6.5%), and payment processing fees.
Scalability
Potentially high due to TikTok's vast user base and viral nature.
Scalable within niche markets; larger stores may face competition and need more marketing.
Customization Option
Limited within TikTok's app framework; relies on content creativity.
Extensive customization for shop appearance, product listings, and branding.
Customer Support
The customer support option for TikTok Shop has limited support. It can only be accessed through TikTok's help center.
Etsy offers dedicated support with a comprehensive help center and resolution processes.
Product Listing and Catalog management
The product listing option for TikTok Shop is basic within the TikTok app. It offers advanced features managed via Shopify or other integrations.
Etsy provides detailed product listings with categories, tags, and SEO options.
Fulfillment and Order Processing
Dependent on third-party services like Shopify.
Comprehensive, with built-in tools for order management and shipping.
Payment Processing
The payment method available for TikTok Shop is managed through integrations. This includes Shopify Payments, PayPal, etc.
Etsy has direct payment processing done through Etsy Payments, but various methods are also supported.
Return and Refund Policies
The return and refund policy available on TikTok Shop requires sellers to set their terms within TikTok's guidelines.
For Etsy, it has clear and structured return/refund policies. They also handle disputes.
TikTok Shop VS Etsy: Pros and Cons
TikTok Shop Pros and Cons
Pros
TikTok's algorithm promotes virality, making it easier for products to gain visibility.
Users can shop directly within the app without being redirected to external websites.
Ability to use engaging video content to showcase products, which can be more compelling than static images.
Easier to collaborate with influencers for product promotions.
Cons
Less established as a shopping platform compared to competitors, which may affect user trust.
Success heavily relies on the TikTok algorithm, which can be unpredictable.
Not as broad a product range as other established e-commerce platforms.
Potential issues with data privacy and platform regulations.
Etsy Pros and Cons
Pros
Well-known and trusted platform with a loyal customer base.
Specializes in handmade, vintage, and unique items, attracting a specific audience.
Strong search engine optimization (SEO) within the platform, making it easier for customers to find products.
Active seller community and resources to support new sellers.
Cons
Listing fees, transaction fees, and payment processing fees can add up, affecting profit margins.
High competition with numerous sellers offering similar products.
Sellers often need to invest in additional marketing to stand out.
Reliance on Etsy’s platform and policies, which can change and impact sellers.
TikTok Shop vs Etsy: Who Is It for?
TikTok Shop is an ideal platform for trend-driven brands. It offers a dynamic environment where products can quickly gain visibility and reach. This platform is effective for brands that thrive on trends due to its algorithm. Also, the TikTok creators play a big role in this. Their content often sets new trends and influences their followers' buying choices.
Influencers and content creators are needed on TikTok Shop. They leverage their large following to showcase products in an engaging and authentic manner. Thus, it creates an organic connection between the product and potential customers.
Forbes report that in 2019, the D'Amelio sisters, Charli and Dixie, became famous on TikTok. They started posting simple dance and lip-sync videos. By 2021, Charli had earned $17.5 million from branding and endorsement deals and making her the highest-paid TikTok star. Then, Dixie made $10 million. Their rise to fame led to their Snapchat competition show "Charli Versus Dixie," where they compete for charity. Each episode's production involves a 12-hour shoot earn up to $100,000 per episode.
The D'Amelio family has now launched D'Amelio Brands. They sell products and maximize Charli and Dixie's image rights. Supported by $6 million from investors, the company is valued at $100 million despite having no products, revenue, or employees yet. Hence, TikTok's influence played an important role in placing the D'Amelios to their current status and enabling these business ventures.
On the other hand, Etsy is for artisans and crafters who produce unique, handmade items. This platform is ideal for sellers who create personalized products that appeal to niche markets. The Etsy store setup supports sellers who make high-quality, handcrafted goods. It lets them showcase their creativity.
Content creator Sandra Di shares her experience on how to start and grow an Etsy shop. Starting an Etsy shop for digital products covers all from market research to marketing. She emphasizes the importance of brainstorming and organizing product ideas. This is with the help of using tools like Insight Factory to find trending, low-competition niches.
Sandra guides you through creating and designing your digital products. She highlights that beginners should focus on user-friendly features and attractive designs. She also explains how to set up your Etsy shop. You will learn to make compelling listings and organize your files well. Promotion strategies include using Pinterest to get external traffic. Also, they involve regularly analyzing shop stats to improve listings.
In addition, Sandra advises adding new products and sections. This will help customer navigation. She also suggests using automated listing renewals and providing personalized customer support. Once you've mastered these steps, consider adding a second shop for different niches.
Advantages of using Etsy over TikTok Shop
TikTok Shop vs. Etsy on Reddit
The Reddit discussion is about using TikTok to promote Etsy shops. Users share mixed experiences and insights. Many sellers find TikTok useful for engagement and driving traffic. This is especially true for unique content, such as sourcing and behind-the-scenes videos. However, there are concerns about potential backlash from users who misunderstand or criticize the resale of vintage items. Most users agree that TikTok can work. But, it needs careful content strategy and engaging the audience.
For new e-commerce sellers, using TikTok can boost visibility and customer interaction. However, they must be ready for both positive engagement and potential criticism.
TikTok Shop vs. Etsy on TikTok
In a TikTok video, the creator explains how TikTok is overshadowing Etsy in the e-commerce space. TikTok Shop has transformed buying and selling by integrating everything digitally in one platform. A notable feature is that creators can earn commissions by promoting products in their content, providing a lucrative opportunity for businesses. According to her, this shift has been so impactful that Etsy felt compelled to launch its own affiliate program to stay competitive.
TikTok Shop vs. Etsy: Which Is More Profitable?
Is Selling on TikTok Shop Profitable?
Selling on TikTok Shop can is profitable, as demonstrated by a case study where $41,000 worth of products were sold in a single day. This success was achieved by linking a Shopify store with TikTok Shop through the SKIQ app. They also ran a post-Black Friday flash sale and posted many videos in a day. One video went viral, generating significant views and sales without the need for a large ad spend.
For new sellers, this case study highlights the potential profitability of TikTok Shop and provides practical strategies for success. It emphasizes the importance of creating content that shows the product right away. It should mention its availability on TikTok Shop early in the video. And, it should clearly describe its features and benefits. Also, using TikTok's affiliate program to work with influencers can increase sales. It can also boost brand exposure.
In short, selling on TikTok Shop is a good decision. This is because it is accessible for new sellers if they use good content strategies and platform features to reach a wide audience.
Is Selling on Etsy Profitable?
Selling on Etsy can be profitable, but it requires time and effort. The speaker, who works full-time, started an Etsy store selling Canva templates and made around $103 in the first month with ten orders. While initial earnings were modest and mostly covered by friends' purchases, the sales increased slightly with the use of Etsy ads.
Although revenue wasn't life-changing, it was a good start for passive income. For beginners, the key is to start small, be patient, and consistently upload new listings to improve visibility and sales on Etsy.
Why Local Lead Gen Biz Is Far Better Than Selling on TikTok Shop and Etsy?
Local lead generation business is better than selling on TikTok Shop and Etsy in terms of initial investment, effort required, competition, and return on investment (ROI). Starting a local lead generation business often requires a lower initial investment compared to the costs of maintaining a steady inventory for TikTok Shop or Etsy.
In addition, local lead generation involves creating and optimizing online listings and websites to attract local customers, which can be done with relatively low financial input. In contrast, sellers on TikTok Shop and Etsy must invest significantly in product creation, inventory management, and shipping logistics.
Furthermore, local lead generation has a lot of work up front. You have to set up and optimize online assets. After that, it becomes relatively passive. This is different from the continuous effort needed to market, sell, and fulfill orders on TikTok Shop and Etsy. It demands ongoing active participation to maintain sales momentum. In comparison, local lead generation targets a more defined, local market, reducing competition and increasing the likelihood of capturing leads.
Lastly, high ROI is a notable benefit of local lead generation. Once the initial setup is complete, ongoing maintenance costs are low. Hence, it leads to a higher profit margin. Industry data shows that local lead generation can yield a ROI of over 200%. This is higher than the 10-20% average ROI for e-commerce businesses. They sell on platforms like TikTok Shop and Etsy.
The passive nature of local lead generation allows business owners to focus on scaling their operations or pursuing other ventures, making it a more sustainable and lucrative business model in the long run.
