1 00:00:00,000 --> 00:00:04,380 Hey everyone, thinking about starting an Etsy print on demand side hustle. 2 00:00:04,880 --> 00:00:09,380 We're doing a deep dive today into what it's really like on Etsy. 3 00:00:09,440 --> 00:00:09,720 Right. 4 00:00:09,820 --> 00:00:14,580 We're going way beyond those like super hyped up Instagram posts, you know. 5 00:00:14,620 --> 00:00:15,420 Yeah, yeah, for sure. 6 00:00:15,860 --> 00:00:17,520 And we've got an awesome guide. 7 00:00:17,720 --> 00:00:18,120 Oh yeah. 8 00:00:18,200 --> 00:00:19,200 William Lee. 9 00:00:19,400 --> 00:00:19,660 Okay. 10 00:00:19,720 --> 00:00:20,800 He's a CFO. 11 00:00:20,920 --> 00:00:21,360 Wow. 12 00:00:21,500 --> 00:00:22,660 And has an MBA. 13 00:00:22,820 --> 00:00:23,160 Okay. 14 00:00:23,200 --> 00:00:24,740 So he knows his numbers. 15 00:00:24,760 --> 00:00:25,000 Right. 16 00:00:25,260 --> 00:00:28,240 And he actually tried Etsy print on demand himself. 17 00:00:28,740 --> 00:00:29,280 Interesting. 18 00:00:29,280 --> 00:00:32,420 He made the super honest YouTube video about his experience. 19 00:00:32,540 --> 00:00:32,820 Cool. 20 00:00:32,940 --> 00:00:34,340 So we're going to break it all down. 21 00:00:34,380 --> 00:00:34,620 Love it. 22 00:00:34,820 --> 00:00:36,240 Not just the how to stuff. 23 00:00:36,380 --> 00:00:36,620 Right. 24 00:00:36,720 --> 00:00:38,980 But like the real truth about Etsy. 25 00:00:39,180 --> 00:00:40,780 Yeah, I think that's what people really need. 26 00:00:41,220 --> 00:00:45,980 Yeah, because we all want to avoid those like, you know, information overload pitfalls. 27 00:00:46,520 --> 00:00:47,860 We want to cut to the chase. 28 00:00:48,060 --> 00:00:48,700 Absolutely. 29 00:00:48,720 --> 00:00:51,220 And I think you'll be surprised by some of the stuff we found. 30 00:00:51,260 --> 00:00:52,100 Oh yeah, like what? 31 00:00:52,160 --> 00:00:54,400 Like how Etsy defines an active seller. 32 00:00:54,600 --> 00:00:54,860 Okay. 33 00:00:54,900 --> 00:00:57,500 And all the hidden costs you might not even realize. 34 00:00:57,700 --> 00:00:58,160 Interesting. 35 00:00:58,160 --> 00:01:01,600 But first, you know, we've got to acknowledge the appeal. 36 00:01:01,700 --> 00:01:02,300 Oh, for sure. 37 00:01:02,400 --> 00:01:04,600 Like why is Etsy so attractive in the first place? 38 00:01:04,680 --> 00:01:05,040 Yeah. 39 00:01:05,140 --> 00:01:06,280 It's massive, right? 40 00:01:06,380 --> 00:01:06,780 Oh yeah. 41 00:01:06,980 --> 00:01:08,780 Those numbers are kind of mind blowing. 42 00:01:08,840 --> 00:01:09,640 Yeah, tell me about it. 43 00:01:09,720 --> 00:01:13,080 Over 460 million visits every month. 44 00:01:13,520 --> 00:01:14,120 Wow. 45 00:01:14,220 --> 00:01:16,120 Almost 90 million buyers. 46 00:01:16,680 --> 00:01:17,620 That's incredible. 47 00:01:17,680 --> 00:01:18,560 And it's global. 48 00:01:18,960 --> 00:01:20,160 So that reach. 49 00:01:20,420 --> 00:01:20,560 Yeah. 50 00:01:20,620 --> 00:01:21,160 It's huge. 51 00:01:21,220 --> 00:01:21,720 E. 52 00:01:21,820 --> 00:01:23,360 Makes sense what people want to sell there. 53 00:01:23,420 --> 00:01:23,660 Yeah. 54 00:01:23,720 --> 00:01:25,860 I mean, who wouldn't want a piece of that pie? 55 00:01:25,920 --> 00:01:26,360 Right. 56 00:01:26,560 --> 00:01:26,960 Right. 57 00:01:26,960 --> 00:01:29,660 It seems like the ultimate passive income dream. 58 00:01:29,720 --> 00:01:30,120 Yeah. 59 00:01:30,220 --> 00:01:32,820 Like reach tons of customers effortlessly. 60 00:01:32,960 --> 00:01:34,360 Yeah, it's definitely tempting. 61 00:01:34,500 --> 00:01:35,100 Totally. 62 00:01:35,360 --> 00:01:37,360 But you know, success isn't just handed to you 63 00:01:37,440 --> 00:01:38,600 on a silver platter. 64 00:01:38,700 --> 00:01:39,240 Of course not. 65 00:01:39,340 --> 00:01:40,700 You've got to put in the work. 66 00:01:40,860 --> 00:01:43,100 And this is where we start diving into the reality. 67 00:01:43,180 --> 00:01:44,000 Okay, wait on me. 68 00:01:44,400 --> 00:01:49,980 So Etsy reported 5.4 million active sellers in 2022. 69 00:01:51,240 --> 00:01:52,040 That's a lot. 70 00:01:52,180 --> 00:01:52,780 It is. 71 00:01:52,880 --> 00:01:54,280 But here's the catch. 72 00:01:54,420 --> 00:01:54,880 Okay. 73 00:01:54,880 --> 00:01:58,340 Their definition of active is kind of sneaky. 74 00:01:58,440 --> 00:01:58,840 Really? 75 00:01:58,940 --> 00:01:59,540 How so? 76 00:01:59,640 --> 00:02:03,280 Well, it includes anyone who sold anything or just got 77 00:02:03,380 --> 00:02:04,580 billed in the last 12 months. 78 00:02:04,680 --> 00:02:05,080 Huh. 79 00:02:05,180 --> 00:02:08,120 So even if you just paid a listing fee but didn't actually 80 00:02:08,220 --> 00:02:11,220 sell anything, you're still considered active. 81 00:02:11,860 --> 00:02:12,920 So it's kind of misleading. 82 00:02:13,020 --> 00:02:13,560 It is. 83 00:02:13,660 --> 00:02:13,960 Right. 84 00:02:14,060 --> 00:02:15,160 It doesn't really tell the whole story. 85 00:02:15,260 --> 00:02:15,800 No, not at all. 86 00:02:15,900 --> 00:02:17,560 Of who's actually making it on Etsy. 87 00:02:17,660 --> 00:02:17,960 Right. 88 00:02:18,060 --> 00:02:18,360 Right. 89 00:02:18,460 --> 00:02:20,460 And then, you know, when you dig a little deeper, 90 00:02:20,560 --> 00:02:24,200 yeah, the average gross merchandise sales. 91 00:02:24,200 --> 00:02:24,900 Uh-huh. 92 00:02:25,000 --> 00:02:26,000 Per active seller. 93 00:02:26,100 --> 00:02:26,600 Yeah. 94 00:02:26,700 --> 00:02:33,780 In 2022 was only $2,169, which like when you think about it, 95 00:02:33,880 --> 00:02:34,380 yeah. 96 00:02:34,480 --> 00:02:37,720 All the time and effort that goes into running an Etsy shop. 97 00:02:37,820 --> 00:02:38,320 Right. 98 00:02:38,420 --> 00:02:39,380 Even with print on demand. 99 00:02:39,480 --> 00:02:40,020 Exactly. 100 00:02:40,120 --> 00:02:43,460 Even with print on demand, it's like not that much. 101 00:02:43,560 --> 00:02:44,520 At a huge amount. 102 00:02:44,620 --> 00:02:46,020 And that's just sales, right? 103 00:02:46,120 --> 00:02:46,520 Yeah. 104 00:02:46,620 --> 00:02:48,000 We haven't even touched on the fees. 105 00:02:48,100 --> 00:02:48,900 Ugh, the fees. 106 00:02:49,000 --> 00:02:51,160 And those can really eat into your earnings. 107 00:02:51,260 --> 00:02:51,800 For sure. 108 00:02:51,800 --> 00:02:54,660 So that $2,169 average. 109 00:02:54,760 --> 00:02:55,360 Yeah. 110 00:02:55,460 --> 00:02:58,100 It really makes you wonder how many sellers are actually 111 00:02:58,200 --> 00:02:59,400 making decent money. 112 00:02:59,500 --> 00:02:59,900 Yeah. 113 00:03:00,000 --> 00:03:00,640 A good point. 114 00:03:00,740 --> 00:03:01,540 Right. 115 00:03:01,640 --> 00:03:03,400 But before we even get to the profit part. 116 00:03:03,500 --> 00:03:04,140 OK. 117 00:03:04,240 --> 00:03:05,880 We got to talk about the elephant in the room. 118 00:03:05,980 --> 00:03:06,440 What's that? 119 00:03:06,540 --> 00:03:07,240 Competition. 120 00:03:07,340 --> 00:03:07,980 Oh, yeah. 121 00:03:08,080 --> 00:03:09,140 Like, think about it. 122 00:03:09,240 --> 00:03:09,840 Yeah. 123 00:03:09,940 --> 00:03:11,980 There are millions of items listed on Etsy. 124 00:03:12,080 --> 00:03:12,320 I know. 125 00:03:12,420 --> 00:03:13,080 It's crazy. 126 00:03:13,180 --> 00:03:15,780 So you're not just competing with a few other sellers. 127 00:03:15,880 --> 00:03:16,380 Right. 128 00:03:16,480 --> 00:03:20,020 You're up against this, like, global marketplace. 129 00:03:20,120 --> 00:03:20,720 Oh. 130 00:03:20,720 --> 00:03:21,920 I hadn't thought about it like that. 131 00:03:22,020 --> 00:03:22,620 Yeah. 132 00:03:22,720 --> 00:03:23,520 So it's fierce. 133 00:03:23,620 --> 00:03:24,400 Definitely fierce. 134 00:03:24,500 --> 00:03:26,160 So I've got fierce competition. 135 00:03:26,260 --> 00:03:28,300 Lower than expected average sales. 136 00:03:28,400 --> 00:03:29,000 Right. 137 00:03:29,100 --> 00:03:32,640 But there's even more to consider the fees. 138 00:03:32,740 --> 00:03:33,700 Everyone's favorite. 139 00:03:33,800 --> 00:03:34,840 Let's dive into those. 140 00:03:34,940 --> 00:03:35,340 OK. 141 00:03:35,440 --> 00:03:36,040 I'm ready. 142 00:03:36,140 --> 00:03:37,640 So first up, the listing fee. 143 00:03:37,740 --> 00:03:38,140 Right. 144 00:03:38,240 --> 00:03:39,540 $0.20 per item. 145 00:03:39,640 --> 00:03:40,340 OK. 146 00:03:40,440 --> 00:03:41,240 Doesn't sound too bad. 147 00:03:41,340 --> 00:03:41,740 No. 148 00:03:41,840 --> 00:03:42,240 Not bad. 149 00:03:42,340 --> 00:03:45,120 But it only lasts for four months. 150 00:03:45,220 --> 00:03:47,820 So if you have 100 active listings. 151 00:03:47,920 --> 00:03:48,420 OK. 152 00:03:48,420 --> 00:03:51,180 That's $20 every four months. 153 00:03:51,280 --> 00:03:52,220 Just to have them up there. 154 00:03:52,320 --> 00:03:53,020 Yeah. 155 00:03:53,120 --> 00:03:55,060 Even if you don't sell a single thing. 156 00:03:55,160 --> 00:03:55,520 Wow. 157 00:03:55,620 --> 00:03:56,920 So you're paying just to list them. 158 00:03:57,020 --> 00:03:57,520 You are. 159 00:03:57,620 --> 00:03:58,560 Whether they sell or not. 160 00:03:58,660 --> 00:03:59,060 Yep. 161 00:03:59,160 --> 00:03:59,900 That's crazy. 162 00:04:00,000 --> 00:04:02,600 And then, of course, there's the transaction fee. 163 00:04:02,700 --> 00:04:03,200 Right. 164 00:04:03,300 --> 00:04:04,560 6.5% of the sale price. 165 00:04:04,660 --> 00:04:05,160 OK. 166 00:04:05,260 --> 00:04:06,660 Then payment processing. 167 00:04:06,760 --> 00:04:10,840 Usually around 3% plus $0.25 per transaction. 168 00:04:10,940 --> 00:04:11,340 OK. 169 00:04:11,440 --> 00:04:12,600 And then, oh yeah. 170 00:04:12,700 --> 00:04:13,580 There's more. 171 00:04:13,680 --> 00:04:15,940 Don't forget the potential advertising fees. 172 00:04:16,040 --> 00:04:17,080 Oh, right. 173 00:04:17,080 --> 00:04:19,640 If someone buys through an offsite Etsy ad. 174 00:04:19,740 --> 00:04:20,340 Yeah. 175 00:04:20,440 --> 00:04:22,580 You could be paying another 15%. 176 00:04:22,680 --> 00:04:23,780 On top of everything else. 177 00:04:23,880 --> 00:04:25,220 On top of everything else. 178 00:04:25,320 --> 00:04:25,780 Oof. 179 00:04:25,880 --> 00:04:26,720 That adds up quickly. 180 00:04:26,820 --> 00:04:27,420 It does. 181 00:04:27,520 --> 00:04:30,320 And that's why it's so important to understand profit margins. 182 00:04:30,420 --> 00:04:31,060 Yeah, for sure. 183 00:04:31,160 --> 00:04:32,260 You can't just look at your sales 184 00:04:32,360 --> 00:04:33,760 and think that's what you're taking home. 185 00:04:33,860 --> 00:04:34,260 No. 186 00:04:34,360 --> 00:04:35,020 Definitely not. 187 00:04:35,120 --> 00:04:37,120 William Lee had this great example in his video. 188 00:04:37,220 --> 00:04:37,660 OK. 189 00:04:37,760 --> 00:04:40,760 Imagine you make $5,000 in sales. 190 00:04:40,860 --> 00:04:41,500 Ooh. 191 00:04:41,600 --> 00:04:42,360 That sounds nice. 192 00:04:42,460 --> 00:04:42,940 Great. 193 00:04:43,040 --> 00:04:43,800 Sounds amazing. 194 00:04:43,900 --> 00:04:46,800 But if your profit margin is only 20%, 195 00:04:46,800 --> 00:04:47,300 oh. 196 00:04:47,400 --> 00:04:49,300 after all those fees and expenses, 197 00:04:49,400 --> 00:04:49,900 yeah. 198 00:04:50,000 --> 00:04:52,440 you're only actually pocketing $1,000. 199 00:04:52,540 --> 00:04:52,880 Wow. 200 00:04:52,980 --> 00:04:54,140 That's a huge difference. 201 00:04:54,240 --> 00:04:54,680 It is. 202 00:04:54,780 --> 00:04:55,380 Right. 203 00:04:55,480 --> 00:04:58,480 It really highlights the importance of focusing on profit. 204 00:04:58,580 --> 00:04:59,220 Not just sales. 205 00:04:59,320 --> 00:05:00,320 Exactly. 206 00:05:00,420 --> 00:05:01,280 It's what you keep. 207 00:05:01,380 --> 00:05:03,420 Not just the initial excitement of a sale. 208 00:05:03,520 --> 00:05:05,860 But you know, there are even more costs. 209 00:05:05,960 --> 00:05:06,560 Seriously. 210 00:05:06,660 --> 00:05:07,020 Yeah. 211 00:05:07,120 --> 00:05:08,560 Like hidden costs. 212 00:05:08,660 --> 00:05:08,960 Like what? 213 00:05:09,060 --> 00:05:10,800 That people often overlook. 214 00:05:10,900 --> 00:05:11,100 OK. 215 00:05:11,200 --> 00:05:12,660 Sales tax, for example. 216 00:05:12,760 --> 00:05:13,500 Oh yeah. 217 00:05:13,600 --> 00:05:14,600 It can be a real headache. 218 00:05:14,700 --> 00:05:15,160 I bet. 219 00:05:15,160 --> 00:05:16,960 Depending on where you live. 220 00:05:17,060 --> 00:05:17,660 Uh-huh. 221 00:05:17,760 --> 00:05:19,460 And where your suppliers are. 222 00:05:19,560 --> 00:05:20,040 OK. 223 00:05:20,140 --> 00:05:21,900 You might need a resale certificate. 224 00:05:22,000 --> 00:05:24,180 To avoid paying sales tax on your supplies. 225 00:05:24,280 --> 00:05:25,140 Exactly. 226 00:05:25,240 --> 00:05:28,340 And even then, you could still need to file sales tax returns. 227 00:05:28,440 --> 00:05:29,640 Even if you don't owe anything. 228 00:05:29,740 --> 00:05:30,340 Yeah. 229 00:05:30,440 --> 00:05:32,280 It's an administrative burden. 230 00:05:32,380 --> 00:05:32,680 Wow. 231 00:05:32,780 --> 00:05:34,280 And takes a valuable time. 232 00:05:34,380 --> 00:05:37,460 So it's not just about listing and watching the money roll in. 233 00:05:37,560 --> 00:05:39,420 There's a lot going on behind the scenes. 234 00:05:39,520 --> 00:05:40,220 There is. 235 00:05:40,320 --> 00:05:41,820 Stuff that can really impact your earnings. 236 00:05:41,920 --> 00:05:42,760 Absolutely. 237 00:05:42,860 --> 00:05:44,460 And we haven't even factored in the time it 238 00:05:44,460 --> 00:05:46,220 takes to actually manage your shop. 239 00:05:46,320 --> 00:05:46,920 Oh yeah. 240 00:05:47,020 --> 00:05:47,820 That's a whole other thing. 241 00:05:47,920 --> 00:05:50,060 Which is exactly what we'll be diving into next. 242 00:05:50,160 --> 00:05:51,060 Can't wait. 243 00:05:51,160 --> 00:05:51,860 OK. 244 00:05:51,960 --> 00:05:54,860 So last time, we really dug into those claims 245 00:05:54,960 --> 00:05:57,060 of easy passive income. 246 00:05:57,160 --> 00:05:57,640 Right. 247 00:05:57,740 --> 00:05:59,240 And we saw the reality of Etsy. 248 00:05:59,340 --> 00:05:59,700 Yeah. 249 00:05:59,800 --> 00:06:04,140 The fees, the competition, and all those sneaky hidden costs. 250 00:06:04,240 --> 00:06:04,640 Yeah. 251 00:06:04,740 --> 00:06:05,300 There are a lot. 252 00:06:05,400 --> 00:06:06,240 But let's be real. 253 00:06:06,340 --> 00:06:06,740 OK. 254 00:06:06,840 --> 00:06:07,780 Time is money. 255 00:06:07,880 --> 00:06:08,280 Right? 256 00:06:08,380 --> 00:06:09,040 Absolutely. 257 00:06:09,140 --> 00:06:11,340 So how much time are we actually talking about here? 258 00:06:11,440 --> 00:06:12,480 That's a great question. 259 00:06:12,480 --> 00:06:15,820 And it's something William Lee really emphasized in his video. 260 00:06:15,920 --> 00:06:16,580 Oh yeah. 261 00:06:16,680 --> 00:06:17,380 Yeah. 262 00:06:17,480 --> 00:06:21,060 He was like, running an Etsy shop, even a print on demand one. 263 00:06:21,160 --> 00:06:21,660 Yeah. 264 00:06:21,760 --> 00:06:22,960 It's not passive. 265 00:06:23,060 --> 00:06:23,520 Right. 266 00:06:23,620 --> 00:06:24,800 It's a real business. 267 00:06:24,900 --> 00:06:26,000 OK. 268 00:06:26,100 --> 00:06:27,400 It needs your time and energy. 269 00:06:27,500 --> 00:06:30,000 You're not just like uploading designs and then sitting back? 270 00:06:30,100 --> 00:06:30,700 No, no, no. 271 00:06:30,800 --> 00:06:32,000 You're creating those listings. 272 00:06:32,100 --> 00:06:32,600 Uh-huh. 273 00:06:32,700 --> 00:06:34,640 You're researching suppliers. 274 00:06:34,740 --> 00:06:38,140 You're managing orders, handling customer service, 275 00:06:38,240 --> 00:06:39,480 marketing your products. 276 00:06:39,580 --> 00:06:39,980 Yeah. 277 00:06:40,080 --> 00:06:41,140 It's a lot. 278 00:06:41,240 --> 00:06:42,280 It all adds up. 279 00:06:42,280 --> 00:06:45,420 It sounds like it could easily become a full-time gig. 280 00:06:45,520 --> 00:06:46,220 It can? 281 00:06:46,320 --> 00:06:48,720 Especially if you're juggling other stuff. 282 00:06:48,820 --> 00:06:49,380 Absolutely. 283 00:06:49,480 --> 00:06:50,720 Like a job or family. 284 00:06:50,820 --> 00:06:52,260 Or just life. 285 00:06:52,360 --> 00:06:52,760 Exactly. 286 00:06:52,860 --> 00:06:53,860 Life happens. 287 00:06:53,960 --> 00:06:55,960 And that's where that whole hourly wage 288 00:06:56,060 --> 00:06:57,300 calculation comes in. 289 00:06:57,400 --> 00:06:57,960 Right. 290 00:06:58,060 --> 00:07:00,200 Remember that $1,000 profit example? 291 00:07:00,300 --> 00:07:00,960 Yeah. 292 00:07:01,060 --> 00:07:03,960 William Lee figured it took him about 100 hours to make that. 293 00:07:04,060 --> 00:07:05,140 100 hours of work. 294 00:07:05,240 --> 00:07:06,000 Yeah. 295 00:07:06,100 --> 00:07:08,300 So you're spending 100 hours to make $1,000. 296 00:07:08,400 --> 00:07:08,980 OK. 297 00:07:09,080 --> 00:07:11,680 That's basically an hourly wage of $10. 298 00:07:11,680 --> 00:07:14,640 It's just suddenly those make money in your sleep claims 299 00:07:14,740 --> 00:07:15,980 don't sound so dreamy. 300 00:07:16,080 --> 00:07:16,780 Right. 301 00:07:16,880 --> 00:07:18,120 It's like, whoa, hold on a second. 302 00:07:18,220 --> 00:07:18,720 Yeah. 303 00:07:18,820 --> 00:07:19,320 It's a wake-up call. 304 00:07:19,420 --> 00:07:20,220 It is. 305 00:07:20,320 --> 00:07:21,880 And it's not just about making money. 306 00:07:21,980 --> 00:07:22,620 Uh-huh. 307 00:07:22,720 --> 00:07:25,480 It's about making sure your time is being used well. 308 00:07:25,580 --> 00:07:26,420 Right. 309 00:07:26,520 --> 00:07:27,860 And this isn't just a nepsy thing. 310 00:07:27,960 --> 00:07:28,260 No. 311 00:07:28,360 --> 00:07:29,800 It's any side hustle. 312 00:07:29,900 --> 00:07:30,360 Yeah. 313 00:07:30,460 --> 00:07:31,660 Any business venture. 314 00:07:31,760 --> 00:07:32,900 You've got to be realistic. 315 00:07:33,000 --> 00:07:33,700 Oh. 316 00:07:33,800 --> 00:07:36,100 This reminds me of when we tried selling thoseables a few years ago. 317 00:07:36,200 --> 00:07:36,700 Oh, yeah. 318 00:07:36,800 --> 00:07:38,400 We were like, this will be fun, easy money. 319 00:07:38,500 --> 00:07:39,300 Uh-huh. 320 00:07:39,400 --> 00:07:40,740 But we ended up spending every weekend 321 00:07:40,740 --> 00:08:10,600 pouring wax and packaging orders. 322 00:08:10,600 --> 00:08:40,460 Yeah. 323 00:08:40,460 --> 00:09:10,320 Yeah. 324 00:09:10,320 --> 00:09:40,180 Yeah. 325 00:09:40,180 --> 00:10:10,040 Yeah. 326 00:10:10,040 --> 00:10:39,900 Yeah. 327 00:10:39,900 --> 00:11:09,760 Yeah. 328 00:11:09,760 --> 00:11:39,620 Yeah. 329 00:11:39,620 --> 00:12:09,480 Yeah. 330 00:12:09,480 --> 00:12:39,340 Yeah. 331 00:12:39,340 --> 00:13:09,200 Yeah. 332 00:13:09,200 --> 00:13:39,060 Yeah. 333 00:13:39,060 --> 00:14:08,920 Yeah. 334 00:14:08,920 --> 00:14:38,780 Yeah. 335 00:14:38,780 --> 00:15:08,640 Yeah.