Want to make money from your hobby?

http://www.theguardian.com/money/2015/feb/05/make-money-from-hobby

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Whether you want to make a bit of money out of a hobby, or you hope to launch your own retail business, reaching would-be buyers on your own can be tricky. However, by joining an existing website you can find a ready-made audience of consumers. Alongside some of the biggest online names are specialist websites which might suit you better if you’re selling handcrafted goods. Here’s a look at how much some of the main players cost to use and what you get for your money.

Etsy

If you can limit your set-up costs while you build your confidence and test the water, so much the better. Etsy is fantastic for this as listing an item costs just 20 US cents (roughly 13p) for four months or until it sells, plus commission of 3.5% (plus VAT) on each purchase. If you are selling a quantity of the same product, these fees apply to each item sold. The item price is converted into dollars by Etsy before the fees are applied.

Other websites offer much more by way of marketing, but that comes at a cost.

The US-based website’s greatest strength is its vast scale – it has 30 million registered shoppers – but this can also be a disadvantage as you are among many rivals. It is open to anyone to use, which helps if you do not have a track record of selling or if your products don’t fit in with the style of other, more selective websites, but it also means there is no quality control. Indeed, Etsy’s craft disasters – from Sex Burger, a less-than-erotic painting of a naked couple embracing in a sesame bun, to a clock made from a cheese grater – earned themselves such a reputation that was celebrated on the now sadly defunct website Regretsy.com.

Etsy allows factory manufactured products for sellers who have outgrown the capacity to handmake all their products, but some feel this betrays the website’s crafty roots. It also allows the sale of vintage items, but stipulates they must be at least 20 years old.

Simmi Duffin, 35, from the Forest of Dean, sells felt creations and sewing patterns under her brand Grace’s Favours. “It is incredibly straightforward to use and there are very helpful guides that show you how to set up a shop and what categories to list under,” she says. “You can get sales from all over the world but also choose where you want to make your items available, right down to individual products if they are difficult to send abroad.” Duffin says one of her biggest selling products is a Cuddly Campervan because it is unusual and comes up in searches both on Etsy itself and when enthusiasts are hunting for memorabilia on Google. “Jewellers, on the other hand, complain that it is very hard to be found because there are thousands of other sellers,” she says.

Folksy

Folksy is the UK equivalent of Etsy, but much smaller. It insists on products being handcrafted, with no mass-manufactured or vintage products allowed. It turned over around £1m in sales in the year to September and has around 300,000 visitors a month. Sellers have two options: the basic account costs 15p per item you list and 6% commission (plus VAT) on every sale . Alternatively, you can list as a Folksy Plus seller with the same commission charge on every sale, but unlimited listings for £45 per year (including VAT). Users say it is very simple to set up.

Clare Freemantle, 34, from Newcastle runs Serious Stamp, creating custom-made ink stamps for use on wedding invitations and loyalty cards among other things. She uses several channels including Etsy, Folksy, Dawanda and Not On The High Street. “Folksy is my quietest platform. It is still a bit small, but they don’t charge a lot for what you get,” she says.

Given the low set-up costs, it makes sense to list with both Etsy and Folksy if you can to maximise your chances of reaching buyers. With both sites, the more you can do to drive traffic to your store, the better, so build up your social media profile.

Not On The High Street

The barriers to entry are considerably higher, but many traders say it is worth the extra effort and cost. It has 2 million unique visitors per month, which doubles at Christmas. It costs £199 (£238.80 including VAT) to join and you pay 25% commission (plus VAT) on each sale. The website is highly selective about which products it features. You can apply via a form on the website and you should get a response within seven working days.

Freemantle has had a great experience selling her stamps on the website. “I’ve found Not on The High Street to be the best,” she says. “You have to adhere to its terms and conditions, such as the fact you are not allowed to tell customers from the website about any of your other online stores. It has quite high standards of entry for products and photography but what you get is their marketing might, which is quite substantial. There have been TV adverts, gift guides and press.”

Amazon Marketplace and eBay

You can use these websites to sell homemade creations, although it’s harder to get noticed. “I have used eBay to sell my sewing patterns, but the downside is that people tend to shop there when they are looking to get something cheaply,” says Duffin. “Amazon Marketplace is good if you can do a quick turnaround, such as with printed clothes or cards, as shoppers tend to use it for last minute buys, but it is not suitable for me.”

On Amazon Marketplace, sellers pay a “per-item” fee of 75p for every single item sold, plus a “referral fee” of between 7% and 25% (plus VAT), depending on the category of what is being sold.“Pro merchants” can pay a £25 monthly fee instead of the 75p-per-item fees.

On eBay, as a private seller you can list 20 items for free and after that you pay 35p for each. You can choose to list your items for auction or with a “buy it now” option. Various listing upgrades are available for an extra fee, including larger photographs, multiple categories and subtitles. You also pay a final value fee that is 10% of the total transaction including postage. An extra fee of 3.4% plus 20p is due if your buyer uses PayPal. Alternatively, you can set up a “basic shop” for £19.99 per month with 100 free listings and 8% final value fees. There are further subscription options for businesses selling higher volumes with fees of between £17.38 and £217.38 depending on scale.

Build your own website

Some traders love the freedom of having their own website, whether it is their main online store or an adjunct to shops on other platforms. Nat Rigby, 38, from Cornwall, makes jewellery from recycled skateboards under her brand Thrashion. She has an Etsy store, but now finds most of her sales come directly from her own website. She says: “Social media has been great. I upload a picture every day to Instagram and that drives people to my website, particularly as it’s a site that’s used a lot by the skate industry.” Rigby used Create.net to build her website and shop, which costs between £5 and £36 per month depending on the functionality you choose, but it is free of listing fees and commission on sales. She says: “It has been amazing. You get an account manager you can talk to when you have issues and it was just as easy as setting up on Etsy.”