5 Reasons I Wouldn’t Start an Etsy Shop (And What I’d Do Instead)

Etsy is often the first stop for creatives and makers looking to sell their products online—and for some, it works beautifully. With access to over 95 million active buyers, it seems like the perfect place to get your work in front of the world.

But if I were starting from scratch today? I wouldn’t touch Etsy with a 10-foot pole. And here’s why.

This is the biggest red flag for me: when someone buys from "your Etsy shop", you don’t get their email address Etsy does. That means they’re Etsy’s customer, not yours.

You can’t follow up with new products, nurture them with content, or build any kind of long-term relationship. You’re handing over customers you worked hard to attract and getting no way to reach them again.

Etsy takes away your ability to upsell, drive repeat purchases, or create any type of brand loyalty. And let’s be honest, that’s a huge part of running a sustainable business. Just imagine how much stronger your brand could be if you owned that customer list and had the power to connect with buyers directly, on your terms.

Etsy is completely oversaturated. Whether you’re selling stickers, printables, jewelry, or anything in between, chances are there are hundreds of other shops offering something similar. And when everyone is competing in the same crowded space, price quickly becomes the deciding factor.

No joke, I was browsing Etsy the other day and saw items priced between $1.20 and $4.70 in a single store. At that point, how can a buyer truly value what they’re purchasing? It starts to feel disposable.

And here’s the worst part: as a creator, you’re now expected to slash your prices just to stay visible. Not even to thrive. Simply to be competitive. But let’s be real: your work is worth way more than what you’re probably already charging. Running a business where you're constantly undercutting your own value? That’s not sustainable and it’s definitely not profitable.

This one’s scary—but it happens more often than you’d think. Etsy can suspend or shut down your shop without warning. Whether it’s a vague policy violation (even done unintentionally), a customer complaint, or a copyright issue. The bottom line is this: it’s their platform, and they make the rules.

When you build your business on Etsy, you’re essentially handing the keys of your business to a complete stranger.

Now imagine you’ve spent months, maybe even years, building your dream shop. You’ve poured in your time, creativity, and energy. And then one day… it’s just gone. No explanation. No real appeal process. Just a generic email and a locked dashboard.

And once Etsy decides to shut you down? There’s often very little you can do to change their mind. You’re suddenly cut off from that income stream and left scrambling to recover.

So why not start out with full control over your business from day one? It’s harder in the beginning—but so much safer and more sustainable in the long run.

Sure, someone might buy from you once on Etsy—but that’s often where it ends. The platform is designed to keep shoppers browsing, not to keep them loyal to you. Etsy promotes Etsy, not your brand.

In fact, right after checkout (and sometimes even during the buying process), customers are shown similar products from competing shops. It’s like inviting someone into your store, only for Etsy to immediately redirect them to five others offering the same thing.

There’s almost no opportunity to build brand recognition, loyalty, or community when the platform is actively working against you.

And here’s the truth: if you want to grow a sustainable business, it’s not about one-time buyers. It’s about long-term, repeat customers. Excellent marketing, and business is full of people who come back, tell their friends, and become part of your brand’s story. Etsy makes that nearly impossible.

Let’s talk numbers. There’s a listing fee. A transaction fee. A payment processing fee. And if you opt into Etsy ads (or worse, they opt you in automatically)? Yep—more fees.

Many of these charges are percentage-based, ranging anywhere from 6.5% to 15% of each sale. It adds up very fast and most new sellers have no idea how much of their profit is being eaten away.

These fees are just “part of doing business” on Etsy, but they come at a cost: they often force sellers to underprice their products just to stay competitive. It's a double-edged sword—you’re not only giving away part of your profit to Etsy, but also devaluing your own work in the process.

You might think you’re making a $10 sale, but after fees? You’re walking away with significantly less. Now multiply that across 100 sales, and suddenly, Etsy’s making real money. Off your creativity and your hard work.

If I were starting over today, I’d build my own platform from day one.

A tool like Systeme.io makes it easy to host your digital products, build a website, and even create landing pages and sales funnels—all in one place. Your email marketing platform will often let you create product pages too, so you can start growing your list and selling directly without a middleman taking a cut.

And here’s the best part: you own it all. The audience, the content, the customer relationships—the entire digital real estate belongs to you.

Platforms like Etsy can give you short-term exposure, but they should never be the foundation of your business. Build something that’s truly yours. Something that grows with you, not something that can disappear overnight.

Have you sold on Etsy before? Still on the fence about starting? I’d love to hear your thoughts and experiences in the comments below.