Instagram has revolutionized the social media business landscape by seamlessly integrating a thriving eCommerce platform while preserving its core essence and simplicity.
This popular social media platform offers a wide range of tools dedicated to selling products, it rivals Etsy in terms of capabilities, offering a huge untapped business potential.
The key factor? User count. Instagram boasts a whopping 2.35 billion active monthly users, dwarfing Etsy’s 89.90 million active buyers in the first quarter of 2023.
The sheer number of potential buyers on Instagram that can be achieved thanks to its business tools, far exceeds Etsy’s reach – after all, Insta’s user base is over 26 times larger.
However, Etsy still has advantages in some cases.
In this article, we’ll break down the differences between both platforms.
By the end, you’ll know if you should stick to something tried and true like Etsy, or hop on board with the emerging and exciting new ways of selling online through Instagram.
Selling On Instagram Vs Etsy – The Main Difference
Instagram is all about eye-catching visuals, showcasing a beautiful collection of products and encouraging users to interact. Being an online platform, it provides an exciting new way of selling online.
It’s like having a glossy catalog as an online store, one that’s both visually appealing and engaging.
In contrast, Etsy is an online marketplace, equipped with everything necessary to create your own virtual Etsy Shop.
It can be a powerful toolkit that helps you build a complete online store and retail experience, just like eCommerce platforms such as Shopify.
Selling On Instagram Vs Etsy – A More Detailed Breakdown
Now, let’s go into a proper deep dive.
Target Audiences
Winner: Tie. Depends on the seller.
Instagram has a diverse user base, making it better for reaching a large audience.
The website is especially popular among younger demographics and those interested in visual content.
On the other hand, Etsy attracts a targeted audience of individuals seeking unique handmade and vintage items, providing a niche target market for sellers.
Although, it’s likely that Etsy’s marketplace will have more mainstream product categories that resonate with younger and more mainstream audiences, if its last yearly trend report is anything to go by.
According to the report, some of the best things to sell on Etsy in 2023 are:
- Mix-and-match decor items, like indigo and honeycomb pieces, infusing spaces with vibrant hues.
- Fashion pieces for younger individuals that embrace individuality and eclectic taste, including personalized jewelry, statement accessories, and vintage clothing.
- Nostalgic or futuristic items with a retro gaming, holographic, or cyberpunk aesthetic, such as retro gaming consoles, holographic stickers, and cyberpunk accessories. These trendy additions provide a playful and edgy twist to room and office decor.
All these are good indications that the platform is working close to the edge of its comfort zone and will likely have a similar audience as that of Instagram by the end of the year.
Branding and Customization
Winner: Instagram
An Instagram store is no longer just a business account with a profile photo and bio.
You can stand out as more than that. You can effectively market yourself and establish your unique brand identity on Instagram. That can be done by leveraging Reels and Stories, which help creatively showcase your products.
There’s even a new feature called “Instagram Shop”, which allows sellers to create a customized storefront much like Etsy.
Etsy also offers great customizability, allowing sellers to personalize their shop’s appearance with customizable banners, layouts, and featured listings.
However – there’s a catch. The customizability is locked behind a paywall with Etsy Plus.
You can be just as effective with presenting your brand with Instagram’s similar offerings, which are completely free. So it takes the lead for this comparison.
Product Management
Winner: Etsy
Etsy provides extensive product listing features. Etsy Sellers can add detailed descriptions, multiple photos, and categorize items into sections.
Instagram allows product tagging and descriptions, but that’s better for those selling products with a smaller selection.
The latter has started rolling out better product management features with its Shop program, such as Collections and Exclusive Product Drops.
However, these features are still new and in their infancy. Product Drops are currently limited to the US, and Collections are not very beginner-friendly.
So, while Insta might be on route for taking over Etsy in this factor, the latter still remains a superior choice at present.
Discoverability and Searchability
Winner: Etsy
Now this is where Instagram meets its biggest hurdle. You’ll need to heavily rely on hashtags and algorithms to reach wider audiences.
Competition from shops and users, along with the removal of the Shops tab earlier this year complicates matters even more.
To gain visibility on Instagram, you really need to put in effort. Optimizing posts and using influencer marketing are vital to establish brand presence.
Not to mention, you have to wait for your products to be spoon fed to potential customers through reels and other indirect methods.
If your product does hit it off on Instagram, your sales will skyrocket – but that’s a coin flip at this point.
In contrast, becoming an Etsy Seller offers a simpler path.
Etsy makes finding products easy for anyone shopping online, as it works with conventional search engine optimization techniques. Most users can simply use the search bar.
Overall, Etsy is a more reliable choice.
Checkout, Transaction Fees And Other Fees
Winner: Instagram (In most cases)
Now, let’s talk about the final most important detail. The payment process – for both you and your potential customers.
Instagram currently doesn’t charge a Selling Fee until June 30, 2023, but will introduce a standard listing fee or selling fee sometime thereafter.
For card transactions on Instagram, there will be a 2.9% fee. If you use PayPal checkout, the fee is 3.49%, and for Shop Pay, it’s 2.9%.
In comparison, Etsy charges a 6.5% transaction fee on the total order amount, including item cost, shipping costs, and sales tax. They also have varying payment processing fees by country.
To sum it up: Instagram has lower fees for card transactions and Shop Pay compared to Etsy’s transaction fee. However, Etsy’s fee is slightly lower than Instagram’s for PayPal checkouts.
On another note, Etsy also has listing fees, though they aren’t that high – you only have to pay $0.20 for each listing.
Comparing Product Sales On Both Instagram And Etsy
Want to make the choice based on the products you’re selling online regardless of the nuances? Then the quick comparisons below might help you out:
Selling Art On Instagram Vs Etsy
Paintings and illustrations sell better on Instagram as it’s a visual platform.
With the right optimization, a decent following can lead to increased engagement and more sales for your creations.
Selling Clothes And Jewelry On Instagram Vs Etsy
No doubt, Instagram is the best for clothes. You can combine great designs with the incredible influencer marketing opportunities it offers.
Same thing for selling jewelry or any other common wearable.
Selling Other Handmade Products On Instagram Vs Etsy
Anything else except for the above would almost certainly fit Etsy better. That also applies to craft supplies used to make said handmade products.
Since it’s made for niche crafts and has better search, people can find whatever they want much more easily.
Pros and Cons of Selling On Instagram
Here are the benefits and drawbacks of Insta.
Pros of Selling on Instagram
- Broad audience reach.
- Visual appeal.
- Higher user engagement.
- Better branding opportunities.
- Lower transaction fees.
Cons of Selling on Instagram
- Discoverability challenges.
- Limited product management.
- Limited customization options.
Pros and Cons of an Etsy Shop
Now, let’s discuss Etsy.
Pros of being an Etsy Seller
- Niche market.
- Better searchability.
- Extensive product management.
- Customization options.
- Lower transaction fees for PayPal checkouts.
Cons of Selling on Etsy
- Limited audience reach.
- Decent customization put behind paywall.
- Listing fees.
So Is It Better To Sell On Instagram Or Etsy?
It depends.
Despite Insta looking like the obvious choice in some cases, it’s not. The platform has its own flaws too.
Etsy can still serve as a good way to make a lot of money selling your masterpieces. And it’ll likely improve further by the end of this year, so it’s a good idea to pick it and start selling now to get a headstart on anyone.
Instagram can work if you’re patient and willing to take risks. It offers your business the advantage of building loyal customers who love to buy online due to its high usage.
FAQs
What sells well on Instagram?
Visual products like paintings, illustrations, and wearables tend to sell well on Instagram.
Does Instagram take a percentage of sales?
Not at the moment, but that will change after June 30.
What percentage of my sales does Etsy take?
Etsy charges a transaction fee of 6.5% on the total order amount.
Does Instagram increase Etsy sales?
Yes, using Instagram effectively can increase visibility and drive traffic to your Etsy store, leading to more sales.
Can I sell directly from Instagram?
Yes, you can sell directly to customers from your account on Instagram using “Instagram Shops”.
What are some Instagram and Etsy alternatives for those selling online?
Besides Etsy and Instagram, you can consider selling your products on platforms like Amazon, eBay, Shopify, and WooCommerce.
Final Thoughts
So, which platform should you sell on, then? Here’s a basic recommendation: Pick Instagram if you want to sell art or anything that’s trendy or wearable. Any other items would be best sold on Etsy.
Remember your target audience, and budget for promotions such as email marketing, business goals, and product type. Though Instagram may have the biggest numbers, it’s not something you absolutely have to choose.
Etsy is still popular for a reason. If your needs match, you can still go for it with your eyes closed.
