According to Expert Market Research, the global market for crafts and handmade products is expected to reach USD 2,149.93 billion by 2032. This surge shows a renewed appreciation for unique, personal items in an increasingly mass-produced world.
Selling handmade products online isn’t just a business opportunity; it’s a way for artisans to share a piece of themselves. Thanks to the power of online sales platforms, artisans can now reach customers who value authenticity and creativity more than ever.
In this blog, we’ll explore the steps to launching your own handmade items business online, sharing practical tips to help you build a brand. Stick with us to learn how to turn your hobby into a sustainable income!
How to Start A Handmade Items Online Business
Starting an online business requires extensive planning and careful consideration. To simplify the process, we will break it down into three parts and explain them thoroughly.
A business has three main phases: The Pre-launch, The Launch, and the Post-launch phases. Now let’s jump into how each of these phases plays out –
1. The Pre-Launch Phase
Starting a handmade business online starts with setting a solid foundation. This phase is all about preparation, from selecting your niche to choosing the right platform.
The section below will detail each stage to show how each step in this phase works.
Niche and Branding
Defining your specific niche helps your business stand out in the crowded market. Your niche can be of any kind; it can be a particular category of product, such as handmade jewelry, or a unique style, like boho-inspired decor.
Clarifying your niche beforehand makes it easy to attract a dedicated customer base that resonates with your products, which helps create a loyal and stronger brand identity.
Customers are more likely to be attracted to brands that speak directly to their needs. A strong niche allows you to create products that align with your customers’ unique vision and increases the chances of getting repeat customers.
To select your niche, brainstorm what you love to create and identify a target audience. Research the competitor market and see what’s trending to find gaps your offerings could fill. Eventually, you will have the specific niche of your choice.
Business Planning
A business plan outlines your goals, audience, pricing, and strategies for growing your business in the future.
Clear business plans provide focus and direction, making it easy to navigate challenges and make strategic decisions. Reports show businesses with a written business plan grow 30% faster than those without.
Strategic planning ahead of time indicates long-term success for companies. Planning can also help you allocate resources wisely and set realistic financial goals, giving your handmade business a greater chance for long-term success.
To make a strategic business plan, define your business’s mission, target audience, and financial goals. Outline costs, pricing strategies, and how you’ll market and distribute your products. Even a simple plan can help provide clarity and direction.
Product Development
High-quality, thoughtfully made products are the backbone of any handmade business. A study published in the Journal of Marketing found that consumers are willing to pay approximately 17% more for handmade products than those labeled as machine-made.
Also, a report from Accenture revealed that 50% of consumers are willing to pay more for products that align with their values, including quality and craftsmanship.
Developing standout products from the beginning builds customer trust and can lead to stronger brand loyalty. To create a lucrative product, test various designs and materials and gather feedback from friends, family, or local craft fairs. Aim to perfect the product experience, from its durability to its packaging.
Platform Selection
Choosing the right platform to sell your product is crucial for online businesses. There is no way to slack off at this stage, and the wrong platform selection can lead to devastating results.
The platform you select will impact your business’s visibility, customer reach, fees, and brand perception. Different platforms offer different, and often unique advantages.
For example, EasyCommerce, a WordPress ecommerce plugin, offers a simple interface and user-friendly navigation, which makes your store super smooth and easy to manage. Choosing the right platform allows you to align your brand with customer expectations and reach an audience that values your offerings.
Research popular platforms to see which aligns best with your brand and budget. Consider setup costs, ease of use, and whether the platform supports the growth of handmade brands.
2. The Launch Phase
With the preparation in place, it is time to introduce your handmade business to your audience. This phase focuses on carefully presenting your craft, reaching your targeted audience, and ensuring secure transactions. Let’s look into the details –
Product Listings
Product listing is where you present your products and list them strategically on your website. The process includes crafting detailed and compelling descriptions for each product accompanied by high-quality pictures.
According to a 2023 report by Shopify, products with multiple high-quality images and thorough descriptions have a 30% higher conversion rate.
Clear and informative descriptions help customers understand your products’ unique value, which reduces hesitation about products and helps customers make a quick purchase decision.
To write an attractive description, highlight your products’ materials, craftsmanship, and unique features. Use high-resolution images from various angles, and consider including lifestyle photos showing the product in use.
Remember to incorporate relevant keywords naturally to ensure that your listings are optimized for search engines and rank higher in results.
Marketing and Promotion
For any business, strategic marketing and promotions are essential in attracting customers to the store. Without marketing, your business will be lost in the endless sea of internet content.
Effective marketing is essential for driving traffic and generating sales, as promotional content can increase sales from 10% to 50%.
About 72% of consumers also look for promotions and discounts before purchasing. Promoting your products through various channels will help build brand awareness and connect you with your target audience.
To effectively promote and market your craft items, utilize social media platforms like Instagram, Facebook, and Pinterest to showcase your products and engage with potential customers. Consider running targeted ads to reach a broader audience.
Building an email list can also be valuable; as sending newsletters with updates, promotions, and behind-the-scenes content fosters a deeper connection with your audience.
Setup Payment and Shipping
Set up the complete shipping and payment process beforehand to deliver products promptly without any damage. This step includes establishing a reliable system for processing payments and delivering products to customers.
Setting up a secure payment system on your website ensures smooth and secure transactions, and it’s vital for customer satisfaction and brand value. Several studies confirm customers are more likely to abandon their carts due to security concerns. Efficient shipping practices also contribute to positive customer experiences, encouraging repeat business.
To ensure secure payment, choose a payment processor that offers security and convenience, such as PayPal or Stripe. As for shipping setup, make sure to communicate shipping policies, including costs and delivery times, on your website.
Invest in quality packaging to protect your products during transit, and consider offering tracking options to keep customers informed about their orders.
3. The Post-Launch Phase
Now that you have successfully launched your business, it’s time to focus on scaling it and providing the best customer experience. The post-launch phase often determines a business’s long-term success.
Let’s explore how to ensure this success for your business –
Customer Service
Customer service is the support and assistance you provide your customers before/after purchasing your product. It involves handling inquiries, resolving issues, and ensuring buyers have a positive experience with your brand.
Exceptional customer service builds trust and loyalty and encourages repeat business. According to Salesforce, 89% of consumers are more likely to make another purchase after a positive customer service experience. Customers who feel valued by a brand are also more likely to recommend it to others and enhance organic growth.
To offer exceptional customer service, try to respond to inquiries within 24 hours, and set up an FAQ section to answer common questions. A personal follow-up after purchase can also be a nice touch, as it reinforces the customer’s positive impression.
Financial Management
Financial management of your ecommerce business means tracking revenue, expenses, and profits and forecasting future financial needs. Managing cash flow in your business helps to avoid any disruptions to your operations.
Proper financial management of your cash flow ensures your business remains profitable and can grow sustainably over time. A study conducted in the U.S. shows 82% of small businesses fail due to mismanagement of cash flow. Regular financial tracking helps you avoid these pitfalls and empowers you to make informed decisions.
Use accounting software like QuickBooks or Xero to track your income and expenses. Regularly review your financial reports to understand trends, and create a monthly or quarterly budget. If necessary, consult a financial advisor to refine your strategy and ensure compliance with tax laws.
Scaling Your Business
Scaling refers to expanding your business to reach a larger market, increase revenue, and improve operations without sacrificing quality. This often includes increasing inventory, enhancing production capabilities, or expanding into new sales channels.
Scaling allows you to maximize revenue and tap into new markets, which is essential for long-term growth. Businesses with structured growth strategies are more likely to thrive, as steady scaling helps them overcome early-stage challenges.
To scale your handmade craft business, consider opening up a store on platforms like Amazon or Etsy to reach a wider audience. Hire additional team members or outsource tasks to manage increased demand effectively.
Remember to continuously gather customer feedback to improve your products and marketing strategies.
In a Nutshell
Starting an online business can be daunting if you don’t have a proper plan in place. A thoughtfully structured plan makes your handmade business stand out and ready for future success.
To sell your handmade items online or start a new online-based handmade item business, define your niche and create a business outline. Develop unique, high-quality products and choose a platform that suits your brand.
In the launch phase, focus on creating compelling product listings, effective marketing, and reliable payment and shipping setups to attract and retain customers. Post-launch, prioritize excellent customer service, track finances carefully, and plan for sustainable scaling to grow your business over time.
With these steps, you can turn your craft into a thriving online business. So, carefully follow all the steps and make your dream business, good luck!
Frequently Asked Questions (FAQs)
1. How can I make my product listings more appealing?
If you want to make your product listings appealing, we advise using high-quality images and clear, detailed descriptions highlighting unique features, materials, and uses. This builds trust and can increase conversion rates.
2. What marketing strategies work best for handmade businesses?
Social media platforms like Instagram, Facebook, and Pinterest are great for showcasing handmade products. Email newsletters and targeted ads can also help you connect with potential buyers.
3. How can I provide good customer service with a small team?
Proving good customer service is also possible with a small team. You just need to set up an FAQ page for common questions, respond promptly to inquiries, and consider sending follow-up messages after purchases to build loyalty.
4. When should I start scaling my handmade business?
Scale when you have a stable customer base and reliable product quality. Expanding to new platforms or outsourcing tasks can help you meet growing demand without compromising quality.