Before we keep going on this guide about how to success on Etsy make sure to check part 1 Beginner's Guide To Success On Etsy .
Beginner's Guide To Success On Etsy Part 2 : Managing Income and Expenses
While both sites offer free sign-up and do not require monthly memberships, there are still costs associated with getting your listings online and processing sales for the orders you receive. Because of the way these two sites integrate with each other, there are two transactions taking place for each order. In essence, the customer places and pays for their order through Etsy but then you’re paying Printful to fulfill it. It’s important to understand the distinction even if transactions process seamlessly; the order a sale is billed in with integrated services like these can sometimes cause sellers understandable confusion.
Budgeting For Initial Costs
Because Printful is charging you as the first point of sale, the billing account you entered should have a balance that can cover the cost of fulfillment. If there are any delays or issues with the customer’s payment to Etsy being made to you, this could affect when you receive the profits from that sale separately from Printful’s side of the transaction.
Etsy offers deposit schedules for daily, weekly, biweekly and monthly disbursements. Your personal banking institution can take a few days to process the deposit, so plan your funds with a little buffer because of this. In some cases, there may be a required minimum amount in order to use a daily disbursement setting.
It’s important to note that Etsy processes sales for newcomers a little differently than established sellers and that certain fees can vary by where the seller is located. Depending on the kind of payment settings your store has, you may or may not incur certain transaction fees, as well. While Printful’s costs are built into the retail price of the item, Etsy’s fees can be charged separately or per listing depending on the type of fees applicable to that order.
Shipping Issues And Returns
As a seller working with a print-on-demand service for fulfillment, you can feel a little vulnerable to the mercies of fate when it comes to issues related to shipping times, mistakes or broken products and customers asking for returns for various reasons. Depending on where the complaint originates will determine whether you need to be working with a Printful or Etsy representative to resolve any of these issues.
For issues that are clearly the fault of Etsy or Printful, their policies allow them to correct the issues at their expense. However, both you and the customer may have to take several steps to show fault on their part. In the case of broken or damaged goods, Printful requires photographs of the item in question before processing the claim and replacing it or refunding the payment. If a customer receives a size that their invoice shows they didn’t order, the responsibility is with Printful—but if the customer simply ordered the wrong size themselves, Printful will not cover the cost of refunding the sale or exchanging it.
Because Etsy’s payment system offers integration with PayPal, too, it’s important to be aware of PayPal’s policies regarding customer returns and charge backs as that can influence how Etsy itself processes claims and requests for refunds. In many cases, there is a limited window of time to initiate a claim for refunds due to third-party errors. You can set order fulfillment to manual instead of automatic if you want to take extra care to review each order as you receive it.
No matter what, encourage your customers to contact you first before they submit a claim for a return or ship a product back to the return address on the label (by default, this is Printful’s address but can be set to your own). To help avoid confusion and issues with shipping and return policies, make sure you list them clearly on your store’s page. Be sure to save all messages related to an order issue and take notes to help you navigate the problem in case it comes up again.
Advertising And Analyzing Stats
One of the biggest advantages of using services like Etsy and Printful together is the controlled, data-rich backend that levels overhead costs and saves you time and expertise. With the different reports and trackers available to watch your sales and plot your growth, nerding out over the numbers is even easier. Use the built-in website tools and the downloadable spreadsheets that Etsy offers its sellers in order to maximize your understanding of just where your money is being spent and where it’s being made. While it’s easier to use spreadsheets and software for long-term tracking of your goals, some simple but important formulas for every business owner to remember are:
● Net income: your revenues minus your expenses.
● Break-Even Point: your fixed costs divided by the average price per item, minus the average cost of goods sold.
● Profit margin: your net income divided by your sales.
● Average price per item: your total revenue divided by the number of items sold
● Average cost of goods sold: your total cost of goods sold divided by the number of items sold
If you’re just getting started operating a business for the first time, try to keep your accounting simple and straightforward to avoid getting bogged down and confused. While investing in robust marketing campaigns and third-party promotions can boost sales, it won’t help if you don’t have a handle on how to make the most of your budgets and projections. Once you have a good understanding of how the flow of funds between the two sites works and what your growth can sustain, upgrading how you reach your customers with exciting new additions to your brand’s line of products. Finally, your store’s success through Etsy and Printful integration for print-on-demand services isn’t difficult to achieve, but it takes a little work and time before it gets easy.
Use the forums and FAQs available on both sites and never be afraid to reach out to the customer service representatives available on both sites if you ever need to resolve an issue. Tackling problems before they have a chance to grow exponentially more difficult is the first step in keeping revenue streams like these flowing seamlessly and lucratively.