Maximizing Etsy Success: Advanced Guide to Profitable Digital Products - Part 1

July 19, 2024

When we think about groundbreaking products and services, we often assume they started from scratch. However, many of today's most successful companies didn't invent anything entirely new. Instead, they recognized existing opportunities and found ways to improve or enhance what was already working in the market.

For example, Apple didn't invent the smartphone, but they revolutionized it. Before the iPhone, there were plenty of smartphones on the market. Apple saw the potential to enhance the user experience by integrating a touch screen interface, a robust app ecosystem, and sleek design. They took an existing product and made it more user-friendly, stylish, and versatile, transforming the smartphone industry and establishing Apple as a leader in the market.

Similarly, Dyson didn't invent the vacuum cleaner, but they drastically improved it. Traditional vacuum cleaners had issues with losing suction and were often bulky and difficult to maneuver. Dyson innovated with their bagless technology and cyclonic separation, which maintained strong suction. They also focused on design and usability, creating a vacuum that was not only more effective but also more appealing to consumers. Dyson’s improvements turned a mundane household appliance into a high-demand product.

Now, how can you apply this concept to your entrepreneurial journey, specifically your Etsy business? It's straightforward. Start by researching existing products that are already successful and identify areas for improvement. Can you enhance the images, price, quality, or shipping speed? Can you bundle products together? Be curious and obsessive about helping your potential customers. Understand their pain points and find innovative ways to address them. Remember, innovation doesn't always mean starting from scratch; it can mean taking what's already working and making it better. 

In today’s post, we’re diving into the world of digital products on Etsy. We’ll show you how to research and find what customers really want. Digital products, like printable art, digital planners, and e-books, have their own perks and challenges. The good news? They’re inexpensive to produce and can earn you money repeatedly without much extra work, especially since there's no hassle of shipping. The downside? There’s a lot of competition, so you need to be absolutely sure you’ve picked the right product to sell.

How to Research and Optimize Your Etsy Listings

Let's dive deeper. Start by going to Everbee’s dashboard and setting up your filters:

  1. Product Prices: I prefer product prices starting from $10 to $100. Low-priced products require a lot of work, especially in terms of customer communication, and you need to sell in high volumes to earn meaningful revenue. High-ticket items usually require more time for buyers to make a decision. I focus on mid-priced products, where purchases are often made emotionally.

  2. Monthly Revenue: Set this from $2,000. Also, filter for relatively new listings, less than one year old. Younger listings indicate that it’s not a seasoned product, meaning you have a better chance to compete by improving its quality and marketing.

  3. Filter for Digital Products: Since we're focusing on digital products, make sure to set the appropriate filters.

After applying these filters, you might find around 641 potentially interesting items to consider. Check them manually to find products that can be easily replicated, are not in an oversaturated niche, and have room for improvement. This can be based on your experience or insights from reviews, SEO, or design.

Examples of Promising Digital Products

Sewing Pattern - $19k/month

Not a new niche, but it has potential. Find experienced sewing pattern makers on Upwork or Fiverr for insights on improvement:

One more interesting thing, I searched for the “sewing pattern” keyword in Facebook ads library and saw active ads leading to the Etsy store PatternCosPatterns:

This store seems to have solid stats, with gross revenue of more than $10k/month

Another example from the Facebook ads library showed an ad leading to a landing page that collects emails for later email marketing campaigns.

This indicates that different marketing strategies can work: relying on Etsy organic traffic with the right SEO, acquiring users from Facebook/Instagram ads with direct advertising, or offering free samples to collect emails. Pinterest is also a great source for new users.

So definitely sewing patterns can be an interesting niche to test.

Wedding Planner - $13k/month

You can find a freelancer on Fiverr or Upwork to create a similar Excel and Google Sheet wedding planner. But please remember, we don’t recommend just blindly copying; it's better to provide a better experience for the user by adding more value.

Facebook ads library also shows active ads for the “keyword planner,” leading to the Your Wedding Mate store.

This ad redirects to an e-commerce site, but you can test whether sending users to your Etsy shop/product page yields better results. Pay attention to the price; on Etsy, the regular price is $21, while in the store, it’s $52. They are completely different stores, but the products are very similar, so testing different prices can be a good leverage to increase your profits.

3D Print Model - $6k/month.

3D print models are great to sell on Etsy because they attract passionate buyers in a niche market. One model alone has made over $6k in just one month, showing there's a high demand. As 3D printing becomes more popular, there’s lots of potential to offer unique designs that really stand out. Plus, items based on popular movies can go viral and sell incredibly well.


Marketing Strategies

Use different marketing strategies to drive traffic:

  • Etsy SEO: Optimize your listings for better visibility.

  • Facebook/Instagram Ads: Direct advertising or offering free samples to collect emails.

  • Pinterest: Utilize Pinterest for additional traffic.

By improving existing products and leveraging effective marketing strategies, you can enhance your chances of success on Etsy.

Conclusion: Pros and Cons

Pros:

  1. Low Production Costs: Digital products like printable art and e-books are inexpensive to produce and can be sold repeatedly.

  2. No Shipping Hassles: Digital products eliminate shipping logistics, making the sales process smoother.

  3. Built-in Traffic: Etsy itself is a great traffic source with almost 400 million monthly visits. With the right SEO optimization and well-chosen products, you can achieve plenty of sales.

Cons:

  1. High Competition: The Etsy marketplace is crowded, requiring thorough research and optimization to stand out.

  2. Customer Communication: Low-priced items necessitate high sales volumes, increasing the need for customer support.

  3. Market Dependence: Success is influenced by changes in platform algorithms and market trends, requiring adaptability.

So, I hope this post helps you understand the way of researching products. We will continue our research for Etsy shops in the next posts, talking about digital and physical products to sell.