We talked a lot about importing, drop shipping and finding wholesalers in this blog - after all, that’s what we do. But if you are creatively inclined then deciding what to sell may be as simple as looking to what you are able to produce with your own hands.

Etsy.com is a relatively new US-based ecommerce site with a difference: all products for sale are hand-made. The site started out in 2005 as a labor of love and the site’s owners have publicly stated they have little interest in making money, which gives us warm fuzzies all over. To them, it’s all about building a great community and a site that’s lovely to use. Etsy hasn’t promoted itself all that much, yet over the past year, member numbers have rocketed to over 850,000 – with 100,000 of these sellers. To us, that says that this site is doing something rather special related to an emerging zeitgeist.

What can be sold on Etsy?

Handmade items are the focus of the site, although the category is broad enough to include "hand-assembled" or "hand-altered" items also. Sellers may also offer craft suppliers and vintage goods over 20 years old.

Why sell there?

• Prices are realistic: Hand-made items usually involve a significant amount of labor and need to be sold at a price that reflects that in order to be profitable. Sites such as eBay are bargain-focused and thus not suited to this market, whereas visitors to Etsy come there because they want to find something unique and handmade. And they are willing to pay a real price for the privilege.
• Growing trend for niche items: As status products such as iPhones, designer bags etc become more widely available, people have started looking toward unique items that aren’t mass-produced as the new ‘status’ items.
• Traffic is skyrocketing: It’s always nice to be one of the first to pick up on a site primed for success. Etsy looks set to be a big name in the future.
• Great community: Etsy is where artists meet other artists. The tight community has been, and still is, a huge drawcard for new members.
• Cool site: Etsy is nice to look at and nice to use. It’s a refreshing change from the primary colors and clutter of other ecommerce sites.

For further information about buying and selling on Etsy, read the Dos & Don’ts.

We’re very interested in hearing the experiences of sellers who’ve given Etsy a go. Please leave a comment and let us know what you think about this rising star.

Who’s got a bone to pick with eBay?

Whatever the exact number, it’s too many. Sellers have been the most vocal, but don’t let’s forget it was the buyers’ discontent that caused eBay’s panic-driven actions in the first place. Let’s face it – why would a buyer choose a potentially ‘cheap’ experience (in every sense of the word) on eBay over a guaranteed slick and professional experience on Amazon?

It’s been 12 years since eBay first came into existence - a long time by ecommerce standards, and perhaps it’s time eBay died a natural death? One can’t get away from the fact that user expectations have changed radically in that time, as online services have become cheaper and more sophisticated. Sadly, eBay just doesn’t seem to have been able to keep up with the times.

eBay’s Litany of Errors - How many screw-ups can one company make and survive??

Most critically, eBay has ignored the trend for community input in site growth, instead, making a string of swift and brutal executive decisions.

• First we had delayed action against fraud…the reason why eBay is having all these problems in the first place.
• Then we had fee increases – at a time when 99% of the world’s most popular websites are free, this severely bucks the trend.
• Then we had feedback changes – and eBay took a giant step towards destroying the dream of eBay as a place where anyone could run a business and make money.
• Then we had radical changes to search…
• We’ve had changes & restrictions on shipping cost
• VeRO’s shoot first, ask questions later approach
• And now eBay is testing ‘Paypal-only’ in Australia and Shipping & Handling price limits in certain categories in Germany…
• Plus they have a terrible attitude to support, with many emails going unanswered or receiving only standard responses.

So What Would You Do if You Were eBay?

Clearly eBay is panicking. They see Amazon as their #1 competitor – yet, as Josh Catone from ReadWriteWeb has pointed out, instead of trying to keep their unique selling point, they seem to be cackhandedly hell-bent on turning into a clone.

What would you do if you were eBay? Is there still time for eBay to pull through? At present eBay still has two things going for them…

• Traffic - 83.9 million users world-wide
• Brand recognition – People still think of eBay first when thinking of buying & selling online

But the reasons to go elsewhere are compelling…

• Greater freedom
• Simpler design – many buyers find eBay over-complicated
• Cheaper – smaller or no fees

Where do you think eBay will be in 2 years time?

SaleHoo Market Analysis

What’s Hot? Coach, Chloe, Balenciaga, Chanel, Michael Kors, Prada, Gucci, Fendi, Hermes, Kate Spade, Vera Bradley, Louis Vuitton, we could go on and on…

Pros & Cons

Pros

• High demand

Cons

• Prevalence of fakes & the potentially harsh consequences of being caught selling fakes.
• Expensive to buy genuine wholesale designer handbags

What’s Considered a Fake & What’s Not?

It’s illegal to sell counterfeit merchandise, but in theory it’s okay to sell ‘designer inspired’ items. ‘Designer inspired’ means that the handbag looks quite similar to the real thing, but doesn’t feature any logos or brand names belonging to the company.

That said, VeRO – eBay’s intellectual property rights watchdog - has been known to crack down even on these items. Basically, eBay has too much to lose to take chances. So from their point of view, it’s better to treat sellers as guilty until proven innocent, rather than the other way around. Therefore, if you are going to sell ‘designer inspired’ items, be prepared for some close attention.

Of course, selling out-and-out fakes on eBay will eventually lead to your auctions being pulled (depending on how quick you get dobbed in), with huge fines and even imprisonment in the offing if the company who owns the trade mark decides to pursue the issue.

Problem is, it can be hard to tell good fakes from the real thing, and seeing as the consequences are so scary, it’s critical you know your stuff before you begin.

Knowing Your Designer Handbag from Your Designer Sham-bag

Start with some serious research into the brands you wish to sell. Knowing your brand and your bags makes it much, much easier to spot a fake. Especially when you realize that many bags are simply modified a little each season, but ultimately stay close to the original design. Researching the brand will also help you learn how the bags are distributed and where they end up at the end of their lifecycle.

The second leg of your research should be concerned with price. The majority of authentic handbags from the big designers can never be found at more than 40% below retail price, barring liquidations. Why? Because distribution is tightly controlled by the company to ensure there is never a surplus. In some cases, excess items are destroyed rather than sold off cheaply. Super low ‘wholesale’ prices, such as $75 for a Chanel handbag that retails at over $1,000, practically scream ‘fake’.

The third very, very, very important thing is to get the paperwork. All genuine brand name items come with paperwork known as a ‘chain of title’. You know how the Transport Authority keeps records on the ownership of each car every made? Well designer handbag companies use paperwork to keep a trail of ownership of each bag every made. Being part of the chain of title means that the invoice you receive from the supplier declares that the item is authentic and states the brand name in full and the style number. And if VeRO should come knocking, being able to display this evidence will stop them in their tracks – or at worst, transfer their attentions to your supplier!

Finding a Designer Handbag Supplier

Wholesalers – Designer handbags are discounted rather than wholesale. It can be extremely difficult to find legitimate wholesalers of designer handbag; however we can reveal that SaleHoo contains several excellent wholesalers stocking genuine Gucci, Balenciaga, Dior, Coach, Fendi, Chloe and more!

Liquidators – Liquidation pallets can be the source of some real designer handbag bargains, particularly the pallets coming from big department stores such as Macys. This is the only way you will get designer handbags at ‘wholesale’ or even below wholesale rates.

SaleHoo members can view our list of favorite designer handbag wholesalers (both for genuine & designer inspired items) here. Non-members, join now to view.

Best Place to Sell Wholesale Designer Handbags

Sell ‘designer inspired’ handbags:

http://www.etsy.com

http://www.ioffer.com

http://www.ecrater.com

Flea markets

Sell genuine designer handbags:

http://www.amazon.com

http://www.ebay.com

Your own website

We can sum these tips up by saying it’s all about making it as easy as possible for people to buy.

Item as described

• Always include at least 3 high resolution pictures no less than 400×300 in size.
• If you don’t know how to take a professional picture, read a book about it or one of the many excellent free articles online.
• Be honest: don’t make something seem like it’s worth $400 when it’s only worth $4. Being disappointed with quality is a big reason for neutral feedback. Surprisingly, buyers don’t actually assume it’s going to look cheap just because they paid hardly anything!
• Avoid designer brands – the genuine articles can be hard to get hold of, and fakes are a big cause of negatives.
• If selling liquidation items, make sure condition described in full and you use plenty of pictures so people know exactly what they are bidding on.

Communication

• Set up an FAQ Page to answer common questions and explain the steps involved in purchasing an item from you.
• Over-communicate – set up automated emails to go out to say thanks when you receive payment and to tell the buyer you have shipped their item. These can be very easily set up through Selling Manager Pro.
• Use your About Me page to tell your buyers all about yourself and your business. Include photos of yourself, your family and your premises to help remove the anonymity of the internet.

Shipping time

• Opt for speed over low price to improve this DSR. A domestic shipment should arrive within 3 days for maximum customer satisfaction.
• Use Selling Manager Pro to inform the buyer their item has been shipped and send them the tracking number. This reduces the chance you’ll be blamed for any delays caused by the postal service and is generally good communication practice.

Shipping and handling charges

• These days it’s best to lose money on shipping and increase your item price to cover the cost, rather than making your profit on the shipping.
• Top sellers use Express or Priority Mail Services for super speedy service and offer great combined shipping deals. Having regular free shipping offers will also help boost your feedback on this DSR.