- Sellers can make up to six figures yearly from Etsy, Amazon FBA, and Shopify.
- Three sellers told Insider how they decided on the right price for their items.
- One raised the price until sales fell, and another settled on a price to pay herself a decent wage.
On e-commerce platforms like Etsy, Amazon, and Shopify, sellers can make six figures selling items they’ve made or purchased elsewhere.
However, determining how to price your items may necessitate experimentation, which may result in getting it wrong at first.
Price them too high and you won’t get many customers, but price them too low and you’ll lose money. Insider spoke with three sellers about how they determined the best price and learned from their mistakes.
One seller doubled her prices after realizing she was paying herself too little
Tammy Dinh began making clay key chains by hand in her apartment in 2020 while attending college and selling them on Etsy.
She chose to make an item only after a customer had ordered it in order to save money and materials.
Dinh stated that she initially charged $12 for her key chains but quickly realized that she was underpaying herself.
“I made about $150 a month for the first two months, and I realized that I was giving myself less than minimum wage,” she told me. She raised the cost to $15.
When customers began to ask for larger items, she began making handmade “desk friends” — larger clay figurines.
Dinh stated that after researching what other artists were charging, she realized she could charge more.
“I don’t think artists should be broke,” she was quoted as saying.
She set the desk buddies at $25 each and increased the price of her keychain to $20. She then purchased a more expensive resin to strengthen the items.
Dinh decided to open her own shop on Shopify in March 2022 after Etsy raised its transaction fees for sellers. In January, she made $9,561 in sales.
Dinh stated earlier this year that she believed she could raise her prices to between $45 and $75 per item.
“I spend only about $200 on materials each month, so I make quite a high profit,” she went on to say.
More information: My online store has earned me up to $9,500 per month, and YouTube has earned me up to $10,000. In college, here’s how I created multiple income streams.
An Amazon seller increased his prices until his sales stopped
Ben Alistor and his partner began selling tanning mitts on Amazon FBA as a side hustle in June 2018.
He began by investing £1,200 (approximately $1,480) in the business. He began by purchasing 600 mitts from Alibaba, a Chinese wholesale e-commerce company.
Alistor told Insider that in his first month, he experimented with various price points to see what worked best.
“Selling on Amazon FBA is a fine balance between running out of stock and not selling enough products,” he told me.
He began by selling each mitt for £8. He claimed that he kept raising the price until he reached £11, at which point his sales “collapsed.”
He decided to lower the price to £10, citing the “highest price I could sell the product” as the reason.
He claimed that after Amazon fees, he and his partner received £5.83 from each sale. They sold between 250 and 300 units in their first month.
After losing his job due to the COVID-19 pandemic, Alistor decided to increase the amount of time he spent on his Amazon business from 20 to 50 hours per week.
He recently reduced his time spent on his shop to 10 hours per week. From January to August, Alistor and his partner earned £631,700.
More: I’ve made $800,000 this year selling products on Amazon, and I only work up to 10 hours a week.
An Etsy seller marked up the price of her item to factor in her print-on-demand cost
Emma Larocque started her Etsy shop as a side hustle in November 2021. She decided to sell embroidered sweatshirts, creating her own designs and using the print-on-demand site Printful to fulfill and ship orders to customers.
Larocque stated that each sweatshirt cost $22 to produce on Printful. She told Insider that she wanted to sell the shirts on Etsy for a “competitive but reasonable” price, and she settled on $41.62.
“I didn’t want to mark up the price to the point where I wasn’t competitive — or sell the sweatshirts for more than they were worth,” she explained, adding that she also spent about $40 per day on Etsy ads.
She told Insider that she worked on her shop three hours a week and wanted to keep the lift low.
“A lot of Etsy sellers make their products by hand, which can mean a higher margin,” she told me. “I pay more to have my items made and shipped by Printful, but that’s what keeps my shop passive.”
In the first five weeks of 2023, she made $126,000 in revenue and $48,000 in profit.
More information: So far in 2023, I’ve made $126,000 in sales on Etsy. Here’s how I set up this extra income stream that only takes 3 hours per week.