So you have decided to open an Etsy shop, yay…. whooo….whoop whoop. And as you want it to work you start doing some research. You might know what you want to sell or maybe you have a list of possible ideas but as you start looking on Etsy you realize that the niche that makes you tingle is saturated, so saturated it’s like nothing else could ever fit or compete with the hundreds, thousands of results.

If you are about to start your Etsy shop you can trim a few start-up costs by using 40 Free Links

I just searched on Etsy for “wedding invitation download” and it gave me 219,420 results. No, I didn’t count them, it tells you on the top right.

A scary number like this might make you wonder if it’s a good idea or a bad one. On one hand, there are many competitors out there, but on the other, it might be an opportunity to stand out. In this post, I’ll explore both sides and weigh the pros and cons of diving into a saturated niche.

First, let’s define what a saturated niche is. It’s a market where there are many businesses or professionals offering similar products or services. For example, the wedding invite industry is a saturated niche, with countless Etsy shops offering wedding invites in all formats, and that’s not even counting all the high street shops and big wedding websites that sell wedding invites too. So, what are the advantages of entering this type of market?

One advantage is that there’s already a demand for your product or service. If there is a demand that means people are buying it. You’re not going to be making/creating something you don’t know will sell. Plus, you can learn from your competitors’ successes and failures and use this knowledge to improve your own business strategy.

So there must be some cons to diving into a saturated niche. Yes of course there is, entering a saturated niche also means that you’ll have to work harder to stand out. You’ll need to offer something unique to your customers, whether it’s exceptional customer service, innovative products, or a fresh approach to marketing. You can’t rely on just having a good product or service – you need to build a brand that speaks to your customers’ needs and values. Again you can refer back to your competitors and see what they are doing and do it better.

Let’s put it another way …. Still using the wedding niche as an example

Everyone starts with creating a wedding invite. They put it up for sale and then wonder why no one is looking at it. They might make another one and have the same results. Consider the ‘wedding invite download’ as the best apple on a tree. Everyone is reaching for it. Now consider some of the lower-hanging fruit, like ‘wedding menu download’ When I search that on Etsy I suddenly have fewer competitors with 21,480 search results. And if go for an even lower fruit ‘ butterfly wedding menu download’ I suddenly only have 244 competitors. That’s where I would start with, a butterfly wedding menu. Then add things to match.

Another challenge of entering a saturated niche is the competition’s ability to lower prices. A shop that is selling lots quite often has lower prices, especially in the digital niche where overhead costs can be low. It’s demoralizing to see them being sold at such a low price. Don’t get into a pricing war instead look at as many competitors as you can and gauge an average price then give your product more value.

Again let’s put it another way…this time using Ai art as an example….

Everyone is making ai clipart and selling it on Etsy, including me. It can be fairly quick and easy to create and once up it can sell over and over so everyone has put the price really low. Now this has a couple of effects. It can shout to your customer that you don’t value your time and work, it can make buyers think that maybe you are not in it for the long haul or that maybe it’s stolen work or just bad quality. So you do your research and have yours priced at an average price. But how can you make yours more appealing than your competitors? Think of the buyer, in this case, maybe it’s more of a crafter who will buy your clipart. They might need 20 bunnies in a waistcoat all the same but slightly different or they might want bunnies in waistcoats and bunnies in tiaras and a few bunnies in bowties. A crafter will look at a clipart pack and gauge how many unique things they can make out of it. 20 bunnies in waistcoats don’t give much variety. 20 bunnies in a mixture of waistcoats, tiaras, and bowties offer combinations and suddenly a lot more products can be made.

All in all, working in a saturated niche can be rewarding. It can be empowering to compete with well-established brands and grow your business. You’ll need to focus on standing out, building a strong brand, and delivering excellent value to your customers. Thinking outside the dreaded box, researching into knowing your target customer actually wants

So in conclusion, selling in a saturated niche can be both good and bad, depending on how you approach it. If you have a unique value proposition and are willing to roll up your sleeves and put some hard work in to stand out, a saturated niche can be a great opportunity for getting those sales in and growing your brand. However, if you’re not ready to face fierce competition or if your strategy is more fuzzy than clear, it might be better to look for a less competitive niche. Ultimately, the most important factor is to be passionate about your business and believe in what you’re offering. With dedication and the right mindset, you can make any niche work for you!

If you are looking for an Etsy course to learn more I highly recommend Jessa’s Etsy Superstar course

Similar Posts