I know a large number of people who sells goods on Etsy. I myself love Etsy and there are some amazing finds on there. For the casual hobbyist, Etsy is a great outlet to get your products out into the world quickly and cheaply. However, if one really wants to grow a product based business, just having an Etsy site is not enough.
Why? Well, Etsy dictates all the terms of its site use. Etsy controls the who, what, when, where, why and can change its website, terms of use, or anything related to its site at any time. Only having your product photos and copy on Etsy’s site means that your business is subject to their whims. An Etsy seller must have a back up plan, including:
1) buy your own domain name. Even if you put up a basic website directing others to buy at your Etsy site, this ensures you are in control of your brand name and presence on the web and have a back up website if Etsy were to ever take your page down;
2) back up all of your product photos and copy offline;
3) keep records of your sales offline and ask your customers to join your email lists so that you retain your customer lists.
Etsy is a fabulous site with lots of good products, but it’s just one tool for a small product manufacturer or seller. Make sure you always own the rights to your own business aspects, from a domain name to your customer lists.