Shopify merchants shattered previous records, raking in a colossal $9.3 billion during the Black Friday-Cyber Monday (BFCM) weekend. This figure marks a remarkable 24% surge from last year, illustrating a robust growth trajectory in the online retail sector.
The global shopping spree spanned from the early hours of Friday in New Zealand to the close of Monday in California, with over 61 million consumers worldwide choosing Shopify-powered brands. This consumer enthusiasm peaked at an extraordinary $4.2 million in sales per minute at precisely 12:01 p.m. EST on Black Friday.
Shopify President Harley Finkelstein reflected on this unprecedented success, “Watching entrepreneurs make their first sale and seeing established brands reach new highs on Black Friday-Cyber Monday was incredible. Our merchants spend all year building relationships with their customers and earning brand trust. This weekend was a testament to how they consistently deliver experiences and products that global consumers are looking for.”
Key Highlights from Shopify’s BFCM Weekend:
Peak Sales Moment: A staggering $4.2 million per minute at 12:01 PM EST on November 24.
Global Reach: 61 million consumers globally shopped from Shopify-powered brands.
Top Categories: Apparel and accessories, health and beauty, and home and garden dominated sales.
Average Cart Value: Customers spent an average of $108.12 per transaction.
Leading Markets: The U.S., U.K., Australia, Canada, and Germany emerged as top-selling countries.
Top Cities for Sales: Los Angeles, New York, and London led in city-wise sales.
Cross-Border Shopping: 15% of all orders were international.
Environmental Responsibility: Shopify funded the removal of 56,000+ tonnes of carbon to offset shipping emissions.
Payment Trends: A significant 60% year-over-year increase in sales was made through Shop Pay.
Entrepreneurial Milestones: Over 17,500 entrepreneurs recorded their first sale on Shopify.
Implications for Small Business Owners
For small business owners, these statistics from Shopify’s BFCM sales are not just numbers but indicators of prevailing market trends and consumer preferences. The soaring sales highlight the increasing importance of e-commerce platforms in reaching a global audience.
The diversification in product categories suggests that customers are looking beyond traditional goods, presenting an opportunity for small businesses to explore niches like health and beauty or home and garden. The rise in cross-border orders indicates a growing market for international sales, encouraging small businesses to expand their reach beyond local markets.
Additionally, the significant shift towards Shop Pay emphasizes the need for businesses to offer seamless and secure payment options to enhance customer experience. Lastly, the environmental initiative taken by Shopify underlines the growing consumer expectation for eco-friendly business practices, a crucial consideration for small businesses aiming to build brand trust and loyalty in a competitive market.
Shopify’s record-breaking BFCM sales offer valuable insights and inspiration for small business owners. The e-commerce landscape is evolving rapidly, and staying attuned to these trends is essential for businesses aiming to thrive in this dynamic environment.
The CMO is key in driving a company’s growth by overseeing all marketing and branding efforts. They are responsible for developing and executing marketing strategies that can enhance brand visibility, customer acquisition, and revenue generation.
In a competitive business landscape, having a dedicated CMO helps businesses stay ahead by understanding market trends, consumer behavior, and effective marketing tactics.
The Essential Role of a Chief Marketing Officer
The broad scope of a CMO typically includes:
Developing and implementing the company’s marketing strategy to achieve business goals.
Managing the marketing team and budget.
Conducting market research to identify opportunities and threats.
Creating and overseeing advertising and promotional campaigns.
Monitoring and analyzing marketing metrics to assess performance.
Building and maintaining the brand’s reputation and image.
Collaborating with other departments to align marketing efforts with overall business objectives.
Crafting Effective Marketing Strategies
A CMO creates strategies by first conducting market research to understand the target audience and competitive landscape. They then define clear objectives and key performance indicators (KPIs) to measure success.
Strategies are implemented through the development of marketing plans, which may include content marketing, digital marketing communications, traditional advertising, and more. CMOs work closely with their marketing function team to execute these plans and regularly assess and adjust them based on performance data.
The CMO’s Contribution to Business Development
A CMO contributes to business development by driving customer acquisition, retention, and revenue growth. They are responsible for business strategy, including creating brand awareness, positioning the company as a market leader, and identifying new market opportunities.
Identifying the Need for a CMO in Your Business
How do you know if your company’s marketing programs would benefit from a CMO?
Businesses should consider hiring a CMO when they require expertise in growth marketing strategy and execution that may be beyond the capabilities of existing team members. Signs that your business needs a CMO include stagnant growth, inconsistent branding, limited marketing resources, or a lack of a strategic marketing plan.
Qualities to Look for in a Chief Marketing Officer
A successful CMO should be a marketing leader with strategic thinking, leadership, creativity, analytical skills, adaptability, and excellent communication. They should also deeply understand marketing trends and technology and have a customer-centric mindset.
What Sets a Successful CMO Apart
The best CMOs are often distinguished by their ability to innovate, adapt to rapidly changing markets, and deliver measurable results in various marketing channels. They excel in strategic thinking, team leadership, and collaboration across departments. They also stay updated with the latest marketing technologies and trends, allowing them to make data-driven decisions and optimize marketing ROI.
Reason
Description
Impact on Business
Key Considerations
Brand Development
A CMO shapes and defines the company’s brand identity.
Strong brand identity attracts customers and builds loyalty.
Seek a CMO with a proven track record in brand building.
Marketing Strategy
Develops comprehensive marketing strategies aligned with business goals.
Effective strategies drive sales and business growth.
Look for strategic thinking and a data-driven approach.
Digital Expertise
Expertise in digital marketing is crucial in today’s market.
Enhances online presence and digital engagement with customers.
Ensure they are proficient in SEO, social media, and digital campaigns.
Customer Insights
Gathers and analyzes customer data and insights.
Informs product development and improves customer satisfaction.
The CMO should excel in market research and analytics.
Leadership Skills
Leads the marketing team and collaborates across departments.
Fosters a strong marketing team and company-wide synergy.
Assess leadership and communication skills.
Innovation and Creativity
Brings creative solutions and innovative approaches.
Keeps the business competitive and adaptable to market changes.
Prioritize creativity and the ability to think outside the box.
Budget Management
Efficiently allocates and manages the marketing budget.
Maximizes return on investment and controls costs.
Experience in budget management is essential.
Crisis Management
Manages and mitigates any PR or branding crises.
Protects the company’s reputation and maintains customer trust.
Look for experience in handling public relations challenges.
Networking and Partnerships
Builds industry relationships and strategic partnerships.
Opens up new business opportunities and collaborations.
Value a strong network and partnership-building skills.
Adaptability
Adapts marketing strategies to changing market trends.
Ensures the business remains relevant and competitive.
Seek a CMO who is flexible and forward-thinking.
Fractional CMOs: Understanding Their Role and Benefits
A fractional CMO is a part-time or contract-based Chief Marketing Officer.
Small businesses or startups with budget constraints may opt for a fractional CMO to access high-level marketing expertise without the cost of a full-time executive. Fractional CMOs provide strategic guidance, oversee marketing efforts, and help businesses achieve their marketing objectives on a flexible basis.
Clearly outline the role’s responsibilities, including strategic planning, team management, and budget oversight in the cmo job description .
Specify required qualifications, such as relevant experience, industry knowledge, and educational background.
Highlight the company’s culture and values to attract candidates who align with your organization.
Mention any specific technology or tools the CMO will be expected to use.
Include information about reporting structures and who the CMO will collaborate with.
Locating Prospective CMO Candidates
Utilize various recruitment channels, including job boards, social media, and professional networks. In addition to utilizing those channels also:
Leverage your existing network and seek referrals from industry connections.
Consider using a professional executive search firm with expertise in marketing roles.
Actively participate in industry events and conferences to network and identify potential candidates.
Recruitment Strategies
The Interview Process: Evaluating a CMO Candidate
Prepare a structured interview process with multiple rounds to assess different aspects of the candidate’s qualifications.
Use behavioral and situational interview questions interview questions to ask candidates to gauge the candidate’s problem-solving skills and decision-making abilities.
Evaluate the candidate’s understanding of your industry and market trends.
Ask specific questions about the candidate’s past marketing campaigns.
Involve key stakeholders from the executive and sales teams in the interview process to ensure alignment.
Establish open communication channels between the CMO and other departments to foster collaboration.
Encourage regular meetings to share insights, align strategies, and address challenges. That way, you can ensure that sales and marketing teams have a shared understanding of objectives and metrics for success. Emphasize the importance of teamwork and cross-functional cooperation.
Onboarding Your New CMO
Develop a comprehensive onboarding plan that includes orientation, training, and mentoring. Learn about how to onboard new employees effectively to integrate them into your team.
Assign a mentor or buddy within the organization to help the new CMO acclimate to the company culture. Many companies choose two mentors, one from the sales team and one from the executive team.
Provide access to necessary resources, tools, and data.
Set clear performance expectations and KPIs from the beginning.
How does a CMO’s marketing strategy impact business growth?
A CMO’s marketing strategy can have a significant impact on business growth. When well-executed, marketing strategies can drive brand awareness, lead generation, customer acquisition, and revenue growth. The degree of impact may vary depending on factors such as industry, market conditions, and the quality of the strategy.
How much does it cost to hire a fractional CMO?
The cost of hiring a fractional CMO can vary widely depending on factors such as the CMO’s experience, the scope of their responsibilities, and the duration of the engagement. Generally, fractional CMOs may be more cost-effective than full-time CMOs as they work on a part-time or contract basis. Rates can range from a few thousand dollars per month to significantly more, so it’s essential to negotiate terms that align with your budget and needs.
Is it possible to outsource a CMO?
It is possible to outsource a CMO through fractional CMO services or marketing consulting firms. Outsourced CMOs can provide strategic guidance, lead marketing efforts, and offer their expertise on a contract basis. This arrangement allows businesses to access high-level marketing leadership without the commitment of a full-time executive.
Selecting the best business management tools for your small business becomes super-complex when you add in one factor: integration. You see, management tools are supposed to automate tasks and save you time however, making your mix of solutions work together can suck that time right back up and turn all your effort into a wash.
Fortunately, there’s an answer to this problem: all-in-one business management tools. These solutions come loaded with everything you need in one neat package, removing integration worries from the equation entirely.
Even better, these tools live online so you can use them from anywhere and never need to worry about upgrades, hardware or backups because the vendor manages all that.
If you’re looking for a solution that’ll help you manage your back office, and often your front as well, then here are our picks of the best business management tools for small business.
Benefits of Using Business Management Tools
Business management software offers a comprehensive solution for streamlining various aspects of a company’s operations. This type of software integrates multiple functions into a single platform, enhancing efficiency and productivity. It allows for better data management and analysis, leading to more informed decision-making. Moreover, business management software improves communication and coordination within the organization, ensuring that all departments are aligned with the company’s goals. By automating routine tasks, it reduces the likelihood of human error and frees up time for employees to focus on more strategic activities. This integration of functionalities leads to cost savings and contributes to the overall growth of the business.
Benefits of Business Management Software:
Enhanced Efficiency: Centralizes various business processes, leading to streamlined operations.
Improved Decision Making: Offers robust data analysis tools for informed decision-making.
Effective Communication: Facilitates better internal communication and coordination.
Automation of Routine Tasks: Reduces human errors and saves time.
Scalability: Easily adapts to the growing needs of the business.
Customer Relationship Management: Helps in managing customer interactions and improving customer satisfaction.
Real-time Access to Information: Provides instant access to crucial business data and metrics.
Regulatory Compliance: Assists in staying compliant with industry regulations and standards.
Enhanced Security: Offers robust security features to protect sensitive business data.
Choosing the Best Business Management Tools: Our Thought Process
When it comes to selecting business management tools for small businesses, it’s crucial to choose software that enhances operational efficiency and supports various aspects of business management. When crafting our list, we used an objective methodology, taking the following factors into account. Each one is listed below and rated on a scale of one to ten in terms of importance. Those that we consider absolutely essential are given a rating of 10/10. Here’s our methodology for evaluating the best business management tools:
Range of Features (Scale: 10/10)
Comprehensive set of features covering various business needs (project management, CRM, finance, etc.).
Suitability for different business functions.
User-Friendliness (Scale: 9/10)
Intuitive interface and ease of navigation.
Minimal learning curve for new users.
Integration with Other Tools (Scale: 8/10)
Ability to seamlessly integrate with existing software (accounting tools, email platforms, etc.).
Support for data synchronization across different platforms.
Customization and Scalability (Scale: 7/10)
Flexibility to customize features according to business needs.
Scalability to accommodate business growth and changes.
Cost-Effectiveness (Scale: 9/10)
Reasonable pricing for the features offered.
Availability of different pricing plans suitable for various business sizes.
Data Security and Privacy (Scale: 10/10)
Strong security measures to protect business data.
Compliance with relevant data protection regulations.
Mobile Accessibility (Scale: 8/10)
Availability and efficiency of mobile applications.
Access to key functionalities on the go.
Customer Support and Training Resources (Scale: 6/10)
Quality of customer support services.
Availability of training resources and documentation.
Reporting and Analytics (Scale: 7/10)
Robust reporting tools for insightful business analytics.
Customizable reporting options to suit specific needs.
Collaboration and Communication Features (Scale: 8/10)
Tools that facilitate team collaboration and communication.
Features like shared calendars, task assignments, and communication channels.
By thoroughly assessing these criteria, small business owners can find business management tools that not only streamline their operations but also contribute to strategic decision-making and long-term growth.
General Solutions
These solutions cover everything from customer relationship management (CRM) to invoicing, collaboration and support. If you’re looking for a solid solution that you can customize, this is the list for you.
That said, before you dive in, check the third section because that one deals with specific types of businesses and those solutions might suite your needs better.
WORKetc
Founded in 2009, WORKetc was one of the pioneers in the all-in-one business management tools. Over the years, this solution has grown and matured until it can handle your back office, and even some customer-facing activities such as a help desk, with ease.
Zoho
Zoho‘s lineage is even older than that of WORKetc’s. Originally built as stand-alone online solutions, today Zoho’s suite of apps are tightly integrated into a system that can help you, “boost sales, step up productivity and manage all day-to-day activities.”
BlueCamroo
The fully featured Blue Camroo is chock full of all the functionality your small business will need. One outstanding feature is its ability to integrate social media both for tracking as well as for your help desk.
Sellsy
As you might expect from the name, Sellsy focuses on sales, but that’s not all it does. Unlike many of the other solutions in this list, you can use Sellsy to build and manage a website that’s fully integrated with your back end. They even have a “Rental” management feature that enables you to track availability and returns of rented items.
Bitrix
At first glance, Bitrix may seem to be a simple CRM, but they’ve included a lot of business management features such as invoicing, human resources, sales and even online meetings. The best part? Their basic level of service is free!
1CRM
1CRM is another online business management tool that calls itself a CRM but offers so much more. They offer marketing automation, a feature that’s not present in most all-in-one solutions.
ExxpertApps
ExxpertApps shows its European roots in its ability to handle multi everything (country, language, time zone and currency). If you have an international customer base, you should take a look at their solution.
kpi.com
Last but not least, kpi.com is a full-featured online business management solution that offers tons of functionality to the small and medium sized business.
Features
WORKetc
Zoho
BlueCamroo
Sellsy
Bitrix
1CRM
ExxpertApps
kpi.com
Founded
2009
Before 2009
Unknown
Unknown
Unknown
Unknown
Unknown
Unknown
Main Focus
All-in-one Business Management
Integrated Business Solutions
Fully Featured Business Management
Sales and Website Management
CRM with Business Management Features
CRM with Extended Features
International Business Management
Comprehensive Business Management
Unique Selling Points
Handles back office and customer-facing activities, Help Desk
Suite of apps for sales, productivity, and day-to-day activities
Social media integration, Help Desk
Sales focus, Website and Rental Management
Invoicing, HR, sales, online meetings, Free basic service
Marketing automation, Beyond standard CRM functionalities
Multi-country, language, timezone, and currency support
Full-featured solution for small and medium businesses
Ideal for
Businesses needing comprehensive back office and customer service solutions
Businesses seeking to boost sales and productivity with an integrated system
Small businesses needing social media integration and help desk features
Businesses focusing on sales and needing website integration and rental management
Businesses looking for a free CRM with additional business management features
Businesses needing CRM with advanced marketing automation
International businesses needing support for multi-regional operations
Small and medium businesses seeking a comprehensive management solution
General Service or Trade Business Solutions
If you run a service or trade business, then the solutions in this section were created to make your life easier. There are a lot of top-tier tools in this selection so take your time to find the one that fits your business best.
Before you dive in however, check the next section because that one deals with specific types of businesses and those solutions might suite your needs better.
Don’t let the name fool you because mHelpDesk offers much more then help desk functionality to service businesses. This is a robust and highly-rated tool so take some time to check it out.
Jobber
Jobber is perfect for service businesses. One standout feature is GPS tracking which enables you to keep an eye on your staff in the field.
Booker
Booker helps your service business manage the end-to-end relationship with your customers. They do this by focusing on, and offering functionality to manage, each part of your customer lifecycle.
Features
YourTradeBase
mHelpDesk
Jobber
Booker
Focus
Trade Businesses
Service Businesses
Service Businesses
Service Businesses
Unique Selling Points
Robust and easy-to-use solution for various trades
More than help desk functionality, highly-rated
GPS tracking for staff in the field
Manages end-to-end customer relationship
Ideal for
Various types of trade businesses seeking a comprehensive tool
Service businesses looking for a robust management tool
Service businesses needing GPS tracking and field management
Service businesses focusing on comprehensive customer lifecycle management
Specific Business Type Solutions
While all the tools on this list enable you to manage your small business, this section lists solutions that are already tailored to specific types of businesses.
If your business matches one of the types listed below, then you can use one of these tools to hit the ground running.
Salon: Phorest
Manage your salon like a pro with Phorest, a solution built for salon owners. Aside from point-of-sale processing and stock management, this solution offers a number of features you can use to market your salon while building, and retaining, your clientele.
Residential Builder and Remodeler: Co-construct
Managing all the details from before a building project begins to after it’s done is hard. Co-construct simplifies the process by tracking all the details from beginning to end. Here’s a sample of what you’ll find inside:
Technology Service: ConnectWise
If you run an IT consulting firm, then you’re going to want to check out ConnectWise. This solution has everything you need to stay on top of your client’s needs while running your back-office successfully.
Technology Company: CloudBlue PSA
If your business develops, sells and maintains hardware and software, then you need to take a look at CloudBlue PSA (formerly HarmonyPSA). Designed from the top down for companies that deal in technology products and services, their robust offering has everything you might need.
Law Firm: CosmoLex
If you want an all-in-one solution for managing your law firm, then CosmoLex might fit the bill. Here’s a peek at what they offer:
Distributors and Manufacturers: OfficeBooks
OfficeBooks is the tool you need when you’re managing the many parts of distribution and manufacturing. From inventory control to sales/quotes, purchase orders, contact management and reports, you’ll find a lot to like in this solution.
Industry
Tool
Key Features
Ideal for
Salon
Phorest
Point-of-sale processing, stock management, marketing features
Salon owners seeking comprehensive management and marketing tools
Residential Builder and Remodeler
Co-construct
Project tracking from start to finish
Residential builders and remodelers needing detailed project management
Technology Service
ConnectWise
Client management for IT consulting
IT consulting firms requiring client and back-office management
Technology Company
CloudBlue PSA
Designed for hardware/software companies
Technology companies involved in hardware and software
Law Firm
CosmoLex
All-in-one law firm management
Law firms looking for an integrated management solution
Distributors and manufacturers in need of extensive inventory and sales management
Conclusion
In the end, an all-in-one business management tool will help you spend more time working in your business rather than working on your business and that’s a good thing.
When you sell crafts online, choosing the right platform is paramount. There are plenty of different options available to handmade business owners. Three of the most popular are Etsy, Amazon and eBay. But each one offers different options and benefits for handmade shop owners. Here are some comparisons and basic information that can help you make the best decision when it comes to choosing Handmade at Amazon, Etsy or eBay.
The Importance of Choosing the Best Online Marketplace for Your Crafts
Choosing the right marketplace site when selling crafts online is crucial for several reasons:
Target Audience Reach: Different platforms attract different types of customers. Selecting a marketplace that aligns with your target audience can significantly increase your sales.
Platform Fees and Policies: Each site has its own fee structure and policies. Understanding these can help in maximizing profits and avoiding unexpected costs or policy conflicts.
Brand Alignment: The marketplace should reflect the values and aesthetics of your brand. A mismatch can dilute your brand identity and confuse potential customers.
Features and Support: Some sites offer better support, tools, and features than others, which can aid in marketing, sales tracking, and customer service.
Community and Networking: Certain platforms have a strong community of sellers, which can be beneficial for networking, advice, and support.
Overall, the right marketplace can make a significant difference in how effectively you can sell your crafts, reach your audience, and manage your online business.
Evaluating the Best Online Marketplace for Your Crafts: Our Thought Process
Selecting the right online marketplace for selling crafts is crucial for small business owners and craft entrepreneurs. It involves balancing a range of factors to find a platform that aligns with their products, target audience, and business goals. We rated each option using an objective scale; the importance of each factor is included below, with ten being the most important and one being the least. Here’s how we evaluate online marketplaces for crafts:
Audience Reach and Demographics (Scale: 10/10)
Size and nature of the customer base using the platform.
Alignment with the target demographic for your crafts.
Fees and Pricing Structure (Scale: 9/10)
Understanding the costs associated with listing and selling items.
Comparison of subscription fees, transaction fees, and other charges.
Ease of Use and Seller Support (Scale: 8/10)
User-friendliness of the platform for listing and managing products.
Availability of seller support services and resources.
Customization and Branding Opportunities (Scale: 7/10)
Ability to customize your store and showcase your brand identity.
Options for personalized branding, store layouts, and marketing tools.
Payment and Security Features (Scale: 9/10)
Secure and reliable payment processing options.
Protection against fraud and support in resolving disputes.
Marketplace Reputation and Credibility (Scale: 8/10)
The reputation of the marketplace among customers and sellers.
Trustworthiness and credibility in the market.
Integration with Other Tools and Platforms (Scale: 6/10)
Ability to integrate with social media, websites, and other marketing tools.
Compatibility with third-party tools for inventory management, analytics, etc.
Community and Networking Opportunities (Scale: 5/10)
Access to a community of fellow crafters and sellers for networking and collaboration.
Opportunities for learning and growth through community interaction.
Marketing and Exposure (Scale: 7/10)
The platform’s ability to market your products and increase visibility.
Features like promoted listings, SEO tools, and access to larger audiences.
Feedback and Review System (Scale: 7/10)
Availability and effectiveness of customer review systems.
How the platform handles feedback and its impact on seller reputation.
By carefully considering these criteria, craft business owners can choose an online marketplace that not only enhances their sales potential but also aligns with their business ethos and customer base.
Which is the Best Online Marketplace for Your Crafts?
Amazon
Handmade at Amazon is a relatively new offering from the ecommerce giant. It allows artisans and handmade business owners to set up their own shops on the popular platform.
Audience
Amazon has over 250 million customers worldwide. So there’s definitely access to a wide array of potential customers. However, not everyone who visits Amazon is specifically looking for handmade goods, so it’s not exactly a targeted group of customers.
Listing Fees
Amazon doesn’t charge listing fees, but instead takes a percentage of each transaction.
Image Options (free, charged and limitations)
Amazon lets you add one main image for each product and then up to eight alternate images for each listing, free of charge. Amazon also specifies that main photos should depict only the product for sale, not drawings or renderings, and no props that don’t come with the product.
Final Sale Fees
Currently, Amazon takes 12 percent of each sales, with the sale price calculated to include shipping. Starting August 1, 2016, that rate goes up to 15 percent.
Video options (available or not)
Sellers don’t have the ability to add video to listings. However, Amazon itself can add videos for certain vendors, but only those who are part of invitation-only vendor programs.
Payment options
Amazon accepts a variety of different payments, including credit or debit cards, checking accounts, Amazon gift cards, Amazon Points and even cash on delivery in some instances.
Inventory Management features (can you easily export items to and from your site to these sites?)
You can add your products through Amazon after you apply and get accepted. But you have to add the information for each listing. There’s not a simple import feature for you to add products from another site.
Rules and Regulations
To sell on Handmade at Amazon, you need to apply and get accepted. You also need to sell only items that are handmade by you or a member of your team, if your team is under 20 people. You can also set your own production time and even offer custom products. But Amazon only lets you set production time for 30 days out.
Store Availability (Is a store available versus just individual listings?)
With Handmade at Amazon, you get a unique storefront with a custom URL and artist profile. There, you can tell your story and offer ways to connect with customers. And of course, you can showcase all of your products for sale in that storefront, though they’ll also appear alongside other handmade products on Amazon when customers search or browse within a category.
Etsy
Etsy has long been considered the leading handmade marketplace. The site includes handmade crafts for sale, vintage items and even craft supplies.
Audience
According to Statista, Etsy had about 24 million active buyers as of 2015. Unlike eBay and Amazon, those shoppers are primarily interested in handmade items, rather than a variety of other goods.
Listing Fees
Etsy charges 20 cents per listing. And listings are good for four months before they expire. You can pay an additional 20 cents to relist items that have expired or sold.
Image Options (free, charged and limitations)
Etsy lets you upload up to five photos with each listing. There’s no additional charge for adding photos beyond that initial listing fee. Etsy recommends using photos that are a maximum of 800-1000 pixels wide and landscape or square images for the main photos.
Final Sale fees
Etsy charges a 3.5 percent transaction fee on every sale. You can pay those fees, along with the listing fees, once per month.
Video options (available or not)
You can create and upload a shop video to your main shop page. Etsy doesn’t have strict requirements for these, but recommends videos be around two minutes or less, landscape, and a max of 300 MB.
Payment options
Each Etsy seller can specify which payment methods to accept, including PayPal, credit cards, Etsy gift cards and Apple Pay.
Inventory Management features (can you easily export items to and from your site to these sites?)
You can add each listing individually on Etsy. But there’s no automatic upload or transfer feature.
Rules and Regulations
Etsy allows sellers to list items that are made by hand, vintage (must be at least 20 years old or more), or craft supplies. However, the definition of “handmade” has changed in the past few years, to the dismay of some Etsy buyers and sellers. The site is much less strict now and will allow users to sell items that are mass produced in some ways. So an item can feature original artwork but be actually produced on a mass scale.
Store Availability (Is a store available versus just individual listings?)
Each Etsy seller can set up their own individual store with its own header photo, profile and policies. Shoppers can view your products within your store or within Etsy categories or search results.
eBay is mostly known for online auctions. But some handmade business owners have found the platform to be helpful in selling crafts.
Audience
eBay’s user base grew to about 162 million active users in Q4 of 2015. However, not all of those users are interested in purchasing handmade crafts. In fact, some active users are primarily interested in selling rather than buying.
Listing Fees
The fees for eBay sellers can vary based on the type of listing, since you can host both auction type sales and fixed-price sales. In general, it’s free to create your first 50 listings per month, and then 30 cents per listing beyond that.
Image Options (free, charged and limitations)
You can add up to 12 images for free with each listing with eBay picture hosting. That also includes zoom and enlarge features so customers can get an up-close view of your products.
Final Sale fees
eBay also charges 10 percent of the total amount of the sale, which includes the item price, shipping and any other costs that you charge to the buyer, aside from sales tax. The maximum fee is $750.
Video options (available or not)
You can add FLASH files for sound or video on each eBay listing. So you can upload a video to a third party service like YouTube, then either link to or embed the video into your listing page.
Payment options
Sellers can select the payment options you want to accept, including PayPal and credit or debit cards. You can also choose to accept payment upon pickup.
Inventory Management features (can you easily export items to and from your site to these sites?)
You can create listings directly on eBay. Or you can upload your inventory data or listing templates through CSV or Excel files.
Rules and Regulations
eBay offers the ability to sell a wide array of items. So you don’t have to worry as much about restrictions on handmade items specifically. However, there are rules about listing items in specific categories. For instance, if you list an item as fine jewelry, it needs to have a fine metal setting or a fine gemstone included. Fashion settings are not permitted without fine gemstones in that category. There are also restricted and prohibited items, such as alcohol or hazardous materials, which generally aren’t allowed on eBay unless they’ve been pre-approved.
Store Availability (Is a store available versus just individual listings?)
You can create a dedicated store if you have an eBay seller account, credit card on file and a verified PayPal account. eBay also offers options for Premium or Anchor Stores as long as you have a high seller performance level.
Feature
Amazon Handmade
Etsy
eBay
Audience
Over 250 million customers worldwide, not targeted
About 24 million active buyers, primarily interested in handmade items
162 million active users, varied interests
Listing Fees
No listing fees, percentage taken per transaction
$0.20 per listing, valid for four months
Free for first 50 listings/month, then $0.30 each
Image Options
One main image, up to eight alternates, no extra charge
Up to five photos, no additional charge
Up to 12 images free, with zoom and enlarge features
Final Sale Fees
12% (increasing to 15% after August 1, 2016)
3.5% transaction fee
10% of the total sale (max $750)
Video Options
No seller-added video, Amazon adds for select vendors
The Internal Revenue Service (IRS) has announced a significant delay in the implementation of the new $600 Form 1099-K reporting threshold for third-party settlement organizations for the calendar year 2023. This decision, detailed in IRS Notice 2023-74, comes after considerable input from taxpayers, tax professionals, and payment processors. The aim is to alleviate confusion and ease the transition into the new reporting system.
Understanding the Delay and its Implications
The initial plan under the American Rescue Plan (ARP) required third-party settlement organizations (TPSOs), which include widely used payment apps and online marketplaces, to report transactions over $600 for the sale of goods and services. This marked a significant shift from the previous threshold of over $20,000 and 200 transactions. However, the IRS has decided to treat 2023 as a transition year, retaining the original threshold. This decision is expected to prevent the confusion stemming from the estimated distribution of 44 million Forms 1099-K to taxpayers, many of whom might not have a tax obligation from such transactions.
Phased Implementation for 2024
The IRS is planning a phased approach with a proposed threshold of $5,000 for the tax year 2024. This interim step is designed to ease into the eventual $600 threshold, considering the complexity of the new provision and its impact on a significant number of individual taxpayers. IRS Commissioner Danny Werfel emphasized the need for additional time to effectively implement these requirements, stating, “Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040.”
Impact on Small Business Owners
For small business owners, this delay is particularly relevant. The lower threshold could have led to increased paperwork and potential confusion over taxable and non-taxable transactions. The delay allows small businesses more time to adjust to the new requirements and ensures that they are not overwhelmed by the sudden change in reporting obligations.
Exclusions and Future Plans
It is important to note that the reporting requirements do not apply to personal transactions, such as gifts or sharing costs. However, the sale of personal items, even at a loss, could generate a Form 1099-K under the new threshold. The IRS is seeking feedback on the planned $5,000 threshold for 2024 and other aspects of the reporting requirement, aiming to focus on taxable transactions.
Commissioner Werfel reassured that the IRS would use this additional time to minimize burdens on taxpayers and work closely with various stakeholders to ensure a smooth transition and compliance with the law.
The IRS’s decision to delay and phase in the new Form 1099-K reporting threshold demonstrates a responsive approach to feedback and a commitment to a balanced implementation. For small business owners, this development provides additional time to prepare for the eventual changes, ensuring that they can comply with the law without undue stress or confusion. The IRS continues to invite input on these changes, reflecting its dedication to taxpayer-friendly policies and effective tax administration.
