One question I hear quite often from Etsy sellers who are thinking of adding new products to their shop is “Should I open a second Etsy shop?”
It’s a very valid question to ask and it’s worth careful thought and consideration, because your choice will affect the success of your current shop as well as the potential new one.
So when SHOULD you open a second Etsy shop? Today I’ll tell you 5 important details you need to consider, PLUS I have a free download that will help you work through the decision process.
Ready? Let’s dive in.
The first thing you want to consider when deciding if you should open a second shop is who the ideal customer is for your new products.
not sure if you should have 2 shops? Grab this free decision tree!
This free DECISION TREE WILL HELP YOU DECIDE IF YOU SHOULD HAVE ONE OR TWO ETSY SHOP! AND IT’S FUN TOO!
One mistake I see quite often is a shop owner who opens a second shop because the new products are in a different product category.
What you really need to consider is not whether the new products are in a different category, but if they appeal to the same ideal customer.
Even if the new products are from a totally different product category, if they appeal to the same ideal customer then there is no need to open a second Etsy store.
For example, let’s say you have a successful Etsy candle shop, and you are thinking about opening a second Etsy shop to sell cozy blankets.
Now these products are obviously in entirely different product categories, but they appeal to the same ideal customer: someone who wants to have a cozy room ambiance. So it would be entirely reasonable to sell them both from the same Etsy shop.
Having one shop with a variety of different products can really work well if it’s more of a lifestyle brand – so perhaps all of your products appeal to stay-at-home moms, or they are all eco-friendly bath products.
Now, let’s say instead that you sell handmade candles and you are going to start selling handmade wooden puzzles for children.
These items are going to appeal to two entirely different customers, so in this example you will want to consider opening a second Etsy store.
What you want to ask yourself is if all the items work for a specific ideal customer — would they all make this specific person laugh, or inspire them? If so, selling them all in one Etsy shop could totally work.
Grab this free ideal customer workbook
This free ideal customer workbook, made specifically for handmade shop owners, will help you find and attract your ideal customers, so you can make more sales!
Now if you look at your ideal customers and determine that opening a second store might be a good idea, don’t jump the gun and open that second shop just yet!
There are 4 more important things you need to consider before making the final decision.
My absolute first recommendation is to make sure that you have the capacity – both mental and physical – to open a second shop, because having a second Etsy store is not just like adding products to your existing shop.
It’s a full second business really, with a full different social media strategy and a new and different branding strategy.
You’re going to have two different email lists, because we’re assuming that if you have a second Etsy store it’s because you’re marketing to two very different ideal customers.
And if you don’t have the same target market, you’re not going to have the same marketing.
Which means you will have double the social media captions, double the branding, double the marketing efforts — double of pretty much everything!
This means that every time there’s a holiday season, you’re going to have to double up your promotions, your order management, your inventory – the whole shebang!
These things require double your TIME, and a lot more mental energy – so think it through carefully so you don’t end up overextended and not doing a good job on either Etsy shop.
Another important detail to consider is what future plan you envision for your second Etsy shop products.
I know in the Etsy world, a lot of people think you need to have at least X-number of products before your shop can be successful or can rank, which is not true.
You can definitely be successful with a shop that doesn’t have many products.
It’s less about how many products you have right now, and more about how many products you can see yourself making in the future.
What you want to avoid is something I call the “shiny object syndrome.” This happens when you have recently learned this new craft or skill, or you have a new product idea (I call these “the shiny squirrels!”), and you think “This is GREAT, let me open a shop for that!”
But you haven’t thought through if this is something you can see yourself doing long term, if you would enjoy developing more products for this store — vs. if it’s something you’re just enjoying at the moment on the side of your current business.
This helps avoid spending a lot of time and money on a new shop only to have your interest and motivation fizzle out shortly after.
Another thing to consider before deciding if you should open a second Etsy shop has nothing to do with the new products or the new shop, it’s all about your current shop.
Even if you have a fabulous idea for a second Etsy shop, and all other considerations point to opening a second shop, you first need to make sure your current Etsy shop is at a place where adding a second shop is sustainable.
By this I mean that the first store is reliable, has consistent sales, and is making a big enough profit to support delegating some of your smaller tasks. This will free up time and energy for you to put into the second shop and also help ensure that the first one won’t collapse when you start to divide your time between the two stores.
From my personal experience working with Etsy sellers, I see people wanting to open two Etsy shops a little bit too early. Then suddenly the first one loses too much momentum and the second one has trouble gaining momentum because you’re splitting your time into two different stores.
So I can’t emphasize enough to be sure your current store is solid and reliable before considering a second one.
If after hearing all this you are learning towards opening a second shop, you also need to be sure you understand how that will look from an “Etsy-logistics” perspective.
Be aware that a second Etsy shop will be ranked separately by Etsy – so the ranking of your current Etsy shop will not help or influence the ranking of your second Etsy shop, you will be starting from the ground up on your new shop.
When you have two Etsy shops, if one shop has a violation Etsy reserves the right to apply the penalty to both of your Etsy shops.
“If Etsy has reason to believe you, Your Content, or your use of the Services violate our Terms, including this Seller Policy, we may deactivate Your Content to some or all users, or suspend or terminate your account (and any accounts Etsy determines is related to your account) and your access to the Services.”
Any shop tools you pay for will most likely require a second subscription for your second shop. This is yet another added cost for you – ON TOP of the double marketing efforts, double social accounts, and double time commitment.
Obviously, the idea is that you make more money with another shop so this is more of an investment than a cost but still something to consider cash-flow wise as you get it off the ground.
So – is opening a second Etsy shop doable and can it be successful? Of course!
But the key is 1) knowing if you need to do it (or if you can simply add the new products to your existing shop), and 2) knowing when the timing is right to make that leap.
If you follow the guidelines above, you will make the right decision and I am sure be very successful with whatever you decide!
I’ve got two free guides that I really recommend you take a look at if you’re considering a second Etsy shop.
The first one is if you’re still unsure whether opening a second shop is good for you; I have a decision tree that you can print and use to help guide you through this decision process.
not sure if you should have 2 shops? Grab this free decision tree!
This free DECISION TREE WILL HELP YOU DECIDE IF YOU SHOULD HAVE ONE OR TWO ETSY SHOP! AND IT’S FUN TOO!
The second one is great if you have multiple new product ideas or many things that you like to make, and you’re realizing after reading this article that you need help deciding WHICH craft products to sell.
Thanks for reading and until next time, aurevoir!
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Amazing! Thank you so much for the insights! I did not know that opening a second shop can be a good option if one have a good number of customers. Hpwever, these insights are really helpful. I will start planning for another shop as well as I am planning on adding more products. Keep sharing more tips. I love your blogs.
Keep checking back every week for more tips, Michelle. We wish you all the best in your planning!