Many of us start ventures like this one in an attempt to make it on our own. Now, it seems easier than ever as we have so many resources at our fingertips. Wholesalers are easier to access, customers are easier to form relationships with over many different channels, and supplies are more attainable for small sellers like me that don’t have warehouses to store huge amounts of bulk ordering required by traditional wholesalers. But, the struggle to just break even seems unattainable some days.
Everyone wants a piece of the pie. The sites that host my listings, the makers platform that many of my sales come from, the government, and everyone else you can think of all want their pound of flesh. Etsy takes a portion of my sales through transaction fees, processing fees, and shipping labels. My website takes a hosting fee once a year, the government takes theirs in the form of taxes. For October, I made $99 in sales on one of my platforms. I also paid $45 in fees. That means I made a total of $53 for the month of October, and that counts towards my income at the end of the year, and you can bet the government will be taxing me on the $99 that I earned, not the $53 I actually received.
I also had to set up an LLC to start, which in my state, costs $300. A lawyer will do it for you, but the cost will be even higher. My products cost me to purchase ingredients, and shipping costs me in the purchase of packing materials. This includes the thank you notes and instruction cards I provide for my customers to do the best I can to ensure they are successful, primarily with their seed purchases. This translates into starting out far in the red for most small businesses. This is a terrifying thing. Especially in a society where we are so dependent on bringing in dollars.
It’s also frustrating because we want to provide our customers with low prices. On Etsy, I had to raise the minimum price of my items. Nothing is less than $10 in my shop. this is because a shipping label costs me around $5, and after all of the packaging costs, I cannot price things lower. In person, or off of my farmstand, those same items are priced lower because my overhead is far lower.
I cannot even begin to tell you how much you as an individual mean to small businesses like me. We are 100% dependent on your consistent and continued support, and we are so grateful every time you choose to support us. Your purchases mean the world to us, and in today’s age of constant contact social media, your reviews mean just as much. I did not understand just how much impact our reviews as consumers have on the success of the businesses we support until I became a seller myself. I am so grateful for each review I receive. Not only does it give me standing in the listings on my platforms, but it also gives me insight into what my supporters love. I do not have a large presence on any platform, and if you visit my Etsy link, you will see that though I have been on the platform for several years, I have few sales and fewer reviews. That doesn’t make their impact any less to me. For some time, I have viewed Etsy as something I do on the side, but lately, I have been focusing more on the platform. Did you know that if you use an Etsy seller’s link and purchase through it instead of through an Etsy search, the fees we get charged are reduced? Every little bit helps.
I keep mentioning Etsy, but this is one of the platforms that has made it possible for me to even start dipping my toes in the water. Though there are fees, the platform its self does provide a lot of support for small businesses, and it also allows us to more easily build relationships with our supporters. And, I really love that. I am able to share native plants with a far wider audience than I would have been able to otherwise. I also get to interact with many more people than I would have otherwise. I love hearing people’s experiences, and sometimes, I even love helping troubleshoot germination issues (before they leave me a review ha ha) when I can help supporters be successful! It does frustrate me when I don’t have the answers, but hey, we are all human. AND, I have had far more messages thanking me for their success! Basically, this whole long rambling post is just a huge thank you for being such a wonderful, supportive community, and I truly hope that each and every one of you chooses to support small, local, micro businesses like mine. Much love, Hambone’s Mercantile.
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