Last updated on June 10th, 2024 at 09:46 am
Do you enjoy expressing your artistic side through DIY crafts and wonder how you can monetize this talent? If so, this article will provide a comprehensive guide on how to sell your handmade crafts online in the Philippines.
Selling handmade creations online has become a popular and profitable business in the Philippines, where a strong legacy of craftsmanship meets a rising e-commerce landscape.
Whether you make complex jewelry, handwoven fabrics, or distinctive home decor, the online marketplace provides numerous options to reach a larger audience and transform your passion into a profitable business.
The global crafts market is expected to reach $50.9 billion by 2024, presenting a lucrative opportunity for those looking to turn their creative passion into an income.
The Advantages of Running an Online Handmade Business
Starting a handmade business in the Philippines offers several compelling benefits:
1. Reach a Wider Audience
Starting an online handmade business allows artisans to access a global market. This international exposure enables them to connect with customers who value unique, high-quality products that reflect the rich cultural heritage of the Philippines. By showcasing their skills and creativity on a global platform, artisans contribute to the preservation of traditional crafts and techniques that might otherwise fade away.
2. Creative Control
Running a handmade business online grants you full creative control over your products. From the design stage through to production and delivery, you make all the decisions. This autonomy extends to your branding and marketing strategies, allowing you to present your business in a way that aligns with your vision and appeals to your target audience.
3. Low Start-Up Costs
One of the significant advantages of starting an online handmade business is the relatively low initial investment required. If you already have the necessary supplies and equipment, you can launch your business with minimal financial outlay. This makes it an accessible option for many aspiring entrepreneurs.
4. Flexible Schedule
An online handmade business offers unparalleled flexibility in terms of scheduling. You can set your hours, which is especially beneficial if you have other commitments such as caring for young children or managing other responsibilities.
This flexibility also makes it an excellent business model for students, providing them with an opportunity to explore entrepreneurship and earn extra income without compromising their studies.
How to sell handmade crafts online in the Philippines
Below is are step-by-step guide on how to start selling online in the Philippines.
Step 1: Identify your Niche
To successfully sell your crafts, begin by pinpointing your unique selling proposition. This involves determining the specific type of crafts that set you apart from others, whether it’s traditional Filipino textiles, bespoke jewelry, or one-of-a-kind home decor items. By identifying your niche, you can differentiate yourself in a crowded market.
If you’re struggling to find your niche, try to uncover a gap in the market. Ask yourself what distinctive twist you can bring to a popular product, whether it’s through innovative design, unusual materials, or the narrative behind your creations.
You can also leverage market research tools like MarketResearch.com, NPD, and Nielsen to stay informed about current trends. Additionally, Google Trends can provide valuable insights into what potential customers are discussing in your market, helping you tailor your products to meet their needs.
Step 2: Establish Your Online Presence
You’ve identified what you want to sell, but where will you sell it?
Creating an online presence is essential for reaching potential customers. Start by setting up an eCommerce website or by selling on digital marketplaces
01). Select the right platform.
Selecting the best e-commerce platform for your online business can be tough. The best e-commerce solution for your business will be determined by the size of your organization, whether you have workers, and what features are available with free software. It’s vital to understand exactly what you need to get the best option for you.
Here are some factors to consider:
▪️How large is your business?
▪️How many things do you have to sell?
▪️How often will you manage and update your inventory?
▪️How do your customers want to pay?
▪️Which sales channels do you use?
▪️Which marketing tools do you use?
There are many excellent eCommerce solutions available, so it’s important to research and determine which platform best suits your needs before launching your craft business online.
02). Digital Marketplaces in the Philippines
No matter what you’re selling, there’s an online marketplace in the Philippines perfect for you, your crafts, and your customers. Finding the right platform involves research and a willingness to explore new options.
1. Selling crafts on Etsy
Etsy, established in 2005, remains a top choice for handmade, vintage, and craft supply items. With over 30 million potential buyers worldwide, Etsy offers a lucrative platform to turn your handcrafted items into a successful home-based business.
2. Carousell
Carousell began as a marketplace for pre-owned things but has since evolved to include handcrafted crafts and other goods. It’s popular in the Philippines because of its simplicity and emphasis on community-based sales. The platform enables direct interaction between buyers and sellers, making it an excellent choice for developing client relationships.
3. Facebook Marketplace
Facebook Marketplace is an easy way to sell crafts locally. Because many Filipinos use Facebook, you can reach a wide audience at no added expense. You may sell things, manage orders, and communicate directly with buyers on Facebook.
4. Instagram Shops
Instagram Shops are perfect for visually appealing products, such as handmade crafts. Setting up an Instagram Shop allows you to display your products to a large audience. This tool is very effective for harnessing social media marketing to increase sales and engagement.
5. Zalora
While Zalora is well known for its fashion, it also serves as a marketplace for accessories and unique goods. If your crafts fall within the fashion or accessory categories, Zalora may be an appropriate platform for reaching out to fashion-conscious customers.
Digital marketplaces provide numerous benefits for both vendors and consumers. However, keep in mind that these platforms often charge fees, which can accumulate over time.
While these platforms offer substantial demand, they also come with significant competition. You’ll need to put in considerable effort to stand out.
Step 3: Create Your Crafts
With your ideas in place and your website set up, it’s time to start making your crafts. First, identify and purchase the materials you’ll need. Create enough crafts initially to have a starting inventory when you’re ready to begin selling.
It’s wise to start small with your production, as it’s uncertain how well each product will perform in the market. Begin with a modest inventory and monitor your sales over the first few months. Once you have a better understanding of your product’s demand, you can adjust your inventory levels accordingly.
Step 4: Price Your Products
Before you can start selling, you need to set prices for your products. Pricing is crucial for maintaining profitability while attracting customers.
Finding the right price involves balancing lower prices, which mean lower profit per sale, against higher prices, which could reduce sales volume. Aim for a price point that ensures a reasonable profit per sale and generates enough sales to sustain your business. You might need to adjust your prices over time to find what works best.
Consider the following factors when pricing your products:
a. Cost of Materials
Calculate the total cost of materials used in each item.
b. Time and Labor
Factor in the time spent creating each piece.
c. Overhead Costs
Include costs such as packaging, shipping, and marketing.
d. Profit Margin
Determine your desired profit margin and ensure it’s competitive yet fair.
Step 5: Photograph Your Crafts
The next step in selling crafts online is to photograph everything you’ve made. Each item in your online store should feature its own picture, title, and product description. Photos draw attention and help customers choose between multiple products they might be interested in.
Quality is crucial when photographing your crafts. For high-quality images, consider hiring a professional photographer. If you prefer a cost-effective approach, use a white photography backdrop and take your photos at home. Numerous online resources and videos can guide you in taking excellent photos with your phone or camera.
Remember to photograph any new products you add to your online store. A comprehensive online storefront is vital for selling crafts effectively.
Step 6: Write Product Titles and Descriptions
When designing product pages, each should include a picture of the product, a title, and a product description. With your photos ready, it’s time for some creative writing.
Product titles should be concise, ideally between 20-70 characters. They should accurately describe the product and include relevant keywords, making them easy to read and understand.
Product descriptions provide an opportunity to engage customers by offering detailed information about the item. Typically longer than titles, descriptions can be up to 300-400 words. Use this space to give a vivid description of your products and tell their story to captivate potential customers.
Step 7: Market Your Craft
Once your online store is set up with pictures, product titles, and descriptions, it’s time to start marketing your craft. To boost sales, you need to drive traffic to your website, and that’s where marketing comes in. You can achieve this through;
i). Social Media Marketing
Leverage platforms like Facebook, Instagram, and Pinterest to reach potential customers. Post engaging content regularly, including photos of your crafts, behind-the-scenes glimpses of your creation process, and customer testimonials.
ii). Content Marketing
Create a blog or YouTube channel to share stories about your craft, DIY tutorials, and other relevant content. This can attract visitors to your online store and help build a loyal customer base.
iii). Online Advertising
Invest in paid advertising on social media and search engines to target specific demographics and boost visibility. Facebook Ads and Google Ads are particularly effective for reaching a wider audience.
iv). Email Marketing
Offer incentives for customer referrals and coupons for signing up to your email list when you’re starting. Once you have a mailing list, use email marketing to inform customers about new products and sales.
Step 8: Handle Logistics Efficiently
Having a website and an online store is just the beginning. Selling crafts online is a full-time commitment that requires diligent inventory management and website maintenance.
✔Inventory Management
Track your inventory meticulously to prevent overselling and to ensure prompt order fulfillment.
✔Shipping
Partner with reliable shipping companies to guarantee timely and safe deliveries. Offer various shipping options to meet different customer needs.
✔Customer Service
Deliver exceptional customer service to build trust and encourage repeat business. Respond promptly to inquiries and handle any issues with professionalism.
Step 9: Build a Community
Engage with your customers to create a community around your brand. Encourage reviews and testimonials, and consider implementing a loyalty program to reward repeat customers. Hosting online events or workshops can also foster community and enhance customer loyalty.
Step 10: Legal and Financial Considerations
Ensure your craft business meets all legal requirements;
▪️Business Registration
Ensure your business is legally registered with the appropriate Philippine authorities. This may include securing a business permit and registering with the Bureau of Internal Revenue (BIR).
▪️Taxes
Understand your tax obligations, including income tax and value-added tax (VAT), if applicable. Consult with a tax professional to ensure compliance.
▪️Insurance
Consider obtaining insurance to protect your business and inventory against unforeseen circumstances.
Conclusion
Selling handcrafted products online provides a ton of alternatives for Filipino artisans.
Following these steps and using online platforms will allow you to transform your passion into a profitable business while also sharing a bit of Filipino culture with the rest of the globe.