Deciding that you want to close your Etsy shop is a big decision.
This decision usually comes within the first six months to a year on Etsy without sales or interest in your shop. Many new sellers can get discouraged if they plunge into Etsy unprepared or without the tips and tricks that help sellers get “big.”
However, there are some seasoned sellers who choose to end their Etsy career to move on to bigger and better things – sometimes even opening their own physical locations and boutiques!
Should you close your Etsy shop?
The decision to close your shop should not be taken lightly. You can open multiple shops and close others, or you can start over from scratch. Either way, closing your shop comes down to whether or not you feel it is worth keeping it open and the labor that it will require.
Let’s look at a few reasons you might want to close up shop, for good.
How Do I Know If It’s Time to Quit Etsy?
Quitting Etsy is a big decision if you are a seasoned seller with a few years under your belt of Etsy success – even more-so if you are a full-time Etsy entrepreneur.
It may be that you desire a new challenge, have been given an opportunity by another business, or are just tired of the at-home business life.
If that’s the case, closing your Etsy shop comes down to preference, finances, and your personal goals.
Preference & Site Shopping
If you’re thinking of closing your store on Etsy because you’re tired of the platform, you’re not alone.
Many Etsy stores that make it “big” prefer to move on to a site that they can get a domain for, can hold more information, data, and customers at one time, and are more likely to grow.
Etsy has a problem with a “ceiling” for their businesses – especially those with over 500 listings. For major clothing stores or jewelry stores, moving away from Etsy is more about platform preference and data space than about a failing business.
If you think that this is you, consider moving on to a bigger, faster solution for your entrepreneurial needs.
You should also be reading our article which talks about Can Etsy Shops Have Multiple Owners?
Lack of Sales & Therefore Money
Within the first six months to a year, Etsy shop owners will get discouraged by a lack of sales and, therefore, money streaming into their account.
It can be discouraging to have a lot of product and no buyers when you start an Etsy shop – especially if you were really excited and ready to take on the world with your creations!
While we discourage sellers from throwing in the towel so early – as there are solutions for this problem and things you can do to help your business – some Etsy sellers feel that their shop isn’t really what they wanted all along and that they’d rather try different avenues for their creative outlet.
If you truly feel that Etsy has nothing to offer you, closing your shop is a good idea to prevent owing Etsy listing fees and money when you don’t have sales coming in.
Personal Goals & Long-Term Planning
Leaving Etsy can be one of many steps in your business goals and long-term planning.
Say you started on Etsy to get the word out about your product, but now you’ve grown, and you’d like to move on to bigger and better things – closing your Etsy store is a fine way to go, but not always the right solution.
Many large, successful Etsy shops HAVE moved on to bigger and better things, but they know that there’s no need to lose out on sales just because they moved on from Etsy.
Instead, those businesses will continue to keep their Etsy shop open, staying true to their roots and the customers or fanbase that they already have there.
If your long-term goals are to grow your business bigger than Etsy can allow, consider keeping a fraction of your products on the Etsy site in order to keep garnering that extra income.
You should also be reading our article which talks about Can Etsy Shops Have Multiple Owners?
How Long Does it Normally Take to Start an Etsy Store?
Starting an Etsy store doesn’t take very long at all when it comes to the basics.
Opening your store comes down to your email, banking information, and what you want to call it.
However, product listings, photos, descriptions, tagging, creating, marketing, and shipping items take a long time and a lot of focus – especially if you’re full-time. Basically, if you’re planning to close your shop to start another one, consider finishing the second shop before you quit the first one.
If you finish the second shop beforehand by keeping it “Under Construction” while you operate your other shop, you will have a much easier time to transition between the two shops. And you’ll have the money to finance the switch!
When someone closes their shop too soon without taking the necessary steps to be ready to move to the next shop, often they spend two or three months getting settled and without making sales.
4 Things to Ask Yourself Before You Close Your Etsy Store:
1. Are You Financially Prepared to Close?
If your Etsy shop has done well for you over the time that you have had it, closing up shop may not be a big decision for you.
With savings in the bank and a new business idea on the horizon, you could feasibly quit Etsy without any nervousness or worries.
However, if your shop hasn’t been doing well, and it costs more to keep it than you are getting out of it, you may have to resign yourself to the fact that you will be taking a loss on that shop. This means that closing down and starting over could take some time and personal financial investment.
If you aren’t financially prepared to close, and your shop is making a profit, consider saving up before getting rid of it.
2. Are You Going to Continue Your Business Elsewhere? Where?
If you decide that leaving Etsy is more about finding a new platform for your product, rather than a personal choice to walk away from the business, you will need to make absolutely sure you’re ready to transition.
This could include:
- Backing Up Files
- Saving Product Descriptions
- Saving Product Images or Graphics
- Paying Off any Etsy Fees or Outstanding Balances
- Paying Wages to Team Members or Employees
Once you’ve prepared yourself for transition, make sure you are fully happy with wherever you’re going.
Whether that is to open a shop with Shopify or to create a store on Amazon or eBay, knowing where you’re going and how you will create your business model and operate your shop is crucial for the change.
New sites can be hard to get used to, and you don’t want to spend two months setting up shop and missing out on sales.
3. Will You Return to a 9-5 Job or Stay an Entrepreneur?
For those Etsy shops that are full-timers or who earn all their money from Etsy shops, giving up their online shop can be a big choice that upends their entire lifestyle.
Just like with making sure you have savings to fall back on, knowing if you will continue to be an at-home entrepreneur or go back to a contract job at a 9-5 is vitally important to help you make the choice to leave.
If you feel trapped in your Etsy store because you don’t have a “Plan B,” consider handing the reins over to a trusted member of your team for a few weeks while you figure that part out.
4. What is the Reason for Quitting? Is it Worth It?
For many artists, creators, and visionaries out there, being successful on a site like Esty is “the dream,” and quitting it can be a very difficult and sometimes heartbreaking decision.
If you are considering quitting Etsy to pursue your dream elsewhere, that’s great! However, if you’re feeling discouraged or down-and-out on the Etsy platform for any reason, there may be more you can do than to just quit.
For example, if a lack of sales is the issue, renewing listing fees are only charged to your shop every four months – meaning that you can take those four months of no sales to really decide if this is something that you want.
If it is, consider making changes to your shop that will help kickstart it back into something you’re passionate about!
Can I Close my Etsy Store and Open a New One?
You can have more than one Etsy shop at a time and can switch between the two, whether through accounts or to manage more than one on your account.
If you are considering closing your Etsy shop for another one, that’s usually pretty easy and a quick transition (once the second shop is ready to go).
If you are considering opening a whole new shop on a different platform, you need to make sure that you understand the new site and are able to operate your new shop as soon as it opens. Otherwise, you could lose sales while you attempt to get used to the new one.
What Happens When you Close Your Etsy Store?
This is a huge decision to make, so be prepared!
Closing your Etsy store basically removes all data that you had on it – so make sure that you have saved, backed up files, photos and product descriptions before making the decision to close.
Once you’ve closed it, your account no longer has a shop associated with it, and you’re simply an Etsy shopper again.
Your account remains, but the shop and all its data, information, and product listings are gone.
This is why you will want to make sure you pay for all outstanding balances and fees before you close the shop – otherwise, you could continue to owe Etsy once you’re no longer a seller.
Furthermore, customers may search you but will end up at a “404 Not Found” sort of screen that says, “Uh oh, what you’re looking for no longer exists,” and the like.
Can I Close my Etsy Shop Temporarily?
Etsy allows you to put your store on “Vacation” mode if you’re planning to take some time off.
This is a great alternative to closing it down, as it basically pauses everything until your back. You won’t be able to make any sales, but people can still find your data and see that you are still operational – just taking a break.
Furthermore, this gives you a chance to really think over whether or not you want to close up shop. With a little break from the hustle and bustle of personal business life, you can really decide if Etsy and all that your shop has to offer is right for you and fits your needs and wants.