How to Run Your Craft Business on Etsy?

How to run Etsy craft business?

Etsy truly is a great platform for craft businesses to sell their products online to a broad global audience. Starting an Etsy shop just takes a few minutes, and you immediately have your products in front of millions of potential customers. With a killer product, quality images and a bit of smart marketing, your Etsy craft business is bound to succeed. Right?

Not so fast. This is only half of the story. Life could be bright at first, but you might be on a route to some serious trouble when your business grows. You will notice that it becomes increasingly difficult to keep your workshop in order. The chances are that you are facing one or more of the following problems: late deliveries, cash tied up in excess inventory, not enough materials when you need them, spending too much time on tracking sales order fulfillment (especially if you sell via multiple channels), stressful copy-pasting between different tools and tables.

This is where inventory and production management software (in manufacturing terminology also known as Material Requirements Planning, MRP) comes into play. Etsy + cloud MRP software is a perfect combination for scaling manufacturers. Etsy for powerful sales and marketing, MRP for excellence in order fulfillment management. An integrated Etsy + inventory management software and manufacturing planning solution can provide a seamless experience with sales orders, product lists and stock levels in automatic sync between your Etsy shop and MRP software.

MRP software enhances the planning side and the management side of the workshop operations. Your Etsy craft business will enjoy the following specific benefits from integrating with a cloud inventory management and manufacturing planning software:

Meeting delivery deadlines

With a clear overview of order fulfillment status and a proper production plan, meeting delivery deadlines is not a problem. You can easily keep track of your orders and workshop capacity in manufacturing planning software. You will know exactly when to order another batch of raw materials, so you are never short. Products get finished and handed over to delivery on time.   

Shorter delivery deadlines

When you have control over your workshop operations and production plan, you do not have to include an unnecessary buffer in your delivery times. You can be confident in giving delivery time promises that you can keep without hassle. Shorter delivery deadlines mean happier customers.

No excess inventory

Deliver faster using less inventory and work-in-progress. Sounds impossible? Inventory management and manufacturing planning system helps you maintain the lowest possible inventory levels for materials, WIP, and finished goods by enabling just-in-time production and effortless application of make-to-order production flows. This means your cash is not tied up in excess inventory.

Efficient resource usage

Well-coordinated work orders and production plan means your resources are used efficiently. Having all raw materials and subassemblies at the right place at the right time ensures there are no queues or idle periods for employees or workstations. This means lower costs and higher profits.

Better pricing decisions, higher profits

Manage all your products, product recipes, raw material supply terms, and production operation details at one place. You can trace the material and production costs for each item in seconds, so you know how much you should ask your customers. All current and historical cost data is stored and can be easily analyzed.

Simple multi-channel sales management

Integrate your Etsy shop with a cloud MRP software and your sales orders will flow automatically to your MRP dashboards. But Etsy might not be your only sales channel. Also, feed sales orders from your own web shop platform, and insert orders you receive by phone or via e-mail into a single MRP tool. Simply coordinate all orders and related production activities from a central manufacturing and production planning software.

Less manual work

Inventory management has never been easier, as MRP software updates your inventory levels automatically based on sales, purchasing and manufacturing orders. Moreover, an integrated solution means sales orders flow automatically to MRP; all products, variants, and inventory levels are in automatic sync. Less copying-pasting, and more time for the fun stuff like marketing, product development, and design. Also, fewer hours in the evening trying to make sense of all those spreadsheets, and more quality time with family and friends.


A modern cloud inventory management and manufacturing planning software comes at a fraction of the cost compared to all the benefits your Etsy craft business can achieve from integrating Etsy with MRP. Visit our home page for more information and a free trial.