#HANDMADESELLER 51
The second thing I’d like to talk about is brand and price “positioning.” I know it might sound like a bunch of boring words, but it is a very important concept, so let’s dive in!
“Positioning refers to the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way.” -strategiccfo.com
This is close to the concept of “perceived value.” In other words, your “positioning” answers: What do people think of your shop? And consequently, what do they think your products are worth?
By selling your products on an online marketplace, you inherit part of their brand identity. You are an “Amazon seller” or an “Etsy seller” before being your own brand.
This can make it hard to differentiate yourself and to create a strong brand identity that people will remember. Here’s an example of a common conversation between consumers:
“Where did you buy that necklace?”
“Oh, I bought it on Etsy!”
In the best scenario, the shopper would answer, “Oh, I bought it from insert your brand name here on Etsy!”
Next, selling on a platform can also make it very difficult to charge your worth. Sadly, the majority of Etsy sellers do not price strategically (for profit). Some of them price low on purpose (it’s just a hobby), and for others, it’s simply that they don’t know how to price.
The problem? Customers don’t know that. All they know is that a lot of shops are charging $35 for an item that you are selling for $75. It doesn’t matter that your competitors aren’t making a profit at all, it just makes it harder to charge what you need to charge in order to stay in business.
This is true for any niche and whether you want to position yourself as an “affordable, budget-friendly brand” or as a “high-end, luxury designer brand,” but it’s even harder for those of you wanting to charge premium prices.
If you sell on your own website, you instantly get rid of those positioning “interferences.”
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Branding and Pricing