Recently Etsy the popular site for craftwork manufacturers and dealers has introduced card readers to its US merchants which are absolutely free for them. The only criterion is you will need to have a store with Etsy and use its online payment service system.
These merchants will be at liberty to use these cards at various online craft fairs as well as offline sales promotions and presentations. It will also help them to analyze different aspects of their online presence and upgrade accordingly to achieve the best results.
However, this is not a totally new drive. Other eminent online retailers like Amazon.com. PayPal and Square already have this facility. It is ascertained that about 35% of people who already has an Etsy shop are using it and accepting payments in this process while they are completing transactions in the craft fairs.
Though Etsy’s charge is same as Square, it is a bit higher than Amazon and PayPal. But by paying this extra 2.75%, the merchants become enable to forego the 3.5% transaction fee which is charged on other online orders.
But this is quite clear that Etsy is not targeting to capture market by offering lower rates. On the contrary, it is basically focusing to provide more efficient service than its existing rivals who have marked their footing by using the hardware strategically in catching the merchants’ attention including guiding them about various functions covering Inventory Management, interactive receipts, etc.
Camilla Velasquez, the director of Etsy’s payments and multichannel sales, has also highlighted the same view point by saying that possibly every merchant will be interested to pay an extra $20 for every commercial deal if they are assured that they are getting something better and smarter.
The readers introduced by Etsy have some definite benefits. It is compatible with smartphone app. This easily links the sellers with the online store and the entire inventory. Not only that, if a consumer buys a particular product, from a booth he can fast post a review on the seller’s page. And he can also mark a particular seller as his ‘favorite’ as he is entitled to get a receipt for his purchase.
Not doubt Etsy’s card readers will also face some major challenges. The basic reason for that is, payments through smartphone apps are soon going to be reaching its height of popularity. And Apple the retail giant has just launched its smartphone payments system too. Etsy will have to combat against all these hard competitions.