Why Selling AI Art Is a BAD Idea in 2024 💻 (Tips for AI Etsy Shops)
TLDRIn the video, Dylan Jarus, a seasoned Etsy seller with seven years of experience, discusses the pitfalls of selling AI-generated wall art on Etsy. He argues that the market is oversaturated with low-quality AI art listings, making it difficult for new entrants to stand out. Furthermore, AI wall art has a low lifetime value (LTV) for customers, as it is typically a one-time purchase and not a gift item, leading to fewer repeat purchases. Jarus suggests focusing on products with higher utility and considering different types of products that can be paired with AI art to increase their giftability. He also emphasizes the importance of understanding the customer's taste and spending habits, rather than just creating what the seller finds visually appealing. To help sellers navigate these challenges, Jarus offers a free 7-Day game plan for growing an Etsy shop.
Takeaways
- 🚫 **Saturation Issue**: There's an overabundance of low-quality AI wall art on Etsy, making it difficult for new listings to stand out.
- 🔍 **Quality Over Quantity**: Simply having a large number of listings doesn't compensate for the lack of quality, which is crucial for customer appeal.
- 💰 **Low Lifetime Value (LTV)**: AI wall art tends to have a low LTV because it's usually a one-time purchase with little repeat business.
- 🎁 **Not Ideal for Gifting**: AI wall art is often a personal purchase and not commonly given as a gift, which limits its market on a platform known for gift sales.
- 🔑 **Personal Taste Overlap**: Sellers often create AI art that appeals to their own tastes rather than a broader, premium customer base.
- 🛠️ **Post-Production Importance**: The difference between AI-generated art that's been post-produced and that which hasn't can be subtle to the average consumer.
- 📉 **Search Volume Complication**: The continuous auto-renewal of low-quality listings increases search volume and clutters the market.
- 📱 **SEO and Merchandising Neglect**: Many AI art listings lack SEO optimization and aren't effectively merchandised for mobile or desktop views.
- 🎨 **Focus on Customer Needs**: To succeed, sellers should consider the preferences and tastes of customers with higher discretionary spending.
- 🧩 **Diversify Product Offerings**: Rather than solely focusing on wall art, consider other product types that can incorporate AI art and are more giftable.
- 📈 **Adaptation for Profitability**: To improve sales, adapt AI art to products that have broader appeal and are more likely to attract high-value customers.
Q & A
Why is selling AI wall art on Etsy considered a bad idea in 2024 according to the speaker?
-Selling AI wall art on Etsy is considered a bad idea due to market saturation with low-quality listings, difficulty in standing out, and the low lifetime value (LTV) of customers for such items, which are typically not repeat purchases and not commonly given as gifts.
What is the speaker's background and how does it qualify him to give advice on Etsy selling?
-The speaker, Dylan Jarus, has seven years of experience as an Etsy seller, has made over a million dollars in revenue on the platform, and has a background in high volume corporate e-commerce. He also runs a company that has taught over 2,000 Etsy sellers to scale their shops, achieving over $10 million in revenue in the previous year.
What is the issue with the quantity of AI wall art listings on Etsy?
-The issue is that a high quantity of listings does not compensate for quality issues. Many AI wall art listings are of low quality, and the search volume is growing due to auto-renewal, leading to a compounding effect that makes it harder for new, quality listings to gain traction.
Why does AI wall art have a low lifetime value (LTV) for customers?
-AI wall art has a low LTV because it is not a repeat purchase item, it's usually bought for personal use rather than as a gift, and it represents a long-term commitment similar to furniture, which is not frequently replaced.
What is the speaker's recommendation for sellers who want to incorporate AI art into their Etsy shops?
-The speaker suggests considering other types of products with more utility and that are more giftable, such as items that can be stored away when not in use. He also advises against focusing solely on wall art and to consider the broader appeal and customer base.
What are the key issues with the current approach of many Etsy sellers with AI wall art?
-Many sellers focus on creating hundreds or thousands of AI wall art designs based on what they think looks cool, rather than what appeals to customers with higher discretionary income. This often leads to a shop full of listings that are not attractive to premium customers and do not have mass appeal.
What is the importance of focusing on the right customer base for an Etsy shop selling AI art?
-Focusing on the right customer base is crucial because it ensures that the products appeal to those with consistent spending habits and higher discretionary income, leading to more reliable and predictable financial results for the shop.
What is the speaker's advice for improving an Etsy shop's listings and sales?
-The speaker recommends improving the quality of listings, focusing on SEO, site merchandising, and optimizing for mobile and desktop. He also suggests considering a different approach if the shop's current strategy is not yielding sales.
Why is it challenging to distinguish between high-quality and low-quality AI wall art to the average person?
-It is challenging because the visible quality difference between AI wall art that has undergone minimal post-production and that which has been refined for hours is very subtle to the average human eye.
What is the role of personal taste in the creation of AI wall art, and how can it affect the appeal to customers?
-Personal taste plays a significant role in the creation of AI wall art, and if it becomes the primary driver, it can lead to designs that are too niche or bizarre, potentially alienating customers with premium tastes and high discretionary spending.
How does the speaker propose to help sellers adapt their AI art for different products or a more profitable customer base?
-The speaker offers a 7-Day game plan for growing an Etsy shop, which includes actionable steps for each day. Interested sellers can comment below the video to receive this free guide.
What is the significance of the customer's lifetime value (LTV) in the context of an Etsy shop selling AI wall art?
-The LTV is significant because it indicates the total revenue a customer is likely to generate for the shop over their lifetime. For AI wall art, the LTV is typically low due to the nature of the product, which is not often re-purchased and is less likely to be bought as a gift.
Outlines
🚫 Challenges of Selling AI Wall Art on Etsy
Dylan Jarus, an experienced Etsy seller, explains why selling AI wall art on Etsy might not be profitable. He cites three main reasons: saturation of low-quality AI art listings, making it hard to stand out; the low lifetime value (LTV) of customers for AI wall art, as it's typically a one-time purchase and not a gift item; and the lack of focus on customer needs rather than just the product. He suggests considering other types of products that have more utility and could be more giftable, and emphasizes the importance of quality over quantity in listings.
🎨 Shifting Focus from Product to Customer for Etsy Success
The second paragraph emphasizes the importance of focusing on the customer rather than just the product when selling on Etsy. It discusses how sellers creating AI wall art often design based on personal taste, leading to niche products that may not appeal to high-income customers. The speaker advises considering the target audience's preferences and spending habits. They also mention their course that has helped increase views and conversion rates for an Etsy shop, suggesting that adapting AI art to different products or focusing on profitable customers could improve financial outcomes.
Mindmap
Keywords
AI Wall Art
Etsy
Saturation
Low Entry Barrier
Post-Production
Lifetime Value (LTV)
SEO (Search Engine Optimization)
Mobile Optimization
Discretionary Income
Product Focus vs. Customer Focus
7-Day Game Plan
Highlights
Selling AI wall art on Etsy can lead to a surplus of listings that don't sell due to market saturation.
The barrier to entry for AI art is low, making it difficult to stand out from the competition.
Post-production work can significantly enhance the quality of AI art, which is often overlooked by the average consumer.
Focusing on quantity over quality in listings does not address the core issue of low demand for AI wall art.
AI wall art has a low lifetime value (LTV) for customers, leading to fewer repeat purchases.
AI wall art is often a personal purchase and not typically given as a gift, limiting its market on platforms known for gifting like Etsy.
The commitment level for AI wall art is high, similar to furniture, and is not frequently replaced.
Improving an Etsy shop's listings involves more than just increasing their number; SEO, site merchandising, and mobile/desktop optimization are crucial.
Product choice should align with customer tastes and preferences, not just the seller's personal aesthetic.
AI art can be more successfully integrated into products with higher utility and gift potential.
The value of an item should extend beyond its design for easier long-term sales.
Sellers should focus on creating designs that appeal to premium customers with higher discretionary spending.
An overemphasis on the seller's personal taste can lead to a niche product line that doesn't attract a broad customer base.
A well-thought-out strategy is necessary to avoid an unpredictable and disappointing financial outcome from selling AI art.
A 7-Day game plan is available for free to help grow an Etsy shop with actionable steps for each day.
To increase sales, consider adapting AI art to different products and focusing on profitable customer segments.
The speaker has a successful background in high-volume corporate e-commerce and has helped over 2,000 Etsy sellers scale their shops.
A shift in focus from product to customer can significantly improve the financial success of an AI art Etsy shop.