Why Selling AI Art Is a BAD Idea in 2024 💻 (Tips for AI Etsy Shops)
TLDRDylan Jarus, a successful Etsy seller with seven years of experience and a background in high-volume corporate e-commerce, shares his insights on why selling AI wall art on Etsy might not be a lucrative idea in 2024. He cites three main reasons: the market is oversaturated with low-quality AI art, making it hard to stand out; AI wall art has a low lifetime value (LTV) for customers, as it's typically a one-time purchase and not a gift item; and sellers often focus on the product rather than the customer, creating niche designs that don't appeal to high-income buyers. Instead, Jarus suggests considering other product types with more utility and focusing on designs that have broader appeal. He offers a free 7-day game plan for growing an Etsy shop and encourages sellers to adapt their AI art to different products or reach out for help in targeting profitable customers.
Takeaways
- 🚫 **Saturation Issue**: There's an overload of low-quality AI wall art on platforms like Etsy, making it hard for individual listings to stand out.
- 🎨 **Quality Over Quantity**: The sheer number of listings doesn't compensate for the lack of quality, which is crucial for customer appeal.
- 🔍 **Difficulty in Distinguishing Quality**: The average person struggles to differentiate between AI art that's minimally processed and that which has undergone extensive post-production.
- 💰 **Low Lifetime Value (LTV)**: AI wall art tends to have a low LTV because it's not a repeat purchase item and is usually not bought as a gift.
- 🛋️ **Personal Taste Overlap**: AI wall art is often chosen based on the seller's taste rather than the customer's, which can limit the appeal to a broader audience.
- 🧩 **Non-Giftable Items**: AI wall art is typically a personal purchase and not commonly given as a gift, which reduces its market compared to more universally appealing items.
- 🔗 **SEO and Merchandising Gaps**: Many AI art listings lack proper search engine optimization and merchandising, which is essential for visibility and sales.
- 📱 **Platform Optimization**: AI art shops often fail to optimize their listings for different devices, such as mobile and desktop, which can affect customer experience and sales.
- 🎁 **Utility in Products**: Suggests considering other product types that can leverage AI art and have more utility and gift potential.
- 💬 **Customer Focus**: Emphasizes the importance of focusing on customer preferences rather than just the product, to attract a premium market segment.
- 📈 **Adaptability and Growth**: Encourages adapting AI art to different products and focusing on profitable customers for a more reliable and steady income.
Q & A
Why does the speaker suggest that opening an AI wall art shop on Etsy might not be a good idea?
-The speaker suggests that it's a bad idea due to the saturation of low-quality AI wall art listings on Etsy, the low barrier to entry, and the difficulty for the average person to distinguish between high-quality and low-quality AI art.
What is the speaker's name and what is his background in relation to Etsy?
-The speaker's name is Dylan Jarus. He has been an Etsy seller for 7 years, made over a million dollars in revenue on the platform, and has a background in high volume corporate e-commerce. He now runs a company that has taught over 2,000 Etsy sellers to scale their shops.
What is the issue with focusing on quantity of listings rather than quality when selling AI wall art on Etsy?
-Focusing on quantity does not address quality issues. Listings that are of low quality will not attract premium customers or create traction, leading to a saturated market with non-selling items.
How does AI wall art affect the Lifetime Value (LTV) of a customer for an Etsy shop?
-AI wall art tends to have a low LTV because it is not a repeat purchase item and is usually bought for personal use, not as a gift. This limits the potential for customers to return and make further purchases.
Why are AI wall art items not typically considered good gift options according to the speaker?
-AI wall art is often very personal and specific to an individual's taste, making it an unsuitable gift. It is also a long-term investment, similar to furniture, and not something people change frequently.
What is the speaker's advice for someone who wants to incorporate AI art into their Etsy shop?
-The speaker advises considering other types of products with more utility and that can be gifted, such as items that can be stored in a drawer. He also suggests focusing on items whose value goes beyond the design or image on them.
What is the issue with AI wall art listings that are auto-renewed on Etsy?
-Auto-renewal of listings leads to a growing search volume with a compounding effect, which exacerbates the problem of market saturation with low-quality AI wall art.
Why does the speaker believe that focusing on customer needs rather than just the product is important for Etsy sellers?
-Focusing on the customer ensures that the products cater to a market with higher discretionary income and consistent spending habits, leading to a more reliable income for the seller.
What is the '7-Day game plan' mentioned by the speaker and how can viewers get it?
-The '7-Day game plan' is a guide to grow an Etsy shop with action steps for each day. Viewers can get it for free by commenting 'game plan' below the video.
What is the final reason the speaker gives for not focusing solely on AI wall art in an Etsy shop?
-The final reason is that it tends to be more product-focused rather than customer-focused. This can lead to a shop filled with listings that the seller finds cool but do not appeal to high-income customers with premium tastes.
How did the speaker's approach to Etsy selling help one of their clients?
-The client mentioned in the script had almost no sales in their Etsy Shop two months prior but after buying the course, they experienced steady growth, an increase in views, and a significant improvement in their confirmation rate.
What does the speaker suggest for sellers who want to use AI images but not for wall art?
-The speaker suggests that sellers should consider using AI images on different types of products that are not just wall art, which might be more appealing to a wider customer base and have higher utility.
Outlines
🚫 Challenges of Selling AI Wall Art on Etsy
Dylan Jarus, an experienced Etsy seller, explains why opening a shop for AI wall art on Etsy may 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 often a one-time purchase and not a gift item, and the lack of focus on customer needs rather than the product itself. He suggests considering other types of products with more utility and a broader appeal for gifting, and emphasizes the importance of quality over quantity in listings.
🎨 Rethinking AI Art for Etsy Success
The paragraph discusses the common mistake of focusing on the AI art product rather than the customer's taste and preferences. It points out that sellers often create AI wall art that appeals to their own tastes, which may not resonate with high-income customers looking for premium items. The narrative suggests that such an approach leads to a shop filled with niche listings that do not attract a premium customer base. To improve, sellers are advised to focus on customer needs, potentially adapting AI art to different products that have broader appeal and are more likely to be purchased by customers with higher discretionary spending.
Mindmap
Keywords
💡AI Wall Art
💡Etsy
💡Saturation
💡Lifetime Value (LTV)
💡Post-production
💡SEO
💡Mobile Optimization
💡High Discretionary Income
💡Product Focus
💡7-Day Game Plan
💡Personal Taste
Highlights
Selling AI wall art on Etsy can lead to a surplus of unsellable listings due to market saturation.
The barrier to entry for AI art is low, making it easy for anyone, including a 10-year-old, to create listings.
The quality difference between AI-generated art with minimal post-production and that with extensive editing is hard to distinguish for the average person.
Focusing on quantity of listings rather than quality will not resolve the issue of unsellable AI art.
AI wall art has a low lifetime value (LTV) for customers, as it is rarely a repeat purchase item.
AI wall art is typically a personal purchase and not commonly given as a gift, limiting its market on a platform known for gift-giving.
The commitment to AI wall art is similar to buying furniture, as it is not frequently changed and is considered a long-term investment.
A shop with 88 listings and 18 sales might not improve with more listings of similar quality.
SEO, site merchandising, and mobile/desktop optimization are missing from many AI art listings on Etsy.
Selling AI art on other types of products with more utility might be a better strategy for giftability.
Items with value beyond their design or image are easier to sell over time.
AI images should not be exclusively used for wall art if targeting premium customers.
A 7-Day game plan is available for free to help grow your Etsy shop.
Focusing on product or image rather than the customer can lead to a mismatch with high-discretionary-income customers.
AI art sellers often create designs that appeal to their personal tastes rather than a broader market.
Art that is too niche or bizarre may not attract customers with premium tastes and high discretionary spending.
Focusing on the wrong customer base or not focusing on customers at all can lead to unpredictable and disappointing financial results.
Adapting AI art to different products or focusing on profitable customers can improve the success of an Etsy shop.
The speaker's course has led to a significant increase in views and confirmation rate for their Etsy shop.
