Before developing your USP, it’s good to conduct a market analysis and draw inspirations on Etsy and other places, so that you can leverage those insights for a clearer direction when developing your USP.

Analysis Of What’s Already In Your Niche On Etsy

Given that you have finished the previous course - Etsy Niche Discovery System, it’s now time to do a market analysis of your biggest competitors.

This step is important because if you just sell what’s already in the market, shoppers are unlikely to choose you as there are already established sellers selling the same stuff as I mentioned in the last chapter. So you should try your best to differentiate yourself from what your main competitors are already selling.

When analysing your competitors, be thorough and figure out important details like:

• Product itself - Materials, colours, design choices, etc.
• Features & Functionalities
• Main selling point - What are they proposing as their unique selling point? Usually they put that in the first paragraph of listing description, shop tagline, title of about section, etc.
• Customer reviews - Analyse what are the things that are mentioned often; it could be a feature that’s loved by many customers, or a complaint that multiple customer have.
• Any creative ideas that you haven’t seen
• What does their brand stand for
• Their target customers that they focus on

Drawing Insights From Your Analysis

Once you've thoroughly analysed your competitors, you should find yourself with some valuable information. Now let’s use this information to come up with some insights to guide us when developing a USP:

• Product Design - Are there recurring design elements, colours, or motifs?
• Customer Preference - Dive into customer reviews and see if there are specific features or attributes that’s mentioned repeatedly. These could give you hints about market preferences.
• Market Trend - Is there a shift towards more sustainable choices, personalised options, or other trends for your niche of products?
• Underserved Audiences - Are there specific groups of customers that haven't been catered? For instance, for pet lovers, for certain hobbies, or for certain lifestyles?
• Pricing - Maybe there's room for a premium option in a market flooded with budget options?
• Values & Mission: Understanding what competing brands stand for can help you carve out a unique space. This could be based on craftsmanship, sustainability, community involvement, or any other values.
• Visual Identity - With information of the aesthetics of top-selling products, is there room for a different visual language that can stand out, such as packaging, product design, or branding elements?

Getting More Inspirations For Your USP

• Your customer feedback and inquiries - Perhaps this is the most direct and valuable source of inspirations. Pay attention to the problems they face with the current products, features they wish your products had, or new product ideas that they suggest.
• Reviews on Etsy and other marketplaces - They are a treasure trove of ideas. Pay close attention to reviews, complaints, FAQs on Etsy, Amazon, etc. They provide insights into what customers want, need and expect from products.
• Local craft markets - Markets are another great way to discover new craft ideas or trends.
• Youtube comments - Search your niche and see if there’re any product related videos. Look at the comments to see what potential customers wish they could find such as “wouldn’t it be great if ...”, giving you potential product ideas.
• Social media - Platforms like Pinterest and Instagram are great for finding trends, unique ideas and inspirations.
• Retail brands or high-end brands - Big brands sometimes offer experiences or products that are missing in the handmade market. You can try replicating that in your own handmade way.
  

Create A Truly Unique Product May Be Impossible

A truly unique product has great potential. Many of the world’s most successful companies started this way, like Uber which connects drivers and passengers directly and conveniently, Dropbox allows easily store and transfer files on the cloud, etc.

But creating that is ambitious and may be impossible for a handmade seller like you and me.

Instead, we should aim for finding a sweet spot between familiarity and total uniqueness:

The Sweet Spot Of Creating A Highly Attractive & Sellable Product

Remember, your unique product doesn't necessarily have to be a new invention. It could be an existing product designed or customised in a unique way, made from unique materials, or offering unique features.

Many successful Etsy shops are the ones that niche down on a popular market, and provide extra value that matters to their target customers. Let’s look at some examples:

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In the next chapters, you’ll see my 15 ways of developing a USP for your product.

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