Why Selling AI Art Is a BAD Idea in 2024 ๐Ÿ’ป (Tips for AI Etsy Shops)

Dylan Jahraus
19 Feb 202408:15

TLDRDylan Jarus, a seasoned Etsy seller with seven years of experience and a track record of over a million dollars in revenue, discusses the pitfalls of selling AI wall art on Etsy. He outlines three key reasons why AI art may not sell well: the market is saturated with low-quality AI art listings, making it hard to stand out; AI wall art has a low lifetime value for customers, as it's not typically a repeat purchase or a gift item; and the focus on product over customer leads to designs that may not appeal to premium buyers. Jarus suggests considering other product types that have more utility and are more giftable. He also offers a free 7-day game plan to grow your Etsy shop and invites viewers to reach out for help in adapting AI art for profitable customers.

Takeaways

  • ๐Ÿšซ **Saturation Issue**: The market for AI wall art is oversaturated with low-quality listings, making it difficult to stand out.
  • ๐Ÿ” **Quality Over Quantity**: Having a large number of listings doesn't compensate for poor quality, which is a common issue with AI wall art on Etsy.
  • ๐Ÿ‘€ **Invisible Quality Difference**: The average consumer can't easily distinguish between a basic AI-generated artwork and one with extensive post-production work.
  • ๐Ÿ’ฐ **Low Lifetime Value (LTV)**: AI wall art tends to have a low LTV because it's not often re-purchased and is usually a one-time, personal purchase.
  • ๐ŸŽ **Not Ideal for Gifting**: AI wall art is typically not gifted due to its personal nature and the specific tastes it reflects, which limits its market.
  • ๐Ÿ“ˆ **Lack of SEO and Merchandising**: Many AI art listings lack proper search engine optimization and merchandising, which is crucial for visibility and sales.
  • ๐Ÿ›๏ธ **Focus on Utility**: Suggests considering other product types that have more utility and are more likely to be gifted, which can increase sales.
  • ๐Ÿ–ผ๏ธ **Commitment vs. Impulse Buy**: AI wall art requires a more significant commitment from buyers (e.g., wall mounting), which reduces impulse purchases.
  • ๐Ÿ’” **Personal Taste Overlap**: Sellers often design based on their tastes rather than market demands, which can lead to niche products that don't appeal to a broader customer base.
  • ๐ŸŽฏ **Customer-Centric Approach**: Emphasizes the importance of focusing on the customer rather than just the product, to create items that have mass appeal and attract premium buyers.
  • ๐Ÿ“ˆ **Adaptability for Profitability**: Recommends adapting AI art to different products or focusing on customer preferences to increase profitability and customer base.

Q & A

  • Why is selling AI wall art on Etsy considered a bad idea in 2024 according to Dylan Jarus?

    -Selling AI wall art on Etsy is considered a bad idea due to the saturation of low-quality listings, the low barrier to entry, and the difficulty for the average person to discern the quality of AI-generated art. This results in a lack of traction and sales.

  • What is the lifetime value (LTV) of a customer in the context of selling AI wall art?

    -The LTV refers to the total revenue a business can reasonably expect from a single customer account. For AI wall art, it is low because it's not a repeat purchase item and is typically bought for personal use rather than as a gift.

  • How does focusing on quantity of listings rather than quality affect an Etsy shop selling AI wall art?

    -Focusing on the quantity of listings without addressing quality issues will not create traction or increase sales. It can lead to a large number of low-quality listings that do not attract premium customers.

  • Why is AI wall art not typically purchased as a gift on Etsy?

    -AI wall art is usually a personal purchase as it reflects individual taste and is specific to one's style or aesthetic. It's not commonly given as a gift due to its public visibility and the personal nature of home decor.

  • What is Dylan Jarus' recommendation for sellers who want to incorporate AI art into their Etsy shop?

    -Dylan suggests considering other types of products with more utility and that are more giftable, such as items that can be stored away. He also advises against using AI images exclusively on wall art.

  • How does the focus on personal taste in AI wall art affect the potential customer base for an Etsy shop?

    -Focusing on personal taste can lead to a niche and particular style of art that may not appeal to a broader customer base, especially those with higher discretionary income who are looking for premium items.

  • What is the significance of SEO and site merchandising for an Etsy shop selling AI wall art?

    -SEO (Search Engine Optimization) and site merchandising are crucial for visibility and attracting the right customers. Without proper optimization, even a large quantity of listings may not result in increased sales.

  • What is the '7-Day game plan' that Dylan Jarus offers to grow an Etsy shop?

    -The '7-Day game plan' is a free guide that provides actionable steps for sellers to grow their Etsy shops. It is designed to help sellers increase their views, sales, and overall revenue.

  • Why is it challenging to stand out when listing AI wall art on Etsy?

    -The challenge in standing out comes from the saturation of the market with many low-quality AI wall art listings. With a low barrier to entry, many sellers flood the platform with listings, making it difficult for individual listings to gain attention.

  • What is the typical customer behavior regarding the purchase and replacement of wall art?

    -Wall art is often seen as a long-term investment similar to furniture. It's not frequently replaced and is not typically a part of seasonal or multi-item purchases. This behavior contributes to the low LTV for AI wall art.

  • How does the script suggest adapting AI wall art for a more profitable customer base?

    -The script suggests adapting AI wall art to different products that are not only appealing to personal taste but also have a broader appeal and utility, potentially attracting customers with higher spending habits.

  • What is the potential issue with focusing too much on the product or image rather than the customer when selling AI wall art?

    -Focusing on the product or image rather than the customer can lead to a collection of listings that may be personally appealing to the seller but not necessarily to the target market, especially premium customers with higher discretionary income.

Outlines

00:00

๐Ÿšซ Challenges of Selling AI Wall Art on Etsy

Dylan Jarus, a successful Etsy seller with 7 years of experience and over a million dollars in revenue, explains why AI wall art is not likely to sell well on Etsy. He cites three main reasons: 1) Over-saturation of low-quality AI wall art listings makes it hard to stand out. 2) AI wall art has a low lifetime value (LTV) for customers as it's not a repeat purchase item and is usually bought for personal use, not as a gift. 3) The focus on quantity over quality in listings does not address the issue of poor product differentiation. Jarus suggests considering other types of products that have more utility and are more giftable if committed to AI art.

05:00

๐ŸŽจ Focusing on Customer-Centric AI Art Products

The second paragraph emphasizes the importance of focusing on the customer rather than just the product when selling AI art. Many sellers create AI wall art that reflects their personal taste, which may not appeal to high-income customers with premium tastes. This approach can lead to a shop full of listings that don't attract the desired customer base, resulting in unpredictable and disappointing financial outcomes. The speaker suggests that sellers adapt their AI art to different products that may be more appealing to the target audience, and offers help in doing so.

Mindmap

Keywords

๐Ÿ’กAI Wall Art

AI Wall Art refers to artwork created with the assistance of artificial intelligence, often characterized by unique and sometimes abstract designs. In the context of the video, it is discussed as a product that may not sell well on platforms like Etsy due to market saturation and the personal nature of wall art purchases. The video mentions that there is a plethora of low-quality AI wall art listings, making it hard for new or unique pieces to stand out.

๐Ÿ’กEtsy

Etsy is an e-commerce website focused on handmade or vintage items and craft supplies. It is highlighted in the video as a platform where the seller has significant experience and success, but also where the saturation of AI wall art listings has become an issue. The speaker suggests that the nature of AI wall art may not align with Etsy's customer base, which often seeks items with personal or gift-giving value.

๐Ÿ’กSaturation

In the context of the video, saturation refers to an oversupply of a particular product in the market, leading to a decrease in demand and sales. The speaker points out that the Etsy marketplace is saturated with AI wall art listings, making it difficult for individual sellers to stand out and achieve sales.

๐Ÿ’กLifetime Value (LTV)

LTV is a metric used to express the total worth of a customer to a company over the duration of their relationship. The video discusses how AI wall art tends to have a low LTV because it is not a repeat purchase item and is often bought for personal use rather than as a gift, which reduces the likelihood of customers returning for additional purchases.

๐Ÿ’กPost-production

Post-production in the context of the video refers to the process of refining and enhancing a product after its initial creation. For AI wall art, post-production could involve editing and fine-tuning the artwork to improve its quality. The video suggests that the difference between AI art that has undergone extensive post-production and that which has not may be indistinguishable to the average consumer, leading to a perception of all AI art as being of equal quality.

๐Ÿ’กSEO (Search Engine Optimization)

SEO is the practice of optimizing websites or content to rank higher in search engine results, thereby increasing visibility and traffic. The video script implies that many AI wall art listings on Etsy lack proper SEO, which is crucial for driving organic traffic and sales. Without effective SEO, even a large quantity of listings may not result in increased visibility or sales.

๐Ÿ’กMobile Optimization

Mobile optimization refers to the process of ensuring that websites and online content are accessible and user-friendly on mobile devices. The video mentions that many AI wall art listings on Etsy are not optimized for mobile or desktop, which can negatively impact the user experience and potentially deter sales.

๐Ÿ’กGift-giving

Gift-giving is the act of presenting something to someone without expecting anything in return. In the video, it is noted that Etsy is known as a platform for gift purchases, but AI wall art is typically not considered a gift item due to its personal and specific nature. This reduces the likelihood of impulse buys or purchases for others, which can affect the sales volume.

๐Ÿ’กDiscretionary Income

Discretionary income is the portion of a person's income that is available to spend or save as they choose, as opposed to mandatory expenses like rent or bills. The video discusses targeting customers with higher discretionary income who are more likely to make premium purchases and become repeat customers, which is less likely with AI wall art due to its nature.

๐Ÿ’กProduct Focus

Product focus in the video refers to the tendency of sellers to concentrate on the product itself, rather than the customer's needs or preferences. The speaker argues that an overemphasis on creating AI wall art that the seller finds appealing, rather than what the customer might want, can lead to a mismatch between supply and demand, resulting in poor sales.

๐Ÿ’ก7-Day Game Plan

The 7-Day Game Plan mentioned in the video is a free guide offered by the speaker to help Etsy shop owners grow their businesses. It provides actionable steps for each day to improve various aspects of their online shops, such as SEO, listing quality, and customer targeting. This plan is an example of the practical advice given to sellers looking to optimize their sales strategies beyond just selling AI wall art.

Highlights

Selling AI wall art on Etsy can lead to a surplus of unsold listings due to market saturation.

The barrier to entry for AI art is low, making it difficult to stand out without exceptional skill.

The average person struggles to distinguish between high-quality and low-quality AI wall art.

Focusing on quantity over quality in listings does not create traction on Etsy.

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 commonly gifted, missing out on Etsy's gift-giving market.

Home decor is a personal and long-term investment, with AI wall art being a significant commitment.

AI wall art listings are often not optimized for SEO, site merchandising, or mobile/desktop viewing.

A shop with low-quality AI wall art listings may not see increased sales even with a higher quantity.

Selling AI art on other types of products with more utility can be more giftable and appealing.

Items with value beyond their design are easier to sell and have a higher customer lifetime value.

Focusing on the product rather than the customer can lead to a mismatch with high-discretionary-income buyers.

AI wall art sellers often create pieces based on personal taste rather than market demand.

Creating AI art that appeals to a niche audience may not attract premium customers with higher spending habits.

A successful Etsy shop should focus on customers with consistent spending habits for reliable income.

AI art that becomes too bizarre or niche may not have mass appeal and could limit financial success.

Adapting AI wall art to different products or focusing on customer needs can improve profitability.

A free 7-Day game plan is available to help grow Etsy shops with actionable steps for each day.