Why Selling AI Art Is a BAD Idea in 2024 💻 (Tips for AI Etsy Shops)

Dylan Jarus, a seasoned Etsy seller with seven years of experience and a successful track record, discusses the pitfalls of selling AI wall art on Etsy. He cites three main reasons why AI art may not sell well on the platform: 1) market saturation with low-quality AI art listings, 2) the low lifetime value (LTV) of customers for AI wall art due to its nature as a non-giftable, low repeat purchase item, and 3) a focus on product over customer, leading to designs that may not appeal to high-income consumers. Instead, Jarus suggests considering alternative products with higher utility and gift potential. He also offers a free 7-Day game plan to help grow Etsy shops and emphasizes the importance of targeting customers with consistent spending habits and higher discretionary income for a more reliable income stream.

Takeaways

• 🚫 Selling AI wall art on Etsy can lead to a surplus of unsold listings due to market saturation with low-quality products.
• 🎨 The barrier to entry for AI art is low, making it difficult to distinguish between high-quality and mediocre AI-generated art for the average buyer.
• 📈 A high quantity of listings does not compensate for quality issues and won't necessarily increase traction or sales.
• 💰 AI wall art typically has a low lifetime value (LTV) for customers, as it is not a repeat purchase item and is often not gifted.
• 🛋️ Wall art is a long-term investment similar to furniture, not often replaced and not typically a part of multi-item purchases.
• 🔍 Poor SEO, lack of site merchandising, and inadequate mobile/desktop optimization can hinder the visibility and sales of AI art listings.
• 🎁 Focusing on customer needs rather than just the product or image is crucial for attracting premium customers with higher discretionary spending.
• 🧩 Creating AI art that aligns with broader tastes and has more utility can increase the chances of selling to a wider audience.
• 💡 Post-production work on AI art can significantly enhance its quality and appeal, making it more distinguishable in a crowded market.
• 🛍️ Consider alternative product types for AI art that are more giftable and have a higher perceived value beyond the design.
• ✅ A strategic approach to AI art sales, focusing on quality over quantity and targeting the right customer base, can lead to a more reliable and profitable business model.

Q & A

Why is selling AI wall art on Etsy considered a bad idea in 2024 according to the speaker?

The speaker suggests that selling AI wall art on Etsy is 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 are not commonly given as gifts.

What is the speaker's background in relation to Etsy and e-commerce?

The speaker, Dylan Jarus, has been an Etsy seller for seven years, made over a million dollars in revenue on the platform, and has a background in high volume corporate e-commerce. He now leads 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 having a large quantity of AI wall art listings on Etsy?

The issue is that quantity does not compensate for quality. Many listings are of low quality, and the search volume grows with a compounding effect, making it difficult for new or unique listings to gain traction.

How does AI wall art affect the lifetime value (LTV) of a customer?

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 for more purchases.

What alternative product types does the speaker suggest for AI art to increase its utility and giftability?

The speaker recommends considering other types of products that have more utility and can be easily gifted, such as items that can be stored in a drawer and are not as tied to personal taste or home decor.

What is the speaker's advice for optimizing an Etsy shop that sells AI wall art?

The speaker advises focusing on improving the quality of listings, optimizing SEO, site merchandising, and ensuring the shop is mobile and desktop friendly. He also suggests considering different types of products that can utilize AI art and appeal to a broader customer base.

Why is it challenging to distinguish between high-quality and low-quality AI wall art to the average person?

The challenge lies in the fact that 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 speaker's opinion on the role of personal taste in creating AI wall art for Etsy?

The speaker believes that focusing too much on personal taste when creating AI wall art can lead to a niche product that does not appeal to a broader, more premium customer base with higher discretionary income.

What is the '7-Day game plan' mentioned by the speaker?

The '7-Day game plan' is a free guide that provides action steps for each day to help grow an Etsy shop. Interested individuals can obtain this guide by commenting below the video where it is mentioned.

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 focusing solely on AI wall art tends to shift the focus onto the product or the image rather than the customer, potentially leading to a collection that does not appeal to customers with higher spending habits and more reliable income.

How can an Etsy seller improve their shop's sales and customer base according to the video?

An Etsy seller can improve their shop's sales and customer base by focusing on higher-quality products, understanding their customers' tastes and preferences, and diversifying their product offerings to include items that are more likely to be purchased by a premium customer base.

What is the importance of considering the customer when creating AI art for an Etsy shop?

Considering the customer is important because it helps ensure that the AI art created aligns with the tastes and preferences of the target market, which can lead to higher sales and a more reliable customer base.

Outlines

00:00

🚫 Challenges of Selling AI Wall Art on Etsy

Dylan Jarus, a seven-year Etsy seller and e-commerce expert, explains why selling AI wall art on Etsy might not be as profitable as one might think. He cites three main reasons: saturation of low-quality AI wall art listings, difficulty in standing out due to low entry barriers, and the challenge of distinguishing between AI-generated art with minimal post-production and those with significant refinement. He also points out that AI wall art tends to be a low repeat purchase item with a low lifetime value (LTV) for customers, as it is often a personal purchase and not typically given as a gift. Jarus emphasizes that focusing on quantity over quality will not lead to success on Etsy, and suggests considering other types of products that have more utility and are more giftable.

05:00

🎨 Shifting Focus from Product to Customer in AI Art Sales

The second paragraph discusses the importance of focusing on the customer rather than just the product when selling AI wall art. Jarus notes that many sellers create AI art that appeals to their personal tastes, which can lead to a niche and potentially unprofitable market. He suggests that such an approach may not attract high-income customers looking for premium, consistent designs. Instead, he recommends considering the customer's taste and preferences, especially those with higher discretionary spending habits. The paragraph also includes a call to action for sellers to reach out for help in adapting their AI art for more profitable customer segments, and shares a success story of an Etsy shop that improved its performance after implementing strategies from the Ultimate Etsy Blueprint course.

Keywords

💡AI wall art

AI wall art refers to artwork generated by artificial intelligence algorithms. In the context of the video, it is used to describe a type of product that is being sold on Etsy. The speaker discusses the challenges of selling AI wall art due to market saturation and the low barrier to entry, which leads to a large number of listings with low quality.

💡Etsy

Etsy is an e-commerce website focused on handmade or vintage items and craft supplies. The video discusses the platform as a marketplace where AI wall art is being sold, and the challenges sellers face in standing out and achieving sales with their AI-generated products.

💡Saturation

In the context of the video, saturation refers to the overabundance of similar products in the market, making it difficult for individual sellers to stand out. The speaker mentions that the Etsy market is saturated with low-quality AI wall art listings, which affects the ability of sellers to make sales.

💡Lifetime Value (LTV)

LTV stands for Lifetime Value and represents the total revenue a customer is expected to generate for a business over the duration of their relationship. The video explains that AI wall art has a low LTV because it is typically a one-time purchase with little repeat business, which is not ideal for building a sustainable and profitable Etsy shop.

💡Post-production

Post-production refers to the process of editing and refining a product after its initial creation. In the video, the speaker contrasts AI wall art that has undergone significant post-production work with that which has not, highlighting the difficulty for the average person to discern the difference between the two.

💡SEO

SEO stands for Search Engine Optimization, which is the practice of improving a website's visibility in search engine results. The video mentions that many AI wall art listings on Etsy lack proper SEO, which is crucial for driving traffic and making sales.

💡Mobile optimization

Mobile optimization refers to the process of making a website or online content accessible and user-friendly on mobile devices. The video script points out that many Etsy shops are not optimized for mobile or desktop, which can negatively impact the shopping experience and sales.

💡Discretionary income

Discretionary income is the portion of a person's income that is available to spend or save as they choose, after necessary expenses are covered. The video discusses targeting customers with higher discretionary income as they are more likely to make premium purchases and contribute to a more reliable income for sellers.

💡Product focus

Product focus refers to a seller's emphasis on the product itself rather than the customer's needs or preferences. The video warns against a product-focused approach when selling AI wall art, as it can lead to creating items that do not appeal to a high-value customer base.

💡7-Day game plan

The 7-Day game plan mentioned in the video is a free guide provided by the speaker to help Etsy shop owners grow their businesses. It includes actionable steps for each day to improve various aspects of their Etsy shops, such as SEO, mobile optimization, and product offerings.

💡Multi-item order

A multi-item order refers to a purchase that includes more than one item. The video discusses that AI wall art is typically not part of a multi-item order, as it is a single, large purchase that is not often repeated, which contrasts with other types of products that might be bought in bulk or as part of a set.

Highlights

Opening an AI wall art shop on Etsy often leads to a large number of unsellable listings due to market saturation and low entry barriers.

The visible quality difference between minimally edited AI art and extensively post-produced pieces is often indiscernible to the average consumer.

An excess of AI wall art listings on Etsy does not solve the inherent quality issues, leading to stagnant sales despite high listing volumes.

AI wall art has a low Lifetime Value (LTV) due to minimal utility and low repeat purchase rates, making it less appealing for generating long-term revenue.

AI wall art is typically not chosen as gifts, limiting its market potential on a platform like Etsy, known for gift shopping.

Personal home decor like wall art is seen as a long-term investment, similar to furniture, making it a less frequent purchase.

Highly specific or niche AI wall art, such as vibrant tropical Tiki statues, appeals to a limited audience, reducing its marketability.

Recommendation to diversify products in AI art shops to include more utilitarian items to enhance sales potential.

AI wall art-focused Etsy shops should optimize their SEO, site merchandising, and mobile/desktop presentation to improve performance.

Many AI wall art listings on Etsy cater to the personal tastes of the sellers rather than the preferences of potential high-spending customers.

Excessively niche or peculiar AI art designs limit the appeal to a broader audience and reduce potential sales.

Successful Etsy shops target customers with consistent spending habits and higher discretionary income for more reliable revenue.

Etsy sellers often mistakenly focus on product-centric designs rather than customer-centric solutions when creating AI wall art.

An example Etsy shop with bizarre AI art like 'Galactic Pig Dreamscape' illustrates the challenge of finding a suitable customer base for such unique designs.

The importance of aligning product offerings with customer needs and expectations to achieve better financial outcomes on Etsy.