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

Dylan Jahraus
19 Feb 202408:15

TLDRIn the video, Dylan Jarus, a seasoned Etsy seller with seven years of experience and a successful track record, addresses the pitfalls of selling AI-generated wall art on Etsy. He argues that there's an oversaturation of low-quality AI art, making it hard for sellers to stand out. He also points out that AI wall art has a low lifetime value (LTV) for customers, as it's typically a one-time purchase and not a gift item. Furthermore, he notes that sellers often focus on their personal taste rather than the customer's, leading to niche products that may not appeal to high-income consumers. Jarus suggests considering alternative products that have more utility and are more likely to be gifted. He offers a free 7-day game plan for growing an Etsy shop and encourages sellers to think about their target market and adjust their approach accordingly.

Takeaways

  • 🚫 **Saturation in the Market**: There's an overabundance of low-quality AI wall art on platforms like Etsy, making it difficult for new listings to stand out.
  • 🔍 **Quality Over Quantity**: Simply having a large number of listings does not compensate for poor quality, which is a common issue with AI-generated wall art.
  • 👀 **Invisible Quality Difference**: The average person struggles to distinguish between AI art that has minimal post-production and that which has been refined for hours.
  • 💰 **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 reduces its marketability on a platform known for gift shopping like Etsy.
  • 📈 **Focus on Customer Needs**: Successful sales come from understanding and catering to customers with higher discretionary spending, rather than just creating what the seller finds appealing.
  • 🧩 **Diversify Product Offerings**: Instead of only offering AI wall art, consider other products that can utilize AI designs and have a higher utility and gift potential.
  • 🛠️ **Improve Listing Quality**: To increase sales, focus on enhancing the quality of listings, including SEO, site merchandising, and mobile/desktop optimization.
  • 🎨 **Avoid Overly Specific Aesthetics**: Listings with very particular tastes may attract a niche audience but won't appeal to premium customers with higher spending power.
  • 📉 **Unpredictable Financial Results**: Not focusing on the right customer base can lead to inconsistent and disappointing financial outcomes for your Etsy shop.
  • ✅ **Adapt and Grow**: If you're committed to AI art, consider adapting your offerings to different products or focusing on customer-centric designs for better profitability.

Q & A

  • What is the main issue with selling AI wall art on Etsy according to Dylan Jarus?

    -The main issue is the saturation of low-quality AI wall art listings on the platform, making it nearly impossible to stand out.

  • Why does Dylan Jarus believe that having a large number of AI art listings won't help on Etsy?

    -Because the quality issue is not resolved by the quantity of listings. Listings on auto-renewal are compounding the search volume, leading to a sea of low-quality products.

  • How does AI wall art affect the Lifetime Value (LTV) of a customer?

    -AI wall art tends to have a low LTV because it's a low repeat purchase item and is usually not purchased as a gift, which reduces the chances of customers coming back for more.

  • What is the typical issue with AI wall art listings on Etsy?

    -The listings are often focused on the product or the image rather than the customer, which can lead to a lack of appeal to customers with higher discretionary income.

  • What is the suggested alternative to selling AI wall art on Etsy?

    -Consider putting AI art on other types of products that have more utility and are more likely to be purchased as gifts, such as items that can be tucked into a drawer.

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

    -The visible quality difference between AI wall art that has undergone post-production and that which has not is very subtle to the average human eye.

  • What is the barrier to entry for creating AI wall art?

    -The barrier to entry is very low, requiring very little skill to get listings up, which contributes to the saturation problem.

  • What is the role of personal taste in the creation of AI wall art?

    -Personal taste heavily influences the creation of AI wall art, often leading to designs that are more appealing to the creator than to a broader customer base.

  • Why might AI wall art not be a good fit for high-end customers?

    -AI wall art often does not appeal to customers with high discretionary income and premium taste, as it may not match their home decor or reflect their spending habits.

  • What is the recommended approach to improve an Etsy shop that is struggling with AI wall art sales?

    -Focus on understanding the customer base, improving SEO, site merchandising, and optimizing for mobile and desktop to increase the quality and appeal of the listings.

  • How can an Etsy seller ensure their AI art is more customer-focused?

    -By considering the utility and giftability of the products, as well as targeting designs that appeal to customers with higher spending habits and premium tastes.

  • What is the significance of the 7-Day game plan mentioned by Dylan Jarus?

    -The 7-Day game plan is a free guide that provides action steps for every day to help grow an Etsy shop, which can be obtained by commenting below the video.

Outlines

00:00

🚫 Challenges of Selling AI Wall Art on Etsy

Dylan Jarus, an experienced Etsy seller, explains why selling AI wall art on Etsy is not as lucrative as it seems. He cites three main reasons: saturation of the market with low-quality AI art listings, difficulty in distinguishing between high and low-quality AI art for the average consumer, and the low lifetime value (LTV) of customers for AI wall art due to its nature as a non-giftable, low repeat purchase item. He emphasizes that quantity does not compensate for quality and suggests focusing on other types of products with more utility and appeal to a broader customer base.

05:00

🎨 Focusing on Customer-Centric AI Art Products

The second paragraph discusses the importance of customer focus when selling AI art, particularly on Etsy. It points out that sellers often create AI wall art based on personal taste, which may not appeal to high-income customers with premium tastes. The narrative suggests that such sellers may end up with listings that are too niche and not attractive to a wider, more lucrative audience. To improve, sellers should consider adapting AI art to different products that are more aligned with the tastes and preferences of customers likely to spend more on their home decor.

Mindmap

Keywords

💡AI wall art

AI wall art refers to artwork created using artificial intelligence algorithms, often through generative models that produce unique designs. In the video, it is discussed as a product that may not sell well on platforms like Etsy due to market saturation and the perception of low quality. The speaker uses AI wall art as an example to illustrate the challenges of standing out in a crowded market and the importance of product selection for online sales success.

💡Etsy

Etsy is an e-commerce website focused on handmade or vintage items and craft supplies. It is mentioned as the platform where the speaker has experience selling and where they advise against solely focusing on AI wall art. The video discusses strategies for scaling Etsy shops and the importance of understanding the customer base on this platform.

💡Saturation

In the context of the video, saturation refers to an oversupply of similar products in the market, making it difficult for new or individual products to gain attention. The term is used to describe the current state of AI wall art listings on Etsy, which the speaker argues is leading to a lack of sales due to the sheer volume of low-quality offerings.

💡Lifetime Value (LTV)

LTV is a prediction of the net profit attributed to the entire future relationship with a customer. The video explains that AI wall art has a low LTV because it is typically a one-time purchase with little repeat business. This is contrasted with other types of products that may encourage repeat purchases or have a higher perceived value, thus contributing to a more sustainable and profitable business model.

💡Post-production

Post-production in the context of the video refers to the process of refining and enhancing a product after its initial creation. The speaker points out that the difference between AI wall art that has undergone extensive post-production and that which has not can be difficult for the average person to discern, suggesting that the effort put into perfecting a product may not always be rewarded in the marketplace.

💡SEO (Search Engine Optimization)

SEO is the process of improving the quality and quantity of website traffic from search engines. In the video, it is mentioned as a missing component in many Etsy shops that sell AI wall art. The lack of SEO is identified as a reason why these shops struggle to gain visibility and traction, emphasizing the importance of optimizing product listings for search engines to increase sales.

💡Mobile optimization

Mobile optimization refers to the practice of designing websites to display and function correctly on mobile devices. The video script highlights that many AI wall art listings on Etsy are not optimized for mobile or desktop, which can negatively impact the user experience and, consequently, sales. The importance of a seamless browsing experience across all devices is emphasized for the success of an online shop.

💡Gifting

Gifting is the act of giving a gift to someone. The video discusses how AI wall art is typically not purchased as a gift due to its personal nature and the specific tastes it reflects. This is contrasted with other items commonly found on Etsy, which are often bought as gifts. The speaker suggests that focusing on products that are more universally appealing as gifts could be a more effective sales strategy.

💡Discretionary income

Discretionary income refers to money that individuals have available to spend on non-essential items after necessary expenses are paid. The video talks about targeting customers with higher discretionary income who are more likely to make premium purchases. This strategy aims to secure a more reliable and profitable customer base for the Etsy shop.

💡Product focus

Product focus in the video means concentrating on the features and appeal of the product rather than the customer's needs or preferences. The speaker argues that many sellers of AI wall art are too product-focused, creating designs that they personally find appealing rather than those that cater to the tastes of their target market. This approach can lead to a disconnect with customers and a lack of sales.

💡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 online shops, such as SEO, mobile optimization, and product selection. The game plan is positioned as a resource to help sellers overcome the challenges discussed in the video.

Highlights

Selling AI wall art on Etsy may result in a large number of unsellable listings due to market saturation.

The barrier to entry for AI art is low, making it difficult to stand out without significant skill or post-production work.

The quality difference between AI-generated art and manually refined pieces may be undetectable to the average consumer.

Focusing on quantity over quality in listings does not address underlying issues and can lead to a surplus of low-quality products.

AI wall art has a low lifetime value (LTV) for customers, as it is not a repeat purchase item and is often not gifted.

Etsy is known for gift-giving, but AI wall art is typically a personal purchase, limiting its appeal as a giftable item.

AI wall art is a long-term commitment similar to furniture, which is not frequently replaced or purchased in large quantities.

An Etsy shop with low-quality listings and poor SEO will struggle to increase sales, even with a high volume of products.

Suggests considering other types of products with more utility for AI art to increase giftability and customer appeal.

Items with value beyond their design are easier to sell and can attract premium customers.

AI art should not be the sole focus, as it tends to attract a niche audience with specific tastes.

Focusing on the customer rather than the product is crucial for creating a profitable Etsy shop.

AI-generated designs that cater to the seller's personal taste may not appeal to high-income customers with premium tastes.

Suggests adapting AI art to different products to reach a broader customer base and increase profitability.

Provides a 7-Day game plan for growing an Etsy shop with actionable steps for each day.

Emphasizes the importance of understanding the customer and their spending habits for a reliable and profitable business model.

Shares a personal success story of an Etsy shop that improved its views and conversion rate after implementing the provided strategies.

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