How Packaging Can Kill An Electronics Microbusiness

Quite a few in our community make a bit of cash on the side by selling our creations, and it’s not uncommon to find that a project which catches your eye can be picked up as a kit for a few of your preferred currency units. But there’s a problem facing such tiny producers in the form of regulations intended for large businesses which are beyond their ability to comply with. [Alain Pannetrat] writes for the Lectronz marketplace about one of them, the new European Union packaging waste regulations.

At face value it sounds like a good idea, that suppliers should be responsible in some way for the disposal of their packaging. It discourages excessive packaging and encourages recycling, indeed the EU even describe the scheme as boosting business. The problem is that its administration is left to individual member states, and someone selling across the whole bloc would have to join multiple schemes. The hefty price is nothing to a large enterprise, but impossible for a tiny one. He makes a very good point, that it’s difficult to claim to champion innovation, while also imposing something like this on grass-roots innovators. Going by the experiences of our acquaintances in this space an extra burden on top of that presented by the current unstable tariff and customs situation involved in selling to the USA would likely be the straw which broke the camel’s back.

In practice we suspect that many are simply doing the same as they have with compliance marking and waste electronic equipment regulations, simply not bothering and hoping they fly under the radar and never get caught. We hope we won’t end up reporting on any future crackdown, the landscape has definitely changed since we tried our hand in this business.

SmallRun.net Enters The Marketplace Market

So you have a project that you love, and everyone else loves too. People start saying “you should sell this” but where? Well, there’s a new marketplace you might want to consider called SmallRun, aiming at makers and their, well, small production runs.

SmallRun will absolutely host your custom PCBs, on-demand 3D prints, and other traditional maker products — but they’ll also happily sell your merch, too. Along with electronics and hardware, they aim to allow you to sell products in categories like tabletop gaming, sciences, and yes, accessories/apparel.

For sellers, they offer automatic payouts and promise to take care of the taxes by integrating with Stripe. That said, they’re still working on getting the whole VAT thing set up for products imported to the EU. EU to EU sales are apparently OK. They’ll host build logs, which may drive engagement with your product. There’s even a handy tool to import your existing listings from eBay, Tindie, Lectronz, Etsy, Shopify, or Crowd Supply if you’re already in the biz. They make their money by taking a cut of your sales: ̶e̶i̶g̶h̶t̶  now reduced to seven percent, plus forty cents per listing.

Depending on your perspective, you might wonder if we need another marketplace, To that we can only say: “Let a thousand flowers bloom!” Competition should drive these marketplaces to continuously improve and we all win.

If you’re selling online, even packaging can become a project. If you’re not, but are interested in starting, our “From Project to Kit” series from ten years back remains surprisingly relevant.

Thanks to [Aron] for the tip!

Tips From A Former Niche Item Etsy Store

Etsy is a service aimed at providing a way for makers of handmade items to sell them online. [Bithead] closed up shop earlier this year and wrote up an interesting perspective on what did and didn’t work out. The main market for [Bithead]’s store was Star Wars cosplayers, because it all started with some Star Wars inspired com pads, some of which are pictured here.

One thing [Bithead] felt worked well overall was to “think big, start small, and scale fast.” In essence, bootstrap things by selling inventory on hand and carefully monitoring demand, then if demand is sustained, ramp up to larger batches, which are more efficient. The risk of making larger part orders and carrying more stock on hand is offset by the reliable demand. Waiting until solid data on reliable demand is available means missing out on early sales, but it’s a low risk approach that works well for niche products that have little or no real competition.

A couple things that didn’t work out were efforts to follow Etsy’s advice to add more products to attract a wider audience, and to try out tools for offering discounts and incentives aimed at turning abandoned carts into sales. Neither went well. The first resulted in adding items that sold poorly, diluted the focus of the store, and incurred a cost for each listing. The second never seemed to have any impact on sales whatsoever. Perhaps there is a place for these efforts, but [Bithead]’s niche market wasn’t it.

It’s a good read about how things went for an Etsy store that served a niche audience over three years. The perspective and experiences might be useful to anyone looking to turn a bright idea into something sold online, so if you’re at all interested, take a few minutes to check it out.

We’ve seen [Bithead]’s work before, this lightsaber-inspired violin bow was one project that went on to become a kit for sale.