A white paper on digital craft and how technology is transforming the craft business. To learn more and start selling crafts online, visit https://www.payloadz.com
2. Table of Contents
CRAFTS – A BIG BUSINESS 3
THE DIGITAL CRAFT 4
TECHNOLOGY AS ENABLER FOR DIGITAL CRAFTS BUSINESS 5
Creating Digital Craft 5
Merchandizing 5
Marketing and Advertising 5
Payment Processing 6
Digital Crafts Delivery 6
SALES PLATFORM FOR DIGITAL CRAFT 6
3. “Almost always, the creative dedicated minority has made the world better.”
- Martin Luther King, Jr.
Martin Luther King, Jr. wasn’t referring to artists and craftsman; however, the same sentiment can be
applied to this community of people who make a living through their creative genius and contribute
significantly to the nation’s economy. Crafting is one of the sectors that can thrive, even during tough
economic times. Thousands of people have quit their jobs to become full-time crafters; reasons for
quitting range from job insecurity and instability to personal satisfaction. Crafters are making the world
a little better. They bring joy to others with the products they create, and they find self-satisfaction in
working in a medium they love.
Crafts – A Big Business
Data for the crafting industry in the United States are not readily available. Some studies, however, have
been conducted to measure the impact of crafts on the economy and its contribution to generating
income.
One such landmark study was the Craft Organization Development Association (CODA) 2001 survey,
called The Impact of Crafts on the National Economy. This survey made it possible for the first time to
measure the size of the U.S. craft sector and compare it with other industry sectors. It was assessed in
2001 that crafts have a $13.8 billion impact on the nation’s economy. At that time, that was bigger than
fuel, oil and coal ($13.2 billion), almost four times bigger than taxicabs ($3.7 billion) and nearly half of
airline tickets ($29.5 billion).It was also found that craft households enjoy a higher income. The average
income after expenses per craft household was $50,000, 26 percent above the average income at that
time.
Craft & Hobby Association U.S.
Attitude & Usage Study, 2010,
revealed that U.S. consumers
spend over $29 billion per
year on craft products. The
chart on the left shows a
category breakdown of the
amount spent on different
forms of crafts.
This study also found that
more than half of the U.S.
households engage in a craft
activity at least once per year.
4. The chart shows the household participation across different forms of crafts. According to this study,
most households engage in craft forms like scrapbooking, jewelry making, cross-stitch and knitting. Each
of those craft forms can be completely or partially categorized as a digital craft. Let’s look at what
constitutes a digital craft.
The Digital Craft
The growth of technology is continuously transforming creative industries and has already altered the
business models in industries such as photography, music, film and newspapers. The craft sector is now
starting to evolve, and the use of technology is becoming increasingly prevalent in designing, creating
and selling digital craft items.
While any type of craft item can be designed and sold using technology, some specific types of crafts can
be created using technology. Those items are digital crafts because digital technology is an integral part
of each stage of the lifecycle. Here are some examples of digital crafts:
Paper Craft: Paper models, paper toys, scrapbooking and clip art
Needlecraft: Patterns, samples and instructions for crocheting, knitting, sewing and cross-stitch.
Food Craft: Food photos and recipes
Jewelry: Jewelry designs and instructions for creating handmade jewelry
5. Digital crafts can be designed, created, marketed, sold and delivered in a virtual manner with digital
technology, tools and services available to crafters.
The use of technology makes it easier at every stage for crafters to run their businesses efficiently and in
a cost-effective manner. Technology brings about economies of scale and cost savings regarding
production, storage and distribution of products.
Technology as Enabler for Digital Crafts Business
Technology touches digital crafts at every stage of their lifecycle. Today, crafters are using technology
for many projects:
Creating Digital Craft
Digital crafters use several software and hardware tools to create their products. These software tools
include word processors such as MS-Word to write text content and design tools such as Adobe
Photoshop to create, edit and enhance visual components of their products. The hardware tools include
scanners and digital cameras to capture pictures and patterns.
Merchandizing
Merchandizing can be defined as promoting the sale of goods through presentation in retail outlets. The
Internet is a big and open market for buyers and sellers of goods in the digital world, and it is becoming
easier day-by-day to set up shop in this market. Digital crafters can now set up shops on the Internet
and display their works to be discovered, seen and purchased by potential customers. Various options
are available to set up a shop online, such as creating an independent website or listing products in
online marketplaces such as the PayLoadz Store and eBay or even a combination of the two.
Marketing and Advertising
The Internet makes available various options to digital craft sellers for marketing and advertising their
work online. There are different options available to choose from depending on the budget available.
Here are some options:
Pay-Per-Click (PPC) Advertising: PPC advertising involves advertising your online shop or products on
search engines and other platforms. It is chargeable on the basis of each click on the advertisement.
Social Media Marketing: This involves marketing digital crafts on social media sites such as Facebook
and Twitter. Another good social media platform for craft sellers to market their work is Pinterest. It is
also possible to set up shop on Facebook and promote crafts through online advertising.
Blogs: Many digital craft sellers set up their own blogs to showcase their work, promote it, take
feedback and engage with potential customers. Those who have not set up blogs can use other people's
blogs, such as blogs that write about crafts and review craft products, to showcase their work.
6. Affiliate Marketing: This involves recruiting online affiliates who promote your product and generate
sales in return for a commission on each sale. Affiliate networks are available where you can find
affiliates for your products.
Payment Processing
A key component of the sales process, without which a sale cannot be completed, is to collect payment.
Online payment processing services such as PayPal, Google Checkout and others enable digital crafters
to collect payment over the Internet through credit cards and bank accounts. When selling digital crafts,
you need to provide multiple payment options to customers. You don't want to lose any customers
because you can't take a certain form of payment.
Digital Crafts Delivery
Ensure that the time lag between the payment and delivery of a product to a customer is kept at
minimum when you deliver a digital craft. The beauty of digital craft lies in the fact that customers don't
have to wait for days to receive what they bought. Any delay in delivering the product can cause
dissatisfaction, so you need to ensure almost instant delivery.
Sales Platform for Digital Craft
As a digital crafter, your highest priority should be to create fantastic products for your customers. Since
selling crafts involves taking care of several other aspects of business such as payment collection and
delivery, it is wise to use a sales platform. Using a sales platform automatically takes care of some of
those tasks, which also frees up your valuable creative time.
A sales platform streamlines your complete sales process. Whether buyers find your products on your
website, on eBay or anywhere else, a sales platform makes it easier for them to pay for your products.
With automated delivery, buyers receive the product immediately, instead of waiting for you to process
their purchase requests.
The sales platform that you choose should have the following features:
An easy-to-use process to upload products and publish your sales listing
A place that allows selling digital crafts on your website, other sites and popular marketplaces
Marketing tools and a large affiliate network for increasing popularity and sales
Automated delivery of products
Multiple payment gateway choices
PayLoadz is one of the sales platforms available to you. It is a full-service sales platform for selling digital
crafts as well as other digital content such as eBooks and videos. With PayLoadz, uploading your
products, creating a store listing and marketing them is extremely easy and quick.
7. Creating digital crafts takes time and dedication. To ensure your hard work is not lost, you need a sales
platform that helps buyers find and buy your products.
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