Etsy Seller Interview with Sarah of alpacasofmontana

How alpacasofmontana got started

Introduce your Etsy shop and tell us your story. How did you begin and decide on what to sell on Etsy, and how do you create your products?

Eighteen years ago, James and I were newlyweds looking for a riveting adventure to kick off our lives together. James has an extensive medical background and is also exceptionally creative and innovative. My background is in psychology, manufacturing, and real estate. We wanted to create something for ourselves with a few guidelines: We live in Montana, make enough to pay our bills, and really love what we do. We researched restaurants, retail, ice cream shops, service industries, and more. Then, one day, James was flipping through a Costco Connection magazine and came across a couple who had retired and started raising alpacas and, after 10 years, still loved it. James enthusiastically came to me with the article, and I said, "What's an alpaca? No!" James returned to his computer after being shot down and thinking nothing more of it. When he opened his browser page, an article regarding the financial benefits of raising alpacas appeared from The Wall Street Journal as a suggested read. We are both passionate about animals, so he came back to me with the article. I looked at him and essentially said that he went to medical school for 10 years, and I do not want to work outside for all hours of a winter day in Montana.

Later that day, James went to check the mailbox only to find a flyer from his sister with a note reading, "Wouldn't this be fun?" The flyer detailed how to start an alpaca business, something James and his sister had never discussed. After never hearing the word "alpaca" prior to this day, only to be bombarded with alpacas during them, we agreed that we should at least look into the idea. We made phone calls, visited farms, and researched what starting any kind of alpaca business would look like for us. We quickly became more and more excited, and six months later they had eight alpacas on their farm. Soon the number of mouths to feed went from 8 to 120—not including the dogs, llamas, cats, and chickens that also found their homes in the alpacas of Montana.

As the curious dreamers we are, James quickly realized a key niche: alpaca wool clothing. Once we understood what was at their fingertips, we went all in. We are now pioneers in the alpaca fabric industry. Every single product sold by Alpacas of Montana was the brainchild of our work and research. James created every yarn and fabric used in our products from scratch. We had collected fleece and were researching when my sister became pregnant with twins. We thought, "Wouldn’t it be fun to make something for the babies?" So we went to a local farmer’s market, found someone to hand spin and knit our fleece, and made two newborn-sized alpaca hats. These were our first two products ever. From there, we started creating more items and needed a place to sell them beyond our hometown. Etsy is a unique and versatile market because customers want quality and originality. We started off just selling our hats in this market but have expanded to ornaments, toys, felted soles, and a variety of other items.

Favorite items

What are your favorite items? What makes these so special? Why do you think these items might be selling well?

My favorite items on Etsy are our alpaca bird nesting material and cubes. The raw fleece comes directly from our own alpacas in Montana. It's "raw," not washed or cleaned, just as the birds like it. We have our own wild nests on our property, where we can see they are lined with fleece, as well as customers send all sorts of creative photos of birds and squirrels.

Getting sales on Etsy

How long did it take for you to earn your first sale and how do you currently attract customers to your Etsy shop?

It took us about 2 weeks for us to earn our first sale. Our products are expensive, but they are of high quality. Alpaca is such a tactile item, it's hard to convey that it is not only soft but actually highly functional: wicking, warm, hypoallergenic, and versatile. It can be used in both cold and warm weather. My brother wears our running socks in Phoenix, AZ. As the reviews and comments slowly came in over the following months and years, we began to gain momentum. Now, we have a strong ranking with 1,200+ sales. Advertising is beneficial, but I discovered that reviews—both positive and negative—are crucial. All feedback is productive, whether you like it or not.

Managing alpacasofmontana

How do you manage your shop? Are you running solo or do you have any team members? What tools or services do you use to run your shop and how do you handle fulfillment?

We have several different platforms that we utilize for the full process. This includes Etsy, our website, Amazon, Shopify, and Square. All of these platforms funnel into ShippingEasy, which is an excellent shipping platform. I haven’t used another shipping site, but after 7 years, we are super happy with ShippingEasy. From here, the information goes to Webgility, which is another software program that funnels all the sales from all the platforms into QuickBooks. These multiple steps are definitely an additional cost, but we found they are much less expensive and more accurate than manual entry. Our bookkeeper is excellent, but automatic fulfillment saves her time and keeps us up to date with our books.

All of our products are shipped directly from our farm. We have a wonderful shipper that has a diverse set of skills and job duties, including shipping, inventory management, website updates, and store support. Strong team members are essential. I feel our shipper is the most important part of our business. The rest of us—marketing, managers, and animal caretakers—all talk about and convey how wonderful our products are. But the shipper is the only one who actually touches the customer with our products. So she wraps our items in colorful tissue paper, boxes, and fun information cards to help show how special our products really are, and we are proud of all the items we create. Accuracy in shipping is essential.

The future of alpacasofmontana

What goals do you have for your shop in the future?

We want to continue to grow our product line on Etsy. We released 23 new products last year, several of which we sell on Etsy. Alpacas of Montana lead the textile industry in their commitment to comfort and warmth through the purposeful design of environmentally conscious alpaca products. Over the past 18 years, we have created over 400 new alpaca products, from socks and hats to jackets, blankets, and vests. No other apparel company in the U.S. is vertically integrated (it raises its own alpacas), designs all its own products, oversees manufacturing and production, and then sells direct to consumers (no wholesale) strictly online. Our customers are usually more cold weather-prone, yet California is the #1 state we ship to. 52% women, 48% men, 35-60 years old, outdoorsy or active. 

Advice for new sellers

What’s your advice for a new seller starting an Etsy shop?

1. Do your research and ask lots of questions about why they do (or don't do) something a certain way. Others in the industry enjoy talking about theirs.
2. Know that you will have to change some parts along the way: your marketing strategy, your product(s), and your approach to people.
3. Get ready for others to not be as passionate about your company as you are. I make socks, which is a long way from my plans with a psychology degree. But "making socks" means I am my own boss, I create things, and I go to conventions and travel—all things that I really love to do.

Some sellers really get inspired by hearing numbers. Feel free to share these if you like.

Question: How much is your monthly revenue?
Answer: 2K / month on Etsy

Question: What is your average profit margin?
Answer: 56%

Question: What is your shop’s conversion rate?
Answer: 2.3%