Do Small Businesses Need a Website, or Is Instagram and Etsy Enough?
Many small businesses start on social media platforms like Instagram or marketplaces such as Etsy before ever thinking about building a website.
It makes sense. Platforms like Instagram and Etsy make it easy to showcase products, connect with customers and start selling without needing any technical knowledge.
But as your business grows, an important question often comes up:
Is social media or Etsy enough, or do I need my own website?
The answer depends on what stage your business is at and what you want to achieve long-term.
Why Many Businesses Start on Instagram or Etsy
For new businesses, social media and marketplace platforms are often the easiest place to begin.
Instagram allows you to share photos, build a following and interact with customers. Etsy provides an established marketplace where people are already searching for products.
These platforms can be useful for:
Testing business ideas
Reaching an existing audience
Making early sales
Building brand awareness
Learning what customers respond to
For many startups and hobby businesses, this is the perfect place to begin. However, there are limitations to these platforms.
The Limitations of Running a Business Only on Social Media
Many people ask whether you can run a business only on social media, and while it is possible and Instagram can be powerful for visibility, this depends heavily on algorithms, which means your posts may only be shown to a small percentage of your followers, sometimes as little as 6% of your followers. Even businesses with thousands of followers often find their reach fluctuating dramatically.
Social media platforms can also change their rules, features or visibility at any time.
Another limitation is discoverability. When someone searches on Google for a product or service, social media pages rarely appear as prominently as dedicated websites.
In other words, if a customer is searching online for what you offer, a website gives you a much better chance of being found.
How People Actually Search for Businesses Online
Most people use search engines when they are actively looking for information, products or services online.
Estimates suggest Google processes around 8.5 billion searches every day, which works out to roughly 99,000 searches every second. Google also holds roughly 90% of the global search engine market, showing how heavily people rely on Google to find what they want.
This means when someone searches for something specific, such as a product, service or answer to their question, Google is usually the place they start. It’s certainly the first place I go when I’m looking for something online.
Having your own website allows your business to appear in those search results.
Etsy Searches vs Google Searches
Marketplaces like Etsy can generate sales because people visit them specifically to browse products.
However, searches on Etsy only happen within the Etsy marketplace. Your products are competing with other sellers on the same platform, and they will only be seen by people browsing there.
Google works differently. It indexes your entire website, which means your pages, products and content have the potential to appear in results when someone searches for something related to your business.
For example, someone might search for:
handmade jewellery
wedding photographer
local dog groomer
A website allows your business to appear in those search results, rather than relying only on customers who already use Etsy.
The Challenges of Relying Only on Etsy
Etsy can be a valuable platform, especially for handmade products and small creative businesses. However, it also comes with some limitations.
These include:
High competition within search results
Fees on listings and sales
Limited control over branding and layout
Dependence on Etsy’s algorithm for visibility
While Etsy can generate sales, it doesn’t always help businesses build a recognisable brand outside the platform.
What a Website Gives Your Business
A website provides something social media and marketplaces cannot: a space your business fully controls. It is the digital equivalent of having your own shopfront on the high street.
With your own website, you can:
Present your brand clearly and professionally
Show all of your products or services in one place
Be found through Google searches
Share helpful information and guides
Build trust with potential customers
Unlike social media posts that quickly disappear in feeds, website content can continue attracting visitors for months or even years.
For example, blog posts, guides and service pages can appear in Google search results when people are actively looking for what you offer.
Should You Close Your Etsy Shop Once You Have a Website?
Not necessarily.
For many small businesses, Etsy can still provide a valuable stream of customers while a website is growing.
Search engine visibility takes time to build, and platforms like Etsy can continue to bring in buyers during that period.
Many businesses run both together, using Etsy as an additional sales channel while gradually directing customers to their own website.
Over time, as your website begins attracting visitors through search engines, email lists or returning customers, you may rely less on marketplace platforms.
Websites and Social Media Work Best Together
It is important to understand that a website does not replace social media.
Instead, they work best when used together.
Social media is excellent for building relationships, showing behind-the-scenes content and staying connected with your audience.
A website acts as the central hub where people can learn more about your business, explore what you offer, and make a purchase.
Many successful small businesses use social media to bring people to their website, where customers can then explore further.
When Should a Small Business Build a Website?
There is no single moment when every business must create a website.
However, it often becomes valuable when:
Your business is growing beyond a hobby
You want to appear in Google search results
You want more control over how your brand is presented
You want a professional online presence beyond social media
For many businesses, a website becomes the next step once they are ready to take things more seriously.
Social media platforms and marketplaces can help you get started, but they are platforms you don’t control. Your website is the one place online where your business decides the layout, content and customer journey.
The Bottom Line
Etsy and social media can be great starting points for small businesses.
But relying on them alone means your visibility, branding and customer journey are always controlled by someone else’s platform, and you could be missing out on people trying to find exactly what you offer.
A website gives your business a dedicated home online where customers can find you, understand what you offer and learn more about your brand.
For businesses looking to grow, having your own website often becomes an important part of building long-term visibility and trust.
If you're thinking about the next step and you're ready to get your business online and visible, a professionally built website can help you create an online presence that is clear, structured and designed to be found.
If you're not sure where to begin, you can explore my website design services and see how I help small businesses get their websites right from the start.
Frequently Asked Questions
Can You Run a Business Only on Social Media?
It is possible to run a business using only social media, and many small businesses begin this way.
However, relying solely on social media means your visibility is always dependent on platform algorithms. If your posts are not shown to followers, your business can quickly become difficult to discover.
A website provides a more stable online presence because people can find it through search engines, links and direct visits rather than relying entirely on social media feeds.
Do Small Businesses Really Need a Website?
Not every business needs a website immediately, especially during the very early stages.
However, a website often becomes valuable once a business begins to grow and wants to reach new customers beyond social media followers or marketplace platforms.
A website allows businesses to appear in search results, explain their services clearly and create a more professional online presence.
Is It Better to Sell on Etsy or Your Own Website?
Etsy and personal websites serve slightly different purposes.
Etsy works as a marketplace where customers are already browsing products, which can help generate early sales. A personal website, however, allows businesses to build their own brand, control the customer experience and appear in search engine results.
For many small businesses, the most practical approach is to use both together while their website grows.
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What Is SEO and Why Does It Matter for Small Businesses?
