How Ukrainian earns in the US on handmade things

Photo by K.Fund Media

In the office of Elena Vechkanova, there are several shelves near the wall, filled with handmade covers. Three years ago, she founded the marketplace. handmade-goods of Ukrainian masters Three Snails Culture. Major buyers live in the USA. In recognition of Vechkanova, the project is almost self-sufficient. Left a little.

After the events of late 2013 and early 2014, the advertising market became problematic, which forced staff reductions in Vechkanova’s main business - an advertising agency - and she thought about creating a platform with unique handmade goods made in Ukraine with orientation to the West.

Photo three-snails.com

The initial strategy - artisans would learn about the site and upload their products themselves - did not work.

The project team went the other way - went to small towns, villages and villages in search of local nuggets.

“They visited the markets, asked who you do here with your own hands. So found the main pool of masters. Now on 95% we work with residents of small cities. Our analysts have tracked what is relevant in the global market. And we offered the craftsmen to work on those products that are in demand in the States and can be sold by the thousands, ”said Vechkanova about how the project was rebuilt.

How to promote a product in America and not go into the negative

Now the marketplace has a warehouse in the USA, where the most popular products are delivered. According to Elena, 85% of the target audience of the site are women. The first product bought on the site was baby clothes.

Now 80% of purchases are made by residents of the USA: in the first place is California, then New York, Chicago and Texas.

Another 10% of customers from the UK, the rest are scattered in other countries. Business is seasonal. On average, over a thousand units are sold per month, in September, Ukrainian handmade-masters have been paid 1,8 million UAH.

The most time consuming and costly is the promotion of the site and individual items in the highly competitive American market. According to Vechkanova, the most effective tool is the social network - Facebook and Instagram.

Photo by K.Fund Media

“We tried bloggers, thematic publics, and SЕО-promotion. The question is actually in the price of contact and the price of sale. The cost of a click in the US is from $ 2,5 to $ 5, depending on the type of product. Often we do not have such a profitability for a product as its promotion costs, ”explains the entrepreneur.

Financial model Three Snails Culture based on several sales channels: through the website and trading platforms, for example, Amazon, as well as through wholesalers.

"If the goods are sold on Amazon, we give 18%. If wholesalers are buying, discounts are up to 30-40%, ”says Vechkanova. Sometimes we sell to zero for ourselves, just so that our masters have a job.

Kickstarter Disappointment

Initially, not only hand-made natural products were exhibited on the marketplace, but also video reports about the cities and villages in which they are made.

“When we went on expeditions to the masters, we shot a large number of videos about how they do it, about individuals, we took a lot of photos. They did not spare the money, hoping that the investment would pay off handsomely. ”

Photo three-snails.com

"I wrote about us National Geographic, other world media. It was a great PR of Ukraine, which is not enough in the world, ”says the entrepreneur.

At the beginning of the project, Vechkanov placed great hopes on the Ukrainian diaspora in the United States. But the campaign has recently ended Three Snails Culture on crowdfunding platform Kickstarter, and Vechkanova disappointed with the results.

Photo by K.Fund Media

“We positioned ourselves as an online project that promotes Ukrainian hand-made abroad and wants Ukraine to be recognizable in the world in terms of a positive image. They asked for $ 20 thousand, but we were not supported. This did not have any decisive impact on the project, but, most likely, we will do repositioning - as a community of craftsmen who do unique things with their hands, but without an accent on Ukraine, ”the entrepreneur reflects.

All 3, the marketplace develops on its personal funds - without third-party investments.

The amount that the founder has invested in the project, she does not disclose. But now he is seriously considering looking for a partner or investor.

“We are moving in the direction of increasing volumes. We are interested to sell more products, to form warehouses in the States, and so far it is not very profitable for us to expand the assortment, because we cannot cope with what we have, ”she concludes.

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