What is a Good Conversion Rate on Etsy

If you are an Etsy seller and concerned about your sales then the first thing you need to analyze is your conversion rate. Conversion rates may seem like a complex metric but it’s not really. In fact, knowing the conversion rate helps you as an Etsy seller to figure out why you are not getting enough sales.

In this blog, we are going to explain how to calculate the conversion rate of your Etsy store and why it matters. Moreover, we will reveal what a good conversion on Etsy is and tips on how to improve your Etsy conversion rate. So let’s get started:

How to Calculate Your Etsy Conversion Rate?

To calculate the conversion rate of your Etsy store, divide the number of sales you made during a particular time by the number of unique visitors to your store during the same time.

Number of Orders / Unique Visitors = Conversion Rate

For instance, if you had 500 unique visitors and made 10 sales, your Etsy conversion rate would be 2%.

To find out how many unique visitors visited your Etsy store, go to your “Shop Manager,” click on “Stats,” then “Site Traffic.” There, you’ll see how many views your store had during a specific period.

Similarly, you can find out the number of sales you made by going to your “Shop Manager” and clicking the “Orders” tab. You can check how many orders were placed during a specific period.

What’s a Good Conversion Rate on Etsy?

On Etsy, the typical conversion rate hovers around 1-3%. However, this rate has seen a decline in recent times due to the influx of new sellers on the online marketplace. Certain categories on Etsy, such as apparel and fashion accessories are highly competitive that’s why conversion rates greatly vary among sellers. While top sellers can achieve conversion rates as high as 5%, others find it extremely difficult to achieve even 1%.

Factors that Impact Etsy Conversion Rate

Visitors: 

Imagine your Etsy shop as a physical store. The more people walking through your store, the higher the chance of someone buying something. Similarly, on Etsy, the more people who see your listings, the more likely you are to make a sale. This is why it’s crucial to focus on driving traffic to your Etsy shop from various sources like Etsy search, social media platforms, and even your own website or blog. The more visitors will be in your shop, the better your chances of making a sale.

Price: 

Think about when you’re shopping online. If you see something you like but it’s way too expensive, you’re probably going to pass on it. Similarly, if something seems too cheap, you might question its quality. Therefore, it’s important to set a price that covers your costs and helps you make a profit but is also attractive to buyers. It’s all about finding that sweet spot where your prices are reasonable and reflect the value of your products.

Product Quality: 

Quality matters! If your products are poorly made or don’t meet customer expectations, people are less likely to buy from you. It’s important to focus on creating high-quality products that customers will love. Positive reviews and repeat customers often come from delivering quality products. So, invest time and effort into ensuring that what you’re offering meets or exceeds buyer expectations and standards.

Reviews: 

Think about when you buy something online. Don’t you often check the reviews to see what other people say? Positive reviews are like virtual pats on the back. They tell future buyers that others have tried the product and liked it. So, if you’re selling on Etsy, make sure your customers are happy and leave good reviews. It’s like building a good reputation for your shop, which helps convince others to buy from you.

Shipping Costs: 

Imagine you’re buying something online. If the shipping costs are too high, it will make you think twice about making a purchase. On Etsy, it’s good to strike a balance between offering free shipping, which tends to attract more buyers, and ensuring that you’re still making enough profit from your sales. People love free shipping, so if you can offer it reasonably, it can improve your conversion rates.

Product Photos: 

When you’re browsing online for an item, what catches your eye first? Usually, it’s the item photos. On Etsy, adding high-quality photos to your listings can make a massive difference. If your photos look dull or blurry, it doesn’t make your items look appealing. And if they don’t look good, people are less likely to buy them. So, invest some time in taking clear, high-quality photos that help your items look better.

Product Descriptions: 

Now, imagine you’re interested in buying an item on Etsy, but when you read the description, it’s confusing or full of mistakes. That’s a big turn-off, right?

On Etsy, your product descriptions need to be easy to understand, short, and optimized with keywords. Keywords help your products show up in searches on Etsy, making it easier for people to find them. So, make sure your descriptions are clear, concise, and error-free to increase conversions.

Star Seller Badge: 

When an Etsy buyer sees a label saying “Star Seller” on an item, it catches her attention, right? That’s because those items have been really popular, and people tend to trust popular things.

On Etsy, if your product gets this “Star Seller” label, it means it’s been selling well. And when shoppers see that, they’re more likely to buy it because they think, “Hey, if so many people bought it, it must be good!”

Free Shipping: 

Imagine you’re shopping on Etsy and you find two similar products. One has free shipping, and the other charges for shipping. Which one are you more likely to buy? Most people would choose the one with free shipping because it feels like getting a little bonus. So, if you offer free shipping on Etsy, it can attract more buyers. But remember, you still need to make sure you’re not losing money by shipping it for free.

Repeat Buyers: 

Imagine you go to a restaurant, and the food and service are so good that you want to go back again. It’s the same with online shopping. If an Etsy buyer had a great experience buying from you once, she’s more likely to come back and buy again. So, focus on making each customer happy. That way, you’ll have more repeat buyers, which is great for your conversion rate.

How Can I Improve Conversion Rate of My Etsy Shop?

Write Highly Converting Title & Description

When crafting titles and descriptions for your Etsy listings, it’s important to understand that they serve multiple purposes. Firstly, they need to entice buyers by appealing to their emotions, making them feel that they both need and want your product.

Secondly, they should provide sufficient details to facilitate a logical decision-making process. Lastly, they must address any potential questions or concerns the buyer may have, thereby reducing barriers to purchase.

Before you start writing, ask yourself why a customer should care about your product. How can it enhance their life or solve a problem they face? While aspects like color, size, and functionality are important, focusing solely on these features only engages the logical side of the buyer’s decision-making process. If shoppers aren’t convinced they need your product, they’re unlikely to pay attention to its features.

To truly captivate your buyers on Etsy, you need to appeal to them emotionally. Consider how your product can improve their quality of life. Highlight emotional benefits in your descriptions to create a connection with your audience.

Take Killer Product Photos

To enhance your Etsy shop’s conversion rate, mastering the art of taking killer product photos is paramount. This begins with ensuring your photos are well-lit and captured against a clean background. This setup ensures that your product stands out as the primary focus, without distractions from the background or props.

Once you’ve nailed the thumbnail photo, it’s time to provide additional images that offer buyers all the details they need to confidently make a purchase. One type of photo to consider is the lifestyle shot, which depicts how your product looks and functions in real-life scenarios. These images help shoppers visualize themselves using the product, making it more appealing.

Close-up photos are another essential component. They allow buyers to zoom in and appreciate the intricate details of your product, highlighting its quality and craftsmanship. These shots can be particularly persuasive for products with unique features.

Moreover, you can consider including packaging photos as they reassure buyers about what to expect upon receiving their order. Showcase the packaging in a way that reflects the care and professionalism of your brand. This is especially crucial if your product can be given as a gift, as it helps buyers envision the presentation when sending it to a loved one.

Develop a Profitable Pricing Strategy

When it comes to improving your Etsy shop’s conversion rate, one crucial aspect to focus on is your pricing strategy. While many Etsy sellers may assume that lowering prices will automatically attract more buyers, it’s essential to understand that this isn’t always the case.

Online buyers often associate price with quality. Just like you wouldn’t always opt for the cheapest groceries at a supermarket because you’ve learned that the lowest price doesn’t always equate to the best quality, online shoppers make similar judgments.

Therefore, it’s important to justify your pricing and convince buyers that your products are worth the cost. One approach is to position your items as premium, high-quality products that offer unique benefits. These benefits could include the use of better quality materials, superior fit, or a long-lasting quality guarantee.

Alternatively, you might choose to offer products of similar quality to your competitors but at a slightly lower price, known as being a ‘loss leader’. This can attract price-sensitive customers while still maintaining the perception of quality.

Offer Free Shipping

Offering free shipping can also significantly boost the conversion rate of your Etsy shop. See, when people are browsing online and they see something they like, they get excited. But then, when they go to buy it and see a high shipping cost, that excitement can quickly turn into disappointment.

High shipping costs often make people rethink their purchase and abandon their shopping cart altogether. It’s like getting a balloon and then realizing you have to pay extra for the air inside—it’s a bummer.

But here’s where offering free shipping comes in like a superhero to save the day. When buyers see that shipping is free, it’s like a weight has been lifted off their shoulders. Suddenly, the price they see is the price they pay, no surprises at checkout. This makes them more likely to go ahead and complete their purchase because they know exactly what they’re getting into, financially speaking.

And guess what? Etsy is really into this whole free shipping thing too. They’re so into it that they give items with free shipping a boost in search placement, especially in the United States. So not only are you making your buyers happy by offering free shipping, but you’re also making Etsy happy, which can help you get more visibility for your items.

Have a Clear Return and Exchange Policy

Having a clear return and exchange policy on your Etsy shop is important for boosting your conversion rate. This policy isn’t just about rules and regulations; it’s about easing your buyers’ worries and removing any barriers that might stop them from making a purchase.

Imagine yourself as a customer browsing your shop. You might have questions like, “What if the item breaks?”, “Can I get my money back if it’s not what I expected?”, or “Will it arrive on time for my special occasion?” A well-written Etsy policy addresses all these concerns and more.

Your policy should be easy to understand and use. It should clearly outline your return and exchange policy, so buyers know exactly what to expect if they need to make a return or exchange. Additionally, it should cover your shipping policy, explaining what happens if a package is lost or arrives late.

It’s natural to worry about being too generous with your policy. You might think, “What if buyers take advantage of me?” However, in my experience, only a small percentage of buyers actually use the policy to return or exchange items.

Be Active on Etsy

Being active on Etsy and responding to your buyers fast can significantly improve the conversion rate of your Etsy shop. When we talk about being active, it means regularly engaging with your shop, updating listings, and participating in the community. But one of the most crucial aspects of being active is responding to your buyers’ inquiries and messages as soon as possible.

Customer service plays a vital role in any business, including Etsy shops. It encompasses all interactions you have with your customers, from answering their questions about products to providing updates on shipping and offering support after the purchase. When you respond fast and effectively, it shows your buyers that you care about their experience and are committed to providing excellent service.

A quick response time can give you a competitive edge on Etsy. Many buyers reach out to multiple shops with inquiries or concerns, and the shop that responds the fastest is more likely to secure the sale. By being responsive, you increase the likelihood of converting potential buyers into actual buyers.

Frequently Asked Questions (FAQs)

Q: Why is my Etsy conversion rate going down?

There can be a number of reasons why your Etsy conversion rate is dropping. Some of the common reasons include an increased number of sellers in your category, poor reviews from buyers, and bad-quality product photos.

Q: How can I define a reasonable conversion rate on Etsy?

In general, a conversion rate between 2-3% is considered reasonable in ecommerce. Since Etsy is a huge marketplace with more than 7.5 million active sellers even a 1% conversion rate is considered reasonable in some categories.