How to Increase Conversion Rate on Etsy

If you’re looking to learn how to increase conversion rate on Etsy, you’re not alone. Many Etsy sellers grapple with the challenge of turning their existing traffic into more sales. By grasping and refining this key metric, you can see a marked upswing in sales without the added stress of ramping up your shop’s traffic. Prepare yourself as we delve into mastering Etsy conversion optimisation – an aspect crucial to the levels of success in your shop.

You’ll notice that most of the top sellers on Etsy have an impressive conversion rate. It is a great factor to improve and can mean the difference between success and failure on Etsy.

How to Calculate Your Etsy Conversion Rate

First off, let’s chat about what a conversion rate really is. Think of it as the heartbeat of your Etsy shop. Here’s how to break it down: The conversion rate is the ratio of visitors who actually make a purchase in your shop.

To calculate your conversion rate, you must know two figures: The number of orders and the number of visits.

Conversion Rate = (Number of orders / Visits) x 100

On Etsy, there are two main types of Conversion Rates:

• Shop Conversion Rate: This refers to the ratio of your overall shop sales to shop visits. This is the number displayed in your shop dashboard.
• Listing Conversion Rate: This relates to the ratio of sales of an individual listing to its visits. Etsy uses this metric to rank listings in search results.

While you might be tempted to focus on the shop conversion rate because it’s prominently displayed, Etsy’s search placement gives more weight to the listing conversion rate for each individual listing.

Think about it: The quicker the customer makes a purchase, the more happy they are with their shopping experience. The more money Etsy Makes. Etsy will always try to keep the best converting, highest money making listings right at the top.

What is a good conversion rate on Etsy?

Based on my time in across my multiple Etsy stores, a conversion rate between 1 to 3% is usually a good sign. To break it down:

• The Standard: If you’re getting 1 to 3 sales for every 100 visitors, you’re right on track.
• Above Average: Anything over 3%? Pat yourself on the back! Though it might seem low, it’s actually a noteworthy achievement.

For a bit of perspective, while big online retailers have an average conversion rate hovering around 2.9%, on Etsy, with its unique ecosystem, rates can be anywhere between 1–5%. Why? Because Etsy displays all your competition right next to you. Although they bring the traffic, they also bring the competition.

Why Conversion rate is so important on Etsy

Boosting your conversion rate can have a significant impact on your shop’s success. Here’s why:

1. Maximising Revenue: At its core, a higher conversion rate equates to more sales from your existing traffic.
2. Etsy’s Algorithm: As mentioned earlier, Etsy’s algorithm, which determines how products are ranked in search, has a preference for shops and listings with strong conversion rates. So, not only does a better conversion rate mean more sales, but it also means better visibility for your listings.
3. Customer Satisfaction: A good conversion rate can often hint at customer satisfaction. If visitors are buying, it indicates that what they’re finding on your shop aligns with what they’re looking for.
4. Feedback on Product-Market Fit: Your conversion rate can act as a mirror, reflecting how well your products fit the market’s demands. If you’re seeing an uptick in your conversion rate after introducing a new product or design, it’s a strong indicator that you’re on the right track.
5. Optimisation Insights: Monitoring fluctuations in your conversion rate can provide insights into what’s working and what’s not. A sudden dip? Maybe it’s due to a change in your product listings or pricing. A sudden surge? Perhaps your recent marketing efforts or product enhancements are resonating well with your audience.
6. Competitive Edge: Lastly, in a platform as saturated as Etsy, every edge counts. By focusing on and optimizing your conversion rate, you set yourself apart from competitors. While others might be concentrating solely on driving traffic, you’re ensuring that traffic translates to sales.

How to increase conversion rate on Etsy

There is no magic fix to increasing your conversion rate on Etsy. It takes a combination of all aspects of your store, working together to offer potential customers the best overall experience. Some actionable steps you can take to increase your Etsy conversion rate include:

Offer the best product

“It’s okay” is never enough. In the competitive world of Etsy, quality truly is the crowned king. The products you offer shouldn’t just tick boxes; they should stand out as the best choice. The best products will eventually win in the end, as long as all other aspects are achieved to an acceptable level. Consider these points:

• Originality Counts: In a sea of similar items, what makes yours stand out? It could be a unique design, a special material, a customisable experience for the customer, or a distinctive function. In regards to digital products, you must be creative with how you approach design – Especially as a new seller with less store feedback and thus less credibility.
• Listen to Feedback: Your customers can provide invaluable insights. If they felt something was lacking, iterate and improve. Read the feedback in your competitors listings. Can you use this information to make a better product?
• Offer Value For Money: As digital product sellers, this is a lot easier than those sellers who have upfront costs in the terms of materials and labor. This does not mean your items have to be cheap – it means you should find a way to offer move than would be expected for each and every product.

Improve Your Etsy SEO (Search Engine Optimisation)

Let’s get real for a moment. You’ve poured hours into creating the perfect product, but if it’s not seen by the right people, it’s like hosting a party where no one shows up, or to those with a low conversion rate – where the wrong people show up, have a look around your house, and leave without enjoying what you have to offer.

Attracting Shoppers

Your first step is to attract shoppers. For this, you must know what customers are searching, how often, and what the competition is. How do you do this:

Use SEO Tools: If you want to take your business seriously, you have to spend some money. A subscription to a SEO tool is a small price to pay for the benefits you will receive. It will save you time, and help you build a great shop. For beginners, my recommendation is Everbee. Like any tool, there will be a learning curve, but as always help is just one Google search away. Pick one, subscribe, start playing around with it, and learn as you go.

Use the following Formula When Creating New Products

• Look for a High Search Volume keyword
• That has Low competition.
• Build or Create The Best Product that matches that search intention
• Offer your product at a competetive price

Do these four things and your product WILL sell

Learn To Attract The Right Shoppers

You must do everything in your power to make sure the right shoppers see your listings. You do not want customers who have no intent in purchasing, viewing your products. It’s that simple. How do you go about this?

• Main Keyword At The Beginning Of The Title: Etsy, and every Etsy keyword tool available will hammer this point for a reason: It is one of the first thing a customer will see. It should be the exact description of your item. If a customer reads it and interested? Great – They will click though! If not – they will avoid clicking on your listing, which is a good thing.
• Avoid Generic Tags: To many sellers across Etsy use highly generic tags in the hope of receiving more views, in the hope that potential customers see their products and purchase impulsively. Does this happen? Yes of course. Does it happen consistently? Absolutely not. Your tags should be specific, long tail tags that aim to match the exact search term of a customer. For example, if you are using the keyword ‘Vintage’ as a vintage digital art seller, you may also get customers looking for vintage clothing, vintage handbags, vintage artefacts. Will these customers convert? It’s highly unlikely. Use Vintage digital art, and you will get customers who have typed in this search terms.
• Do Not Be Afraid To Repeat Keywords in Tags: This goes against almost any advice in any keyword research tool or blog post, but it has helped me to over 60,000 sales in one of my Etsy stores and 50,000 in another, each within 2 years. My thought process on this:
  • This will help you avoid generic tags and help exact match more search terms. Again using the vintage digital art (this time an image of a tree) as an example, I would be specific about the exact art piece: Vintage Art Tree, Tree Art Digital, Palm Tree Art, Vintage Tree JPEG, Printable Tree Art.
  • It is hard to fill all 13 Tags using specific keywords. If you can fill each of the 13 keyword slots with specific, targeted keywords, thats great. Go ahead and do it. But when it comes to what a customer will search, its easy to narrow down the search term to 4-8 terms. To avoid adding the generic terms, start repeating the key terms using alternate combinations.

Improve Your Product Listings

Your listing is the lens through which potential buyers view your product. It should attract potential customers and help you avoid non-purchasers, then work to sell the product for you. The aspects that go into building a good product include:

• The Perfect Primary Image Thumbnail: It’s not just about aesthetics; your primary image should encapsulate your product’s essence. It should show of the product as a whole, as best as possible. If customers like the look of it, they will click. If not, they will avoid. This is already a great filter for potential customers. If your main thumbnail is to ambiguous, you will get a lot of customers clicking to inspect, only to see that it is not what they are after. What does this do? It lowers your conversion rate.
• Use All Your Image Slots: Etsy grants you 10 slots—make each one count. Showcase varied angles and potential use-cases, and as much information as you can to help you SELL the product. Show off the benefits and the perks. If your main listing image is as it should be, then your customer already likes the look of your product. Use the next 9 thumbnails to sell your product.
• Use Etsys Recommended Image Sizes: Etsy has guides for a reason. Use them, and you will rank better.
• Detailed Descriptions: Here, you don’t just describe; you narrate a tale. Highlight the perks of your product and answer any questions a customer may have. Sure, a customer may reach out with questions, but many don’t. If your descriptions leaves any questions unanswered, then your listing is not completely optimised for conversion rates.

Build Trust as a Store

Some customers will purchase directly from your listing. Many will take a look at your store first. Have you filled out all the available areas? Does it look professional? Your store as a whole is usually the final selling or non-selling point for a customer. If your listings are optimised but your store is not, you may loose your customer right at the finish line.

• Fill Out All Your Shops Information: Learn how to customise your store using the second half of this article. Many store areas are commonly overlooked. Some elements of your store you should make sure are filled in include:
  • Shop Icon and Cover Images
  • Your Order Receipt Banner
  • Personal Bio and Public Photo
  • Your Shops About Section
  • Your Automatic Message For Buyers
• Build Reviews: Reviews are one of the biggest trust factors a store can have. Reviews for the exact listing are great, but reviews for your items as a whole should be enough to build trust and get that sale over the line. More reviews definitely correlate to a higher conversion rate from what I have seen across all my Etsy stores. I have written a detailed article about how I get more Etsy Reviews.
• Have a clear returns / refunds policy: Keep it straightforward. If a product isn’t up to the mark or doesn’t match the description, what’s the process? Ensure it’s user-friendly.
• Have The Best Customer Service: Ah, customer service. It’s not just about answering questions—it’s about building trust. Potential buyers often shop around, floating questions to multiple shops. It’s a race. The shop that dashes to their aid, answering questions promptly and effectively, often wins the sale.
• Have great post purchase service: Post-purchase service is like the cherry on top. Assist them, guide them, make them feel valued. This not only leaves a lasting impression but often translates into those coveted 5-star reviews, and repeat buyers.

Offer a Competitive Price Point

Everything else about your listing and your store may be perfect, but if you are not pricing your products competitively, you may loose the sale. Price the product too high? Customers will go elsewhere. Price it too low? You product may be seen as cheap, and again customers may go elsewhere. It is up to you to determine the optimal listing price for each item. Again, use keyword research tools such as Everbee to help with this research process – or simply do a search on Etsy to see how your main competitors (and more importantly the best sellers) price their products.

Conclusion

Learning How to Increase Conversion Rate on Etsy shouldn’t be the first thing you do as a new seller – but is definitely something that needs to be done as your store continues to grow. There is no one-stop solution to increasing your conversion rate. Instead, many aspects of your store and listings must be worked on and Optimised in order to increase your chance of success.