What is a Good Etsy Conversion Rate?
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Opening and stocking your Etsy shop is just one of the steps that you need to take to be a successful Etsy shop owner. Once the shop is open, you need to track certain data points to ensure that your shop becomes as successful as it possibly can. One of those data points is the Etsy conversion rate.
What is Etsy Conversion Rate?
The conversion rate is one of the most important metrics you need to monitor as a business owner. The conversion rate tells you how effective your advertising, product description, and shop products are. It measures the overall performance of your shop.
In Etsy, you measure the conversion rate by comparing the number of visitors to your shop with the number of sales you make. Not every person that visits your shop is going to buy something. However, the more people that make a purchase, the better your conversion rate is.
Put another way, conversion rate usually directly correlates to the success or failure of your shop.
How to Calculate Etsy Conversion Rate
To calculate your Etsy conversion rate, find the number of sales that take place in a given period and divide that number by the number of people who visited your Etsy shop over that period.
Multiply it by 100, and you get your conversion rate percentage.
This is a simple mathematical formula that you can use to calculate your sales over a month, three months, six months, or even a year. The time frame is up to you.
Etsy Conversion Rate Calculator for Shop
While the math is simple enough, crunching the numbers can be time-consuming. Luckily, Etsy has a system that will do it for you.
Your seller dashboard includes a conversion rate calculator. All you have to do is find it.
Just sign in on your Etsy account and click “Shop Manager.”
On the “Shop Manager” sidebar, click “Stats.”
Information with your seller stats will appear.
One of the stats that appears is your conversion rate. Usually, the seller stats are defaulted to the last 30 days of sales, allowing you to see your conversion rates for the previous 30 days. You can adjust the time period to see your conversion rate for longer or shorter periods of time.
Etsy will also include a line graph so you can visualize how your visitors, sales, or conversion rate have changed over time.
Etsy Conversion Rate for Individual Listing
In the shop example pictured, we saw a conversion rate of 3% overall but some individual listings are performing better than others.
This listing pictured has a conversion rate of 6% when you take orders and divide it by visits. Shop listing conversion rates are more important than the overall shop conversion rate since you then know which listings are performing better than others.
You might want to run Etsy ads to high performing listings and work to improve low performing listings.
You can calculate the conversion rate for an individual Etsy listing by clicking into stats from the menu in Shop Manager Dashboard and then clicking on an individual listing at the bottom.
What is the Average Conversion Rate on Etsy?
However, Growing Your Craft points out that competition on the Etsy platform has increased significantly in recent years (especially in jewelry and clothing). This increase in competition has led to lower conversion rates across the board.
The site Oberlo, which works in conjunction with Shopify, keeps a more accurate track of online business conversion rates in general.
If you look at Oberlo’s report from May 2022 on ecommerce conversion rates, you find that across all eCommerce platforms, the average conversion rate was 1.78%. This is down .06 percentage points from April 2022 and .05 percentage points from May 2021.
Personally, we find that conversion rates of 2-4% are what sellers should use as their goal metric.
What Conversion Rate is Good on Etsy?
Despite the slight decline year over year, the conversion rate goal posts remain relatively standard. While there’s no exact number for a good conversion rate for an Etsy shop, most people agree that anything in the 2 to 3% range is good.
The rate will vary a little depending on what kind of products you sell. For example, clothing may sell better than pet-related items but not better than arts and crafts materials.
That same Oberlo report mentioned above also looked at what products currently have the highest conversion rates for eCommerce stores.
It found that products related to arts and crafts, including jewelry-making materials, fabric, yarn, etc., have the highest conversion rates at 4.91%
Coming in second on the list were shops selling health and wellbeing items. Oberlo found that those shops averaged a 3.64% conversion rate.
Third on the list was kitchen and home appliances, with a 2.9% conversion rate.
Oberlo reports that the next five product types, when ranked by conversion rates, were:
- Toys, games, and collectibles with a 2.04% conversion rate.
- Fashion, clothing, and accessories with a 1.58% conversion rate.
- Sports and recreation with a 1.52% conversion rate.
- Pet care with a 1.46% conversion rate.
- Electrical and commercial equipment with a 1.39% conversion rate.
The report went on to say that the arts and crafts industry saw the fastest year-over-year increase in conversion rates. It increased by 39.29% year-over-year.
Meanwhile, conversion rates in pet care increased 15.91% year-over-year. Conversion rates in health and wellbeing products increased 8.66% year-over-year.
Why is My Etsy Conversion Rate So Low?
If your conversion rate is lower than the recommended 2 to 3% range, there’s no need to panic. Several factors could contribute to the lower conversion rate, and it’s crucial to pinpoint the problem before making any drastic changes.
First, as mentioned earlier, it could just be an increase in competition. With more and more shops entering the Etsy business space, your piece of the pie is bound to shrink. To combat this, you may need to start diversifying your stock.
Another possible reason for a lower than recommended conversion rate is that you sell in a low-demand category. If it is a very small niche, there aren’t that many shoppers to entice to begin with.
Pricing may also be an issue. If your products are vastly overpriced compared to the competition, your conversion rate is likely to be lower than your competition.
Check out these other common problems as well:
- Listing images need improvement
- Product is missing key desired features
- The wrong search keywords are leading buyers to the product
For the latter, we recommend going into Stats in the Etsy Shop Manager dashboard and clicking on an individual listing to understand which keywords are taking a potential buyer to the listing.
How to Increase Etsy Conversion Rate
While it’s impossible to diagnose precisely what’s causing your low conversion rate, it is possible to offer solutions to some of the most common problems that Etsy shop owners face.
Product Listing Problems
Think about what you do as a shopper on Etsy. How do you choose from all of the search options Etsy offers you?
If you’re like me, the photo is the first thing I judge. If the image is blurry, doesn’t give me a clear picture of the product I’m trying to purchase, or if the product looks cheap, I will skip over the listing and find a listing more suited to my needs.
While you do not need to hire a professional to take your product photos, you should take the time to make sure that your product is displayed in the best light.
Another issue many Etsy shop owners make is the product description. Make sure your listing answers all the questions a buyer might have. How is the item shipped? What are the unique features? What’s the size of the product?
If a description doesn’t answer my basic questions, I will leave the shop without making a purchase. That’s a direct hit to the shop’s conversion rate.
Another significant factor in a shop’s conversion rate is the price of individual items and the shipping costs.
Cost is an important factor for Etsy buyers. While most buyers are willing to pay more if they receive an original work of art, they want a good deal on generic items.
For example, if you’re looking for a t-shirt and one shop charges $15 while the other charges $25, which shop will you choose? The $15 one, right?
Pricing makes a huge difference. You don’t have to offer the lowest price, but you must provide a competitive one.
Imagine the same decision, but one shop charges $15 for the t-shirt, and the other charges $17. Now, I’m taking other things into account, like the shipping cost and the shop’s rating. The $17 shop may be a few dollars more, but that five-star rating or free shipping makes a difference.
Speaking of shipping, Etsy shoppers are looking for quick shipping at a low price. If you’re dropshipping your products from another country, Etsy shoppers aren’t going to want to wait two to three months to receive their order.
If you need to make the order before you ship it, then don’t take a month to create the product. Shoppers will start wondering where their products are.
(Hint: If you ever end up falling behind in order fulfillment, Etsy has a handy “Vacation Mode” that will allow you to stop taking orders for a short time so you can catch up.)
At the same time, shoppers don’t want to pay a lot for shipping. If they purchased a $10 product, they don’t want to pay $15 more just to ship it. Keep your shipping price in line with your product price.
If your shipping is quick and affordable, you’re more likely to have a higher shop conversion rate.
I call this shop rating, but it’s really about customer service. Treat every customer like family. Make sure that you answer questions in a timely manner and step up if there are problems with a product or service.
For happy customers, encourage them to rate your shop or your product. The better your rating, the more likely you are to convert shop visitors into customers.
Again, think about how you shop. If you see a shop with a three-star rating, are you more or less likely to buy from that shop?
Keep your customers and potential customers happy, and it will be easy to create a five-star rating for your business and convert more sales as a result.
Trying to get the Star Seller status could be a way to signal to customers that you are a trustworthy shop if they have any concerns but you have to try to get high reviews.
Another reason that you might have a poor Etsy conversion rate is your SEO or search engine optimization.
SEO is designed to drive traffic to your Etsy store and your Etsy listings. However, if you use improper keywords or your keywords are too generic, you will drive the wrong traffic to your shop. These are people that don’t want what you’re selling.
For example, someone may visit your shop because they’re looking for forest green yarn. You sell yarn, but not forest green yarn. A person might visit your shop, find that you don’t have what they’re looking for, and leave without making a purchase.
This will lower your Etsy conversion rate.
We recommend using a tool such as eRank to dig into individual listings to see how to improve them and to start working on improving your listing SEO.
Improve Etsy Conversion Rate
Etsy also has tips and tricks to help you increase your conversion rate. After all, the site wants you to make a sale just as much as you want to create one.
In a recent article, Creating Listings That Convert, Etsy covers many of the same topics covered above, including pricing, quality listing photos, and timely delivery of the ordered products.
Etsy also suggests that the first photo in your listing be the best one–the one that shows your product in the best light. This is the photo that will appear in searches. It needs to be enticing.
That said, don’t just include one photo in your listing. Etsy allows you up to 10 images for each listing, so take advantage of the opportunity to show shoppers all the features of your item.
Product Description Tips
In the case of the product description, Etsy suggests that you’re deliberate in your writing. Incorporate relevant keywords into the first few sentences of the listing description to help your listing pop up in organic searches.
Make your writing sound human. This isn’t a machine-generated description packed full of keywords. This needs to sound personable.
Etsy also suggests that you take advantage of shipping options for customers. Some customers are looking to get their item as fast as possible, no matter what the cost.
Other shoppers want the cheapest shipping, even if it takes a few weeks extra to receive the item.
If you offer several different shipping options for shoppers, you’re more likely to convert on a sale than if you provided just one shipping option.
Your Etsy conversion rate is one of the biggest keys to unlocking success in your Etsy store.
A high conversion rate tells you that you have created quality listings that convert customers. A low conversion rate tells you that there are things you need to improve upon.
By monitoring your conversion rate, you can see when something is working and when something is starting to go wrong. You can change things quickly before little issues become big ones.
If you have not started monitoring your Etsy conversion rate and checking it consistently, it is time to start.