The primary objective of operating an Etsy shop is to transform visitors into paying customers. That necessitates careful attention to the conversion rate on Etsy. But why is conversion rate is important? And, what is considered as a good conversion rate on Etsy?
In this article, we’ll cover everything you need to know about your Etsy conversion rate, including:
- What is Etsy conversion rate?
- How to calculate the Etsy conversion rate?
- What is a good conversion rate on Etsy?
- How to increase Etsy conversion rate – 7 practical tips
Let’s dive in to learn more!
Etsy Conversion Rate: At a Glance
What is Etsy conversion rate?
The Etsy conversion rate is the percentage of visitors to your shop who actually make a purchase. In other words, the Etsy conversion rate tells you how many sales you get per every 100 people who visit your Etsy shop. As an Etsy seller, you should aim to increase your conversion rate so that more of the visitors to your listings end up buying from you.
Now you may get a bit confused with Clickthrough Rates (CTR) and Conversion Rates. They are two different but important measurements to keep an eye on.
CTR shows the percentage of people who see your listing and then click on it. For example, if 100 people view your listing and 10 click on it, your CTR is 10%. On Etsy, a good CTR is usually around 2%, which means you should get about 2 clicks for every 100 views.
On the other hand, the Conversion Rate measures the percentage of people who click on your listing and then make a purchase. If 10 people click on your listing and 1 buys something, your conversion rate is 10%.
This shows that a high CTR doesn’t always mean your listing is doing well in sales. A high number of clicks might not lead to purchases. Similarly, a low CTR could mean fewer clicks, but if those visitors are likely to buy, your conversion rate could still be high. That’s why it’s important to track both your CTR and conversion rate to understand how well your listing is performing fully.
How to calculate the Etsy conversion rate?
You can easily calculate the Etsy conversion rate by dividing the total number of successful sales by the total number of visitors you received within a specific time and then multiplying the result by 100.
Here’s the formula: Your conversion rate = (Number of sales ÷ Number of visitors) x 100
For instance, if you made 50 sales in the past 30 days, and the total number of visitors during that period was 2500, your conversion rate would be calculated as (50 ÷ 2500) x 100, resulting in a conversion rate of 2.3%.
Alternatively, you can easily locate your conversion rate on Etsy, by following these simple steps:
- Sign in and access your Seller dashboard by clicking on Shop Manager.
- Navigate to the sidebar and select Stats. Here, you will find comprehensive statistics related to your views, visits, and orders, and Choose a specific date range or sales channel from the dropdown menus.
- Your Etsy conversion rate will be displayed in this section, allowing you to access and review it quickly.
What is a good conversion rate on Etsy?
So, what is a good Etsy conversion rate?
Based on research from Etsy sellers, the average Etsy conversion rate is between 1% and 5%. However, this can change depending on your stage, your industry and the products you sell. For instance, jewelry tends to have higher conversion rates, averaging around 4.56%, while home goods have lower rates, averaging about 2.82%.
Here’s a breakdown of common conversion rate ranges and what they typically indicate:
- 1-2%: For new shops or those in highly competitive categories, a 1-2% conversion rate is typical starting out.
- 3-5%: This range reflects a strong conversion rate, showing that your shop is doing well in converting visits to purchases.
- Above 5%: Achieving over 5% suggests outstanding success in attracting the right audience and effectively converting visits into sales.
These figures serve as general benchmarks. Your key focus should be on increasing your conversion rate over time and in relation to your direct competitors, which can help you set realistic goals for your business.
Why is a good Etsy conversion rate Important?
The conversion rate has a significant impact on your profitability and search ranking.
- Lead to higher revenue
Even small increases in conversion rates can result in significant earnings. Most visitors to your website represent an investment, so boosting your conversion rate leads to a better return on sales and ultimately puts more money in your pocket.
- Build keywords’ authority for your listings
Etsy aims to match relevant queries with high-quality listings. Each sale generated from a search term indicates to the algorithm that the listing rightly addresses that keyword. That means the higher Etsy conversion rate leads to an increase in the ranking of your listings over time.
How to Increase Conversion Rate on Etsy – 7 Practical Tips
Knowing how to inceaser your Etsy conversion rate can benefit your business. That’s why we’ll look at the factors that affect this rate, helping you identify where and how to concentrate your efforts for better results.
1. Optimize your titles and descriptions
Your titles and descriptions should clearly describe your product and give potential customers a good idea of what to expect. Etsy SEO plays a crucial role in ensuring that your intended audience can easily find your listings, thus, your product titles and descriptions also need to include relevant keywords.
When you research keywords and use them in your listing to enhance your visibility on Etsy, there are two key aspects you should know to find best keywords for your listing:
- Identify the keywords your customers commonly use: The most effective method to discover these keywords is by utilizing the Etsy search bar. When you begin typing, Etsy provides suggestions based on the collected shopper data. You can use the auto-suggest feature to identify the keywords shoppers use.
- Opt for long-tail keywords: Long-tail keywords are highly focused and specific. And studies indicate that shoppers using longer keywords are more inclined to purchase. Therefore, you better use relevant long-tail keywords that your customers commonly use in their searches. By doing so, the visitors who click on your product listings will be more prepared to purchase.
Once you can identify great search terms for your listing, you should include them in your listing titles, descriptions and all 13 tags.
Listing titles
Your title should be brief and easily readable so shoppers can quickly understand your product. This helps increase your listings’ click-through rates as well as conversion rates on Etsy. When shoppers browse search results, they typically only glimpse the initial words in your title. Therefore, you better use this limited space to describe your item clearly. Don’t forget to include the main keyword in your title to increase Etsy SEO as well.
For example, if you offer crochet daisy plant, you can start your product title with what exactly it is, “Crochet Daisy Plant”
Write highly converting Etsy listing descriptions
A good listing description serves multiple purposes:
- Attracts buyers emotionally, convincing them they need and desire your product;
- Provides the necessary information for a logical decision-making process;
- Increase product visibility with relevant keywords that your customers commonly use in their searches.
- Addresses potential buyer questions and concerns, reducing barriers to purchase.
If you can craft a description that accomplishes these three objectives, you significantly enhance Etsy’s conversion rate.
Before writing listing descriptions, let’s ask yourself: Why should your customers care about your product? How can it positively affect their lives and address their concerns? Then, you can create a more compelling description that converts sales.
For example, you can highlight how your product can improve their quality of life, provide comfort, or address their specific needs to convince shoppers your items are what they need.
2. Create eye-catching and informative product photos and videos
A photo is the first impression of a seller searching for any item. If you want to increase your average Etsy conversion rate, take a good picture for a thumbnail. When photographing your thumbnail photos, don’t forget to factor in good lighting. You should also centralize your products in the photo without distractions from the background or props.
Following that, adding some more photos from different angles in various settings can also affect shoppers’ purchasing decisions. You can incorporate the following types of photos to make your product photography more appealing:
- In-use photo: Depict how your product appears when in use.
- Macro photo: Highlight the remarkable details of your product that make it stand out.
- Packaging photo: Display what shoppers can expect regarding packaging or demonstrate if your product is suitable for gifting purposes.
Also, you can use Etsy’s video feature to improve your Etsy conversion rate. This is because products with this feature are prioritized within the Etsy search algorithm. Hence, you can try uploading a muted video lasting between 5 to 15 seconds, showcasing the visual appeal of your product or demonstrating its usage. That might help generate a good Etsy conversion rate.
3. Implement the right pricing strategy
You should not ignore the pricing strategy if you want an Etsy conversion rate. Contrary to the common belief among many Etsy sellers, setting a lower price is not always the best approach.
If you significantly underprice your products compared to your competitors, customers may assume that the quality does not match your rivals. Therefore, if you believe your products have unique selling points, you can stage your product as a premium item and charge a higher price than the market average.
Moreover, shoppers often compare prices when browsing search results. They may already have a specific price range in mind before initiating their search. Hence, you should check similar listings to yours, make comparisons, and list items across various price points to cater to shoppers with diverse budgets.
But don’t forget to consider the cost of opening an Etsy shop when setting your pricing to ensure you earn profits.
4. Provide special offers to increase conversion rate on Etsy
Etsy shoppers prefer special offers. So, you can raise your Etsy conversion rate if you can offer your buyers some extra gifts, discounts, or free shipping.
Free Gifts
Announcing the inclusion of a small gift with their purchase captures buyers’ interest. Such special offers not only reduce low-quality views but also enhance the conversion rate on Etsy. Moreover, it encourages customers to leave positive reviews for your Etsy shop.
Discounts
Discounts are often one of the first pieces of information visitors seek when deciding whether to purchase. The rates and campaigns of your discounts can play a crucial role in converting interested shoppers into customers. This marketing strategy can be particularly effective on special occasions like Christmas or Valentine’s Day.
Free shipping
Statistics show that Etsy shoppers are 20% more likely to complete their purchase when an item is listed with free shipping. If an Etsy shopper adds your item to their cart and encounters high shipping costs, they may abandon the purchase altogether. Thus, offering free shipping not only satisfies customers but also increases the average conversion rate on Etsy.
5. Improve your processing time
Most Etsy customers search for gifts or items to fulfill specific event needs within a particular time frame. As a result, your processing times may affect a buyer’s decision to place an order. You should optimize your processing time, particularly if you have ready-to-ship items. In addition, you can let shoppers know you have shipping upgrades for them in case they require an item urgently.
6. Get more positive product reviews
Customer feedback helps you build trust and boost Etsy conversion rate. You can encourage your customers to leave reviews and ratings by adding a gift, voucher, or thank you card to the package.
Please note that you should prioritize gathering as many reviews as possible rather than solely aiming for positive ones. This is because that demonstrates how you handle negative reviews further shows your honesty to your buyers.
7. Become an Etsy Star Seller
The Etsy Star Seller program honors outstanding sellers who perform well in terms of product quality, service, and customer satisfaction. Hence, whoever can earn the Star Seller badge, can gain more customer trust, and have more chances to increase your products’ visibility on Etsy. So, becoming a Star Seller can help sellers considerably increase the conversion rate on Etsy.
However, there are requirements to become an Etsy Star Seller, you can learn more with our article about how to become Etsy Star Seller.
8. Offer top-notch customer service
Customer service here refers to all kinds of communication you have with your customers, such as:
- Answering their questions;
- Providing shipping updates;
- Handling feedback;
- Offering support after their purchase.
Delivering professional customer service and support increases customers’ likelihood of purchasing. Often, buyers reach out to many shops at once. And the shop that responds to their concerns the quickest tends to secure the sale. These practices can contribute to an Etsy good conversion rate.
Additionally, friendly sellers have a greater chance of attracting repeat purchases. Building a base of repeat customers is another key factor in ensuring long-term success for your shop.
Furthermore, if you can offer good customer support, you can have a better chance of receiving 5-star product reviews. Having more reviews instills confidence in potential buyers, thereby boosting your Etsy conversion rate as well.
Conversion Rate on Etsy – FAQs
- What is a good Etsy conversion rate?
On Etsy, the typical average conversion rate ranges from 1% to 3%. However, in recent times, the conversion rate on Etsy has experienced a decline due to the influx of new sellers joining the platform. Competitive niches such as jewelry and clothing exhibit various conversion rates among sellers. If you can achieve a conversion rate of 4% or above, that’s ideal.
- Why is my Etsy conversion rate going down?
Several possible factors could contribute to a decrease in your Etsy conversion rate. It could result from altering your pricing structure or offering products that are no longer in high demand. Another possibility is that your thumbnail image doesn’t work.
- How do I increase Etsy average conversion rate?
If you want to improve the conversion rate of your Etsy Shop, you can refer to these tips:
- Optimize Etsy listing for an Etsy success rate
- Implement the right pricing strategy to improve Etsy conversion rate
- Write clear shop policies and terms
- Provide special offers to increase conversion rate on Etsy
- Improve your processing time
- Get more positive product reviews
- Become an Etsy Star Seller
- Offer professional customer service
Maximize Your Etsy Conversion Rate Today
We hope this guide has handled any questions about the Etsy conversion rate. There are many strategies to enhance your Etsy conversion rate. However, don’t feel overwhelmed. In the beginning, any endeavor may appear challenging. So, just going through each step and consistently working towards it, you will witness a remarkable surge in your Etsy sales over time.
If you start selling on Etsy, you might want to find more tips to succeed on this platform. That’s why LitCommerce is here to help you. Our Blog has many helpful guides for eCommerce sellers.You can contact us anytime for support or join our Facebook Community for additional eCommerce strategies best practices.
