Etsy Weddings: Sales Slump Or New Strategy?

Etsy is a popular platform for selling wedding items, but there have been some concerns about the impact of its algorithm updates on sellers' sales. While Etsy provides a quick, easy, and cost-effective way to sell handmade products, recent changes have left some sellers feeling frustrated and unsure if the platform is still worth it.

Etsy has made updates that have affected shop owners' sales, and with increasing competition, sellers are looking for ways to adapt and stand out. The platform's algorithm changes can be challenging to navigate, and it's important to recognise that we are at the mercy of these changes.

Despite the challenges, Etsy remains a popular choice for wedding sales due to its established audience and ease of use. It is a good testing ground for new businesses, and its low fees make it an attractive option for those just starting. However, it is important to be aware of the potential lack of customer loyalty and the harder path to growing an email list.

To succeed on Etsy, it is crucial to think outside the box and continuously try new things. This includes getting creative with product titles, descriptions, and shipping offers, as well as utilising other platforms to drive traffic to your Etsy shop. Ultimately, the decision to use Etsy depends on your business needs, profit margins, customer base, and personal preferences.

Etsy's fees and charges

Etsy has a range of fees and charges that sellers need to be aware of. Firstly, there is a one-time set-up fee of $15 USD to open an Etsy shop. Then, for each item listed for sale on Etsy.com or Etsy's mobile apps, there is a listing fee of $0.20 USD. This fee is charged per item, regardless of whether it sells or not, and listings expire after four months. If a seller chooses to use Etsy's automatic renewals feature, they will be charged the listing fee of $0.20 for each renewal.

When an item is sold, Etsy charges a transaction fee of 6.5% of the total order amount, which includes the item price, shipping, and gift wrapping (if applicable). This fee is only charged on listings that are sold.

In addition to the transaction fee, Etsy also charges a payment processing fee for each transaction made through Etsy Payments. This fee varies by country and is taken from the total sale price, including shipping and sales tax (if applicable).

Etsy also offers advertising services, such as Etsy Ads and Offsite Ads, which incur additional fees. For Offsite Ads, if an Etsy ad directly results in a sale, the seller will be charged a fee of either 12% or 15% of the total order amount, depending on their sales over the past 365 days.

Other fees may include Etsy Plus subscription fees, In-Person Selling Fees when using the Square reader for in-person sales, and Regulatory Operating Fees in certain countries.

It's important to note that all service fees, including prepaid fees, are non-refundable, and sellers are responsible for paying any applicable taxes associated with their sales.

Etsy's algorithm changes

One of the main challenges for Etsy sellers is the increasing competition on the platform. As Etsy becomes more popular, it also becomes more challenging to stand out. The canned advice Etsy offers, such as using keywords in titles and offering free shipping, may not be enough to rise to the top. Sellers need to get creative and find unique ways to attract customers.

Another issue is the lack of customer loyalty on Etsy. Buyers on Etsy are often loyal to the platform itself rather than individual shops. They may choose products based on price, shipping, or other factors, making it difficult for sellers to build a loyal customer base.

To adapt to Etsy's algorithm changes, sellers need to dig deeper and be more creative. This includes trying new things, such as using videos instead of photos and introducing new elements like free gift wrapping. It's also crucial to know your customers and their search behaviours, as well as using your strengths, such as writing skills, to enhance your product titles and descriptions.

While Etsy's algorithm changes can be challenging, they also provide opportunities for sellers to rethink their strategies and find new ways to stand out. By understanding the platform's changes and adapting their approaches, sellers can continue to find success on Etsy.

Etsy's advertising services

Etsy Ads

Etsy Ads allow sellers to display their listings or shops prominently on Etsy's websites and mobile apps. These ads are displayed based on ranking factors such as search relevance, listing quality, bids or budgeted amounts, and the likelihood of views or sales. Sellers can choose to promote specific listings or shops and set their own budgets. Etsy Ads operate on a cost-per-click basis, where sellers are charged only when their ad is clicked.

Offsite Ads

Offsite Ads are another advertising channel where Etsy purchases advertising space from third-party providers, such as social networks and search engines. While Etsy covers the upfront costs of these ads, sellers are charged an advertising fee if a buyer clicks on the ad and makes a purchase within 30 days. All sellers are automatically enrolled in Offsite Ads, with certain criteria determining participation.

Shop-Specific Promotions

Sellers can also create their own promotions specific to their shops and listings. Etsy offers two promotional tools: Sales and Coupons. Sales involve offering discounts or free shipping on listings, which can be displayed publicly to all buyers or specific categories of buyers. Coupons, on the other hand, are codes that can be created, promoted, and distributed at the seller's discretion, offering discounts or free shipping.

Etsy's pros and cons

Etsy is an online platform that allows users to buy and sell handmade, vintage, and craft items. While it can be a lucrative venture for some, it isn't for everyone. Here are some pros and cons of selling on Etsy:

Pros:

• Easy to set up and maintain: Etsy is user-friendly and straightforward to navigate, even for those with low technical skills.
• Established audience: With 81.9 million active buyers in 2020, Etsy provides a vast potential customer base for sellers.
• Trustworthy platform: As Etsy is a well-known and trusted brand, buyers are more likely to feel confident purchasing from the site.
• Established payment system: Etsy handles payment processing, saving sellers the hassle of setting up their own systems.
• Seller education and support: Etsy provides a range of resources, such as forums and coaches, to educate and support sellers.
• Strong and supportive community: In addition to Etsy's resources, there is a large community outside of the platform, including businesses dedicated to helping sellers optimise their Etsy shops.

Cons:

• Loyalty and brand image issues: Customers may develop loyalty to Etsy rather than individual sellers, making it harder to build a loyal customer base and gain referrals.
• Increased competition: With a large number of sellers on Etsy, it can be challenging to stand out and get noticed.
• Marketing expectations: Simply listing products is not enough to generate sales; sellers must actively market their shops and utilise SEO techniques to optimise their listings.
• Fees: While individual fees may seem small, they can add up over time and eat into profit margins.
• Handmade definition: Etsy's definition of "handmade" is broad and includes items that are designed but not made by the seller, which some may see as controversial.
• Price downward spiral: In competitive markets, sellers may find themselves in a race to the bottom, constantly lowering prices to remain competitive.
• Lack of control: As Etsy is a rented marketplace, sellers must abide by the platform's rules and have limited control over their shop's features, layout, and fees.

While Etsy provides a great opportunity for handmade sellers to reach a wide audience, it also has its drawbacks. It is important for sellers to carefully consider the pros and cons before deciding whether Etsy is the right platform for their business.

Etsy's customer service

In addition, Etsy offers Offsite Ads to help sellers promote their items. These ads are shown on external platforms such as Google, Facebook, Instagram, Pinterest, and Bing. When a sale is made through one of these ads, the seller pays an advertising fee.

Etsy also provides a range of tools to help sellers manage and grow their businesses, such as the Etsy Seller App, which allows sellers to manage orders, edit listings, and respond to buyers instantly from their mobile devices. The platform also offers discounted postage rates and the ability to create a custom website powered by the seller's Etsy shop.

While Etsy provides various support options and tools, some sellers have expressed concerns about the platform's frequent changes and updates, which can affect sales and profitability. It is important for sellers to carefully consider the pros and cons of using Etsy as a sales channel and make decisions based on their unique business needs and goals.

Frequently asked questions