Your Etsy sales are down. You haven’t changed your prices, your product quality is the same, and you’re still putting in the work. So yeah, it’s easy to look at Etsy and think they’ve buried your listings on purpose.
And you know what? We get it. When you can’t see what changed behind the scenes, blaming the algorithm is the only explanation that makes sense. Plus, Etsy isn’t exactly transparent about how their search works or what updates they roll out.
But here’s the thing: Whether it’s the algorithm or not, sitting around waiting for Etsy to “fix it” isn’t a strategy. So we dug into the data from thousands of Etsy shops to find out what’s actually happening to sales right now—and more importantly, what sellers who are still succeeding are doing differently.
What Etsy Won’t Tell You (But the Data Will)
Etsy isn’t going to announce this in their seller handbook, but here’s what we’re seeing across the platform:
The market is suffocating under new competition.
In the past two years alone, millions of new sellers have joined Etsy. That handmade jewelry niche you dominated in 2022? There are now 10,000 more shops selling the same thing. And a lot of them are undercutting on price because they’re just trying to make their first sale.
Cheap alternatives are everywhere.
Buyers can find similar products on Temu, Shein, and Amazon for a fraction of the price. Yes, yours is handmade. Yes, yours is better quality. But if your listing doesn’t scream that value in the first 3 seconds, the buyer’s already gone.
The economy is still weird.
People are spending, but they’re being selective. Discretionary purchases are down. Tariffs and international shipping costs have made cross-border shopping less appealing. If you’re relying on international sales, you’ve probably felt this hard.
Your product photos are competing with Instagram, not other Etsy listings.
This is the big one Etsy won’t say out loud: If your product can’t stand alone as a viral Pinterest or Instagram post, buyers will scroll right past it. Etsy search isn’t just about keywords anymore—it’s about stopping the scroll. Aesthetic, styling, and branding are now mandatory, not optional.
Your product might not be as good as you think it is.
We know that’s harsh. But sometimes the market has moved on. What was trendy in 2023 might feel dated now. Or maybe your competitors have simply raised the bar on quality, packaging, or presentation.
Review the top Etsy keywords and categories that are still performing in search.
The 5-Minute Reality Check (Before You Blame Etsy)
Before you convince yourself Etsy is out to get you, open Marmalead and check these three things:
1. Are people still searching for your product?
Etsy search trends rise and fall fast. Use Marmalead’s keyword data to see if shoppers are still typing your main keywords into Etsy search.
If “boho wall hanging” or “minimalist jewelry” searches have tanked this year, your traffic problem isn’t an algorithm shift—it’s a demand shift. When interest fades, even perfect SEO won’t save a declining trend.
2. How many competitors entered your space?
Competition is often the silent killer. Check how some of your listing keyword’s competition scores have changed.
If you went from a few hundred listings to tens of thousands using the same terms, it’s not that Etsy buried you—it’s that the market got flooded. That means you’ll need sharper photos, stronger keywords, or a niche variation to stand out again.
3. How do your listings actually stack up?
Forget “rank checkers.” They’ve been outdated for years because Etsy personalizes results for every shopper. What you see on page one might look totally different to someone else.
Marma AI is a better way to measure performance—it compares your listings to Etsy’s top performers, Seller Handbook best practices, and current market data. It pinpoints exactly what’s holding your listings back and gives you clear steps to fix it.
These three data points will tell you more than any Etsy forum thread ever will. For a step-by-step Etsy SEO checklist you can apply right after this, start here.
What Shops That Are STILL Selling Are Doing Differently
Here’s what we found when we analyzed shops that maintained or grew sales in 2024-2025:
They refreshed their keywords every 30-60 days.
Not all of them. Just the ones that aren’t doing any heavy lifting. You can spot those in your Etsy Shop Stats by digging into keyword analytics. If a tag’s bringing little to no traffic, it’s dead weight. Smart sellers replace it with keywords that have healthy search volume and manageable competition.
Etsy search trends shift fast. What worked in spring might flop by fall—so keeping your keywords fresh keeps your listings discoverable.
They treated product photos like content marketing.
If your photos don’t beg to be shared online, they’re not as strong as they could be. We live in a world where shoppers don’t just browse—they share, pin, and post what inspires them.
The best Etsy photos look like they belong in someone’s feed: styled, lit, and emotionally engaging. They show the feeling your product represents, not just the product itself. That kind of imagery fuels clicks, saves, and shares. All of which Etsy’s algorithm takes notice.
→ Related: See how we turned this guest bedroom into a professional Etsy photo studio
They watched their competitors obsessively.
High-performing shops know exactly who else is showing up for their keywords and why. They study how top competitors write titles, price their listings, and frame their product photos.
With Marmalead’s shop analysis or Marma AI’s listing comparisons, you can see how your listings stack up, and learn what you need to change to close the gap.
They tested and optimized relentlessly.
These sellers don’t “set it and forget it.” They tweak titles, swap photos, and test price points constantly. When something improves click-through or conversion rates, they keep it. When it doesn’t, they move on.
Marmalead’s engagement metrics and listing grades help identify what’s actually working so you’re not guessing in the dark.
They niched down HARD.
The more specific the focus, the better the results. Instead of selling “jewelry,” successful shops sell “hand-stamped minimalist necklaces for new moms.”
Niche audiences convert faster, return more often, and spread the word organically. In a sea of generic listings, focus beats volume every time.
The Truth Etsy Doesn’t Share with Sellers
Look, Etsy isn’t going to give us a roadmap. They’re not going to tell us when they tweak the algorithm or how they prioritize listings. That’s just the reality of selling on someone else’s platform.
But that doesn’t mean we’re helpless.
While Etsy keeps us in the dark, we can use data to figure out what’s actually working. That’s exactly why Marmalead exists—to give sellers the visibility and insights Etsy won’t provide.
You can’t control the algorithm. But you can control:
- How well-optimized your listings are
- How competitive your keywords are
- How your product presentation stacks up against top sellers
- How quickly you adapt to market changes
The Bottom Line
Here’s the truth about your Etsy sales: Whether it’s the algorithm, oversaturation, the economy, or changing buyer behavior—it doesn’t actually matter.
What matters is how fast you adapt when things change.
The shops that are winning right now aren’t the ones with insider access or special treatment. They’re the ones using tools like Marmalead to see what’s really happening, adapt faster, and optimize smarter.
So if your sales are down, you have two choices:
- Keep blaming Etsy and hope things magically improve.
- Spend 30 minutes in Marmalead, find out what’s actually broken, and fix it.
The algorithm might be a black box. But your shop’s performance doesn’t have to be.
→ Try Marmalead and see exactly what’s holding your shop back
Bonus: Checklist if Etsy Sales Are Down
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