Want to know what a good conversion rate on Etsy is? Well, you’re in the right place. This article will look at Etsy conversion rates, general eCommerce rates, and show you some lesser-known things you can do to improve the conversion rate in your Etsy shop.
If you’re interested in squeezing more value from your shop traffic, your Etsy conversion rate is the first place you should look. There are a handful of specific and effective ways to directly and indirectly impact your conversion rate on the Etsy marketplace.
But first, here’s how to calculate your Etsy conversion rate.
Calculating your Etsy conversion rate
Your conversion rate is a simple calculation displayed as a percentage.
To calculate your Etsy conversion rate, head on over to your Etsy Shop Dashboard and follow along:
- Go to Listings
- Click on the listing options wheel and open the listing stats page
- You’ll see orders, revenue, visits, and views
- Write down the total number of visits
- Write down the total number of orders
- Divide the number of orders by the number of visits
- Multiple the result by 100 and that’s your Etsy conversion rate
So, here’s the formula: (Orders ÷ Visits) x100 = Conversion Rate %
What is a conversion rate on Etsy?
A conversion rate, in general, is a percentage figure that expresses the percentage of people that took a particular action.
In terms of your Etsy shop, it’s the number of people who see a product listing, directly compared to the number of people who buy it.
So, for example, if 100 people visit your Etsy listing for custom cushion covers in a given period, and 1 of those 100 people buy your product, that’s a 1% conversion rate.
Why your conversion rate on Etsy is important
Conversion rates are essential as they represent the relationship between traffic and profit. If your conversion rate is too low, it means there’s a problem between the type or quality of traffic that’s coming to your page and the message (or product) that’s being presented on that page.
Related: 3 More Etsy Traffic Stats That DEMAND Your Attention
eCommerce conversion rates
As an Etsy seller, you’re selling your products via online checkout, and that simply makes you an eCommerce store. Therefore, a lot of eCommerce tips, best practices, and averages can apply to your Etsy shop.
The average eCommerce conversion rate (the measurement of visitors to a page to paying customers) was 1.95% in 2021.
Of course, it’s important to remember that conversion rates vary from market to market. So, different products will have a different average conversion rate.
Here are the average 2021 eCommerce conversion rates for various products, according to IRP Commerce data:
- Arts & Crafts: 3.49%
- Baby & Child: 0.89%
- Fashion, Clothing & Accessories: 1.90%
- Food & Drink: 1.90%
- Health & Wellbeing: 3.24%
- Home Goods: 1.35%
- Pet Care: 2.57%
- Sports & Recreation: 1.60%
- Toys, Games & Collectibles: 1.46%
What is a good conversion rate on Etsy?
Conversion rates in the world of eCommerce vary for a plethora of reasons. The quality of traffic, the product, how you describe it, the list goes on and on.
The average conversion rate on Etsy sits at around 2-3%. While an excellent conversion rates never really go above 5%.
Therefore, it’s reasonable to shoot for a conversion rate on Etsy that at least falls within the average percentage. If your conversion rates are higher than this, that’s great! If not, keep reading to learn how to increase your conversion rate on Etsy.
Comparing conversion rates for Etsy products
But, just like the conversion rates in different eCommerce industries are different, so are Etsy conversion rates for various product markets and categories.
For example, the average conversion rate for cosplay costumes will be much lower than downloadable art. Why?
Pricepoint.
For instance, a handmade Fortnite cosplay uniform will be significantly more expensive, but potentially more marketable when compared to a downloadable and digital print of a flamingo.
More people may look at the cosplay piece but not necessarily buy it. Because it’s eye-catching and attractive, but expensive. And there’s not much reason to click on the listing of a flamingo print if you don’t already have the intention to buy. You pretty much know what you’re getting and don’t need to click on the listing to purchase.
This, as you can see, would have an enormous impact on the conversion rate of these Etsy sellers.
So what does this all mean?
In essence, this means that you should take your Etsy conversion rate with a grain or two of salt. It all depends on what you’re selling and the category you’re selling in.
What’s important is that you compare your conversion rate last month to your conversion rate this month. Because the best way forward is by comparing yourself to who you were yesterday!
Understanding your Etsy listing’s quality score
When looking at your Etsy conversion rate, it helps to understand which factors determine the quality score of your listings. Etsy gives all listings a quality score.
It’s a secret score you won’t ever find out.
And its calculation is determined by Etsy’s algorithm, which helps place your listing in search for any given buyer.
Your Etsy listing quality score is directly and indirectly affected by its:
- Number of views
- Time on listing page
- Add to cart frequency
- Click through rate
- Favorites
- Completed purchases
As you can see, positive interaction with your listing that leads to favorites and, most importantly sales, will greatly improve your listing quality score.
While frequent clicks with few sales will certainly decrease your listing quality score.
So the more customers that buy your listings, the better your listing quality score will become. This means that your titles, tags, descriptions, listing photos, sales copy, and sales history all affect your listing quality score.
The bottom line: The better your listing quality score, the higher your Etsy conversion rate.
Improving your conversion rate on Etsy
So now you know what a good conversion rate on Etsy is, let’s look at how to improve it.
You product listing photography is everything.
You read earlier about the example of cosplay listings getting a lot of traffic.
And they usually get a lot of traffic by having interesting listing photos.
Cosplay is a fine example of artisans who work to an incredibly high standard – and, to show off their high standard, they need exceptional product photography.
To put things into perspective for your shop, leveling up your product photography will entice more people to click on your listing.
Which will garner more traffic that should convert into more customers.
Converting customers from good listing photos.
People are visual creatures; we consume with our eyes before engaging any other sense. Especially when it comes to online shopping.
When your product listing appears in a search result, your image will sell the product more than anything you can write. It’s the first thing consumers will see.
That’s why it pays to invest in your product photography.
It’s a good idea to frequently use ‘lifestyle’ photos. This is your product in the real world, used by people, or simply on display in someone’s home or a natural environment. When compiling these photos, be sure to do so in a way that makes your product look as desirable as possible while showing off any unique features or functions.
Of course, the features and functions of your product will vary depending on what you’re selling. A handmade leather bag has many more features than a plain linen shirt.
One point on product photography, regardless of what you’re selling – include your product on a plain white or neutral background, just like an Amazon product photo.
Neutral backgrounds are important for two reasons:
- Not only do shoppers expect to see a ‘no frills’ image (thanks to Amazon)
- But it also goes a long way in showing what your product looks like with no other distractions
Give buyers choice with flexible shipping options.
Fixed or calculated shipping? Why not experiment with both.
Which courier service? Why not try them all.
Experiment with courier services to find out which delivery service is the best for your region. Or research your target demographic to find out which courier service they’re most likely to trust.
USPS has a bad wrap for delivering parcels on time, but it’s the most widely used courier service for Etsy sellers. But some customers may not be willing to make the purchase if they fear their package will arrive late (or not at all).
Pro Tip: A lot of conversion rate optimization involves experimentation. Reducing pain points and customer friction. And making the buying process easier.
Price your products like you mean it.
Competitive pricing is the difference between a healthy profit and working for free. If you’re undercutting yourself, it’s a guaranteed race to the bottom.
At first, it’s easy to see how the lowest possible price can improve your conversion rate. But the truth is that if you constantly try to provide the cheapest product, you will probably damage your conversion rate.
That’s because Etsy isn’t a marketplace where consumers are overly price-sensitive. On Amazon, winning the ‘buy box’ generally depends on having the lowest price. However, on Etsy, buyers are motivated and willing to spend more, as Etsy is an artisanal marketplace. Buyers know what they’re buying is unique and special and are willing to pay for it.
Improve your conversion rate by creating a desire for your product. By making people want it, you’ll not only be able to charge a better price but also make it easier for customers to buy without churning.
Not sure where to start with your price?
Instead of pricing with your gut, look at comparable product prices and use that as a gauge for your own listing pricing. Marmalead is a great way to quickly compare listing prices across multiple product markets.
Offering the cheapest product might get you more sales but won’t always generate the most revenue.
By positioning your product accordingly and using pricing to place it there, you’ll can get quality traffic that’s less resistant to converting.
Customers balk at shipping fees.
Your conversion rate drastically depends on the final sale price of your listing, which includes the cost of shipping.
It’s important to remember that you look at your product pricing as just the sale price. But your customer sees the price of your product as the price they have to pay at the checkout. This includes the product’s price, plus shipping and other taxes.
Therefore, it pays to think about the other things that impact the final sale price of your product. Without a doubt, the most considerable influence on this (aside from product price) is shipping.
By offering free shipping, you’ll take a huge step in improving your Etsy conversion rate. But if you’re struggling to afford free shipping for your products, consider increasing your listing price to absorb shipping costs.
A $49.95 product with free shipping looks much more attractive than a $45 product with $4.95 postage & handling.
Don’t leave customer questions unanswered.
If you’re getting a lot of questions about products, that’s a sign that your product listing doesn’t contain the information it should.
Fix this by answering those questions in your product listing or perhaps even adjusting the title of your listing.
If someone has to reach out to ask a question, think of how many potential customers skipped over your listing because they had the same question but didn’t ask it. This will lower your conversion rate.
A customer that doesn’t understand your listing is traffic on your page that isn’t converting.
Lower the number of questions asked by answering them in your listing, before they’re asked.
Earn trust with positive reviews.
If you’ve earned the trust of pervious shoppers, you’ve likely earned a positive review in the process. And while not all customers leave reviews, good ones go a long way with future shoppers.
That’s why it’s important to get as many positive reviews in your shop as possible. First and foremost, this typically means delivering a quality product at a reasonable price.
You can have great pricing, killer photos, and a fantastic title, but if your listing has fewer than four stars, kiss your conversion rate good-bye.
Great reviews are an essential part of keeping your conversion rates high.
This proves your past customers trust your brand and are happy with their purchase.
Pro Tip: Visit the stores of your competitors and look at the positive reviews they have. Take note of specific things like shipping speed, quality, value, and so on. Then use your own product listings to explain how your product delivers those things.
Etsy conversion rate limitations
You can only do so much to improve your Etsy conversion rate.
For example, it’s well documented that payment methods are a massive source of friction for eCommerce brands, as many people prefer to pay in only 2 or 3 methods.
But as an Etsy seller, you can’t take payments via Apple Pay, BitCoin, or Google Pay. That’s because payment methods are the responsibility of Etsy.
Focus on what you can control, and you’ll find a healthy conversion rate for your Etsy shop.
Over to you
If you don’t already know your average conversion rate on Etsy, scroll back to the top of this article and use the formula to figure it out.
Once you know your conversion rate, you can begin to tweak your listings to get your rates closer to the industry average.
Good luck and happy selling!
