Demystifying Etsy Ads: Boost Your Sales On and Offsite

Table of Contents

1. Introduction
2. What are Etsy Ads?
3. The Two Types of Etsy Ads 3.1. On-Site Ads 3.2. Off-Site Ads
4. How On-Site Ads Work 4.1. Setting Up On-Site Ads 4.2. Factors that Determine Ad Display 4.3. Bidding and Competition 4.4. Cost and Return on Investment
5. How Off-Site Ads Work 5.1. Opting In and Opting Out 5.2. Advertising Fees and Sales Thresholds 5.3. Controversies and Concerns
6. Making the Most of Etsy Ads 6.1. Pricing Your Products Correctly 6.2. Exploring Other Advertising Options
7. Conclusion

What are Etsy Ads and How do They Work?

Etsy is a popular online marketplace for handmade, vintage, and craft supplies. It offers sellers the opportunity to reach a wide audience and boost their sales through the use of advertising. Etsy Ads, also known as Promoted Listings, are a key feature of the platform that allows sellers to showcase their products to potential buyers. In this article, we will explore the different types of Etsy Ads, how they work, and whether they are a good fit for your business.

The Two Types of Etsy Ads

There are two types of Etsy Ads: on-site ads and off-site ads. On-site ads are advertisements that run directly on the Etsy platform, appearing in search results and product listings. Sellers can set up on-site ads through their shop dashboard in the advertising manager. These ads are displayed based on factors such as search relevancy and listing quality. Sellers have control over their on-site ads, including how much they are willing to spend, which products to advertise, and when to turn them on or off.

Off-site ads, on the other hand, take sellers' listings and promote them on external platforms such as Pinterest, Facebook, Instagram, and Google. Etsy takes care of all the upfront costs of advertising on these platforms. Sellers are only charged a fee when someone clicks on the ad and makes a purchase from their shop within 30 days. All sellers are automatically opted into the off-site ads program, but those who meet certain sales thresholds have the option to opt out.

How On-Site Ads Work

To set up on-site ads, sellers can navigate to their shop dashboard and access the advertising manager. Within the advertising manager, sellers can select which products they want to advertise, set their desired budget, and determine the duration of the ads. Etsy will then display these ads to users based on factors such as relevancy, listing quality, and bidding.

Bidding is an important aspect of on-site ads. Sellers compete with other sellers in their niche to have their ads displayed in prominent positions. The more competition there is, the higher the bids need to be in order to secure ad placement. This can also affect the cost of running on-site ads. Etsy charges a cost-per-click fee for these ads, meaning sellers only pay when someone clicks on their ad and views their listing.

Determining the return on investment (ROI) of on-site ads is crucial to understanding their effectiveness. Sellers can calculate their ROI by dividing their total earnings by their total costs and multiplying the result by 100. If the return on investment is significant, it means the ads are generating more revenue than the seller is spending, making them a worthwhile investment. However, it's essential to monitor the budget and adjust it accordingly to maximize ROI.

How Off-Site Ads Work

All sellers are automatically enrolled in the off-site ads program, with the exception of those who meet specific sales thresholds and choose to opt out. Etsy covers the upfront costs of advertising sellers' products on external platforms. Sellers are only charged a fee when someone clicks on their ad and makes a purchase within 30 days.

The fee structure for off-site ads differs depending on whether a seller is required to participate or has the option to opt out. Sellers who are required to participate pay a 12% fee on the sale price when a purchase is made through an off-site ad. In contrast, sellers who have the option to opt out pay a 15% fee on the sale price for purchases made through off-site ads. These fees remain the same regardless of the product's price.

The off-site ads program has generated some controversy among Etsy sellers. While some appreciate the exposure it provides, others feel that being automatically enrolled in the program without the ability to opt out is unfair. Nevertheless, the program offers sellers an affordable way to advertise their products to a wider audience outside of the Etsy platform.

Making the Most of Etsy Ads

When using Etsy Ads, it's essential to ensure that your products are priced correctly to cover the advertising costs. A proper pricing strategy will take into account the wholesale price, which includes all the costs involved in producing the product, and the retail price, which accounts for the marketing expenses and desired profit. By accurately calculating these prices, sellers can absorb the advertising fees without sacrificing their profit margins.

It's also worth considering other advertising options beyond Etsy Ads. Platforms like Facebook, Instagram, and Pinterest offer affordable advertising options that can help drive traffic to your Etsy shop. Exploring these avenues can provide additional visibility and potentially boost sales.

Conclusion

Etsy Ads offer sellers the opportunity to increase their visibility and generate more sales on the popular online marketplace. Whether utilizing on-site ads or participating in the off-site ads program, it's crucial to carefully consider the costs and potential returns. By pricing products correctly and exploring other advertising options, sellers can make the most of Etsy Ads and achieve success on the platform.

Highlights

• Etsy Ads are a key feature that allows sellers to promote their products on the platform.
• There are two types of Etsy Ads: on-site ads and off-site ads.
• On-site ads run directly on the Etsy platform and can be controlled by sellers.
• Off-site ads promote sellers' listings on external platforms, with Etsy covering the upfront costs.
• The effectiveness of ads can be measured by calculating the return on investment (ROI).
• The off-site ads program has sparked controversy but offers an affordable way to advertise products.
• Proper pricing and exploring other advertising options are crucial for maximizing the benefits of Etsy Ads.

FAQ

Q: Can sellers choose to opt out of the off-site ads program?

A: Sellers who meet specific sales thresholds have the option to opt out of the off-site ads program. However, those who have exceeded the threshold after February 20, 2019, will be automatically enrolled for the lifetime of their shop.

Q: Do I have control over the display of on-site ads?

A: Yes, sellers have control over on-site ads, including the products to advertise, the budget, and the ability to turn them on or off.

Q: How are Etsy Ads priced?

A: On-site ads are priced on a cost-per-click basis, meaning sellers only pay when someone clicks on their ad. For off-site ads, sellers who are required to participate pay a 12% fee on the sale price, while those with the option to opt out pay a 15% fee on the sale price.

Q: Are there alternative advertising options for Etsy sellers?

A: Yes, platforms like Facebook, Instagram, and Pinterest offer affordable advertising options that can complement Etsy Ads and attract more customers to your shop.