Etsy's Huge Mistake: Confusing Buyers & Hurting Sellers

Etsy's Huge Mistake: Confusing Buyers & Hurting Sellers

Table of Contents:

1. Introduction
2. The Issue with Etsy's Additional Image
3. Etsy's Strategy to Reducing Conversion Rate
4. The Impact on Sellers
5. Similarities with Amazon's Product Display Ads
6. Sellers' Reactions and Feedback
7. Previous Instances of Etsy Testing
8. Confusion and Misleading for Shoppers
9. The Wisdom of Investing in Marketing
10. A Solution to Reduce the Effect
11. Conclusion

Article: How Etsy's Additional Image is Reducing Conversion Rate for Sellers

Introduction Etsy, the popular online marketplace for handmade and vintage items, has recently implemented a new feature that is causing concern among sellers. This feature adds an extra image to product listings, but instead of displaying a relevant image, it simply shows a black box with clickable links. These links take potential customers to related search results, effectively reducing the conversion rate for sellers. In this article, we will delve into this issue and explore the impact it has on sellers, as well as possible solutions to mitigate its effects.

The Issue with Etsy's Additional Image When browsing through Etsy, whether as a buyer or a seller, you may have come across the additional image feature. This image appears as a black box with clickable links, which redirect customers to related search results. While the intent behind this feature is unclear, it has a direct negative impact on sellers' conversion rates. Imagine paying for an ad to bring a potential buyer to your product listing, only for Etsy to redirect them to search results, potentially leading them to your competitors' listings instead.

Etsy's Strategy to Reducing Conversion Rate Based on observations and reports from sellers, it appears that Etsy is implementing this feature as part of a split test. It is not necessarily targeted on a shop-to-shop basis, but rather randomly assigned to certain buyers. This strategy allows Etsy to gather data and analyze the impact of these additional images on user behavior and conversion rates. While this may provide valuable insight for Etsy, it comes at the expense of sellers who are already struggling to drive sales.

The Impact on Sellers For sellers, this additional image feature is nothing short of frustrating. Many Etsy sellers rely on optimizing their product listings to encourage customers to click the "Add to Cart" button and make a purchase. However, with this new feature redirecting potential buyers to unrelated search results, sellers are left with reduced conversion rates. This not only affects their bottom line but also dampens their motivation to invest in marketing efforts to drive traffic to their listings.

Similarities with Amazon's Product Display Ads Etsy's decision to implement this feature bears some resemblance to Amazon's product display ads, which allow sellers to run ads on their competitors' product listings. While Etsy has not introduced sponsored links yet, it raises the question of whether they will follow suit in the future. Only time will tell if this additional image feature is the precursor to a new revenue opportunity for Etsy.

Sellers' Reactions and Feedback Not surprisingly, sellers have expressed their dismay and frustration with this additional image feature on the Etsy seller forum. Many have shared their experiences of the feature being added to their own listings or on listings where they were running ads. The consensus among sellers is that this feature is confusing and counterintuitive, and it only serves to divert potential customers away from their listings.

Previous Instances of Etsy Testing This is not the first time Etsy has experimented with this type of feature. In February of 2023, sellers noticed Etsy inserting links in their photos, which would take shoppers away from their listings. The prominent "Find Similar Items" button overlaid on a product photo was a prime example of previous testing. Sellers were concerned not only about losing potential customers but also about the misleading nature of these links, as shoppers might assume that sellers themselves had added the links.

Confusion and Misleading for Shoppers The lack of clarity and transparency in this feature adds to the frustration experienced by both sellers and customers. Shoppers may be misled into thinking that clicking on these links will only show them more products from the same seller, rather than being redirected to search results that include listings from various sellers. This confusion can result in a poor user experience and may deter customers from making a purchase altogether.

The Wisdom of Investing in Marketing Considering the potential negative impact of this feature on conversion rates, sellers may question the wisdom of investing in marketing efforts to drive traffic to their Etsy listings. If customers are constantly being enticed away to other sellers' listings, the return on investment for marketing efforts becomes uncertain. This dilemma puts sellers in a difficult position and raises questions about the effectiveness of marketing on the Etsy platform.

A Solution to Reduce the Effect While there is currently no way to opt out of this additional image feature, sellers can take certain steps to minimize its impact. One such solution is to upload a sufficient number of images to each listing, ideally including at least 10 images and a video. By doing this, the black box image with clickable links will be pushed further down the page, out of sight of potential buyers. While it may still be visible if specifically sought after, it becomes less likely to distract and redirect customers.

Conclusion In conclusion, Etsy's implementation of an additional image feature that redirects potential customers to related search results has created a frustrating situation for sellers. The reduction in conversion rates and the confusion it causes for shoppers are significant issues that Etsy needs to address. While sellers can implement a workaround by uploading more images and videos to their listings, it remains to be seen whether Etsy will iterate on this feature or roll it back entirely. The impact on sellers' motivation to invest in marketing and the uncertainty it creates in driving sales are factors that Etsy needs to consider for the long-term success of its platform.