Unveiling the Truth About Etsy Offsite Ads

Table of Contents

1. Introduction to Etsy Ads
2. Types of Etsy Ads 2.1 Etsy Off-Site Ads 2.2 Etsy Ads (Promoted Listings)
3. Checking if Your Shop is Running Off-Site Ads
4. Opting Out of Off-Site Ads
5. Off-Site Ads Fee Structure 5.1 Shops with Less Than $10,000 in Sales 5.2 Shops with More Than $10,000 in Sales
6. Spreading the Cost of Off-Site Ad Fees
7. Impact of Advertising Fee on Profit
8. Control Over Advertised Listings
9. Off-Site Ads Performance Data
10. Evaluating if Off-Site Ads are Worth it 10.1 Pros of Etsy Off-Site Ads 10.2 Cons of Etsy Off-Site Ads
11. Using E-Rank's Profit Calculator
12. Conclusion

Are Etsy Ads Worth it? A Comprehensive Guide to Etsy Off-Site Ads

As an Etsy seller, you may have come across Etsy ads and wondered if they are worth it and how much they cost. This article aims to provide you with a detailed understanding of Etsy off-site ads, their types, costs, and how to evaluate if they are beneficial for your shop. Additionally, we will introduce you to E-Rank's profit calculator, which can help you assess the impact of advertising fees on your profits.

1. Introduction to Etsy Ads

Etsy ads are a way to promote your listings and increase visibility to potential customers. They can be categorized into two types: Etsy off-site ads and Etsy ads (formerly known as promoted listings).

2. Types of Etsy Ads

2.1 Etsy Off-Site Ads

Etsy off-site ads refer to promoting your Etsy listings outside of the Etsy platform, such as on Google, Instagram, Facebook, and more. These ads are managed by Etsy and are designed to drive traffic and sales to your shop.

2.2 Etsy Ads (Promoted Listings)

Etsy ads or promoted listings, on the other hand, are advertisements that are displayed within the Etsy platform itself. These can appear on the search results page, home page, and even within listings.

3. Checking if Your Shop is Running Off-Site Ads

All Etsy shops are automatically enrolled in off-site ads. It is essential to check if your shop is running these ads to be aware of any associated costs.

4. Opting Out of Off-Site Ads

If your shop is eligible, you have the option to opt out of Etsy off-site ads. However, only shops that have made less than $10,000 in sales in a year can choose to opt out.

5. Off-Site Ads Fee Structure

The fee structure for off-site ads varies depending on your shop's sales volume.

5.1 Shops with Less Than $10,000 in Sales

For shops that have made less than $10,000 in sales, the off-site ads fee is 15% of the total sale price, including shipping.

5.2 Shops with More Than $10,000 in Sales

Shops that have made over $10,000 in sales are subject to a fee of 12% of the total sales price, including shipping.

6. Spreading the Cost of Off-Site Ad Fees

If you choose to run Etsy off-site ads or are unable to opt out due to your shop's sales volume, you can spread the cost of the advertising fees across all your sales. Increasing the prices of your listings by around 2% can help cover these fees.

7. Impact of Advertising Fee on Profit

Using E-Rank's profit calculator, you can determine the potential impact of the advertising fee on your profit margins. This tool allows you to input the fee percentage and calculate the profit for each sale.

8. Control Over Advertised Listings

As an Etsy seller using off-site ads, you have limited control over which listings are advertised and on which platforms. Etsy determines the best listings to advertise based on various factors, including SEO, titles, tags, descriptions, and overall listing performance.

9. Off-Site Ads Performance Data

Etsy provides some data on off-site ads' performance, including which listings were clicked on, the date and time of the click, the items purchased, the purchase value, and the ad fee. While there is currently no way to separate off-site ad visits from organic views, this data can provide you with insights into the effectiveness of your ads.

10. Evaluating if Off-Site Ads are Worth it

To determine if off-site ads are worthwhile for your shop, consider the following pros and cons:

10.1 Pros of Etsy Off-Site Ads

• No cost if a sale is not made
• Opportunity to reach brand new customers
• No need to learn and optimize ad campaigns yourself

10.2 Cons of Etsy Off-Site Ads

• High fees (15% for shops under $10,000 in sales)
• Limited control over which listings are advertised
• Limited data on performance

11. Using E-Rank's Profit Calculator

To gain a better understanding of the impact of advertising fees on your profits, utilize E-Rank's profit calculator. This tool allows you to input your listing information and calculate the profit margin after accounting for advertising fees.

12. Conclusion

Etsy off-site ads can be a beneficial option for increasing visibility and driving sales, particularly for new customers. Evaluating the costs and benefits specific to your shop's sales volume and profit margins is crucial in determining if off-site ads are worth it for your business.

Highlights:

• Etsy offers two types of ads: Etsy off-site ads and Etsy ads (promoted listings).
• Off-site ads are managed by Etsy and are shown outside of the Etsy platform.
• The fee for off-site ads ranges from 12% to 15% of the total sales price, depending on your shop's sales volume.
• Using E-Rank's profit calculator can help you assess the impact of advertising fees on your profits.
• Etsy off-site ads have pros, such as reaching new customers, but also cons, including limited control and high fees.

FAQ

Q: Can I opt out of Etsy off-site ads? A: Only shops that have made less than $10,000 in sales in a year are eligible to opt out of off-site ads.

Q: How are off-site ad fees calculated? A: For shops with sales under $10,000, the fee is 15% of the total sales price. For shops with sales over $10,000, the fee is 12% of the total sales price.

Q: Is it worth running Etsy off-site ads? A: The effectiveness of off-site ads varies for each shop. It is crucial to evaluate your sales volume and profit margins to determine if the fees are worthwhile for your business.

Q: Can I control which listings are advertised in off-site ads? A: No, Etsy determines which listings to advertise based on various factors such as SEO, titles, tags, and overall performance.

Q: How can I calculate the impact of advertising fees on my profits? A: E-Rank's profit calculator allows you to input the fee percentage and calculate the profit margin for each sale.