Why Care About Your Etsy Conversion Rate?
Let’s talk today about your Etsy conversion rate. Why? Because when you know your Etsy conversion rate, you can create a solid strategy for growth. (One that doesn’t rely on Etsy’s ever-changing algorithm and mysterious experimentation!)
If you’re not sure what I mean by conversion rate, you should know that in general, conversion rate is a metric that is used across the retail industry. Conversion rates measure how many shoppers turn into buyers. Simply put, your Etsy conversion rate is the percentage of your shop visitors who purchase something from you.
How to Calculate Your Etsy Conversion Rate
Calculating your Etsy conversion rate is pretty simple:
- Go to your Etsy stats page.
- Determine what time frame you’d like to use. (Do you want to calculate for the last 30 days? The last year? All time?)
- Locate your number of orders and your number of visits (NOT views). Then plug them into this formula:
Orders ÷ Visits x 100
Here’s an example: You made 2 sales this month. 100 people visited your shop.
2 ÷ 100 x 100 = 2
Your conversion rate is 2%.
Where it get’s tricky is knowing what to do with your Etsy conversion rate.
How to Analyze & Improve Your Etsy Conversion Rate
Most online retailers have conversion rates that typically range from 1-3%, with more successful retailers coming in a little higher.
So if your Etsy conversion rate is in the 2-3% range, you’re probably doing ok. Higher rates mean that you’re doing something right. If you’re below 2%, you’d better get working.
Here are some ways to improve your Etsy conversion rates:
- Improve your photography. People won’t seriously consider purchasing your products if your photos do not communicate your item’s value.
- Write better descriptions. Clearly explain the benefits your customers will get when they purchase your item.
- Make sure your items are priced correctly. Undercharging and overcharging both send red flags to potential customers. Don’t undercut your competition in effort to make more sales. Instead, price your items in a way that reflects the value of your item.
- Examine your processing times and shipping costs. Would you want to purchase something that may arrive in 2 months and costs triple the price of the item to ship? Probably not.
- Accept returns. I know this is a sore point, especially if you make personalized items. However, visitors to your shop will be more willing to purchase your items if they know they can return them. Don’t hate me for saying this…just consider it. You can read more about customer service here.
Individual Listing Conversion Rates
Where I think Etsy conversion rates become fascinating are when you do the calculations for individual product listings. You can calculate Etsy conversion rates for individual listings by going to your Etsy Stats>Listings. The order and visit numbers will be listed right next to your listings. Then just use the Etsy conversion rate formula to calculate the rates for your products.
What you do with these numbers can seriously improve your sales.
-Which of your “most viewed” listings have the lowest conversion rates? If you’re getting traffic to a listing but not converting, it’s time to improve your listing. Can you work on your photos? How about your description? Is it priced correctly? The goal here is to capitalize on your traffic.
-Which of your “least viewed” listings have the highest conversion rates? These products are where you should put forth your greatest SEO efforts. If you get more traffic to these listings, you have the potential to make more sales.
Conversion Matters When it Comes to Etsy Search
What no one tells you is that your Etsy search visibility and your conversion rate are intertwined. You can’t have good SEO results without a good conversion rate.
If you want to improve your conversion rates, gain visibility, and increase your sales on Etsy, I’d invite you to learn more through my mini-course, Search-to-Convert. It’s a bite-sized, totally managable primer for gaining visibility on Etsy through listing improvement.