Etsy is a marketplace for handmade and unique items. The website has over 4.3 million sellers and 60 million products available for customers to browse and shop. Founded in 2005 by Rob Kalin, Chris Maguire and Haim Schoppik, Etsy was built as a solution for independent makers looking for an alternative to the one-stop shop of larger e-commerce sites like Amazon.
Etsy offers several ways for sellers to promote their products, including Promoted Listings and Offsite Ads. Promoted Listings are a cost-per-click advertising model that allows sellers to bid on keywords and have their listings displayed in prominent spots on the site, including product categories and search results. Offsite Ads, on the other hand, are outside of the Etsy ecosystem and are charged a commission of 12-15% of a sale that is attributed to the ad. Both types of ads are charged separately from the standard listing fee and transaction fee that every seller is required to pay.
As with any other type of ad campaign, determining the right budget can be difficult. It’s important to track return on investment (ROI) and click-to-sale ratio to determine if you’re getting value for your money. Increasing your daily ad spend may increase the number of impressions and clicks you receive, but it will not always lead to more sales.
If you’re unsure where to start, we recommend starting with a low daily ad spend and slowly increasing it as you learn more about how your campaigns perform. Keeping your costs low and focusing on your ROI will allow you to run a successful Etsy ad campaign.