Are you a new Etsy seller looking to tap into the full potential of your store? Do you wonder how to make your store successful and identify areas for improvement? If so, the key metric you should focus on is your conversion rate.
What does conversion rate mean in retail?
Conversion rate is the ratio between the number of paid orders and the number of visits.
Generally, websites with optimized product content, good looking interface, provided with a fast and easy checkout process, can aim at a 2% yearly average conversion rate assuming traffic comes from a mix of international markets. This is a good conversion rate for an ecommerce website, which is generally lower than the conversion rate sellers can have when selling on a marketplace like Etsy.
Indeed, the conversion rate on an e-commerce website may be lower than on a marketplace due to factors such as lack of trust and brand recognition, limited product visibility, less competition, poor customer experience, and limited advertising efforts. Therefore, a good benchmark selling on marketplaces is approximately 3-3.5%.
Despite these encouraging figures, most of the time conversion is lower, affecting your real business growth potential.
What is Etsy conversion rate
What is a good conversion rate on Etsy
As for any retail venue, on Etsy, the conversion rate matric is the result of the Number of orders/number of Views. The average conversion rate on Etsy is about 2-3%. However, top-performing stores have a 5% of the conversion rate on Etsy!
What factors impact your conversion rate?
The niche of your product, your pricing strategy, the quality of your product descriptions and images, and customer satisfaction all play a role.
How to increase conversion rate on Etsy
When comparing Amazon, eBay to Etsy, it’s important to note that larger retailers on Amazon and eBay often heavily invest in advertising to boost their conversion rates. As a result, these big players typically have higher conversion rates, making it difficult and potentially wasteful to bid against them in pay-per-click advertising.
As for eBay and Amazon, even on Etsy, you can invest in advertising to improve your sales metrics and exposure, however, this is not the sole solution for improving conversion rates on the Etsy platform. Indeed, you can improve conversion rates by focusing on building customer engagement and establishing a strong brand position on these platforms. While the competition on Amazon, eBay, and even Etsy can be tough, taking a unique approach to your online presence can set you apart and ultimately drive sales.
For example, to improve CR your store should be very well presented, and take care of the looks, the prices, and the pace of end-of-season discounts.
If this is the case, you should invest in photographers, copywriters, UX, and remarketing. You should not invest in PPC campaigns
Generally, Etsy stores with a good conversion rate are the ones that:
- Follow Etsy SEO best practices
- Have an well organized stores
- Have high quality content
- Manage social media accounts and actively device a social selling strategy
By focusing on these key areas, you can increase your Etsy sales and unlock the hidden potential of your Etsy store.
Remember, your conversion rate is just one of many metrics to track and analyze. Other factors like repeat business, average order value, and customer satisfaction are also critical for the success of your store. So, keep an eye on your conversion rate, but don’t forget to also focus on delivering a fantastic customer experience.