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Sarah Waggoner

Your Etsy Conversion Rate Explained

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If you’re trying to get more sales, you’ll hear a lot about your Etsy conversion rate. So what is your conversion rate and why does it matter to your business? Learn more about how your conversion rate is one of the most important factors for the health of your Etsy business.

What is a conversion rate?

Conversion rates are defined as how many sales you get per 100 visits to your Etsy shop or website. They are an important factor in the health of your business because converting at a high rate helps you get more sales without increasing the amount of traffic you’re getting.

What is a good conversion rate on Etsy?

The average Etsy conversion rate is between 1-3%. That means for every 100 visits your shop gets, you get between 1-3 sales.

A great listing might convert at 5-10% during certain times of the year but rarely do e-commerce sites as a whole convert above 5% throughout the entire year.

How to calculate your Etsy conversion rate

You can calculate your conversion rate by dividing the amount of sales you’ve gotten in a certain time period by the number of visits then multiplying that number by 100.

You can see the shop below had a conversion rate of 3.8% during this particular week. You can find this page in your shop manager or shop stats page.

Below is a walkthrough of how we got to 3.8%

How to calculate your Etsy converion rate

Etsy does calculate this number for your entire shop as you can see in the top image. Knowing how to calculate the number of your own is important too because you can calculate the conversion of each listing as needed, which Etsy does not do for you in the individual listing stats.

What affects your conversion rate?

There are dozens of factors that can affect your conversion rates. Some of these are in your control and some aren’t.

Factors that aren’t in your control include things like the weather, what’s happening on the news that week, and even if a visitor to your shop forgot their wallet in the other room. Who hasn’t abandoned a shopping cart because you didn’t want to get up and get your credit card right?

There are a lot of factors that are in your control when it comes to your conversion rate. Here are some of the most important:

  • Listing descriptions

  • Processing times

  • Shipping costs

  • Product reviews

  • Product photography

  • Listing variations

  • The keywords that you’re ranking for

  • Product price

  • Your niche and market saturation

  • How much warm traffic you send to your Etsy shop

  • Running sales

  • Customer service

There are plenty of factors that influence your conversion rate that we haven’t listed above, but we’ll talk about how to improve each of these main factors below. First, though, let’s talk a little about why you want to focus on improving your Etsy conversion rate.

Why your conversion rate matters

I know that as Etsy sellers, you work hard to get traffic to each of your listings on Etsy. If you want to make the most out of every single visit, your shop’s conversion rate matters.

Let’s pretend you’re just starting your shop and your conversion rate is 1%.

If you’ve gotten 100 visits in the last 30 days, that means you’ve had one sale.

The only way to increase your sales without working even harder to get even more traffic is to improve your conversion rate. You could make a few changes to your most popular listing and get 3-5 sales from that same traffic without marketing on social media or increasing your Etsy search ranking.

How to improve your Etsy conversion rate

Now that you know what an average conversion rate on Etsy is, let’s walk you through how to increase yours.

I recommend starting by picking one of these factors to change, monitoring your listing conversion rates over the next 30 days, and then making further changes after you’ve got some data on what works and what doesn’t for your Etsy shop.

Listing description

Your description needs to be thorough enough that it answers all of your buyer’s questions without overwhelming them so they don’t read any of it.

Make your descriptions easy to skim and don’t include any unnecessary information.

Relevant keywords

It’s important to rank in relevant search results on Etsy that are further along in the buyer journey.

Think about how you start a search on Etsy. Let’s pretend you’re looking for a gift for your sister’s birthday that’s coming up. You probably start your search with a very general search term like “birthday gift for sister” because you want some ideas on stuff she might like.

The search results from that general search are used to give you ideas of what you might want to search deeper for. These listings if they get clicked on at all, probably don’t have the best conversion rates because this particular search was at the top of the funnel when it comes to the search process.

So after you get a couple of ideas, you probably go back to the Etsy search bar and type something more specific in to narrow your search down.

Maybe she likes silver so you put that into the search bar. You can see that buyers are completing searches like this by looking at what auto-populates in the search bar.

Next, you might narrow down your search results even more by adding the word “personalized” or “birth stone” to get even better products matching what you’re looking for.

These bottom-of-the-funnel searches will have high conversion rates for the listings that show up. As a bonus, more niched-down search phrases are also easier to rank for.

Competitive niches

While it’s true that there is a lot of competition on Etsy, that doesn’t mean you can’t find less saturated niches with easy-to-rank keywords.

Your Etsy shop conversion rate will increase if you have a mix of products in some less competitive niches.

Listing quality score

Your Etsy listing quality score is a proprietary stat that Etsy uses to help decide where you should rank in search terms. We don’t know the exact algorithm, but your sales history and previous reviews are included.

The factors also are an important part of determining your conversion rate.

You’ll want to encourage shoppers to leave a positive review when appropriate.

Processing times

Buyers want their products quickly. That’s something that is never going to change.

So if a buyer gets into your listing and sees that your processing times is twice as long as your competitors, they’re going to be less likely to purchase from you which decreases your conversion rate.

Keep the processing times in your Etsy shop as low as possible, but be sure that you can keep up! Late shipments affect your listing quality score.

Shipping price

High shipping costs decrease your conversion rates in the same way that high processing times do. Potential customers won’t see shipping costs until they get into your listing. So if they’re higher than they need to be, buyers are more likely to leave without converting.

If possible offer free shipping or use Etsy’s free shipping guarantee. It will not only increase your conversion rates, but will also help you move up in search placement which gives you more traffic.

Remember, offering free shipping to your customers doesn’t mean it’s free for you! Increase your product price to make up for the shipping costs.

Product photos

Your first product image is what draws buyers into your listing, but the remaining images are what help you convert.

To increase your conversion rate, make sure your listing photos are well-lit, not blurry, and show off all aspects of your products.

Competitive pricing

Pricing that is too high or too low compared to your competitors can decrease your conversion rate. Buyers, of course, don’t want to overpay for products. But they also want to make sure that what they’re purchasing is good quality.

Make sure to analyze your competitor’s price points, but don’t decrease your listing price so much that you don’t make a profit.

Repeat customers

Increasing your repeat customer rates can improve your conversion rate drastically. Sending your social media or email list traffic converts well because these people are customers who already know, like, and trust you.

You might be sending your marketing traffic to your website, but can easily send some of these past customers to Etsy every once in a while to give your conversion rate a boost.

Discount strategy

You can also offer discounts in order to increase your conversion rate. I encourage you to think through your strategy for this one. Some brands don’t want Etsy shoppers to be constantly waiting for a sale in order to make a purchase. If that’s you, that ok. Other brands run sales almost constantly. This can help increase sales with new customers.

How long will it take for my conversion rate to increase?

Unlike SEO and Etsy search placement, conversion rate changes can be measured instantly if you’re currently getting a good amount of traffic on Etsy.

A shop getting 100 visits a day to a listing could see a conversion rate increase on the first day.

It is best to measure changes over the long term, so even if you see a change in conversion rate quickly, make sure to give it 30 days before applying changes to other listings.

My conversion rate changes a lot. What should I do?

It’s normal for your average conversion rate to change frequently throughout the year.

Most Etsy sellers experience high conversion rates in November and December when there are a lot of shoppers who need gifts within a certain deadline, like Christmas.

The opposite is true in the summer. There are fewer shoppers and fewer gift-giving holidays. Conversion rates tend to be lower during this time.

Before making any huge changes to your Etsy shop, make sure to compare your conversion rate on Etsy with the stats from the same month in the previous year.

More Conversion rate resources

Want more help increasing your conversion rate on Etsy?

Click here to get my free guide with 33 ways to turn your visits into sales on Etsy.

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About Author:
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Sarah Waggoner is a full time Etsy Seller with over $700,000 in sales. She helps handmade and digital sellers get daily sales on Etsy without all the complications.

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