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Etsy is experimenting with a new tiered ad strategy for sellers—currently in beta—that requires a minimum daily ad spend of $25. For those sellers opting in, you can choose between three ad optimization paths to better control how your budgets are used.

Here’s what’s happening, and how it might impact your shop.

According to recent reporting by Shopifreaks, Etsy now offers sellers a prompt to “Explore Strategies” when they commit to a daily ad budget of at least $25/day. Once opted in, sellers can choose from three distinct objectives:

  • Increase Orders – Aims for more orders and revenue, though at a higher cost per order.
  • Balance Orders with Returns – Seeks steady ROI via balanced spending and performance.
  • Increase Returns – Focuses on lower costs and higher ROI, potentially at the expense of total revenue.

Sellers now may be able to test which ad strategy aligns best with their business goals, and allot a dedicated ad budget to boost visibility, order volume, and ROI. 

Actionables: 

  • Test with Clear Objectives: If you’re currently spending $25+/day, try one strategy (e.g., “Increase Returns”) and monitor performance over 2-3 weeks.
  • Track Performance Carefully: Measure cost per order, ROI, and visibility before and after strategy changes to assess effectiveness.
  • Start Small: Commit to just $25/day initially; pause if ROI doesn’t support higher spending.
  • Maintain Documentation: Keep a record of your strategy choices and results to inform future ad decisions.
  • Alternative Ad Strategies: If this beta tool doesn’t align with your goals, continue using standard Etsy ads and invest in channels like email or social promotion.

TL;DR

Etsy’s new ad “strategies” (Increase Orders, Balance Orders with Returns, Increase Returns) aim to give sellers more control. They come with a $25/day budget requirement and informed testing capabilities. Proceed strategically, test and extract data, and always prioritize measurable ROI.

Source: Value added resource

CedCommerce Advice: Understand ad spend implications before expanding. Let transaction-level insights and multichannel outreach guide your ad strategy—not just platform prompts.

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