Generating bulk of traffic and covering a larger geographical area does not add up until & unless you have a decent conversion rate.
Speaking of USA’s fastest growing ecommerce marketplace Etsy, the conversion rate is the best way to keep a track on how good you are doing as a seller. It becomes your responsibility to connect with your customers and convey what you are trying to express in order to complete a successful purchase.
From the visitors on your product page you receive either of these two:
- Getting the Clicks
- Getting the Sales
In this blog post, we have compiled answers to the most common queries that sellers have pertaining to conversion rate on Esty.
- Definition & significance of conversion rate?
- Factors that determine the conversion rate on Etsy
- What are the channels that drive the conversion rate
- How to calculate your conversion rate on Etsy?
- Tips to increase the conversion rate on Etsy.
So let’s begin with the definition…
What is meant by Etsy Conversion Rate?
The percentage of the successful purchase made by the visitors who saw your products on Etsy is known as the Etsy conversion rate.
Or in simple terms, the Conversion rate is the ratio of online shoppers that successfully made the purchase and converted as buyers.
Here the number of orders is the number of successful sales; the number of visits is equal to the total visitors on your Etsy product page.
Let’s take an example: Last month you successfully sold 19 products and the number of buyers who visited your Etsy product page is 729. Then your conversion rate will be (19/729) x 100 = 2.60%
This is how the conversion rate is calculated. Now let’s move to the factors affecting the conversion rate on Etsy…
Factors that determine the conversion rate
With Esty’s everchanging algorithm it becomes quite difficult to keep track of the factors that affect the conversion rate.
But to make your task easy we have compiled a list of five factors that play a vital role in determining the conversion rate on Etsy:
Photos of your product listing:
The first thing a buyer notices while visiting your product page is the product image. Just like the old saying is – your first impression is the last impression. So you can’t take any chances on that.
Before uploading a product on Etsy, ensure to post alluring photos of the product, something that your customers can never ignore.
Above is an example of a perfect product listing image. All the details are visible and to stay on the safe side the seller has uploaded multiple photos from different angles.
By doing so you provide your customers with a much clear insight of the product and will have a positive impact on your conversion rate.
The Product Description
Now we move on to the second most important factor that decides the conversion rate – The Product description.
Now your customers have seen the product, but they are still unaware of the features. As a seller, it becomes your responsibility to highlight all the key features of your product.
Below is an example of an ideal product description of a pillow on Etsy:
Look how clearly each and every aspect are mentioned. At first, the seller elaborates the uniqueness of the pillow and how it has been gaining popularity. Then the focus is shifted to how easy and convenient it is to use. Then very subtly a comprehensive overview is provided which is followed by how easily a buyer can get the product.
The seller has very clearly mentioned the number of days in which the product will be shipped and delivered. Plus an assurance is provided that the products will reach unharmed.
When a customer receives such a meticulous product description, the chances of conversion also increases multifold.
The Price & the shipping cost:
The product price is considered as the real deal breaker.
So ensure to charge your customers fairly or otherwise it might backfire your own strategy. Before uploading the product analyze which type of audience are you engaging and charge accordingly.
Selling on marketplaces like Etsy gives you the freedom to offer sales. So be sure to mention the discounted price.
This is a perfect example of mentioning the price on Etsy. The seller has clearly indicated the original and discounted price.
The shipping charges are one of the major reasons why a customer leaves the shopping cart empty, so very clearly mention the rate at which the shipping charges will be applied.
Offering free shipping and incentives excites the customers to purchase more thus improving your conversion rates.
Product Demands & Customer Reviews:
Here is an example of how your customers connect to you and mention what they desire.
Visit a few products similar to yours and analyze what your customers actually seek for.
This helps in analyzing all the shortcomings in the products and highlight the areas that need improvement.
Working according to the customer’s demands will make your conversion rate even better as you will be providing exactly what they seek for.
The conversion rate is also somewhat dependent on how many payments options you allow.
Some customers prefer credit cards and there are others who prefer pay pal or any other payment applications. Apart from that, there are many who still believe in getting the products before payments and prefer cash on delivery.
So it becomes your responsibility to add as many payment options as possible.
Including various payment options reduces the chances of any cart abandonment and thus increasing the conversion rate even more.
A lot had been discussed about factors that drive the conversion rate.
Now let’s move to the next segment of our blog which is…
What are the channels that drive the conversion rate
The customers prefer doing online shopping on various platforms such as mobile phones, tablets and also with the traditional system of computers.
A report from Statistica is mentioned below:
It is concluded that the maximum conversions are obtained by shoppers who use a laptop or a pc.
The reason being that there are fewer distractions while shopping the traditional way and the customer gets everything at a single place.
How to calculate your conversion rate on Etsy
Here are a few simple ways to calculate your conversion rate on Etsy:
Start by visiting your Stats page which is in the seller panel under the section Shop Manager.
Click on the Traffic tab and here you can all the views, visits, orders, and revenue.
Note: While calculating the conversion rate consider the ‘total number of visits’ rather than the ‘number of views’.
Visits are considered accurate because it eliminates all the spammy activities and counts each person as one. So if the same visitor visits your product page more than once, it will be considered as a single visit.
Now we do it, in the same way, I told above.
Referring to the above image as an example, Divide the number of orders (17) with the number of visits which is 682. Now multiply the answer with 100, we get:
The conversion rate is 2.49%
You can adjust the time period for which you need to calculate the conversion rate.
Click on the drop-down menu on the right-hand side of the column naming Stats For.
To check the Conversion Rate of a Single Product:
To get a better insight into which product is doing great and which products are lacking to meet the expectations, you can check the conversion rate of individual products.
Just click on the Listings Tab under in the stats page under shop manager menu.
Here you can witness the visits, orders, favorites, and revenue columns.
Just follow the same formula and get the individual conversion rates.
To Calculate Conversion Rate by using Etsy Rank
An easy way of calculating the conversion rate on Etsy is by using Etsy Rank. It is much efficient as the website automatically calculates the conversion rates and provide with a sorted list.
To do so go to Etsyrank.com and open your seller’s dashboard.
Now under the shop menu, click on Grades.
Here you can see all the products arranged according to these 5 categories:
- SEO Grade
- Conversion Rate
Now, let’s move to the final segment of this blog…
Tips to increase the conversion rate on Etsy
Until now the definition, factors, channels, and calculation of Conversion Rate on Esty. Though I have explained a few tips lets get it all under one heading.
So here are all the tips to increase the conversion rate on Esty:
Post Alluring and Clear Photographs:
While Uploading products on Etsy make sure to upload multiple photographs of the products. Make sure that all pictures are of high definition taken with a plain background. The conversion rate increases rapidly if the customers get a clear view of what he/she is investing in.
Provide Comprehensive Product Description
Describe all the features of your products comprehensively. Let your customers know how the product will be helpful to them and highlight the ease of usage alongside. To convert your customers you need to walk your customers through the whole description and persuade them to click on buy now button.
Reasonable Price & Minimal Shipping Charges
Set the product at a reasonable price as on Etsy you are competing with various other sellers. Your customers will only move forward with the sale if it is at a reasonable price or a better quality than others. Try to keep the shipping charges to a minimum as the customer often abandons the cart if there is a shipping charge included.
Follow Customer Demands
Plan your selling campaign according to the latest customer demands. As a seller it is your responsibility to serve what your customer demands, hence increasing the conversion rate.
Reply to customers feedback
Be in touch with your customers and go through all the feedbacks and reply if required. This creates a human touch among your customers and they’ll come back again soon. By doing so you can also analyze all the loopholes in your previous products and work on those areas.
Accepting Various Payment options
A customer is very choosy when it comes to payment options, so try to accept as many modes of payments as possible. You just need to serve your customers as they like it because your ultimate goal should be completing the sale, hence improving the conversion rate.
Etsy is one of the fastest growing marketplaces in the USA. According to the Index Rating of the Most popular online marketplaces according to online sellers in the United States in 2018 Etsy is a close competitor to eBay and Amazon.
So selling on Etsy can prove to be very beneficial for an online seller. Just follow the above tips to keep a regular tab and increase the conversion rate and switch to an efficient way of online selling.