What is a good conversion rate on Etsy? (and why it matters)
If you’re a seller or potential seller on Etsy, you’ve probably heard the term “Exchange Rate” many times. Everyone has their own opinion on a decent conversion rate, and it can be confusing. Before we go any further, let’s get one thing straight – what is a conversion rate?
Conversion rate measures the number of conversions (visitors who purchased) out of the total number of visitors to your website/store. It shows you the rate at which visitors become customers of your store, as not every visitor will necessarily buy.
You may be wondering how conversion rates affect you as a seller, and if it matters, what are good and bad conversion rates? Get all the answers here (and maybe boost your sales!)
What is a good conversion rate on Etsy?
The average conversion rate on Etsy is between 1-3%, so a good conversion rate should be 2% to 3%. A conversion rate of over 3% is above average, so it’s considered great!
As a seller, it is recommended Aim for a 4% conversion ratewhich one is “Magic Numbers” for your store. Obviously anything above that is great but rare.
If your conversion rate is below the 1% minimum average, you need to review your store and make some changes. Don’t get frustrated with low conversion rates; everyone starts somewhere. Hopefully with the right approach and tips, your store’s conversion rate will increase.
Why is conversion rate important to Etsy?
One of the most important metrics for any ecommerce store is Conversion rates. Traffic data alone is not enough to measure store performance – what matters is converting those store visitors into paying customers.
To calculate the conversion rate, divide the total store traffic by the number of sales, then multiply that number by 100%. For example, if 100,000 people visit your store but only 1,000 sales, your conversion rate is 1% (1,000 / 100,000 * 100%).
With conversion rate, you will understand Traffic Quality and User Experience your store. For example, high website traffic but low conversion rates indicate that your website is attractive, but there are conversion traps in the buying experience.
Common mistakes that hinder conversion rates include slow loading times, complex website structures, and unhelpful product descriptions.
So if you haven’t checked your conversion rates on Etsy, now is the time to take advantage of this useful tool.
How do I calculate my conversion rate?
To calculate your conversion rate:
exchange rate = conversions divide by Total website visits (traffic) x 100%
This equation should help you better understand your conversion rate. No, you don’t need to manually calculate conversion rates on Etsy. Etsy will provide all relevant statistics (including conversion rates) for the seller’s account. W
ondering Where can I find this page? Use the guide below to access your conversion rate information.
- choose store manager on your Etsy account
- choose Statistical data (Bar chart icon)
- Data and graphs will appear
- You will see the following information:
- total browsing
- exchange rate
How to increase conversion rate?
Conversion rates are affected by a number of factors. Addressing these factors can increase your conversion rate, which means more sales! Below, we’ve listed six tips you can implement to increase your Etsy conversion rates.
1. Attractive visuals
Think about how you shop online. What drew you to one particular store among the many? The most likely answer is high-quality product images. Make sure you use good photos to showcase your product in the best possible way. The more attractive the photo, the more conversions you will get.
2. Shipping Options
Offer your customers different shipping options. This way, they can decide how they want to receive their product according to their needs.
3. Shopper Engagement
Be a responsive seller. Answer customer inquiries and feedback. Communication with customers keeps them engaged and interested in your store. You’d be pissed if there wasn’t a staff member in the store to answer your questions, right? Well, the same rules apply to online stores as well.
4. Choice of payment method
Customers love convenience (that’s why they shop on Etsy). Flexibility in choosing payment methods and giving your customers multiple options. Everyone has their preferences, and catering to them will keep customers coming back.
5. Refund Policy
Customers need reassurance when making a buying decision, and the best way to boost their confidence is a refund policy. Let potential customers know that if the product is defective, they can return it with a refund!
6. SEO (Search Engine Optimization)
Many people overlook this fundamental factor in improving conversion rates. SEO is the process of optimizing your store or page to rank higher on the SERPs (Search Engine Responsive Pages). It involves using relevant keywords in your product descriptions and listings.
SEO is a tool Google uses, but the concept also applies to Etsy. Optimizing your website for SEO is a worthwhile endeavor to bring more exposure to your store. If you’re keen on learning SEO, here’s an SEO fundamentals course to get started.
Related articles to learn more!
Becoming an Etsy seller can be rewarding but also challenging. Finding ways to increase your sales revenue can be confusing. However, understanding and using conversion rates is a good start to start improving your Etsy business.
Every seller is different, so set the conversion rate you want to achieve for your store. A decent conversion rate is between 2-3%, but if you want higher goals, go for it! Check your store and consider factors that affect conversions.
Most importantly, don’t rush the process. Take the time and effort to improve your store on Etsy and you’ll have a higher chance of getting more conversions.
If you’re a seller on Etsy, what are your tips for increasing your conversion rate? Let us know in the comments below!