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Why Etsy Ads Are So Profitable

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Etsy Ads Are Profitable

Etsy ads are insanely easy to use and quite profitable. Although Etsy as a platform has much lower conversion rates compared to other marketplaces like eBay and Amazon.

On Etsy you can expect a rock conversion rate of around 1 to 5%. This is quite low compared to platforms like Amazon and eBay which often push 10%.

So you might be wondering with conversion rates so low CPC advertising must be a bit risky right? Well not really because if a platform has a lower conversion rate the CPC just adjusts to fit it.  Amazon is obviously going to have a much higher CPC than Etsy due to its crazy high conversion rates.

The reason for the disparity in conversion rates it’s likely because a lot of people are window shopping on Etsy as compared to eBay or Amazon or they might have a product in mind that they’d like to buy.

What Makes Etsy Ads Profitable?

But what make Etsy ads so profitable seeing as they’re so easy to use and competitive. this is actually because at sea really looks out for their smaller creators. With platforms like Amazon anyone with a high enough budget can dominate the charts. On Etsy no matter who you are the maximum ad spend is $50 a day so you’re not going to see one vendor completely plow everyone else because they have millions to invest.

These features make Etsy incredibly good for market research and finding high converting products as the competition as the playing field is much more balanced.

Snowball Effect

Just like any platform you have to remember even a nonprofitable ad campaign can become profitable in the long run. When I start ad campaigns I’m easily willing to take a loss of up to 50% if it means I’m going to start getting sales and reviews which will in the long run snowball my store and result in huge profits.

So if you have an Etsy store and you’re not running ads I’d recommend you give it a try. Set your budget low and see what it can do for you. Even a tiny ROI can boost your store much more than you’d expect due to the snowball effect.   

Matthew is an expert in digital marketing. If you need help with SEO, performanced based advertising or starting your own ecommerce store, this is your guy!

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