My 60-Day Journey Selling Digital Products on Etsy
Table of Contents:
- Introduction
- Month One Recap
- Keyword Research and Product Analysis
- Creating Listings on Etsy
- Results of Month One
- Strategies for Improving Sales
- Results of Month Two
- Analysis of Competitor Products
- Etsy Ads Performance
- Profitability and Plans for the Future
Introduction
Many online entrepreneurs turn to Etsy as a lucrative platform for selling their digital products. In this article, we will dive into the journey of an Etsy store owner who recently launched their shop and explore their experiences over the course of two months. From keyword research to product analysis, we will uncover the strategies used to drive sales, the effectiveness of Etsy ads, and the overall profitability of the venture.
Month One Recap
The journey begins with month one, which saw the seller's Etsy store launch on May 10th. The first step was to identify keywords with decent search volume and low competition, using a software called Everbee. This invaluable tool helped analyze niches, determine demand, and assess the potential profitability of products. Armed with this information, the store owner created eye-catching listings with SEO-packed titles and descriptions.
Results from the first month were promising. With 33 orders, the store generated a revenue of £116.67. However, after accounting for Etsy fees and ad spend, the store experienced a loss of £35. The seller's strategy of heavily investing in ads didn't yield sustainable results. Despite this setback, the determination to make the shop profitable pushed them to explore new strategies.
Keyword Research and Product Analysis
To increase sales and profitability, extensive keyword research was undertaken for the second month. The store owner targeted specific keywords through platforms like Canva and Google Sheets to create compelling products. The listings were carefully designed to outshine the competition with visually appealing images, attention-grabbing titles, and detailed descriptions.
Additionally, Everbee's Chrome extension came in handy during product research. Analyzing a page on Etsy provided valuable insights into monthly sales, conversion rates, and listing age. Armed with this knowledge, the seller made informed decisions about the viability of their products.
Creating Listings on Etsy
With the products ready, the seller uploaded them to Etsy, ensuring their listings stood out in the crowded marketplace. Optimization techniques, such as incorporating relevant keywords, attractive imagery, and persuasive descriptions, were employed to maximize visibility and click-through rates. A discount code strategy was also implemented to entice customers by making them feel like they were getting a great deal.
Results of Month One
In the second month, the store experienced a slight decline in overall clicks, sales, and revenue compared to the first month. However, the conversion rate increased to 4%, indicating better performance in terms of turning views into actual sales. The seller used Everbee to compare their conversion rates with competitors and found that while their listings had higher conversion rates, they made fewer sales overall.
The 27 orders received in the second month amounted to £99.23 in revenue, with an average transaction value of £3.67. Despite reduced ad spend, consistent sales were achieved, and some days even saw multiple sales. However, the seller's listings contributed only 19% of the total visitors, indicating the need to explore various traffic sources to drive more potential customers to the store.
Strategies for Improving Sales
Determined to increase profitability, the seller made strategic changes to their Etsy ads. Initially reducing the daily ad budget from $5 to $4, they continued experimenting until reaching $2 per day. While the reduced ad spend resulted in a lower number of clicks and views, sales remained consistent. On the 21st of June, the decision was made to turn off all ads, a move that might have implications for organic ranking but intended to test the effectiveness of relying solely on organic traffic.
Results of Month Two
In the second month, the seller's ads generated 3,280 views and 101 clicks on their listings. Etsy ads, with their straightforward setup and keyword-based targeting, proved to be an effective tool in driving traffic. However, their profit margin increased significantly due to the reduced ad spend, resulting in a profit of £44.24 for the month.
Analysis of Competitor Products
To further refine their strategy, the seller compared the performance of their products with those of competitors. Everbee's data provided insights into conversion rates, allowing them to gauge the effectiveness of their listings. While their own listings had higher conversion rates, it became evident that improving sales volume was crucial. To achieve this, the seller planned to expand their product range by launching spin-off products within the same niche, with the goal of increasing the average spend per customer.
Etsy Ads Performance
An in-depth analysis of Etsy ads revealed that some products had a poor return on ad spend. As a result, ads for underperforming products were turned off to maximize profitability. With reduced ad spend and a focused approach, the store aimed to make ads more effective and drive higher revenue.
Profitability and Plans for the Future
Despite the challenges faced, the store managed to turn the tide by ending the second month with a profit. Going forward, the focus will be on continuously increasing profitability month by month. The seller plans to dedicate time to launching more products, expanding their customer reach, and ultimately increasing overall sales. By diversifying product offerings and capitalizing on growing momentum, the goal is to achieve sustainable success on Etsy.
Highlights:
- Month one saw promising revenue, but high ad spend resulted in a loss.
- Strategic keyword research and product analysis were crucial for success.
- Eye-catching listings with SEO optimization played a significant role in driving sales.
- Month two experienced a decline in overall metrics, but conversion rates improved.
- Reducing ad spend resulted in increased profitability.
- Competitor analysis helped identify areas for improvement.
- Etsy ads were effective but required optimization to maximize returns.
- Turning off underperforming ads improved profit.
- Expansion through launching spin-off products is a planned strategy.
- Focus on continuously increasing profitability and expanding product range.
FAQ:
Q: How did the seller conduct keyword research for their Etsy store?
A: The seller used a software called Everbee to analyze niches, identify keywords with decent search volume and low competition, and determine the potential profitability of different products.
Q: What strategies did the seller employ to improve sales on Etsy?
A: The seller focused on optimizing their product listings with attention-grabbing titles, visually appealing images, and persuasive descriptions. They also implemented a discount code strategy to attract customers with the perception of getting a great deal.
Q: How did the seller assess the performance of their competitors' products on Etsy?
A: The seller used Everbee to compare their own conversion rates with those of competitors. This allowed them to gauge the effectiveness of their listings and identify areas for improvement.
Q: What was the seller's approach to Etsy ads?
A: Initially, the seller allocated a daily budget to ads but realized it wasn't sustainable in the long run. They gradually reduced the ad spend over time and eventually turned off all ads to test the effectiveness of relying solely on organic traffic.
Q: What were the results in terms of profitability?
A: In the first month, the seller experienced a loss due to high ad spend. However, in the second month, with reduced ad spend, the store turned a profit of £44.24. The focus going forward is on increasing profitability month by month.
Q: What is the future plan for the Etsy store?
A: The seller plans to expand their product range by launching spin-off products within the same niche. The goal is to increase the average spend per customer and continuously increase sales and profitability.
