Why is the conversion rate important?
The conversion rate represents the relationship between the visits to the shop and the profits made by sales. A slight increase in the rate can have a significant impact on the revenue. For example- your shop has products for $25 each. If the conversion rate is 2%, the revenue will be $50; if the rate is 3%, revenue becomes $75. Hence, proving the point that conversion rate has a significant impact on the gain. Conversion rate also helps improve your products’ quality scores and allows Etsy SEO. Both factors affect the rank of your product lists in the Etsy search engine algorithm.
How is it calculated?
The conversion rate is calculated by dividing the number of successful sales by the total number of visits and multiplying by 100 to arrive at a percent. Hence, the formula is:
Conversion rate = (number of successful sales / number of visits) * 100
Consider a situation where your Etsy shop has seven successful sales in May, with the total number of visits to the shop equalling 225. Hence, the conversion rate is:
Conversion rate = (7 / 225) * 100= 3.11%
This value is above the average range of 1-3%.
How can you check your conversion rate on Etsy?
Steps to check your conversion rate on Etsy:
Step 1: Sign in to Etsy as an existing seller or register as a new seller.
Step 2: Click on Shop Manager to view the seller dashboard, which contains a list of options such as Listings, Stats, Finances, etc.
Step 3: Click on Stats from the sidebar of the dashboard. Statistics help you view the numbers for different date ranges, including the number of views, orders, total visits, etc. Hence, you can view the conversion rate of your shop here.
This rate is of the overall sales of the shop. You can calculate the conversion rate of products individually. This will help you know more about the products. The most reliable way to do this is using Etsy listing stats.
Steps to calculate individual conversion rates:
Step 1: sign in to Etsy and go to the seller dashboard by clicking on Shop Manager.
Step 2: Select the Listings option from the sidebar of the dashboard.
Step 3: Select the listings of your choice and go to the listings stats page.
Step 4: This will allow you to view the stats associated with your listing-number of views, sales, visits, etc.
Step 5: Note the number of sales and total orders. Calculate the conversion rate using these values and the formula explained above.
How to improve your conversion rate?
Images: visually appealing, high-quality images covering all angles are essential to increase sales. Etsy allows you to add ten photos; adding at least 6 is a good practice.
Product description: A clear and enticing description is necessary to drive the visitor to click the buy button. It explains the product, features, and how buying it will ease the buyer’s life. Another aspect is SEO. Using the correct keywords and tags will make the search engine promote your product to more users.
Price: To determine the right price, you must first look at similar products and see how they are priced. Based on this, establish a price range for your listings and experiment by increasing or decreasing the price. Pricing too high will result in decreased sales, and pricing too low will result in doubts in the minds of the buyer regarding the quality.
Reviews: If your product has positive thoughts, it will be promoted by the algorithm as a good product more frequently. Customer feedback on customer service, delivery, and product quality dramatically increases your conversion rate. You can provide coupons to customers on completing feedback.
Etsy is a popular platform in the USA and an efficient way to sell online. Hence, as a seller on Etsy, knowing what a good conversion rate is and how to improve it is essential. It helps you learn more about the platform and boost your sales. You can decide on a few factors that seem manageable and work on them over a timeline to achieve industry-level rates.
