Etsy Year End Recap: What to Expect in 2020

Table of Contents

1. Introduction
2. Lessons Learned in 2019
   • 2.1 Not Remaining Idle
   • 2.2 The Impact of Free Shipping
   • 2.3 Navigating the Paid Advertising Changes
   • 2.4 Balancing Inventory
   • 2.5 Handling Seasonal Shipping
3. Focusing Areas for 2020
   • 3.1 Doing More of What's Working
   • 3.2 Offering More Products
   • 3.3 Exploring Different Variations
   • 3.4 Keeping Up with Trends
   • 3.5 Tracking Year-over-Year Growth
4. Conclusion

Article

Introduction

Welcome to the Etsy Entrepreneur Podcast! In this episode, we will discuss some key lessons learned in 2019 that can help You in your Etsy business Journey. We will also explore some focus areas for 2020 to help you achieve even greater success. So, let's dive right in!

Lessons Learned in 2019

2.1 Not Remaining Idle

One of the most important lessons I've learned this year is the significance of not remaining idle in your business. It's easy to fall into the trap of complacency, especially when things seem to be going well. However, remaining stagnant can eventually hurt your business, even if it's currently thriving. Competition can catch up, trends can change, and customer preferences can shift. It's crucial to stay engaged, remain proactive, and continuously Seek ways to improve and innovate.

2.2 The Impact of Free Shipping

Another major topic of discussion in 2019 was the introduction of free shipping on Etsy. Many sellers felt compelled to offer free shipping to stay competitive. However, my experience has shown that offering free shipping without any threshold or limitations may not be the most profitable option for every shop. It's essential to evaluate your margins and determine what works best for your business. While Etsy recommends offering free shipping as it can incentivize increased revenue, it is crucial to find a strategy that aligns with your profit goals.

Pros:

• Incentivizes increased revenue from customers.
• Aligns with Etsy's recommendation, potentially improving visibility and search rankings.

Cons:

• May result in higher costs for the seller, affecting profit margins.
• Might not necessarily increase sales for all shops.

2.3 Navigating the Paid Advertising Changes

Paid advertising changes on Etsy, including the incorporation of Google and the removal of cost per click options, posed a challenge for many sellers. The key takeaway here is not to make Hasty decisions. It's important to set a budget that works for your business, closely monitor your listings' performance, and give the algorithm enough time to optimize and generate results. Adjust your strategies gradually Based on data and focus on what works best for your business.

2.4 Balancing Inventory

Maintaining a balance in your inventory is a constant struggle for Etsy sellers. It's crucial to ensure you have enough supplies on HAND to fulfill orders promptly while avoiding excess inventory that may not sell or tie up your resources. Remaining agile in your inventory management can help you adapt to changing demands, especially during peak seasons. Regularly check your inventory, forecast your needs, and order supplies strategically to streamline your operations.

2.5 Handling Seasonal Shipping

Shipping during seasonal periods, such as holidays, can be both challenging and critical for your business. To avoid disappointed customers and returns, it's essential to set clear deadlines for guaranteed shipping before special occasions. Communicate these deadlines on your announcement page or within your listings to manage customer expectations effectively. Even if customers do not ask for expedited shipping, prioritize quick order processing for seasonal items. This proactive approach can help reduce the chances of late deliveries and potential returns.

Focusing Areas for 2020

3.1 Doing More of What's Working

One strategy for success in the upcoming year is to focus on doing more of what's already working well for your business. Analyze your data and identify your top-selling products, designs, and keywords. Consider offering more variations of popular items or expanding your product line accordingly. Pay Attention to customer feedback, market trends, and commercials to Gather insights and evolve your offerings. By doubling down on your best-performing areas, you can increase your chances of success.

3.2 Offering More Products

Expanding your product range is a proven way to grow your Etsy shop. While not every product may be a hit, providing a variety of options increases your chances of capturing customer interest and drives more sales. Apply the 80/20 rule, where approximately 20% of your products will generate 80% of your sales. Continuously assess your offerings and introduce new products that Align with customer preferences and market trends. Remember not to give up on older items too soon. Instead, try adjusting their descriptions, keywords, or visuals before considering removing them entirely.

3.3 Exploring Different Variations

In addition to offering more products, consider exploring different variations of your existing offerings. For example, if you sell silver jewelry, consider introducing a gold jewelry line to appeal to a broader range of customers. Experiment with different materials, colors, or designs while maintaining the essence of your brand. Keep an eye on emerging trends and incorporate them into your variations to stay Relevant and attract new customers.

3.4 Keeping Up with Trends

To maintain a competitive edge, it's crucial to stay up to date with trends in your industry. Monitor market demands, popular designs, and emerging styles within your niche. Pay attention to the media, social platforms, and relevant blogs for inspiration. Implementing trendy elements in your products or adjusting your marketing strategies can help you attract new customers and stay ahead of the competition.

3.5 Tracking Year-over-Year Growth

Finally, focus on tracking your year-over-year growth as a measure of your business's success. While it's essential to set realistic goals and push yourself, comparing your progress to others can often lead to unnecessary self-doubt. Instead, concentrate on surpassing your own performance from the previous year. Continuously strive for improvement, put in consistent effort, and embrace a growth mindset. Celebrate your achievements and use them as motivation for continued success.

Conclusion

As we embark on a new year, it's essential to reflect on the lessons learned from the previous year and set clear focus areas for the future. By adopting proactive strategies, adapting to changes, and prioritizing growth, you can Create new opportunities for success. Remember, building a thriving business takes time, persistence, and an unwavering commitment to your goals. Stay focused, stay agile, and make 2020 your best year yet!

Highlights

• Remain proactive and avoid remaining idle in your Etsy business.
• Evaluate the impact of free shipping on your profit margins and adjust accordingly.
• Navigate the changes in paid advertising on Etsy by setting a budget, monitoring performance, and making gradual adjustments.
• Maintain a balance in your inventory by staying agile and forecasting your needs.
• Set clear deadlines for seasonal shipping to manage customer expectations effectively.
• Focus on doing more of what's already working well in your business.
• Expand your product range to capture more customer interest and drive sales.
• Explore different variations of your existing offerings to cater to diverse customer preferences.
• Stay up to date with industry trends and incorporate them into your products and marketing strategies.
• Track your year-over-year growth and strive for continuous improvement.

FAQ

Q: Is offering free shipping necessary for Etsy sellers? A: While offering free shipping can incentivize increased revenue, it may not be suitable for all sellers. Evaluating profit margins and finding a strategy that works best for your business is essential.

Q: How can I navigate the changes in paid advertising on Etsy? A: Set a budget that suits your business, closely monitor listing performance, and give the algorithm enough time to optimize before making adjustments. Gradually adapt your strategies based on data and focus on what works best for you.

Q: How can I balance my inventory effectively? A: Regularly check your inventory, forecast your needs, and strategically order supplies to maintain a balance. Remain agile to adapt to changing demands and avoid excess inventory that may not sell.

Q: Should I prioritize quick shipping during seasonal periods? A: Yes, setting clear deadlines and prioritizing quick order processing can help manage customer expectations and reduce the chances of late deliveries or potential returns.

Q: How can I stay competitive in my Etsy business? A: Focus on doing more of what's working, expand your product range, explore different variations, stay up to date with trends, and track your year-over-year growth for continuous improvement.