Just about every Etsy Seller worries at some point that their Etsy Sales are slow or dropping off dramatically.
We've had the same thing happen to us as well. All of a sudden our sales will drop 20% from the previous month. And that is extremely discouraging, especially if we've put in a lot of work to try and increase sales.
After selling on Etsy for almost 4 years now, we've learned that the main fault for slow sales lies on the Etsy Shop's owner, not the economy, or Etsy search algorithms, or anything else. As long as you work hard every month and think through all of your options and put a plan together, you can prevent a sudden drop in sales on Etsy.
There are 2 main reasons I have seen why an Etsy Shop sales will slow down or drop.
The first is because the Etsy shop has kept too many outdated designs on their Etsy Shop. Many Etsy Shops try to build up to hundreds or thousands of Etsy Items. At the time, if the designs are on point and trendy, then you can see a great increase in sales. But after a few months, when the trend has died, sales can slowly drop or even quickly plummet. What was popular 3 months ago is no longer popular. And Etsy Sellers often pour all their energy into their Shop for a month straight, get burnt out, and stop creating months later. Instead, Etsy Sellers should focus on constantly creating new and updated designs to maintain a strong design aesthetic.
The second reason their sales drop is because they use too many outdated keywords. Instead, you should be updating your keywords at least once per month on items that are performing poorly. Words that people used to describe a certain style last year are certainly different this year. And if you keep using the same keywords over and over, many of your keywords are bound to be irrelevant, outdated, or overused.
There are millions of people looking to buy on Etsy, but there are also millions of Etsy Shops. So if you do not stay up-to-date and relevant on both your Listing designs and keywords, then your Etsy shop will become irrelevant.
So don't get comfortable. Instead, strive to be both a talented artisan & business person, and work hard to strive for the highest standards you can possibly set on yourself.