The 2 Most Important Things About Promoted Listings

Almost every Etsy Seller I have spoken with is frustrated about how to use Promoted Listings.

The truth is, Etsy has done a very terrible job of telling Etsy Sellers how Promoted Listings actually work. They have a handbook explaining the basic principles, but they completely mislead Etsy Sellers. And, in some cases, they flat out give you the wrong information. 

So I wanted to take a moment and let you know the 2 most important things you need to know about Promoted Listings: 

1. Only Promote Your Bestselling Items
Generally, Etsy tells you that you should try to get as much visibility to your Etsy Shop as possible and to make others become aware of your brand. In truth, you should only be showcasing your bestselling items on Promoted Listings. The way to figure that out is to find your items which get at least a 2% conversion rate (For every 50 views/clicks, you get 1 sale). In addition, these high-converting items must also sell about 3 times per month (within the last 30 days). If you promote items that do not have good conversion rates, or do not sell frequently, then you will absolutely lose money. Promoted Listings is all about conversion rates. For instance, for every $1 of ads you spend, you should consistently see $4 in Revenue. The only way to get there is to focus on high-performing Etsy Listings.

2. Set a Maximum Cost Per Click for Automatic Bids
This is contrary to what Etsy recommends. They want you to blow a lot of money by setting very high Bids and pay a lot per click. But you are running a business, not a money-wasting hobby. So you have to set a Max CPC to make sure you do not overpay for ads. In most cases, a Max CPC for your shop should be anywhere between $0.05 per click and $0.25 per click.  If items convert very well, or if they are at a higher price point, then a $0.25 click is more realistic. But if you have very inexpensive items, or your items do not convert well, then closer to $0.05 is better.

There are a lot of other important principles to know about Etsy's Promoted Listings. And if you want to learn more, sign up for our free Etsy Sellers newsletter by clicking the button below. I'll be going over a lot more in the coming months.

Justin Wood

JPW Design Studio, California

Minimalist Website Designer