How To Set Up Coupon Codes, Sales & Send Offers In Etsy

Setting up Sales, Coupon Codes & Special Offers are crucial to grow your Etsy Shop or home business. Most customers are driven by finding things that are valuable, but with a limited time offer. For instance, if a small item is being sold for $100 USD, the perception of that item is that it is likely a good quality product. But offer a limited time 3-day-only sale for 25% off, and the $100 USD item is now being sold for $75 USD instead. The customer believes they are buying something that has a value of "$100" and is now being   

When signed into Etsy Shop Manager, go to:

Marketing > Sales and coupons

Then click the orange "+ New special offer"

From here, you will get three options:

1. Send offers to interested shoppers
This is a new feature Etsy created in 2018 which automatically sends coupons to customers who add items to their cart and do not purchase, or to customers who favorite your items

2. Run a sale
This is good for offering things like 40% off or Free Shipping

3. Create a coupon
This sale type is good to send to one particular customer directly, exclusively for them

I recommend using all 3 methods as often as possible, as Sales and discounts help customers make a decision to take action and buy the items they are interested in. 

According to Etsy's research in 2018, simple discounts are more effective than complex ones. For instance, "40% off all items" is more clear and compelling than "Buy two and get one free." 

Also, with option 2 "Run a sale" - you can also create Free Shipping offers, which also greatly motivates customers to make purchases. Free Shipping is just the way all business are headed, as more and more retail stores close down and new online stores pop up. 

Etsy's Stock Value Soars After 5% Fee Increase Is Announced

Once Etsy announced their 5% fee increase in June of 2018, their stock soars over 20% in the last few days. 

Why does this happen? 

Investors in any stock want to see one thing: Profit increase. 

The reason anyone invests in the stock market is so that they can put some of their savings and hopefully see some extra money made in return. 

You can see in the chart below how much Etsy's stock value has increases since they announced the 5% fee increase last week. This happened when Amazon announced their own fee increases. Amazon is now worth over $1700 USD per share.


But the real winners are the people who made Etsy. 

They built a company from nothing, and built it into a company which they took public. Etsy's stock value suffered inititally, but since 2017 - they have been making a come back. And now their stock is getting newsworthy headlines and the value of their stock is shooting up. 

Should you invest in Etsy, then? That's up to you, but I won't be. 

The real winners are the people who start businesses and grow them to big potential. Those are people like you, who take small ideas and make them into businesses and grow them. 

In my opinion, you should still sell on Etsy, and you should focus on building your business. But you must realize that the little Etsy Shops will be crushed. And only the serious sellers on Etsy will do well - the ones who study business and learn how to scale quickly and make great products. 

What Will You Do?
Will You Stay On Etsy Or Sell Your Crafts Elsewhere?

 

Pros & Cons for the 4 "Etsy Plus" Features Coming In July 2018

Today, Etsy announced a whole new set of changes. Not only will they increase their fees from 3.5% to 5% (including fee increases on shipping), they will be charging $10 to $20 per month for "Etsy Plus" which shall include 4 features.

But are these 4 features worth the cost? Here are the Pros & Cons about each feature Etsy will be adding to Etsy Plus:

Feature 1: Advanced shop customization
Stand out from the crowd with new customizable options for your banner and featured listing area on your shop home.

Pro: Sometimes customization is a good thing because it helps you optimize your layout to help increase sales.

Con: You'll still be limited in what you can do with this. A website is 100% customize-able, but with Etsy, you must always work within their framework. And, who knows, their shop customizations may not be anything that actually helps your business get more sales. 

 

Feature 2: Restock requests
Let shoppers who visit sold out listings sign up to be notified when the item is back in stock

Pro: I particularly like this feature idea because, if I discontinue an item (which I do frequently), a customer can request to make it come back in stock. This 

Con: Etsy will most likely no give you access to customer email addresses. Instead, they will notify Etsy Customers automatically without your knowledge, which means you have no control on how this will work and no way to truly optimize and grow your business. 

 

Feature 3: Custom packaging and promotional materials
Get discounts from our partners, just for Etsy Plus and Etsy Premium subscribers

Pro: Not sure

Con: This feature makes no sense. People can purchase promotional materials from places like Vista Print, Uprinting.com or Moo.com and do it the way they want. This seems like something Etsy is throwing together. 

 

Feature 4: Custom web address
Save on a custom URL that redirects to your Etsy shop and gives your business cards a personal touch

Pro: Good if you only sell on Etsy and are too lazy to figure out how to forward a custom domain to your Etsy Shop from a place like GoDaddy or Google Domains.

Con: This feature isn't impressive at all. And you should have your own website that you customize to match your business needs. You can already purchase a domain from another company and forward it to your Etsy Shop. 

 

Overall, Etsy Plus doesn't sound like an impressive upgrade. I will still be trying it out, as I always try to figure out all the tools Etsy does. But with their failures of Etsy Studio, Etsy Pattern, Etsy Wholesale and a whole bunch of other useless marketing tools, we can't be too hopeful that these changes are going to be doing much. 

Features 1 & 2 sounds valuable, but that should be available to all Etsy Shops, and there's no reason they should be charging Etsy Sellers for those tools. Features 3 & 4 sound like they just thought of some things to throw in there. 
 

How do you feel about these new features Etsy will be requiring sellers to pay for to get access to?

What The 2018 Etsy Fee Increase Means For Your Etsy Shop

Big corporations on the stock market are all about increasing company profits for their shareholders - that is the whole reason why companies go public in the first place. They want to make money, not lose money. Once a company goes public, they need to keep finding ways to boost profits and take market share. So Etsy is just like any big company, like Amazon or Apple.

But the difference between Etsy and public companies like Amazon and Apple Inc is that Etsy is primarily made of very small, mom-and-pop sellers with not a huge incentive for profit. Most Etsy Sellers just love making crafts, and often times don't worry about making a killing. While it's a great place to be creative, it is not a great place for big business owners who are trying to swoop in with mass-produced items (at least, that is typically against Etsy's policies, which are supposed to vary small, handmade creative items).

In contrast, people who sell on Amazon have no creative drive. They sell basic commodities like toilet paper and books. People who sell on Amazon are trying to find opportunities to make a lot of money without worrying about creativity. While there are creative items on Amazon, most creative artists and designers do not use it as their primary place to showcase their work. 

In my opinion, the 2018 Etsy fee increase from 3.5% per sale to 5% per sale is a way to push out small mom-and-pop sellers, and focus on Etsy Sellers who are focused on production, business and a corporate mindset. While 5% per sale is still relatively small (for instance, Amazon takes 15% per sale and Apple takes 30% per digital sale), it still hurts the very small home-based businesses who sell on Etsy as a craft. It will, at the least, push out some of the really small hobby sellers on Etsy who already are not making a ton of money but love to make craft items for others to buy. Perhaps a whole new marketplace will need to be created for crafty artists, but Etsy is definitely heading in the direction as being "the marketplace for creative business people" and no longer for "creative crafty artists."

Should you stop selling on Etsy?
In my opinion, Etsy is still the best place to start and grow a small business for creative people. Even with the 5% fee increase, it means that you will have to continue to learn how to be a better business person, in addition to being a good craft designer or artist. I will probably always sell on Etsy as long as it is around because it is a great place to find initial customers and develop new business concepts to test online. But if you want to grow your creative business on Etsy, you will need to learn more about the creative process, production, streamlining your process, selling things that have high demand, and keeping your costs as low as possible. The businesses on Etsy will have to master the art of sales & business strategy in order to not lose money.

What should you do in the long term?
In my opinion, if you want a sustainable business over the coming years, you will need to build your own website, email marketing and other online marketing platforms to control your business. As search algorithms and rules change on Etsy and other places, the only place that is truly "yours" is your personal website, where you will instead pay only credit card fees and web hosting - and instead focusing on setting up your landing pages the way you want to, collect email addresses, implement SEO and build a sustainable online business. 

How do you feel about the 2018 Etsy Fee increase? Leave a comment on your thoughts below.

It's Melinda's Birthday Today!

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Over 5 years ago, Melinda & I took our first stab at trying to figure out how to sell jewelry on Etsy. It was sort of chaotic and fun, but it took us about 4 months to sell our very first item in June of 2013.

And it took over 1 year before things started to pick up on a regular basis. Like anything, growing something takes time, studying, learning, practice and a lot of determination. Without Melinda, my ability to write about and share our experience selling on Etsy with Melinda Wood Designs would not be possible at all.

We want the same thing for you, your family, your Etsy Shop and business. If you have benefited from our newsletter, blogs, e-books or courses, we would love to hear from you and some of your own story! I hope to hear from you today on Instagram at @inthewoodshomestead

- Justin Page Wood

The 7 Best Items To Sell On Etsy

There is no best item to sell on Etsy, but there are good products and bad products. 

When developing products for your Etsy shop, it's important to think through the following questions:

  1. How long will it take me to make this item?
  2. How much will it cost to make the item?
  3. Is this item going to be popular in the future, instead of the past?
  4. Is there a lot of competition for this kind of item?
  5. Can I create a niche, brand or unique style that is hard to find elsewhere? 
  6. Will it be hard to get supplies in the future if I get a lot of sales?
  7. Is this product design consistent with my overall brand? 

These things are important to quickly think through as you decide what to sell. In terms of the best selling items, these categories tend to do well:

  1. Jewelry is always a best seller for holidays, special events, weddings, anniversaries and the seasons. Just make sure to sell niche items and not make generic items as it is oversaturated on Etsy.
  2. Clothing is popular, especially for babies or special occasions, like newborn outfits, family photography clothings, wedding gowns or bridesmaids clothing. Typically, gift clothing or special event clothing does best.
  3. Home Decor is a great way to create an extensive product line with tables, chairs, artwork, vases and other styles on Etsy. It's a lot of work to make these larger items, but there is a large market for unique, high-quality furniture and decor.
  4. Fashion accessories are always popular with women, especially unique handbags, purses, wallets, or headbands, scarves, bandanas, and so on. Women are always looking for something new and unique, so this is a great category to work with.
  5. Pet accessories are an even better category on Etsy. The more unique the better. If you can't find it anywhere else, then people will go to Etsy to find something super "unique" that they cannot find anywhere else, and that is the whole point of selling on Etsy.
  6. Wedding items, like stationery, decor, gifts, and clothing are very popular on Etsy. These days, most people want a really unique wedding that is specific to their tastes, and are willing to pay extra to find something super unique. 
  7. Vintage items are what people initially used to go on Etsy for, and vintage, rustic items are extremely popular today as people value older things that they can't find anywhere else. This is a great category to experiment with and do some creative things with.