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Etsy Insights: Using discounts to help meet your business goals
Hi there! I’m Stacey, and I’m a staff product designer working on the Shop Opportunities team here at Etsy. I design features to help enable, guide, and make it easier for sellers to grow their businesses on Etsy through new and improved tools and personalized recommendations about reaching more buyers and getting more orders.
With all that said, I’m excited to share some tips around the best ways to help grow your business with discounting.
Did you know that you have a toolbox full of strategies you can use to meet your business goals? One of those tools is discounting. Discounts, coupons, and other kinds of special offers can help you catch shoppers’ attention, clear out unsold inventory ahead of the new year, and encourage holiday shoppers to keep coming back.
Today I want to break down the discounting tools available on Etsy as well as share some tips for making discounting part of your marketing strategy.
Factoring discounts into your pricing strategy
Before creating your discounting strategy, you should first know your profit margin. This helps you understand how much profit you make from each item you sell. It’s common for a new business to have a lower profit margin as they’re starting out and spending more on customer acquisition (often through advertising and discounts), and then to see an increase in profit margin as they grow. Learn more about determining your profit margin in the Seller Handbook and be sure to check out our handy profit margin and pricing worksheet.
Different discounts for different business goals
Etsy offers a few different tools that let you offer discounts to your customers. Plus, many of these tools let you set up discounts and offers that can be sent automatically to your customers—taking one more thing off your to-do list!
Want to build buyer loyalty? Try a thank you coupon.
Thank you coupons let you offer your customers a discount on their next purchase in your shop. They’re automatically sent to buyers after their order ships. Sending this kind of discount can help you build buyer loyalty after their initial purchase and start a lasting relationship with the customer. You can offer a discount of anywhere from 5 to 70% off, a fixed dollar amount (like $5 off your order), or free shipping.
Want to turn browsers into buyers? Try abandoned cart or recently favorited offers.
Encourage potential customers to convert by automatically sending them a discount. Etsy’s targeted offers tool lets you create a discount that can be automatically sent to shoppers who recently favorited one of your items, or shoppers who added an item from your shop to their cart but didn’t check out. Just like a thank you coupon, you have multiple options for the type of offer you send, so you can choose the option that works best with your profit margin.
Want to clear out excess inventory or capitalize on seasonal traffic? Put items on sale!
Unlike a coupon or promo code, sales are a little less targeted—they’re visible to anyone who visits your shop. Discounting specific products is a great way to clear out excess inventory so you can focus on your best sellers. Running a sale during peak shopping occasions like Cyber Week can also help you take advantage of increased traffic to Etsy.
Note: As an Etsy Seller, pricing is at your sole discretion. This means that you are responsible for making your own pricing decisions and are free to set prices as you wish. That said, remember there are also legal considerations to be aware of around pricing and discounting. Sellers cannot mislead consumers on discounted prices. The original price has to be a true price that was in practice for a substantial amount of time, so you can’t artificially increase a price and cut it down just to make it look like you’re running a sale.
MaantuArt
·2 years agoGreat! Thank you so much.
This is very useful.
BeachIslandWear
·2 years agoHello how do I send a larger discount to everyone who favorited my items in the past but have not purchased?
Charmbraceletsplus
·3 years agoAwesome information! Thank you so much Stacey!
Meralleee
·3 years agono
ZeePoster
·3 years agoI'm setting up discounts on continuous basis, almost around the clock. If I send offers to those who have favorited my items, are these offers will be added to already running discounts ? Say I run 25% sale on all items, and at the same time I send offers at 25% to those who favorited my items, will it be 50% offer ?
PepiCreation
·3 years agoGrazie per l'informazione. Molto utile!
FloridaEquestrian
·3 years agoI personally love a good sale!
IndianJewelryCraft
·3 years agothanks so much for the information
JDDesignandDecor
·3 years agoUseful information. I will definitely use some of these strategies and hope it will help to boost sales.
OrientBijouxFrance
·3 years agoSales are not only a matter of price, discounts don't work miracles. But they give very bad habits to customers.
CreativeMassbyBhoomi
·3 years agoNice, very useful information!! I tried everything, but after i have done Enrolment of India payment, my sales are down. Can say sales are stop.
Anyway:) Hoping for sale!!
Thank you!
EntaKitchen
·3 years agoThank you for sharing
ShareSelfCare
·3 years agoThis is awesome! Thank you for sharing!
ONLYCONSONANTS
·3 years agoHello, until August I had 8 sales and right now I have 84.
The reason? To dedicate vacations, vacations and weekends to the store. And also, dedicating a couple of hours every day.
Also, I follow all the advice from the Etsy staff regarding discounts, deals, ideas, ....
Of course, make the customer feel like a special person.
This 2023, we have to do great!
TheVelvetBranch
·3 years agoIt seems to be helping my shop. I have seen several recent purchases in my shop with a "discount" shown. Is that from a used coupon I offered?
HimalayasHandicraft
·3 years agoThis strategy helps a lot! Especially when starting out! Thank you.
GoldPowderJewelry
·3 years agoThank you for the information.
2acreativeproducts
·3 years agoI don't understand why I couldn't find my store on etsy?
Gemsbygigialonia
·3 years agoDone all this and only have 1 sale so far for December!
ONLYCONSONANTS
·3 years agoVery interesting. Thank you for the information.
Spoonfullofsparkles
·3 years agoThankyou so much for your advice Stacey, i love giving my customers discount coupons and they feedback that they love getting them too.
PassionstudioCrafts
·3 years agoApplied 20% discount hoping for the best...
NunaColors
·3 years agoWorking on it, thank you!
PerhaRchette
·3 years agoHello Stacey,
Your writing and tips are imazing. We did everything you told. Thank you for all. We wonder if is there an automatic mail outgoing discount system for those who follow us?
Thank you
Vanllo
·3 years agoThank you
ArtWeddingCo
·3 years agoThank you very much for this information! Very useful!
VK365
·3 years agoThats Great
Vilhagrind
·3 years agoI love offering discounts to my customers and new visitors! It's help me find new people
ThaBullSHOPPE
·3 years agovery effective and useful information.thanks
FiberArtsAndFeathers
·3 years agoI use all of the above and am pleased with the increased traffic and sales I've had over the last month or so! Question: Do coupons work even if you have an item on sale, or do they only work on regularly priced items? Thanks, mari
decorfromindia
·3 years agohttps://www.etsy.com/listing/1329784761/scuba-diving-helmet-us-navy-mark-v?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=diving+helmet&ref=sr_gallery-1-9&pro=1&frs=1&edd=1&organic_search_click=1
OffThePedestal
·3 years agoI'm okay with factoring in a 10% or 20% discount, but what makes me crazy is when I sell something with a 20% discount and then ON TOP OF THAT get hit with the 12% offsite ads fee on the item price+shipping in addition to all the other normal fees. Those sales are very painful and seem to be more frequent than ever.
If you have a reasonable profit margin to begin with, I don't think there's any way to price in such a way that accommodates that double-whammy while still remaining competitive when there is no discount.
I think the other issue is that buyers become "trained" to only purchase items on sale or discounted. There's a big box store I buy supplies from whose prices are absolutely ridiculously astonomical, and I can only buy when they have 50% off or better pricing.
Anderearles
·3 years agoThanks a lot Stacey. Very helpful!
AveryRoseCoShop
·3 years agoHopefully this helps my shop!
Visit to order custom items!
SitoriaCollections
·3 years agoThank you so much for the information!
Cleopatrabag
·3 years agoThis is helpful! It's nice that these tools are available. I put 30% off of my items I have up. I hope I see some sales.
CameosArtShop
·3 years agoYes, it helps a lot. Very effective marketing.
SourabhFashion
·3 years agoDhaneybad es gankare ke leay
ArtGalleryAreti
·3 years agoThey are all very useful. I have applied a discount and hope for the best. Thank you.
JordanRunCreations
·3 years agoI was looking for how to set up a sale. I already know i want to put my items, or whole page, on sale.
Meralleee
·3 years agoThank you I have applied this, hope for the best!
partyshopdirect
·3 years agoThanks for your advice but when ever I put the sale on site I don't receive orders.
partyshopdirect
·3 years agoI am not even receiving any order I dont know what happen.
sadia
theowlscrafts
·3 years agoThis is helpful! It's nice that these tools are available. I put 15% off of my items I have up. I hope I see some sales.
JewelsTennessee
·3 years agoI have had a 20% off sale all along including thank you and abandoned cart coupons. Sales still in the toilet.
arkwoodartIN
·3 years agoThank you for inform all Etsy seller.
HandmadeproductIN
·3 years agoThank you very much for the information, and I have already used all these tricks and very useful
DQPlanners
·3 years agoGreat! Thank you so much, this is very useful!
MarryBirdyCraft
·3 years agoThank you so much for this information! Very helpful
MagicalMythical
·3 years agoGreat information. Yes it's is very helpful use all the tools available. Do you offer gift cards set up as well.? Thank you.
GrowGoodCalifornia
·3 years agoHi there,
Thank you for that suggestion of putting only a few items featured in a sale. I have put excess listing and put a sale on my entire shop hoping to get a sale. Have a great day!!
Back2lifevintage
·3 years agoThank you for the detail advice just put my shop on 20% hoping many will be shopping for vintage NYE and gifts for him and her!! Happy holidays everyone!! May your new year be your best yet!!
Cometosmos
·3 years agoGreat! Thank you so much, this is very useful!
NazliDesignProducts
·3 years agohave applied this, hope for the best! Thank you.
FoxFire9DigitatArt
·3 years agoYes，very effective marketing.
AmazingByAlexander
·3 years agoThank you for good suggestions
ASweetFragranceart
·3 years agoThank you I have applied this, hope for the best!
TheiaHandmadeSilver
·3 years agoSo have I Let's hope
thatsoundthatday
·3 years agoThank you so much for this information! Very helpful!
LittleLuxuriesNC
·3 years agoI love offering sales and discounts to my customers. The Etsy platform makes this so easy to do!
BeABetterHumanStore
·3 years agoI agree.The interface Etsy has provided for creating the coupon codes for as per your business needs is pretty simple and easy to use
Tonghaofabric
·3 years agoYes，very effective marketing. Win win cooperation between both sides!
TradefairCollections
·3 years agoWhen you use Discounts in your pricing strategy, does Etsy discounts it's fees too when a customer buys an order you've discounted?