FidosFlowers
Community Manager
Community Manager

Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hello, everyone!

Thanks for joining us here in the Etsy Success section. We hope you’ve had a chance to read Kruti’s Announcement about the the updates we’re making to our existing advertising tool, Etsy Ads, as well as our new advertising service, Offsite Ads. 

We know that updates and new tools come with questions, so the team will be here in the Forums today and tomorrow to help! What questions do you have about the updates we're making to advertising with Etsy?

Here are the Q&A details:

- Share your questions on Etsy Ads and Offsite Ads by replying to this post from now until Thursday, February 27. Note: we will temporarily close the thread tonight at 9pm ET, while the team is offline. It will reopen tomorrow morning at 9am ET. The thread will officially close to questions Thursday evening at 9pm ET.

- Etsy staff from the Product, Research, Marketing, and Ads Support team will answer as many questions as possible by 5pm ET on Friday, February 28.

- Because we will not be able to answer all questions, be sure to read through what others have asked before posting your own. If yours has already been asked, give it a Like! We want to ensure that we answer the questions that matter most to you, so with that in mind, we will prioritize answering questions with the most Likes.

And a few housekeeping notes:

- This Q&A is to address questions about updates to Etsy Ads and the new Offsite Ads service. Please remember that all comments should remain on topic and in line with our community policies. Any comments that violate our policies will be removed.

- If you have feedback to share, we encourage you to fill out our seller surveys. You can share feedback about Etsy Ads here or share feedback about Offsite Ads here. We are collecting feedback and suggestions from the community in these surveys. The team will be actively reviewing them over the next couple of weeks.

Thanks, all. We're looking forward to your questions!

Labels (1)
Translate to English There was a problem fetching the translation.
111 Likes
101 Solutions

Accepted Solutions

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi there, I'm Kathy and I'm currently a product marketing manager at Etsy. I work on giving sellers the most relevant and effective tools and resources that will help you continue to grow your business here on Etsy. I've been working on creating more useful Etsy Ads communications and education that will help provide sellers like you with more knowledge and support as you start advertising and as you continue grow your business. I’m excited to be here today to answer your questions!

View solution in original post

Translate to English There was a problem fetching the translation.
68 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hello! My name is Arjun and I’ve been at Etsy for 3 years. I’m currently a product manager on the team building our offsite ad tools for sellers. In my spare time I love to cook new recipes and play board games. Looking forward to answering your questions today!

View solution in original post

Translate to English There was a problem fetching the translation.
53 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi everyone! My name is Madison and I work on Etsy's Marketing team. I work to educate Etsy sellers on the tools and resources that are key to helping grow their creative businesses. In my spare time, I enjoy being outdoors, cooking (my favorite food to make is pizza!), and my favorite items on Etsy to shop for are handmade ceramics.  I'm excited to be here today answering your questions!

View solution in original post

Translate to English There was a problem fetching the translation.
49 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi there! I'm Cambria, and I've worked at Etsy for 6 years. I'm currently a product manager on the team that builds tools to help sellers advertise their shops. In my spare time, I like to get outside and hike around. Thanks in advance for participating in this Q&A!

View solution in original post

Translate to English There was a problem fetching the translation.
43 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi! I’m Ben, and work on the Marketing Research team here at Etsy. If you’ve been asked to take a survey, or come in to be interviewed, there’s a pretty good chance that invite came from me. I work to make sure that your feedback isn’t just heard, but that it helps make Etsy a better place for all of our sellers. When not geeking out on research, I spend my time doing photography, learning languages, and secretly dreaming of being a Top Cheftestant. Thanks for joining us here in the Forums. I'm looking forward to answering your questions this week!

View solution in original post

Translate to English There was a problem fetching the translation.
43 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi! My name is Gabby, and I’m a Support Specialist at Etsy. I’ve been working here for 3 years, helping sellers with questions they have about their advertising campaigns. When I’m not on the job, you can find me doing pottery or hanging out with my dog Jesse. I'm excited to answer your questions about ads this week!

View solution in original post

Translate to English There was a problem fetching the translation.
41 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@PicinaeStudios wrote:

I haven't received any email notification and I'm below the 10k threshold.  Is it mandatory that I participate?   Am I going to incur this advertising fee for any sales from Goog, Insta, FB, etc where you're doing this advertising?


Hi there @PicinaeStudios - thanks for your question! If you’ve made less than $10,000 USD in sales on Etsy in a 12-month period, Offsite Ads is optional. However, advertising is an important strategy for growing your online business and getting low cost advertising run by our team of experts without any upfront investment is a great opportunity to grow your business. If you choose to participate, you’ll pay a fee for any sales you make from our offsite advertising efforts.

View solution in original post

Translate to English There was a problem fetching the translation.
36 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FLcowgirls wrote:

Here’s what that might mean for you: For most sellers, one in 10 sales will come from Offsite Ads. So, let’s say you make $1,000 a year on Etsy, that would mean your advertising fees for the year would be just $15 based on a 15% advertising fee. If you sell $10,000 on Etsy each year, you could expect to pay about $120 with a 12% advertising fee. 

This example is confusing me, "If you sell $10,000 each year, you could expect to pay about $120"...wouldn't it be more like $1200??


For most sellers, we estimate that 1 in 10 sales, about 10%, will come from Offsite Ads. When calculating these examples, we assumed the seller would pay an advertising fee on just 10% of their orders. So, if you make $1,000 a year on Etsy, and 10% of your sales come from Offsite Ads, that means you would pay just $15 on $100 in sales based on a 15% advertising fee. If you sell $10,000 on Etsy each year and 10% of your sales come from Offsite Ads you could expect to pay about $120 with a 12% advertising fee.

Thanks for participating in this Q&A!

View solution in original post

Translate to English There was a problem fetching the translation.
47 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@OSSbrocante wrote:

Hello, the products I sell are for a super niche market : I don't need ads to sell them, and I REALLY don't want to be forced to pay for something I don't want. My question is : will it be possible to choose NOT to use this service ? First you try to force us to offer free shipping to grow sales (which I refused, and my sales are actually better now), and limit our search results if we don't oblige, now this... Your commission is already very high, if you continue on this path I will take my business on another platform.


Hey, @OSSbrocante. Thank you for your question.

If you’ve made less than $10,000 USD in sales on Etsy in a 12-month period, Offsite Ads is completely optional. However, advertising is an important strategy for growing your online business and getting low cost advertising run by our team of experts without any upfront investment is a great opportunity to grow your business. 

If you’ve made $10,000 USD or more in sales on Etsy in a 12-month period you’ll benefit most from Offsite Ads. That means you’ll be required to participate for the lifetime of your shop and you’ll get a discounted advertising fee .

You can calculate how much you’ve earned on Etsy in your Shop Stats.

View solution in original post

Translate to English There was a problem fetching the translation.
41 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Inglenookery wrote:

Is this legal? I don't do any advertising, nor do I want to. Etsy says it is mandatory for my shop. I do not want advertising. If it is forced on me against my will, I think it's the last straw here for me. 


Hello!

As a marketplace we’re able to make updates to our features and services. When we make important changes we update our terms and notify you in advance. This latest update will go into effect on March 27, 2020 and will apply to anyone selling on Etsy after that date. If you want more information, you can find our official announcement here. You can also find the new Advertising and Marketing policy here and the new Fees and Payments policy here.

View solution in original post

Translate to English There was a problem fetching the translation.
55 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FloridaMinerals wrote:

What is the percentage taken out of the sale?


Thanks for your question! Here’s the breakdown of the fees associated with Offsite Ads: 

  • If a buyer clicks on one of your advertised listings and purchases from your shop within 30 days, that order will be eligible for the advertising fee.
  • If you’ve made less than $10,000 USD in sales* on Etsy in a 12-month period, you’ll be charged a 15% fee on the order total. 
  • If you’ve made $10,000 USD or more you’ll get a discounted fee of 12%. 
  • Your Offsite Ads fee per order will never exceed $100 USD, regardless of the order total. 
  • Before we begin charging fees for Offsite Ads, you’ll be able to see which rate you’ll get. This information will be available in your Shop Manager before April 14, 2020. 

This Help article has more great information on Offsite Ads fees: https://help.etsy.com/hc/en-us/articles/360000338367-How-Etsy-s-Offsite-Ads-Work?segment=selling

View solution in original post

Translate to English There was a problem fetching the translation.
31 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WestofChelsea wrote:

Can we opt out of this?  I do my own advertising.  Also, is the 15% commission also on the shipping for the item sold?  So we are going to pay an additional %15 on the shipping cost??


Thanks for your question! 

If you’ve made less than $10,000 USD in sales on Etsy in a 12-month period, Offsite Ads is completely optional. However, advertising is an important strategy for growing your online business and getting low cost advertising run by our team of experts without any upfront investment is a great opportunity to grow your business. 

If you’ve made $10,000 USD or more in sales on Etsy in a 12-month period you’ll benefit most from Offsite Ads. That means you’ll be required to participate for the lifetime of your shop and you’ll get a discounted advertising fee .

You can calculate how much you’ve earned on Etsy in your Shop Stats

If you’ve made less than $10,000 USD in sales on Etsy in a 12-month period, you’ll be charged a 15% fee on the order total, which includes shipping. 

If you’ve made $10,000 USD or more you’ll get a discounted fee of 12%. 

Before we begin charging fees for Offsite Ads, you’ll be able to see which rate you’ll get. This information will be available in your Shop Manager before April 14, 2020.

View solution in original post

Translate to English There was a problem fetching the translation.
18 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WestofChelsea wrote:

What if a shops revenue falls below $10K?  We the shop automatically be removed from this mandatory forced program?  


Hi there! Great question. Once your Etsy shop makes $10,000 USD or in a 12-month period, you’ll be required to participate for the lifetime of your shop and you’ll get the discounted 12% advertising fee. You can calculate how much you’ve earned on Etsy in your Shop Stats.

View solution in original post

Translate to English There was a problem fetching the translation.
16 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WantableDesigns wrote:

Where on Earth do you get 15% from? How can you justify such a massive chunk of OUR money?


We decided on a 15% advertising fee by doing an analysis of other advertising services, and we’re confident this is a competitive value for Etsy shop owners. We also got feedback from thousands of randomly selected sellers about what kinds of advertising solutions would work best for them before making this change to our advertising service. Traditional advertising services make you spend money even when you don’t make a sale. With Offsite Ads, you only pay an advertising fee when you make a sale. We believe this service will support the long-term success of both new and existing shop owners.

View solution in original post

Translate to English There was a problem fetching the translation.
69 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@DesignStudioTeti wrote:

Hi! If a seller had success with Etsy Ads up to this point, can she expect additional sales when the new advertising service goes live? If I'm not mistaken, until now Etsy Ads didn't include anything offsite besides Google, so sales from Facebook etc. should be additional I think? 


Hi! Thanks for the question! Offsite Ads includes new channels that weren’t available as part of Etsy Ads, including Facebook, Pinterest, Instagram, and Bing. You’ll be able to see how many clicks and orders you’re getting from Offsite Ads in your new dashboard, which will be available in a few weeks. 

View solution in original post

Translate to English There was a problem fetching the translation.
30 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@SauerBrosCabinetry wrote:

I'm deactivating my listings until I know how refunds work. If someone buys something,  but a refund is required,  am i refunded in full for the ad spend you're forcing me to budget into the price of my products?


Hi Daniel, thanks for asking this question! Similar to transaction fees, if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded. You can reference our cancellation policy here.

 

We think this update will help you boost your business. But, we should also say that it’s important to take all your business costs into consideration when pricing your items, including advertising costs. We recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips and strategies you can use to set a business budget that will help your business grow. 

 

Thanks,

Kathy

View solution in original post

Translate to English There was a problem fetching the translation.
40 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CoconuTacha wrote:

Will I be able to refund sales made using these 'offsite-ads' that I do not want? I'll be making too little profit (or none at all) if a sale has an additional 12% fee on top.

Why can't I opt out if I've earned over 10,000 USD in the last 12 months?

Is this legal?

Why don't I have a choice when I didn't sign up to this?


I'd happily give this a go, however I am livid that I haven't got a choice. This is my full-time business however I cannot be expected to provide a further 12% of profits made on certain sales! This is unfair on both the seller and customers - as again I will have to increase my prices just in case sales are made off-site.


 

Hi Natacha, thanks for reaching out.

 

Similar to transaction fees, if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded. However, canceling an order because it came from Offsite Ads could create a bad first impression that keeps that customer from coming back to your shop. If you cancel an order you received from Offsite Ads, you’ll still be charged if the customer makes another purchase from your shop within 30 days of clicking on an ad. Any cancellation must be in accordance with Etsy’s cancellation policy. You can reference our cancellation policy here.

 

For your other questions, check out Madison’s response here for more context on this change. Shops who’ve made $10,000 USD or more in sales on Etsy in a 12-month period will benefit most from Offsite Ads. Those sellers will be required to participate for the lifetime of their shops and will get a discounted advertising fee. Feel free to share any additional feedback on Offsite Ads with us.

 

Thank you,

Kathy

View solution in original post

Translate to English There was a problem fetching the translation.
36 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@NKDNA wrote:

Is Etsy considering making this not mandatory? I do not have enough margin to take this loss nor do I want to up my prices again. 


If you’ve made less than $10,000 USD in sales on Etsy in a 12-month period, Offsite Ads is completely optional. However, advertising is an important strategy for growing your online business and getting low cost advertising run by our team of experts without any upfront investment is a great opportunity to grow your business. 

 

If you’ve made $10,000 USD or more in sales on Etsy in a 12-month period you’ll benefit most from Offsite Ads. That means you’ll be required to participate for the lifetime of your shop and you’ll get a discounted advertising fee.


We should also say that it’s important to take all your business costs into consideration when pricing your items, including advertising costs. We recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips and strategies you can use to set a business budget that will help your business grow.

View solution in original post

Translate to English There was a problem fetching the translation.
15 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@eabdesigns wrote:

I already successfully advertise on Pinterest, Facebook and Instagram.  Why is the advertising option mandatory?  It should be an opt in.


Hi there @eabdesigns

Shops who’ve made less than $10,000 USD in the past 12 months can choose not to participate and won’t pay any offsite advertising fees. 

Shops who’ve made $10,000 USD or more in sales on Etsy in a 12-month period will benefit most from Offsite Ads. Those sellers will be required to participate for the lifetime of their shops and will get a discounted advertising fee. 

When you’re in the Offsite Ads program, you’ll only pay an Offsite Ads fee on sales that come from Etsy’s Offsite Ads. 

Plus, there’s a few reasons to get excited about our new offsite advertising service:

  • We’re eliminating the risk you could pay for ads that don’t lead to a sale, so with Offsite Ads you don’t pay anything until you make a sale.
  • You’ll also be able to track your advertising performance right from your Shop Manager. That means you can see the clicks, orders, and revenue you get through Offsite Ads. Currently, you can’t get all that info when you run your own campaigns, because you can't add a tracking pixel to Etsy pages.

You’re an expert in your business, so only you can decide whether it makes sense for you to run your own offsite advertising campaigns in addition to Etsy’s Offsite Ads. 

Feel free to share any additional feedback about Offsite Ads here. Thanks for reaching out!

View solution in original post

Translate to English There was a problem fetching the translation.
25 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@HooperVintage wrote:

Hello,

Does Etsy differentiate between which customers click on YOUR ads vs if they got there via MY ads? If I already advertise on Facebook & Instagram, and make a sale based on my own ads, I do not want to be charged an advertising fee. Nothing about this change excites me and when it rolls out I will probably turn it off.


Hi @HooperVintage, you’ll only pay an Offsite Ads fee on sales that come from Etsy’s Offsite Ads. You’re an expert in your business, so only you can decide whether it makes sense for you to run your own offsite advertising campaigns in addition to Etsy’s Offsite Ads.  

Plus, there’s a few reasons to get excited about our new offsite advertising service:

  • We’re eliminating the risk you could pay for ads that don’t lead to a sale, so with Offsite Ads you don’t pay anything until you make a sale.
  • You’ll also be able to track your advertising performance right from your Shop Manager. That means you can see the clicks, orders, and revenue you get through Offsite Ads. Currently, you can’t get all that info when you run your own campaigns, because you can't add a tracking pixel to Etsy pages.

Feel free to share any additional feedback about Offsite Ads here.

Thanks,

Kathy

View solution in original post

Translate to English There was a problem fetching the translation.
15 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@RivermistCreationsUS wrote:

Is separate shipping costs and taxes paid included in the advertising fee? Are we going to have to pay for this percentage on a service (shipping) and state/local taxes??? 


Hi @RivermistCreationsUS ! The Offsite Ads fee applies to any order that is attributed to Offsite Ads. It’s a percentage of the total order amount, meaning the price you set for each listing plus the amount you charge for shipping and gift wrapping.  If you sell from the US or Canada, Offsite Ads fees will not apply to taxes, unless you have included those charges in your listing price. You can read more about the fee in our Fees & Payments Policy.

View solution in original post

Translate to English There was a problem fetching the translation.
8 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@ManInTheMoonHerbs wrote:

Will we be able to choose the items that are advertised off site?


Hi there! Good question. Our team of advertising experts works with sites like Google and Facebook to promote Etsy sellers’ listings. We advertise listings based on what performs best on each channel. Remember, being part of Offsite Ads doesn’t mean your listings will be advertised on every site.

View solution in original post

Translate to English There was a problem fetching the translation.
15 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@BunnyRabbitToys wrote:

This is awful!  So will this 12% be on top of the 8% we already pay for Etsy fees and credit card fees?  So we will loose 20% on each sale then? I can’t afford to take a 20% hit on my items....I’m sorry I just can’t afford it, my profit margin isn’t that big.   This is really really really bad for sellers like me that sell large items where shipping costs a lot.  It cost me $40 to ship my hay feeders...so you will be now taking a 20 percent cut of my shipping costs too?  I can’t afford that!


Hi, thanks for the question! The Offsite Ads fee is in addition to other fees. We think this update will help you boost your business. But, we should also say that it’s important to take all your business costs into consideration when pricing your items, including advertising costs. We recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips and strategies you can use to set a business budget that will help your business grow. 

View solution in original post

Translate to English There was a problem fetching the translation.
42 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FloridaMinerals wrote:

When does the new advertising service roll-out?


Hi, thanks for the question! Sellers will be able to see how many sales they’re getting from offsite advertising in a few weeks and the advertising fee will take effect in April.

View solution in original post

Translate to English There was a problem fetching the translation.
13 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@JWdesignStudio wrote:

Hello! I'm a long time Etsy seller (since 2013) and this is the best update I have read in over a year! I am very excited about Etsy Ads going back to being dedicated to just promoting our hard earned dollars within the website. I also like that we are not being required to pay upfront for Google Ads as that was a serious money suck and the reason I turned my ads off.

With that being said, what day does the Etsy Ads that we pay for upfront go into effect? I went to turn them back on today and it's still showing Google, so I am waiting....

 


Hey @JWdesignStudio!

You won’t be charged Offsite Ads fees until April. By early April, Google Shopping will no longer be part of Etsy Ads. At that time, Etsy Ads will be onsite advertising only. You can get more details about this change in the Seller Handbook or in our updated policies. We’ll also keep you updated over the next few weeks. 

View solution in original post

Translate to English There was a problem fetching the translation.
24 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@MoonlightMartini wrote:

How is Etsy going to prove a sale came from these ads? How is it monitored and how are cancelations and refunds going to be handled? Are sellers going to be able to recoup these fees with a refund or cancelation?


Hi! We’re able to track when shoppers click on one of our ads featuring one of your products on Google, Facebook, Instagram, Pinterest, and Bing—if the buyer then makes a purchase within 30 days of clicking on an ad, your order will be attributed to Offsite Ads. You’ll be able to see how many clicks and orders you're getting from our offsite advertising service in a new dashboard coming in the next few weeks.

For refunds and cancellations, the Offsite Ads fee will work the same as our transaction fee. In the case of a full refund or cancelation, the seller will be reimbursed for the Offsite Ads fee. In the case of a partial refund, the seller will be partially reimbursed for the Offsite Ads fee.

View solution in original post

Translate to English There was a problem fetching the translation.
15 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@IndustrialHabitat wrote:

when is this taken out exactly?  how can etsy know if my shop is going to make over or under 10K until it actually happens???


Hi @IndustrialHabitat , 

We calculate this $10,000 USD sales threshold by multiplying your individual item prices by quantity minus any discounts or formally cancelled orders, but excluding shipping, taxes, giftwrap, Pattern orders, In Person Payment orders, or Etsy fees. You can calculate your sales on Etsy in your Stats. We’ll look at sellers' sales on the first business day of each month to see if any new shops have reached the $10,000 USD threshold. Once your Etsy shop makes $10,000 USD or more in a 12-month period, you’ll be required to participate in Offsite Ads for the lifetime of your shop and you’ll get the discounted 12% advertising fee. 

View solution in original post

Translate to English There was a problem fetching the translation.
7 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@simplestamp wrote:

1. Is this 12% also going to apply to sales from OUR OWN outside advertising? I currently have advertising on Facebook and Pinterest (that I pay for and create) that lead to my Etsy shop and I don’t want to have to pay a 12% fee for my own work. 

2. Please release confirmation on refunds with this fee. 


You’ll only pay an Offsite Ads fee on sales that come from Etsy’s Offsite Ads. You know your business best, so only you can decide whether it makes sense for you to run your own separate offsite advertising campaigns. To answer your question about refunds: They’ll work similarly to transaction fees, so if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded to you as well.

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@OhSoPrettyPaperCo wrote:

Does anyone know if VAT will also be added to these fees in the UK?

 


Hi,

Yes VAT will be added to Offsite Ads fees in the UK. If you’re obligated to pay value-added taxes in your country, you’ll pay VAT on any advertising fee you are charged.

View solution in original post

Translate to English There was a problem fetching the translation.
7 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@dayintonight wrote:

This is not all right with me. How can it be mandatory? Is that legal? I'm already forced to offer free shipping, pay a shipping fee for a service I do not use and I'm enjoying the methods for sales and promotions that are in place now. I do not want offsite ads!


Hi @dayintonight

Shops who’ve made less than $10,000 USD in the past 12 months can choose not to participate and won’t pay any Offsite Ads fees. 

Shops who’ve made $10,000 USD or more in sales on Etsy in a 12-month period will benefit most from Offsite Ads. Those sellers will be required to participate for the lifetime of their shops and will get a discounted advertising fee. 

You can see Madison’s response here, which answers your first few questions in more detail. We think this update could help you boost your business. But, we should also say that it’s important to take all your business costs into consideration when pricing your items, including advertising costs. We recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips and strategies you can use to set a business budget that will help your business grow. 

Please feel free to share any additional feedback about Offsite Ads here.

Thanks!

View solution in original post

Translate to English There was a problem fetching the translation.
12 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WildflowerSalvage wrote:

In the past I've made far over the 10,000, however the last few years have been dismal and only hit that threshold because of "free shipping", built into my product costs.  Not only do we pay a fee on shipping, whether free or not", now we will also be paying 12% more of it, if the item sells by ads offsite.  This is truly handicapping my ability to sell large items...seriously, lots of my items ship for between $20-30, fees on top of that are insane!  I also want to know if the 12% is on top of the already 3.whatever percent?  Is our total on those items going to be close to 19% with processing fees and etsy fees?


Thank you for sharing this with us— I definitely understand your concerns and will make sure to pass along your feedback to the team. For now, you may find this article in the Seller Handbook about creating a small business budget helpful. The Offsite Ads fee is in addition to Etsy’s transaction and payment processing fees. You can read more about the fee in our Fees & Payments Policy.

View solution in original post

Translate to English There was a problem fetching the translation.
25 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@TheNewHippieShop wrote:

I got the e-mail this morning and was actually happy about the changes. I got on etsy to find out more and ended up here. I was really surprised at all the negative replies. Granted I am in the under 10,000 group and could opt out. I am happy because I did great with just Etsy ads, but once we were forced to include Google it really killed my profits because all my advertising budget was wasted on no sales from google clicks. I sent many complaint messages and stopped using ads. Then my views and sales completely died. I'm excited to be able to just advertise on Etsy again. I don't think I've ever gotten a sale from Google so I'm not to worried about that. It'll be nice to be advertised on other sites and see if that brings me any extra business. If I'm not paying for it except if I actually get a sale that seems reasonable, although 15% does seem high. I do have a couple of questions. The way it's worded seems like as of now the Ads are no longer including Google. Am I understanding this correctly, or does that not start till the end of March as well? Also, are we going to be able to control our max click price again? Thanks for trying to make the ads work better for us even though it may not be perfect it shows you're trying.


Hi @TheNewHippieShop! Thanks for reaching out.

We’ve already started moving advertising budgets from Google to on-site ads in preparation for this update.

The dashboard and tools you use today for Etsy Ads will stay the same for now. But when you run an Etsy Ads campaign, your budget will only go toward ads on Etsy—giving you more control of where your advertising budget goes. 

We’ve heard your feedback about controlling cost per click and we’re working on new features and enhancements to give you more options for creating the Etsy Ads campaign that works for you. Stand by for more details soon!

Please feel free to share any additional feedback about Etsy Ads here.

Thanks again,

Kathy

View solution in original post

Translate to English There was a problem fetching the translation.
29 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WoolenFolkArt wrote:

I'm in the "over $10,000 in sales" category.  My question:

When someone clicks on my listing through GOOGLE (posted by ETSY) then goes without purchasing anything for 29 days..... BUT on DAY 30 this person buys multiple items from my shop ETSY takes 12% of the entire sale?

What happens if that person becomes a regular customer?  Does ETSY continue to take 12% of all sales generated by this customer FOREVER?

Thanks you... I look forward to an answer.

 


Hi @WoolenFolkArt

The Offsite Ads fee will apply to your order total if they purchase from your shop within 30 days of clicking on an ad featuring one of your listings. 

If that new customer makes a purchase after visiting your shop directly, for example from a bookmark or their shop favorites, you won’t pay a fee, if they have not clicked on an ad for one of your listings within the past 30 days. Any time a shopper clicks on an ad for one of your items, that starts a new 30 day period. 

View solution in original post

Translate to English There was a problem fetching the translation.
16 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@MalamaPuaBridal wrote:

I would question how these sales from ETSY ads are tracked and by whom.  There might be a trust issue here.  1 in 10 sales resulting from ETSY ads is what is proposed as statistically normal.  But perhaps ETSY may find that it is 9 in 10.  Who is doing the reporting of the actual stats/sales?  That certainly will change the math for me. 

Also, if someone purchases an item from an ETSY ad and then after seeing the shop buys additional items, will the total of the sale be subject to 12% or just the original "clicked" ad?   That also is huge difference.  The problem is see here is transparency - how do we track that?

 


Hi @MalamaPuaBridal! We’re able to track when shoppers click on an ad for one of your products on Google, Facebook, Instagram, Pinterest, and Bing—if the buyer then makes a purchase within 30 days of clicking on an ad, your order will be attributed to Offsite Ads. You’ll also be able to track your advertising performance right from your Shop Manager, coming in the next few weeks. You will be able to see the clicks, orders, and revenue you get through Offsite Ads, as well as when buyers clicked on each ad and what they ordered.

Also, If the same shopper makes multiple purchases from your shop within 30 days of clicking on one of your advertised listings, the advertising fee will apply to each individual order.

View solution in original post

Translate to English There was a problem fetching the translation.
14 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@TayberryDecor wrote:

How does Etsy plan on tracking a potential buyer for 30 days?


Hi @TayberryDecor ! Etsy is able to track when shoppers click on ads for one of your products on Google, Facebook, Instagram, Pinterest, and Bing—if the buyer then makes a purchase from your shop within 30 days of clicking on an ad, your order will be attributed to Offsite Ads.

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@PicinaeStudios wrote:

For the Etsy ads run on those platforms (Goog, FB, etc); are those ads for the Etsy's brand or my shop's brand?  How are those ads going to read?  Are they exclusive ads for my shop?


It’s a mix of both. Each ad is a little different depending on the channel it’s being advertised on (for example on Facebook or Google), but generally Offsite Ads will showcase sellers’ listings. They’ll also include Etsy branding. Your listings will catch shoppers’ eyes, and seeing a well-known name like Etsy will give them the boost they need to feel confident making a purchase from your shop.

Thanks for your questions!

View solution in original post

Translate to English There was a problem fetching the translation.
18 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@MoonlightMartini wrote:

What happens with refunded sales or cancelations? Are sellers able to recover the ad fees?


Great question. Similar to transaction fees, if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded. You’ll be refunded through your Payment Account.

Thanks!

View solution in original post

Translate to English There was a problem fetching the translation.
2 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@LilliaMeadow wrote:

Why is this fee mandatory for sellers who make over $10,000, and how will you prove any individual sale came from offsite ads?  Does the 12% fee apply to all items a buyer purchases in that single order, or only the item that was advertised?


Sellers who’ve made $10,000 USD or more in sales on Etsy in a 12-month period will benefit the most from Offsite Ads. That’s why those sellers will be required to participate for the lifetime of their shop and will receive a discounted advertising fee of 12%.

In terms, of attributing sales to Offsite Ads, we’re able to track when shoppers click on one our ads for one of your products on Google, Facebook, Instagram, Pinterest, and Bing—if the buyer then makes a purchase within 30 days of clicking on an ad, your order will be attributed to Offsite Ads. You’ll be able to see how many clicks and orders you're getting from our offsite advertising service in a new dashboard coming in the next few weeks.

Similar to the transaction fee, the Offsite Ads fee will apply to the order total. That means, if your order total is $25 (including any shipping costs), you’d pay a $3 Offsite Ads fee on that order (assuming a 12% fee).

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@RooPrintDesigns wrote:

I assume since this new policy specifies click though from ADs then the fee will only be applied when a customer clicks a sponsored Etsy placed Ad and NOT just a click-through from a Google shopping or image search? I'd appreciate confirmation of this before I decide how to proceed with my Etsy business. If it's the case that Etsy will automatically apply this charge to all orders which originate from searches outside of the platform then I will be sadly considering my future with Etsy. The smoke and mirrors applied to the Stats section already has me quite irritated. My external traffic, which I have worked extremely hard to build, was relabeled in a recent upgrade to 'ETSY marketing and seo', attributing all this traffic to Etsy is not quite an accurate description and so I'm worried about the criteria for the application of these fees. I'd appreciate some clarity.

Thanks!


For Offsite Ads, Etsy is purchasing product listing ads on Google, Facebook, Instagram, Pinterest, and Bing. If a buyer clicks through to your shop from organic search results or a regular post on any of these channels that wasn’t an Offsite Ad paid for by Etsy, you won’t pay an Offsite Ads fee. To break down even more, Google Shopping is Google’s ad product and those are the types of ads that Etsy will be buying. Google Images are mostly search results, and a click through a search result would not result in an Offsite Ads fee.

View solution in original post

Translate to English There was a problem fetching the translation.
21 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@NKDNA wrote:

It says it starts in a few weeks but we will be charged in April.

Will we know the exact date beforehand?

What if I close my shop before I start being charged in April?

What if I get so many sales and it accumulates from the previous months that I can't pay it all the same month in April?  


Thanks for your questions. We’ll keep you updated as your Offsite Ads dashboard becomes available in the next few weeks and when we’ll begin charging for orders attributed to the advertising service. If you’ve made less than $10,000 USD in sales in the past 12 months and you’d prefer not to participate in Offsite Ads, you’ll be able leave Offsite Ads in early April before we begin charging. 

To your second question: If you choose to close your shop before we start charging advertising fees in April, you won’t pay any advertising fees. 

Also, you won’t be charged for any orders you receive from our ads before mid-April.

View solution in original post

Translate to English There was a problem fetching the translation.
3 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FuzzyFoxDesigns wrote:

How were earnings calculated for this change... were shipping prices added to income, where the shop doesn't offer free shipping? If that is so, does it not unfairly penalise countries with expensive shipping prices? If not, does it not unfairly penalise shops that did what you suggested and incorporated shipping into their prices, compared with shops who didn't?


Since the Offsite Ads fee is applied on your order total, it would still apply to your shipping costs whether or not you offer free shipping. Online shoppers still expect free shipping, so it’s still an important strategy to keep in mind.

View solution in original post

Translate to English There was a problem fetching the translation.
6 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@ButterVintageStore wrote:

Oh and one more question:

How do you make sure that the ads you run FOR us are on brand with our business?

I work in an advertising agency and I am honestly worried that i cannot control anything about these ads. Where the ads will be placed, in relation to which other items/posts, to who they are targeted and how they look. This can potentially really damage our brands.


The creative that appears in these advertisements is pulled directly from your listing (photos, titles, etc), and is usually automatically selected by the ad network because it has the highly likelihood of being clicked. If you’d prefer your listing be advertised with a different photo or title, you may consider updating that information on your listing directly. These ads will look similar to ads you see on Google and Facebook today and may appear next to ads for items from other retailers. We’re unable to take specific listings out of Offsite Ads.

View solution in original post

Translate to English There was a problem fetching the translation.
10 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FlamingoEmporium wrote:

What if I make a “Reserved for” order - I don’t NEED to advertise that. 


Hi @FlamingoEmporium ! We can’t guarantee a reserved listing won’t be eligible for our offsite advertising, but it’s unlikely to happen given that ads are shown to shoppers based on their specific search queries. Since reserved listings often have information (such as titles, descriptions, etc) that are very specific to your buyer’s request, it’s rare that they’d match with a shoppers’ search terms.

View solution in original post

Translate to English There was a problem fetching the translation.
6 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Revival444 wrote:

You said in my email 20% of my sales will come from this??  How do you know?? I tried your etsy ads and got ZERO sales from them. So you are going to make sure you get an extra 12% of 20% of my sales no matter what?  Where is the transparency and I am not talking about your little chart.  Are you going to show me these ads??  I just do not see how forcing me to participate in something I have no desire for is legal.  12% is way more than I was EVER willing to pay for advertising.  And if I make my store smaller and my sales fall below $10,000.00 I am still going to be forced to pay for this?? And the only ad's that worked for me were the promoted listings and now I have to pay extra for those?? And will this 12% be charged on shipping as well???  


Thanks, we appreciate your feedback.

The 20% that you see in your email is an estimate based off of your sales and traffic this year–it’s not a guarantee. If you’ve made more than $10,000 USD in sales in a 12 month period, you’re required to participate in Offsite Ads for the lifetime of your shop (even if you subsequently fall below the threshold at a later time). As a marketplace, we’re able to make updates to our features and services. When we make important changes like this, we update our terms and notify you in advance. This latest update will go into effect on March 27, 2020 and will apply to anyone selling on Etsy from that date.

You mentioned that you tried Etsy Ads in the past and got zero sales. With Offsite Ads, we eliminate the risk of paying for ads that don’t lead to a sale.

Also, now when you run an Etsy Ads campaign, your budget will only go toward advertising your listings on Etsy search and other places on Etsy.com and the Etsy app, similar to how Promoted Listings worked in the past. You can choose to turn on or off your Etsy Ads campaign at any time.

Lastly, similar to the transaction fee, the Offsite Ads fee will apply to the order total, including the shipping costs. That means, if your order total is $25 (including any shipping costs), you’d pay a $3 Offsite Ads fee on that order (assuming a 12% fee).

Please share any additional feedback about Offsite Ads here.

Thanks,
Kathy

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@GreenStreetMosaics wrote:
  • How will Etsy reflect the 12% (or 15%) fee in the CSV reports so we can accurately record this fee for tax purposes? 
  • How will Etsy provide transparency about where the sales are coming from (i.e. will there be a breakdown of this sale came from Instagram, this sale came from Google, etc. )
  • How will returns be handled? 

Hi @GreenStreetMosaics! The Offsite Ads fee will be represented your CSV reports under “Marketing.” You'll be able to track your advertising performance right from your Shop Manager in your new Offsite Ads dashboard coming in the next few weeks. There you’ll be able to see the clicks, orders, and revenue you get through Offsite Ads, as well as when buyers clicked on each ad, where the ad appeared, and what they ordered.

Similar to transaction fees, if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded. You’ll be refunded through your Payment Account. Remember that any cancellation must be in accordance with Etsy’s cancellation policy. You can reference our cancellation policy here.

View solution in original post

Translate to English There was a problem fetching the translation.
10 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WordDazzle wrote:

On the whole the changes sound good, but as Esty ads no longer uses Google ads - can we have the control of the CPC back?  This was the primary reason that was stated for us loosing this control?  This would then make everything pretty awesome!


Hi @WordDazzle! Control was a key theme we heard from sellers when doing research about this change. We’ve heard you and we’re working on new features and enhancements to give you more options for creating the advertising campaign that works for you. Stand by for more details soon! And yes, when you run an Etsy Ads campaign, your budget will only go toward ads on Etsy—giving you more control of where your advertising budget goes. 

View solution in original post

Translate to English There was a problem fetching the translation.
7 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@UrbanFurnitureStudio wrote:

Hi, I do not necessarily want additional sales at lower margins due to Etsy taking 12%. That is a huge chunk of my margin on top of Etsy's existing fees. My products are labor intensive and I organically generate enough that it's already difficult at times to keep up with orders. Forcing additional sales on me at lower margins would likely drive me off Etsy. Why can I not opt out?


Hi @UrbanFurnitureStudio! Shops that make more than $10,000 USD in sales in a 12-month period are required to participate in Offsite Ads.  However, every business is different and only you can decide what margins work best for you. It’s important to take all your business costs into consideration when pricing your items, including advertising costs. We can’t give advice on pricing or margins, but we recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips and strategies you can use to set a business budget that will help your business grow. 

(Please note that sellers may not use Etsy forums to discuss non-public, individual 

pricing and margin information among themselves, per Etsy’s Community Policy.)

View solution in original post

Translate to English There was a problem fetching the translation.
6 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@minusOne wrote:

"This update shouldn’t have a big effect on your bottom line."

1) How does Etsy know this? I've just incorporated an average cost of $3 in shipping on a price-point of $22, so my bottom line has already been cut. 

2) Then why in the world am I being compelled to participate? WHY should I be happy ("excited") about this, when it's going to be an additional 12% fee, but no bump in sales?

3) What is the tech behind tracking? How will etsy be tracking buyers for 30 days and linking them to my shop?

4) Are these ads for MY shop or for ETSY? If Etsy is advertising etsy, and then anyone who's clicked an etsy-brand ad and within the next month buys from my shop (via Pinterest, my own FB ads, my own Insta ads, my business card, is a repeat customer for years), I'm covering their cost of doing business.


Hi, addressing your questions here:

  1. This estimate is based on your sales this year, it’s not a guarantee. 
  2. With Offsite Ads, Etsy will pay to advertise sellers’ listings on multiple high-traffic sites, and those shoppers might not have found you without Offsite Ads. You’ll only pay an advertising fee when you make a sale from any of those ads.
  3. We track when a user clicks on an ad for one of your products on Google, Facebook, Instagram, Pinterest, and Bing. If that same user then makes any purchases from your shop within 30 days of clicking on an ad, you’ll pay an advertising fee on those orders. You’ll be able to see how many clicks and orders you're getting from our offsite advertising service in a new dashboard coming in the next few weeks.
  4. You’ll only pay an advertising fee when a shopper clicks on an online ad featuring one of your listings and makes any purchases from your shop within 30 days.

We recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips you can use to set a business budget and use a pricing strategy that will help your business grow. 

Thanks Jen!

View solution in original post

Translate to English There was a problem fetching the translation.
9 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@PatCahillMetalworks wrote:

 

If I participate in the targeted campaigns such as the abandoned cart and or recently favorite campaign say offering 15% off and a prospective buyer click on an ad likes the items will they receive the targeted campaign coupon? 

If they do receive the coupon for the targeted campaign then am I looking forward to a 30% loss in sales revenue, which is not even including processing fees, sales fees, listing fees or free shipping? 


Sales and coupons (including targeted offer campaigns) will work the same way they do today. If a shopper receives one of your targeted offer emails and then makes a purchase from your shop, you would only be charged an Offsite Ads fee if that same shopper had clicked on an ad featuring one of your items in the past 30 days. The Offsite Ads fee is charged on the order total, so after sales and coupons are applied.

Thanks for participating in our Q&A, @PatCahillMetalworks!

View solution in original post

Translate to English There was a problem fetching the translation.
8 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@YarnNGems wrote:

Hi! I drive a lot of my own traffic from Instagram already. I am in the forced opt in category. Will I be charged advertising fees when people click my shop link that I have in my profile from Instagram? Or when I send them a link in a private convo? Or will it only be if they click the ad? Also, How can I see what ads are being displayed? I would like to be able to see them. Thank you.


Hi @YarnNGems! If a shopper comes to your shop only through a direct link you share on social media, you won’t pay an Offsite Ads fee on that order. You’ll only pay an Offsite Ads fee on sales that come from Etsy’s offsite advertising service.

The creative that appears in these ads is pulled directly from your listing (photos, titles, etc). We advertise listings based on what performs best on each channel. When we advertise, we send our partners information like listing titles, descriptions, photos, and price for eligible listings. They then use algorithms to decide which listings to show when. We definitely understand wanting to see your ads in search results when you do your own searches, but it’s not uncommon to not see your own ads when you search. This is because the ads you see are not the same as the ads someone else will see, even for the same search. We try to get your ads in front of the buyers who are most likely to purchase your products.

Feel free to leave us any additional feedback on Offsite Ads here.

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@ChillwolfArt wrote:

@CatskillVintageCo     @MadeByMadsNY 

Admins, would you please clarify something.

I have read your pinned statements and more.  Yet I am seeing confusion within posts (myself included),  interpreting things differently in regards to mandatory Ads and $10K per 12 months (personally, I don't make that). 
OR does it become mandatory once you reach $10K AT ANY GIVEN TIME THROUGHOUT THE YEARS in which you have been here?

(No offense; I don't believe you're making it clear.  And my apologies in advance if I'm just not getting, but I'm seeing many posts where people are interpreting it the same as I am; that if you make under $10K per year, you can opt out of the Ads).

Please clarify.  Thank You in advance.


Hi @ChillwolfArt - we definitely want to make this as clear as possible: We determined whether you’re required to participate when this change happens in April by looking at your sales for the 12 month period ending on February 19, 2020.

After April, we’ll look at sellers' sales on the first business day of each month to see if any new shops reached the $10,000 USD threshold since the previous month. If an Etsy shop makes $10,000 USD or more in a 12-month period, they’ll be required to participate in Offsite Ads for the lifetime of their shop. They will also get the discounted 12% advertising fee. 

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Vintagerous wrote:

I am on page 7 of this thread so I apologize if this question has been asked on pages 8-11.

I am okay with this on items that are full price as I'd be happy to get the sale but...

What happens when you have a sale or coupon in effect on the item that is purchased using the new ads?  I am quite concerned about losing an additional percentage on top off my discount on the sale.  With shipping included in my prices and this fee on top of a discount, I may end up with zero profit on these items.  Some clarity around how this will work exactly would be very welcome.

Thanks!

 


Hi @Vintagerous, the Offsite Ads fee is charged on the order total, so after sales and coupons are applied.

With Offsite Ads, Etsy pays to advertise your listings on multiple high-traffic sites, and those shoppers might not have found you without Offsite Ads. So we think this update could help you boost your business. But, we should also say that it’s important to take all your business costs into consideration when pricing your items, including advertising costs. We recently released an article in the Seller Handbook about creating a small business budget. Check it out for tips and strategies you can use to set a business budget that will help your business grow.

Feel free to leave us any additional feedback on Offsite Ads here.

Thanks!

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WildflowerSalvage wrote:

I'm so sorry, I have a quick question...is there a cap on this fee.  If 1 click equals a sale of a $2000 item, are you taking $240 on top of fees already being taken.  


Hi Heidi! Yes, there is a cap. Your Offsite Ads fee will never be more than $100 per order. Thanks for reaching out.

View solution in original post

Translate to English There was a problem fetching the translation.
12 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CraftyMamaGifts wrote:

Hi! Just want to say, I'm in love with this idea! I'll gladly let you advertise my shop elsewhere and you can have your percent. 88% of a sale I wasn't going to get is better than 100% of a sale that may have never come.

 

I do have a question though, will we eventually be able to choose our cost per click on the Etsy ads? I would love to have that control as well!


Control was a key theme we heard from sellers when doing research about this change. We’ve heard you and we’re working on new features and enhancements to give you more options for creating the advertising campaign that works for you. Stand by for more details soon! And don’t forget: When you run an Etsy Ads campaign, your budget will only go toward ads on Etsy—giving you more control of where your advertising budget goes.

View solution in original post

Translate to English There was a problem fetching the translation.
14 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@LindeDesigns wrote:

When I hit the $10.000 threshold mid year, will my fee go down to 12% from the day I hit that number, or is it just based on the amount I've made last year? And do I get back the 3% in fees I paid to much for the first $10.000 in sales where I've paid 15% instead of 12%?


The $10,000 USD threshold is evaluated on the first business day of each month. At that time, we’ll look at your sales over the previous 12 months and if you’ve met the $10,000 USD threshold, going forward you'll start paying the discounted 12% fee on orders that come from Etsy’s Offsite Ads. Discounted fees only become effective on the first business day of every month, when Etsy runs a calculation on your sales. For more details, you can read our Fees & Payments Policy.

View solution in original post

Translate to English There was a problem fetching the translation.
3 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@SimpleShapesStore wrote:

Hello, Etsy Staffers.

I have a good return for my ad dollars on Google shopping.  I am concerned that this change may affect the SEO used, or that Etsy may not buy as much Google Shopping advertising as I have been buying.  What can you tell me?

 


Offsite Ads spend will work similarly to how Google Shopping ads worked in the past. We’ll optimize those ads using tons of data including how often shoppers have clicked on a listing and how relevant the keywords on a listing were to a shopper’s search. We also use insights, such as the time of day and country, plus the channels where your listings perform best. All this info helps us optimize the bid amount for you and your ads.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FallenAppleDesigns wrote:

This seems like it will help many sellers, I am curious to see how it goes.

I do not advertise and many of my sales come from word of mouth. I do fall within the mandatory advertising group. My concern is that if I receive many additional sales from this program, I will not be able to keep up. It could lead to scaling up faster than I can control. I would rather not fall into a cycle of turning my shop on vacation mode. Could Etsy offer a way to temporarily opt out of advertising for certain situations? 

My other concern involves the periodic Etsy sales that sellers may opt into. If Etsy's normal fees are around 8%, I opt into a holiday related 20% off sale, and someone makes a purchase from an ad at 12% cost to me, then I am losing a total of 40%. You don't think this will lead to sellers bumping up their prices just before a sale? Could Etsy consider lowering or even eliminating the advertising fee on those required to participate during the Etsy sales?

 


Hi @FallenAppleDesigns!

While we’d typically recommend sellers turn on vacation mode when they need time to catch up on incoming orders, if you’re not comfortable with that, our next best advice would be to update your processing times and quantities available to accommodate an increase in orders from Offsite Ads.

If you choose to run a sale in your shop, that will work the same way it does today and the Offsite Ads fee is charged on the order total after sales and coupons are applied.

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FuzzyFoxDesigns wrote:

Posting this here as I can't keep up with the comments above. Apologies if already posted. 

$10k USD is a fixed amount but may not be 'equivalent' in terms of the costs of living for all sellers on the platform, effectively forcing sellers into the platform in a way that is inconsistent with the costs of living in their countries. Has any thought been given to this in setting the criteria? 


Getting low cost advertising run by our team of experts without any upfront investment is a great opportunity to grow your business. Remember, you only pay Etsy when you make a sale. That said, we appreciate your feedback about cost of living and we’ll pass that along to the team.

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@KinderSprouts wrote:

Will we be able to control our budget on the new Off-site Ads, or will Etsy determine that- (e.g. if I'd like to grow, then it seems I should be able to increase my advertising budget) and will we regain control of costs/click through the Etsy Ads?


Offsite Ads are paid for by Etsy, so you don’t need to worry about setting a budget. You’ll only pay an Offsite Ads fee when you make a sale from Etsy’s offsite advertising service. If you’d like to invest more in advertising so you can grow your shop, you can increase your budget in Etsy Ads to boost your shops visibility on Etsy.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@MagicMarkingsArt wrote:

This past year I brought in 40% of my business last year through direct trafficking and social media, neither of which I advertised on nor paid any advertising fee for.  My items have been featured in the Washington Post, on House Beautiful and other high clicked media outlets.  I did not pay anything to have my items featured on these sites, nor did I have to pay 12% to Etsy.  This was all due to my hard work, dedication to detail and successful interaction with my customers. 

If I receive sales from these same sites in the future, will Etsy claim a %12 fee?  Are previous site specific ads "Grandfathered in" so we don't pay Etsy a fee for sales made from those ie - my featured items that have appeared on Washington Post, House Beautiful, Pinterest, Facebook, etc? 

How will we know if future sales made through these sites, for items not included in Etsy ads, will incur a 12% fee just because they came from the same site Etsy advertises on?

This seems grossly unfair and the advertising % is way too high.  As store owners of handmade goods we should be able to control the amount of money we need to spend on advertising- not have it dictated to us.


Hi Cathie, buyers can continue to purchase your items from direct links or other posts on sites like Facebook and Pinterest. As part of our offsite advertising service, we may also show additional ads for your listings on Google, Facebook, Instagram, Pinterest, and Bing. We’re able to track when shoppers click on one of those Etsy-funded Offsite Ads. If that same buyer then makes a purchase within 30 days of clicking on an ad, that order will be attributed to Offsite Ads.

So, that means if a buyer makes a purchase from your direct links and does not click on one of our Offsite Ads, you will not be charged an Offsite Ads fee for that order.

Thanks!

View solution in original post

Translate to English There was a problem fetching the translation.
7 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@DoodlePadImprinting wrote:

So if a buyer clicks on an ad, buys something from my shop, I get charged 12% (plus the other fees - so about 18-20%).  

What if they then make another purchase from my shop within the 30 days of clicking on the ad (maybe not the item advertised) - will I still get charged the fee or is it a one-time thing?


Hello! The advertising fee will apply to any orders a buyer makes from your shop within 30 days of clicking an Offsite Ad. These are orders you might not have received without the help of Etsy Ads’ reach.

View solution in original post

Translate to English There was a problem fetching the translation.
2 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@GRITSGirlz wrote:

10/1 - 12/31/2018 with Promoted Listings and both daily budget and Ad CPC in my control.  All shop listings advertised:
  + Used Promoted Listings in this shop since 2014
  + Reasonable advertising spend
  + ROI of 19:1 on revenue to ad spend
  + Win-win for both Seller and Etsy

New Etsy Ads were implemented in my shop on Monday, 9/9/2019.

10/1 - 12/31/2019 with New Etsy Ads.  Only daily budget in my control and it stayed the same as above - no increase or decrease:
  + Ad cost increased by 41% while the number of listings being advertised was reduced by 50% or more to control the increased Ad cost
  + Revenue from Ads decreased by 13% *** (adjusted to remove shipping costs now included in item prices due to Etsy's FS push)
  + Orders from Ads decreased by 25%
  + Clicks from Ads decreased by 35%
  + ROI decreased by 47% at 10:1 on revenue to ad spend
  + My daily budget was so low I seriously doubt Google Ads came into play

Unfortunately with Etsy Ads there were many issues that led me to discontinue the use of Etsy Ads in January 2020:
  + By this time, I was advertising less than half of my shop listings to control Ad costs which were continuing to climb.
  + ROI sharply plummeted after the Holidays.
  + No visibility to time of day Etsy Ad budget was being exhausted.
  + Etsy persists in showing my Ads in totally unrelated searches at the Etsy Ads inflated CPC - generally double or more my former PL Ad CPC.
  + Etsy persists in showing my Ads to shoppers in countries I don't ship to - at generally double or more my former PL Ad CPC.  These are window shoppers Etsy.  Showing my organic listings to shoppers in these countries is more than sufficient, especially since CPC is not in my control.
  + Etsy was not being a good steward of my Advertising budget, so I took back control.
---------------------------------

Etsy, please explain in sufficient detail why I should give the New New Etsy Ads a try.  Focus on the New New Etsy Ads since I am not inquiring about Offsite Ads in this post.  Please address the items that led me to discontinue use of the New Etsy Ads above since if not corrected in the New New Etsy Ads, I see no reason to advertise on Etsy again.


Advertising with Etsy Ads gives you the ability to target a channel that Offsite Ads doesn’t — Etsy. As of Sept 30, 2019, there were 44.8 million active buyers on Etsy. With Etsy Ads your ads are highlighted in Etsy search and other pages on Etsy, where interested shoppers are searching for items like yours.

You can manage your daily budget and decide which listings to advertise. For example, you could boost new listings to see how shoppers react. Or maybe you want to boost listings that drive a lot of traffic to your shop. Selecting the listings you want to advertise on Etsy gives you the power to go with the strategy that works for you. You can learn more about these listings strategies in the Ultimate Guide to Advertising.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@craftywoodandmore wrote:

Hi, I guess I'm kinda new to Etsy. I have only begun selling for about two years. Can I advertise all of my listings at once?


Hey there! Thanks for asking. As an Etsy seller there are two ways you can advertise: on Etsy and across the web. Etsy Ads lets you promote you products on Etsy and you can decide which listings you include in your campaign.

With Offsite Ads, our team of advertising experts will work hard with sites like Google and Facebook to promote Etsy sellers’ listings. We’ll advertise listings based on what performs best on each channel.

When we advertise with Offsite Ads, we’ll send our partners information like listing titles, descriptions, photos, and price for eligible listings. They will then use algorithms to decide which listings to show when. For search ads on Google and Bing, those algorithms work to make sure the ads shown are relevant to the shopper’s search query. 

To learn more about online advertising, and ways you can optimize your listings to convert from a buyer viewing your ad to making a purchase, check out our Seller Handbook article: The Essentials of Online Advertising.

View solution in original post

Translate to English There was a problem fetching the translation.
2 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@JennysGemShop wrote:

Can you clarify what you consider a 'sale from an ad'?  I have, in the past, seen orders marked as 'from advertising' that were from repeat customers - customers who happened to click an ad one time, although they were already customers BEFORE clicking that ad.  Every order they placed (sometimes up to 2 a week) following that click were marked as 'from advertising' (with the megaphone).  Can you please clarify if these fees will be charged on ADDITIONAL ORDERS from a person that happened to click an ad one time?


Thanks, Jenny. The Offsite Ads fee will apply to any purchases a buyer makes within 30 days of clicking on an ad for one of your listings. That’s because we attribute those orders to Offsite Ads since the shopper came to your shop through Etsy’s offsite advertising. For more details on how orders are attributed, take a look at our Fees & Payments Policy.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WTMCrafts wrote:

So if we are auto-enrolled in this, how do we opt out if we are below the threshold for being forced to participate in advertising?

I don't really make that many sales on Etsy and so can't afford to have Etsy take any more money on my sales than what I currently pay. I want to make sure I'm not going to suddenly be paying advertising fees when I don't pay for them now.


If you’ve made less than $10,000 USD in the past 12 months, you’ll be able to opt out of Offsite Ads in early April, before we start charging fees for this service. We will provide clear directions on how to opt out closer to that time.

That said, advertising is an important strategy for growing your online business. With Offsite Ads you get advertising run by our experienced team of advertising experts with no upfront costs to you, which is a great opportunity to grow your business.

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@OhanaLeashesCo wrote:

I see that when a shop makes over $10,000 USD in a 12 month period the advertising fee is reduced from 15% to 12%. Right now, Etsy is using Feb 18 2019-Feb18 2020.  Is the 12 month period re-evaluated on a daily basis? Are the advertising fees for the shop lowered the same day that you reach the $10,000 USD threshold?

Secondly, for Canadian shops, do we just convert our revenue to USD with an online currency converter to see which fee we will be charged or is there a threshold in Canadian dollars for Canadian shops?


Hi Jacob! I’m not sure where you’re seeing the February 18, 2019 to February 18, 2020 dates. We determined whether you’re required to participate when this change happens in April by looking at your sales for the 12 month period ending on February 19, 2020.

After April, we’ll look at sellers' sales on the first business day of each month to see if any new shops reached the $10,000 USD threshold since the previous month. If an Etsy shop makes $10,000 USD or more in a 12-month period, they’ll be required to participate in Offsite Ads for the lifetime of their shop. They will also get the discounted 12% advertising fee. 

You can calculate how much you’ve earned on Etsy in your Shop Stats. Once you meet the $10,000 USD threshold, you’ll be able to see the conversion of your shop sales to USD for the 12 month evaluation period in your Offsite Ads dashboard.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@aMusingMiniatures wrote:

Hi Etsy,

If an Attributed Order is Returned or Cancelled by the Buyer, how are the associated Ad Fees handled?  Will they be credited back to our Shops?


Similar to transaction fees, if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded. You’ll be refunded through your Payment Account. Remember that any cancellation must be in accordance with Etsy’s cancellation policy. You can reference our cancellation policy here.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution
@ByMelifluo wrote:

Hello Kathy,

my questionabout the new ads are:

-do we get to control anythin? Like which listings to advertise and which not? Or does Etsy choose for us?

i am asking because my concern is  running sales within the shop, all the fees + a significant discountwill end up eating all the profit. Would we have a choice not to advertise the already discounted items?


Hi @ByMelifluo! When you’re part of the Offsite Ads program, we include all of your active listings. We then send our partners your listing titles, descriptions, photos, and price for eligible listings. After that, they use algorithms to decide which listings to show when in order to try to get your ads in front of the buyers who are most likely to purchase your products.

If you do want to control which listings you promote, you also have Etsy Ads. This advertising product lets you decide which listings you want to advertise on Etsy.

I appreciate your feedback around sales and discounted items. You can leave any additional feedback on Offsite Ads here.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution
@DragonflyDreams1  wrote:

Question that I hope someone can answer.  I have been using Pinterest for a VERY long time.  I have pins everywhere.  If a potential customer clicks one of my pins (pinned by me or anyone else) do I get charged the advertising fee simply because the sale originated on Pinterest?  Or will etsy buying specific ads FOR me on pinterest and if ONLY those Etsy purchased ads are clicked on and lead to an Etsy purchase will I pay the advertising percentage?  I need to know if all of my sales coming from Pinterest will result in an advertising fee or only ads placed by etsy.


Hi @DragonflyDreams1, buyers can continue to click on your pins from Pinterest that aren’t promoted by Etsy Ads without any charge to you. 

As part of our offsite advertising service, we may also promote ads for your listings on Google, Facebook, Instagram, Pinterest, and Bing. This is in addition to your personal pins. On Pinterest, you would see these as additional promoted pins. We’re able to track when shoppers click on one of those Etsy-funded Offsite Ads. If that same buyer then makes a purchase within 30 days of clicking on an ad, that order will be attributed to Offsite Ads. 

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@FabriArts wrote:

For shops that will have the option to opt-out of the new Offsite Advertising, will they be able to do that at any time, or will it just be in April 2020?  I would like to be able to see the difference that the advertising will make to my shop before I make the decision.  Will we be able to opt-in or opt-out at our discretion, or will it be a one-time-only option to opt-out?

 


Hi @FabriArts ! Starting in April, you’ll be able to opt out of using Offsite Ads if you’ve made less than $10,000 USD on Etsy in the past 12 months. The ability to opt out and back in will always be available to sellers. However, once you reach $10,000 USD in sales in a 12-month period, you’ll be automatically re-enrolled and you’ll be required to participate for the lifetime of your shop. If you’re required, you’ll get a discounted 12% advertising fee.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CrystalLeaJewelry wrote:

So to make sure that I am understanding correctly - they will take 12% of the sale if it comes from a buyer that has clicked on one of my ads in the last month. So they have clicked on it and then come back 25 days later and purchase - 12% correct? Now what if they are a repeat buyer? And is it just the 12%  or 12% plus the 5% that is currently being collect?  Small business here - 17% is a lot. 


Hi @CrystalLeaJewelry,

If you receive an order within 30 days of a new or repeat buyer clicking on an Offsite Ad featuring one of your items, you’ll pay the 12% fee on that order. The Offsite Ads fee is in addition to Etsy’s transaction and payment processing fees.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CoconuTacha wrote:

What if I want to slow down business? I have the right to CHOOSE where, when and what to advertise, surely?! This takes away all control.


Hi @CoconuTacha,

Shops that make $10,000 USD or more in sales in a 12-month period are required to participate in Offsite Ads. If you’re ever feeling overwhelmed by the number of orders you’re receiving, you have the option to turn on vacation mode so you can take the time you need to catch up on incoming orders. If you’re not comfortable with that, our next best suggestion would be to update your processing times and quantities available to accommodate any increase in orders from Offsite Ads.

View solution in original post

Translate to English There was a problem fetching the translation.
2 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Marmalady wrote:

Are the advertising fees subject to VAT like other Etsy fees?

So it will actually cost UK sellers 18% or 14.4% rather than 15 or 12 % ?


Hi @Marmalady ,

If you’re obligated to pay value-added taxes in your country, you’ll pay VAT on any advertising fee you’re charged. This Help article has more helpful information on how VAT is collected on seller fees.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Grubbi wrote:

If you’re able to opt out and then you decide to opt in, can you opt back out again? Or is it mandatory once you opt in? 


Hi @Grubbi ! Once you’ve made $10,000 USD or more in sales on Etsy in a 12-month period, you’ll be required to participate in Offsite Ads for the lifetime of your shop—plus, you’ll get a discounted fee. Until you hit that sales threshold, you can turn Offsite Ads on and off as you deem necessary.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WestofChelsea wrote:

Explain why the commission ( 12% or 15%) should apply to the shipping.  Shipping costs are NOT something that should be subjected to this forced program.


Thanks for your question, @WestofChelsea ! The fees for Offsite Ads apply to the total amount that you charge your buyer for an order. These fees are in line with our transaction fees, which also apply to the cost of the item and the cost of shipping. Remember that with Offsite Ads, you only pay an advertising fee when you make a sale. We believe this service will support the long-term success of both new and existing shop owners.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WiththeGrainWeddings wrote:

The commission for off-site advertising makes sense, and I like the change.... but the mandatory participation part is a HUGE miss, why would you not just advertise the shops that want to be advertised? We sell items that we can absorb a 15% hit on for increased sales, but MANY do not. This will hurt a lot of shops. 

 

Also, the BIGGEST problem with the last round of Etsy Ads changes was the removal of on-site CPC / Bidding control.... Will these be returned to us? If not, nothing is really solved here. We still HAVE to pay to advertise off-site and still have NO control over bid cost on site. 

Please tell us that CPC control is coming back! 


Hi @WiththeGrainWeddings,

Across our research with sellers, the desire to regain some control over their advertising budgets was a recurring theme. We took this feedback and worked to find solutions that  addressed these needs, while simultaneously enhancing the current ads experience. Now, sellers will regain control of their Etsy Ads budget, managing their daily investment in ads appearing on Etsy. We’re working on more enhancements to the experience, so keep your eyes peeled.

View solution in original post

Translate to English There was a problem fetching the translation.
2 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CoconuTacha wrote:

If you're so confident about this working so well for us, why isn't here an 'opt-out' option for us sellers who have earned over 10k? Surely, if it will work so great for us, we won't want to opt out. But we absolutely need that option! 


Hi @CoconuTacha ,

Our data shows that sellers in the “more than $10,000 USD group” will benefit most from having their items advertised offsite. That’s why you’ll get a discounted advertising fee, however you won’t be charged until a buyer makes a purchase. But the success of the program, more broadly, has an additive effect–meaning, the more shops and inventory we have in the program, the greater success for everyone involved. 

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@PatternPeddler wrote:

Is the $10K for a single shop or is it the aggregate of a seller's multiple shops?


Hi @PatternPeddler,

Yes, the $10K threshold is evaluated on a shop-by-shop basis.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@WantableDesigns wrote:

What I'd like to know is, if off-Etsy ads are so great in that they only charge when there's a sale, and this is so much better than 'traditional advertising', why will the Etsy ads still be pay per click? On eBay you only pay for sponsored listings when you get a sale.


Hi @WantableDesigns - like you pointed out, Offsite Ads and Etsy Ads function under different models and aren’t apples-to-apples in terms of how they operate (pay per sale vs. pay per click) or target potential buyers (broad vs. narrow). In our research, sellers repeatedly expressed desire for more targeted control over their campaigns (and ads spend), which is why we’re offering Etsy Ads. You know your customers best, and Etsy Ads allows you to control how they’re reached, what items they’re shown, and how much you’re willing to spend to bring them to your shop.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@PiecesKept wrote:

Where exactly in our dashboard will we be able to opt out of these Offsite Ads?


Hi @PiecesKept ! Starting in April, eligible sellers will be able to opt out of Offsite Ads in Settings under Shop Manager.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@UnconventionalX wrote:

I'm so excited to see this role out! I see there is a chance to provide feedback on the offsite advert platform now, but I can't find it in my toolbox, and all your announcements say it will launch in April. 

Am I able to get early access? I'm keen to get on board today! 

Also, does it mean the Etsy Google adverts have ceased already? The way your notices are worded, it seems that right now I'm advertising to Etsy customers only?


Hi there @UnconventionalX! We encourage sellers to give any feedback in our seller survey form. There is no early access available, but in the coming weeks we’ll introduce a new Offsite Ads dashboard, where you can see how many sales you’re getting from ads paid for by Etsy.  Seller-funded Google Shopping ads have not stopped yet. We will complete moving all Etsy Ads advertising budgets to on-site ads only ahead of the full launch of Offsite Ads in April. 

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Lasaris wrote:

Why can't we opt-out? Why mandatory? I don't want to give you 12% for ads that I already manage myself off-site.

Will there be an option to opt-out for people whom already advertise off-site?
I find it a bit worrying you're forcing us to advertise off-site and forcing a commission on us.

What date will this take affect from? That is not mentioned anywhere.

Will we be able to choose which products you advertise?

Will we have any control over where they appear off-site?


Hi @Lasaris ,

Sellers who’ve made $10,000 USD or more in sales on Etsy in a 12-month period will benefit the most from Offsite Ads. That’s why those sellers will be required to participate for the lifetime of their shop and will receive a discounted advertising fee of 12%. For those who’ve made less than $10,000 USD, they’ll be able to opt-out of the program if they decide that they don’t want traffic and orders from Offsite Ads.

You'll start seeing Offsite Ad fees in your Payment Account as early as April. Before then, we’ll make sure you have all of the data you need to understand how this Offsite Ads program will impact your business so you can plan accordingly. 

Etsy will manage all of the details of a seller’s Offsite Ads campaign including which listings and which channels. If a seller would like to boost specific listings, they can do so by advertising them to Etsy shoppers with Etsy Ads.

View solution in original post

Translate to English There was a problem fetching the translation.
3 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@AshkalJewelry wrote:

OK so here's the most important question Etsy has not answered:

HOW is Etsy going to target customers on Google, Facebook etc? Based on what they previously viewed on Etsy?

For example: Someone visits my Etsy shop and views a listing but does not place an order yet. Is Etsy going to bombard that person with a Facebook ad showing THE SAME LISTING they already viewed in my Etsy shop? and when the customer finally clicks on the ad and make a purchase, will Etsy charge me an additional 12% fee on top of their 5% transaction fee? If that is the case then this new ad service is very misleading.

OR is Etsy going to target random people who have never been on Etsy with targeted ads based on their interests?

 

PLEASE CLARIFY ETSY AS THIS MAKES A WORLD OF A DIFFERENCE IN WHAT THIS MEANS FOR US SELLERS.


Hi @AshkalJewelry ,

We leverage the extensive targeting capabilities of our partners - Google, Facebook, and Pinterest. They help us to target ads to their users based on what Etsy seller products best match what they know about their own customers, making sure we only show the most relevant of ads. This may include the same listings and similar listings to items viewed on Etsy, but can also include listings based on buyer behavior identified by our partners.

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@ThornsandRoseway wrote:

Will we be able to choose which items are included in this? I don’t have a problem with this, especially as I am in the optional category. I like that the hassle is taken out of it, but it wouldn’t be financially suitable for some of my lower priced items to be included in this. So I wouldn’t be able to use it just incase sales came from those lower priced items.


Hi @ThornsandRoseway !

When you’re part of the Offsite Ads program, we include all of your active listings. We then send our partners your listing titles, descriptions, photos, and prices for eligible listings. After that, they use algorithms to decide which listings to show when in order to try to get your ads in front of the buyers who are most likely to purchase your products. We understand that listing prices and margins differ from listing to listings. This is why the fee is a percentage of the order value instead of a flat fee.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@AtheneArcana wrote:

As a UK based seller, with 90% of my sales going to the US, various percentages tax are applied by Etsy to the customers order. My question is, does the 12% (plus tax) get applied to not only my product and the shipping, but also this Etsy/state applied tax? 

thank you.


Hi @AtheneArcana ! 

The Offsite Ads fee is applied in the same way as the  transaction fee. It’s only applied on the total order amount, which is the price you set for each listing plus the amount you charge for shipping and gift wrapping.  If you sell from anywhere other than the US and Canada, Offsite Ads fees (like transaction fees) will apply to any applicable taxes if you have included them in your listing prices. You can read more about the fee in our Fees & Payments Policy. Thanks!

View solution in original post

Translate to English There was a problem fetching the translation.
2 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

 

@cookiejarbruce wrote:

When does this take place ? If my current advertising is going back to just Etsy, can I control the cost per click ? Will my just Etsy ads stay in the USA only as I wish ? Will the new ads run outside the USA as I don't wish ?............THanks


Hi Bruce, these changes will start rolling out in the next few weeks.

The dashboard and tools you use today for Etsy Ads will stay the same for now. We’ve heard your feedback about controlling cost per click and we’re working on new features and enhancements to give you more options for creating the Etsy Ads campaign that works for you. Stay tuned for more details soon!

Your Etsy Ads will continue to appear in search results the same way that your listings appear in Etsy search results. This is how ads on Etsy have historically worked. If you ship to countries outside of the US, your ads are eligible to appear to those countries. If you only ship within the US, your ads will only appear in the US. 

Thanks,

Kathy

 

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Schoolable wrote:

@Back40life & @EDCCollective I'm not sure if I'm understanding this correctly, but I think Etsy's calculations are misleading.

What happens if that 1 out of 10 items that is clicked through with this ad program is your higher priced items?

According to Etsy's math in that post, if you sell $100 worth of sales the advertising fee would be $1.50, however (with the 1 in 10 projected sales from an ad click) if you sell 9 stickers at $5 each (total $45) but the person who buys from the ad click buys a $45 Scarf you are actually paying $5.40. Though you could also be paying less too!

BUT my point is that the article should not indicate the number unless it also points out you could be paying more or less (And include calculations).

Also the other issue with this is, are all our listings being advertised equally?
OR is Etsy choosing which ones to advertise? How will we know?


We know that shops have different products and prices, but we wanted to include an illustrative example to help show how the fee might work. All shops are different, so this will not be the exact situation and may be more or less in different situations for each seller.

When you’re part of the Offsite Ads program, we include all of your active listings. We then send our partners your listing titles, descriptions, photos, and price for eligible listings. After that, they use algorithms to decide which listings to show when in order to try to get your ads in front of the buyers who are most likely to purchase your products.

Thanks!

View solution in original post

Translate to English There was a problem fetching the translation.
4 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Ringtique wrote:

How about layaway purchases? As an example, I sell antique engagement rings that many time are purchased in payments that are made each payday, twice a month. If an Offsite Ad customer makes two payments of, for example, $1,000 each in one 30 month period how will Etsy know not to charge me twice for this? It is one item and would have a max of $100 for the sale, correct? My buyers may make 12 payments on a ring, twice a month for six months, and how will Etsy know not to charge twice in the first 30 days? What if the next month the layaway purchaser clicks on an Etsy generated ad of mine and then proceeds to go to my page to make one of their layaway payments? 

Second, we need to know upfront the source of the customer! Sometimes I will make special offers to customers for some reason and I can't do that without knowing if I am also going to be charged a 12% fee when they buy! Forget coupons/sales, that will never happen. Will you make known to us BEFORE a customer buys whether we will owe this fee?

PLEASE...NO CANNED RESPONSES ETSY TEAM! WE NEED REAL ANSWERS!


Hi, @Ringtique,

If a buyer clicks on one of your Offsite Ads and makes purchases in your shop within 30 days, those orders will be eligible for the advertising fee. 

To use your example, you may place items on layaway by creating multiple listings in your shop to be purchased across a period of time by the buyer. If a buyer clicks on one of your Offsite Ads ads, any orders they place in your shop (including purchasing listings to make layaway payments) for 30 days are eligible to receive the advertising fee. This is because the click on the Offsite Ad brought the member to your shop within 30 days. If they purchase the listing used to make layaway payments after the 30 day window, they will not be charged an advertising fee on that payment.

Also, thanks for the suggestion to provide more context into which buyers or orders would receive the Offsite Ads fee ahead of time. We understand how paying an advertising fee along with offering a discount can impact your margins on an order. While it won’t be possible for us to notify you if an order is about to be placed because of a click on an Offsite Ad, remember that we expect around 10% of your orders will result from clicks on your Offsite Ads.

We can’t provide advice on pricing or margins, but you may have seen that we recently released an article about creating a small business budget. This includes great tips and strategies you can use to set a business budget that works for you and your shop. 

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CherryCorners wrote:

Etsy please clarify this for me, I don't see anything that answers the following question: 

I understand that I will be charged for an ad if a sale results from a click thru from an outside etsy ad. Will I only be charged if the ad was a targeted ad for my specific item or any etsy ad click thru that ends up resulting in a sale for me (example: say the customer clicks on an ad for an item from another shop, then the customer sees my item in the similar items that are shown below a listing and chooses to click on my item and purchase it instead) will that sale result in ad fees for me? 



Hi @CherryCorners, you’ll only be charged the Offsite Ads fee if a buyer clicks on an Offsite Ad for one of your listings and purchases from your shop within 30 days. 

View solution in original post

Translate to English There was a problem fetching the translation.
3 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@MulberryCreek wrote:

Hi,  How are the off-site ads chosen as far as listings?  Are they taken from the listings you have enrolled in the Etsy Ad program?  Or randomly chosen from your shop listings?  Thanks.  Melissa


When you’re part of the Offsite Ads program, we include all of your active listings. We then send our partners your listing titles, descriptions, photos, and prices for eligible listings. After that, they use algorithms to decide which listings to show when in order to try to get your ads in front of the buyers who are most likely to purchase your products.

Thanks for your questions, Melissa!

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like
FidosFlowers
Community Manager
Community Manager

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hello, everyone!

Thanks for taking the time to share your questions in this Q&A. We’re closing this thread to questions now, but will continue to add responses here tomorrow.

As a reminder, you can share feedback about Etsy Ads here or share feedback about Offsite Ads here

Thank you!

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes
Reply
Loading...

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution
@SimplyBeautifulPlans  wrote:

Hi, why is this being forced on shops that have already established an online presence (in order to reach 10k). Wouldn't this initiative be more beneficial for shops that are struggling to get their brand recognized? This seems like an easy way for Etsy to increase fees on successful shops. How much analytics will be provided to the shops that are forced to use this service so that we can legitimize the fee? 


Hi @SimplyBeautifulPlans,

Sellers who’ve made $10,000 USD or more in sales on Etsy in a 12-month period will benefit the most from Offsite Ads as they’re more likely to get orders from this service based on their sales history. That’s why those sellers will be required to participate for the lifetime of their shop and will receive a discounted advertising fee of 12%. Sellers who make less than $10,000 USD in sales will still have the opportunity to try the service. 

All sellers will have access to an Offsite Ads dashboard in their Shop Stats that will show how many clicks and orders they’re receiving from Offsite Ads. It will show each order from Offsite Ads broken out so sellers can understand which of their listings was featured in an ad and which listing the buyer ended up purchasing. This visual break is a great way to see what your buyer’s shopping journey was. The dashboard will also show which channel your orders are coming—whether shoppers are clicking on ads on Google or if they’re browsing on Instagram and Facebook before coming to your shop.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@ZeroFearArt wrote:

I have a question.  Say a buyer clicks on an Offsite Ad for one of my products.  However, they don't actually buy anything from my shop, but they somehow buy a product from another Etsy seller.  Is THAT seller going to have to pay the Offsite Ads fee?  It wasn't a direct ad for their product, but the sale did come from Offsite Ads.  If they will be charged that, if the same buyer within 30 days does actually buy from me, will I ALSO pay the Offsite Ads fee?  Just trying to see if Etsy will be double dipping (or more) depending on how many Etsy sellers that buyer purchases from.  Just curious if Etsy is basically going to assume every sale that buyer makes will be considered from Offsite Ads even if the original ad was for a different shop.


Nope! We won’t charge either seller if a buyer clicks on an ad for Seller A but then purchases from Seller B. You’ll only be charged when a shopper clicks on an ad for one of your listings and purchases from your shop within 30 days.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@LemonLimeCreations wrote:

Etsy say it gives creative shop owners the ability to run their shops as they see fit, and then state that once your sales reach a certain dollar amount you are required to participate in this new advertising.   Taking that control away from seasoned shop owners who have been running a profitable shop for years (this is my 11th year on Etsy as a full time seller, with over 28K sales) who may not want to grow their volume significantly is a huge issue and raises lots of questions.  

Will you continue to show other shop's products on the same page as our listings?  Will you give us the option to choose the products advertised? 

When will this be billed - when the sale occurs, and then if the item is refunded the charge is credited back? 

Will this advertising be a group add - where the algorythms say "you looked at personalized rings - here are 6 options from different shops" or will each item be advertised in it's own individual ad?  

What is the frequency a person can expect their items to pop up in an ad - once a month, 5 or 6 times a week or hourly on each platform?  

Is this a currated ad where certain criteria has to be met (good feedback, excellent pictures, approprate grouping of items) or is it just completely random?

 

Thanks!


Hi @LemonLimeCreations,

When you see other shop’s products on your listing pages, that is a combination of items selected by our recommendation engine and onsite Etsy Ads. These ads are unrelated to Offsite Ads, and will continue to appear on listing pages, and other locations on Etsy.  These ads are selected using the same algorithm as the “You may also like” recommendations. Etsy chooses which Etsy Ads and recommendations appear at the bottom of listing pages that are most relevant to the buyer. If you use Etsy Ads to advertise your listings on Etsy, you can control your budget and decide which listings you want to advertise on Etsy pages.

For Offsite Ads, Etsy is purchasing product listing ads on Google, Facebook, Instagram, Pinterest, and Bing. On some of these platforms, the product listing ads consist of a single listing and on others, you may see several listings.  The listings contained in these ads are selected by the platform using the algorithms described above. 

To give a better sense of how Offsite Ads are selected, we send our partners information like listing titles, descriptions, photos, and price for eligible listings. They then use algorithms to decide which listings to show when. For search ads on Google and Bing, those algorithms work to make sure the ads shows are relevant to the shopper’s search query. To learn more about online advertising, and ways you can optimize your listings to convert from a buyer viewing your ad to making a purchase, check out our Seller Handbook article: The Essentials of Online Advertising.

While we can’t provide a specific number of how many times your Offsite Ads will be shown, we expect around roughly 10% of your sales to be a result of clicks on your Offsite Ads. 

When an order is placed as a result of your Offsite Ads, the related fee will apply to your Payment Account, along with your other seller fees. 

You also asked about what happens to cancelled orders related to Offsite Ads. Similar to transaction fees, if you partially or fully refund an order for your buyer, the Offsite Ads fee will be partially or fully refunded. You’ll be refunded through your Payment Account.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@PristineCustomRings wrote:

Hello! 

We have a few questions here

I would like to better understand in what ways will etsy sellers have more control over their ads campaign? 

The 12/15% ads fee applies to ads within etsy and offsite? And we are only charged for a purchase? 

I have noticed that a lot of my sales that are considered ads revenue, are actually customers that I received on my own from  SM ads campaign ( that i am paying for ) then they click on shop now and get directed to etsy and then I pay yet again and etsy takes the credit. Is this the case with the new ads campaign? 

Is there something we sellers should change to our listings tags titles or descriptions to optimize visibility and search  with this new change? 

and finally , will these changes improve the overall etsy visibility in offsite marketing? I noticed with the change with google , the ranking seemed to weaken.. 

Thank you 

Stephanie 

 


Hi Stephanie!

We heard that sellers craved more control over how their advertising budget is spent. Now, when you run an Etsy Ads campaign, your budget will only go toward ads on Etsy. This will give you more control of where your advertising dollars are spent. 

We also heard that promoting products across the web and Etsy can get expensive, and there’s no guarantee those ads will lead to a sale. With Offsite Ads, we take on the risk and the cost of advertising your products off Etsy by only requiring you to pay an advertising fee when you make a sale. 

I also wanted to explain how revenue attribution works with your existing Etsy Ads campaign. If a buyer clicks on your ad and purchases any item from your shop within 30 days, the sale is attributed to the ad that was originally clicked on. This means that if a buyer visited your shop through your own social media campaign, but also clicked on one of your ads, any purchase they make within 30 days will be attributed to your Etsy Ads campaign. Remember that with Etsy Ads, you’re only charged when a buyer clicks on your ads. The 12% or 15% fee will not apply to Etsy Ads. 

Similarly, with Offsite Ads, anytime a buyer clicks on one of your Offsite Ads and makes a purchase within 30 days, that sale is eligible to receive the related advertising fee (even if they’ve also clicked on one of your own personal ads).

With Offsite Ads, you’re only charged when a sale is a result of a click on one of Etsy’s Offsite Ads with your listing. This makes Offsite Ads inherently risk free. Ads that you buy yourself are not included in this program.

You’re an expert in your business, so only you can decide whether it makes sense for you to run your own offsite advertising campaigns in addition to Etsy’s Offsite Ads.  

Plus, there’s a few reasons to get excited about our new offsite advertising service:

  • We’re eliminating the risk you could pay for ads that don’t lead to a sale, so with Offsite Ads you don’t pay anything until you make a sale.
  • You’ll also be able to track your advertising performance right from your Shop Manager. That means you can see the clicks, orders, and revenue you get through Offsite Ads. Currently, you can’t get all that info when you run your own campaigns, because you can't add a tracking pixel to Etsy pages.

We advertise your listings based on what is performing best on each channel. We send our partners information like listing titles, descriptions, photos, and price for eligible listings. They then use algorithms to decide which listings to show when. For search ads on Google and Bing, those algorithms work to make sure the ads shown are relevant to the potential shopper’s search query. 

Beyond that, there are steps you can take on your end to help ensure your listings are setup for success with Offsite Ads:

  • Make sure your main listing images are clear of watermarks and text overlays. Also, check to see if your photos could use a refresh! This article has some really great tips for stylizing your product photos: How to Style Product Photos
  • Perform continual maintenance on your tags and titles to ensure they’re relevant and up to date. Keywords 101 provides insight on how to select strong keywords for your listings. 
  • Additionally, go over your listing descriptions to make sure they are detailed and representative of the item. Be sure to repeat your tags and major search terms within your product descriptions.

Lastly, The Essentials of Online Advertising has a lot of helpful and detailed advice on how to get the most success out of online advertising. We also recommend looking into the policies for our partner sites to make sure your listings are in line: 

View solution in original post

Translate to English There was a problem fetching the translation.
5 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@byADORA wrote:

I read on the article "How etsy's off site ads work" that in order to participate in this program we have to comply with all the off sites policies.

 

Since it is going to be hard to go over each and every of site  policies..

I wanted to ask please, is there's a set of rules like "DO & DON'T DO" to help us avoiding being disqualified from the program? 

 

Thanks in advance


Hi there @byADORA, thanks for reaching out. In this case, a great first step would be make sure you’re following all of Etsy’s policies. Our policies are a good foundation to make sure your listings comply with our partners’ advertising policies.

Here’s an article that we recently released: Checklist: Get Your Listings Ready to Advertise. You can find a lot of helpful tips and advice on how to make sure your listings are optimized for advertising. A few best practices include:

  • Images that include your product front and center
  • Making sure you’re using a white background so your items stand out in ads
  • Remove any watermarks

We get that it may be tough to fully know all other site's policies, but I still wanted to leave this here as way to access these easily if there are any specific partners’ policies that you wanted to dig into further:

Hope this helps!

View solution in original post

Translate to English There was a problem fetching the translation.
3 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@HecatesBoutique wrote:

How much increased traffic/orders should we expect to see from this? The article made it sound like this will have a small negative impact on our bottom line after the fees. Shouldn’t a new advertising program increase our bottom line overall by bringing in more customers? Why didn’t the article provide any estimates on how this will increase traffic to the Etsy site overall?


Hi @HecatesBoutique - while we can’t guarantee exactly how many sales your shop may expect from Offsite Ads, we estimate that most sellers will see 10% or less of their sales made through the advertising service. As a reminder, sales made from Offsite Ads are in addition to the organic sales you’ll make from shoppers already searching on Etsy and those who come in through our other marketing efforts.

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@CorgiHillTreasures wrote:

How does this affect the Pattern stores?  Will Pattern stores also be advertised and on the hook for the 12% fee if a conversion happens?  We are currently not in the Etsy search engine so how does this affect our search.  


Hi @CorgiHillTreasures! Offsite Ads is only available to Etsy.com listings. Pattern listings are not eligible for Offsite Ads through Etsy’s service.

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@ConnectWithYourDeck wrote:

Hi  I am really interested to try this new advertising for my shop. My question is this. I often update images and descriptions in my shop depending on how my listings are going. If I update an image or description on a listing included in the new offsite advertising will this new information on the listing update in real time? Can I manually change images on an ad if I think the best images haven’t been selected?  Many thanks !


Hi there!

The main image for the listing is used for Offsite Ads. It can take up to a day for your Offsite Ads to reflect updates you’ve made to your Etsy listing images or descriptions, depending on the Offsite Ads partner. 

Thanks for your questions!

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@SBSjewel wrote:

Hi team, 

need help with the math.

Task condition:

A customer (USA) bought an item and paid:

  • Item total: EUR 19.00

  • Postage cost: EUR 7.00

  • Tax: EUR 1.56
As seller (EU) I paid Etsy:
  1. auto-renew sold: EUR 0.18
  2. VAT auto-renew sold: EUR 0.04
  3. Sale: EUR 1.40
  4. Transaction: EUR 0.95
  5. Delivery transaction: EUR 0.35
  6. VAT Processing Fee: EUR 0.26
  7. VAT transaction: EUR 0.18
  8. VAT delivery transaction: EUR 0.07 

Total seller paid (summ 1-8) = EUR 3.43

3.43 Eur - this is 13.2% from  the item cost + shipping (19+7= 26 Eur)

The question is - please provide a detailed calculation of the fees/taxes (for the seller) provided that the above mentioned item was sold through Offsite Ads (12% fee (more than 10.000 USD in sales)).

TIA,

Regards.


Hi @SBSjewel,

The 12% fee is calculated on the order total—the item price (which should include applicable taxes if you’re selling from anywhere outside of the US or Canada) + shipping cost. 

If you’re obligated to pay value-added taxes in your country, you’ll pay VAT on any advertising fee you’re charged. This Help article has more helpful information on how VAT is collected on seller fees

Going through your example, the math might look like this:

Add the item price and shipping costs

We will report this amount so you don’t need to do the math yourself. You’ll be able to confirm this amount in the order details. 

Calculate the Offsite Ads fee on the sale

((Item total: EUR 19.00) + (Postage cost: EUR 7.00) = EUR 26.00

New Offsite Ad fee:

(Order total from above: EUR 26.00) * (Offsite Ad percent fee: 12%) = EUR 3.12

Calculate the VAT on Offsite Ads fee (assuming 19% VAT):
(Offsite Ads fee from above: EUR 3.12) * (VAT: 19%)  = EUR 0.59

Calculating your total new Offsite Ads fees:

(Offsite Ads fee on the sale: EUR 3.12) + (Offsite Ad fee on VAT VAT on Offsite Ads fee: EUR 0.59) = EUR 3.71

View solution in original post

Translate to English There was a problem fetching the translation.
0 Likes
FidosFlowers
Community Manager
Community Manager

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi, all!

That’s a wrap for this Q&A. Thanks again for sharing your thoughtful questions here this week.

As a reminder, you can share your feedback about Etsy Ads here and Offsite Ads here. The team will continue to review the responses in the weeks ahead.

Thank you!

View solution in original post

Translate to English There was a problem fetching the translation.
1 Like
Reply
Loading...
1,740 Replies

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi there, I'm Kathy and I'm currently a product marketing manager at Etsy. I work on giving sellers the most relevant and effective tools and resources that will help you continue to grow your business here on Etsy. I've been working on creating more useful Etsy Ads communications and education that will help provide sellers like you with more knowledge and support as you start advertising and as you continue grow your business. I’m excited to be here today to answer your questions!

Translate to English There was a problem fetching the translation.
68 Likes
Reply
Loading...
Back40life
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

UPDATE:  As @EDCCollective pointed out.  Etsy may have been trying to illustrate that 10% of sales are estimated to be impacted by the fee.  So $1000 of affected sales x 10% x 15% = $15 fee. I read it incorrectly at first thinking the example meant $1000 of sales due to the advertisement.

Personally, I'm looking forward to this change.  I don't have time nor the skill set to navigate the ever-changing advertising landscape for social media services that pop up like wildflowers.  I'm interested in growing my business and constantly getting better at the products we make.  Happy to have the help from Etsy to drive sales to my store.  We're only paying for a sale that's occurred.  Way better than paying for clicks that generally do not result in a sale.  I call this a win.

 

 Hi Kathy - I believe the page you guys have posted with info about this service has incorrect math.  It states:

Here’s what that might mean for you: For most sellers, one in 10 sales will come from Offsite Ads. So, let’s say you make $1,000 a year on Etsy, that would mean your advertising fees for the year would be just $15 based on a 15% advertising fee. If you sell $10,000 on Etsy each year, you could expect to pay about $120 with a 12% advertising fee.

 

15% of $1000 = $150.  12% of  $10,000 = $1200.  I wanted to make you aware of this typo.


Thanks,

Brad

Translate to English There was a problem fetching the translation.
61 Likes
EDCCollective
Conversation Maker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Back40lifeI do not think it is a typo. Etsy also stated that for most sellers, one in 10 sales will come from Offsite Ads. I took the total sales given to mean all sales, not just ones resulting from Offsite Ads. Taking 10% of your calculations for the 1 in 10 sales that Etsy is estimating comes from Offsite ads yields the numbers Etsy presented.

Translate to English There was a problem fetching the translation.
10 Likes
ShivamImports
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

The wording in that example is very unclear (unlike Etsy's vision and plans with Ads, which is so clear). 

 

"So, let’s say you make $1,000 a year on Etsy, that would mean your advertising fees for the year would be just $15 based on a 15% advertising fee."

"Make $1000 a year on Etsy":

a) Is this gross total sales on etsy?

b) Is this gross total sales that resulted from ads?

 

"If you sell $10,000 on Etsy each year, you could expect to pay about $120 with a 12% advertising fee."

Well this part clearly says "sell on etsy", so this one should be gross sales, regardless of the whether or not there is a contributing ad? Is that why the $120 estimate is 1/10th the 12% of 10,000 ? Because this part assumes the "average" proportion of sales that are made through ads?

 

If you're going to write an example and use this comparison, there needs to be some consistency unless you're intentionally obfuscating the numbers so they sound better to sellers. 

 

How many people approved of the writing in this public memo to sellers? This is ridiculous. I can't imagine another public company that would submit such a poorly worded memo to their revenue base. 

Translate to English There was a problem fetching the translation.
45 Likes
Schoolosity
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@Back40life & @EDCCollective I'm not sure if I'm understanding this correctly, but I think Etsy's calculations are misleading.

What happens if that 1 out of 10 items that is clicked through with this ad program is your higher priced items?

According to Etsy's math in that post, if you sell $100 worth of sales the advertising fee would be $1.50, however (with the 1 in 10 projected sales from an ad click) if you sell 9 stickers at $5 each (total $45) but the person who buys from the ad click buys a $45 Scarf you are actually paying $5.40. Though you could also be paying less too!

BUT my point is that the article should not indicate the number unless it also points out you could be paying more or less (And include calculations).

Also the other issue with this is, are all our listings being advertised equally?
OR is Etsy choosing which ones to advertise? How will we know?

Translate to English There was a problem fetching the translation.
54 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi Kathy we are new on Etsy and look forward to doing a lot of selling the Platform but with this being said we are a little disappointed that we won't be receiving a grandfathered in discount on our advertising budget  and seller fees just because we are new to the platform.  Is there any way we can qualify for this if our sales increase rapidly as  I am certain they will.

Translate to English There was a problem fetching the translation.
3 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi Kathy we are new on Etsy and look forward to doing a lot of selling the Platform but with this being said we are a little disappointed that we won't be receiving a grandfathered in discount on our advertising budget  and seller fees just because we are new to the platform.  Is there any way we can qualify for this if our sales increase rapidly as  I am certain they will.  And at what point will we qualify for this incentive.   

Translate to English There was a problem fetching the translation.
1 Like
EDCCollective
Conversation Maker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@SchoolosityI was only pointing out there did not appear to be a typo. The problem with averages (and who knows how the 1 in 10 was calculated for the average seller) is that some will fall below, some will be at and some will exceed the average as your example pointed out. There are a lot of moving parts for people to consider. Personally I think being mandatory for qualifying shops and the referral time are real problems with the current plan.

Translate to English There was a problem fetching the translation.
26 Likes
Schoolosity
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

@EDCCollective Eeek sorry I didn't mean to make it sound bad! Just wanted to point out as clear as possible that the original article should also mention the fee could be more(which is scary) or less.

I love how you pointed out the math was actually correct (Since it was 1 in 10).

But I'm with you that the main issue is that the program is compulsory for some, and they have no control over the ads!

Translate to English There was a problem fetching the translation.
13 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hello Kathy,

my questionabout the new ads are:

-do we get to control anythin? Like which listings to advertise and which not? Or does Etsy choose for us?

i am asking because my concern is  running sales within the shop, all the fees + a significant discountwill end up eating all the profit. Would we have a choice not to advertise the already discounted items?

Translate to English There was a problem fetching the translation.
88 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

I'm replying here so hopefully, more people can see this.

Don't forget it's not just 12% or 15%. For those sellers that get charged tax on their selling fees it's 12% + tax or 15% + tax.

So for a £20 sale, the 12% fee + tax (£2.88) equates more like 14.4% and the 15% fee + tax (£3.60) equates more like 18%. That's on top of the normal sales fees that Etsy charges.

Translate to English There was a problem fetching the translation.
62 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

You have GOT to be kidding??

I’m absolutely fuming about this.

We sell tie clips mainly. Etsy ALREADY advertise our clips on Google! If you search ‘Groomsman tie clips’ THERE WE ARE! We didn’t chose this. We didn’t opt in. 

Etsy have obviously paid for this advertising and it’s WIN WIN because Etsy already charges exorbitant fees, so every time we sell, they make money from us.  

NOW Etsy has decided they don’t want to pay for the adverts, they want to charge ME for them instead??
So Etsy does NOTHING and pays for NOTHING, I pay for EVERYTHING, and they take 10% PLUS 12% normal fees??

We already rank at the top of google so the benefit to me will be NON EXISTENT. I will simply be paying a massive percentage (almost all) of my profit directly to Etsy. 


This compulsory ‘benefit’ is NOT a benefit. It’s simply the latest greedy money grabbing ‘improvement’ from Etsy. Taking power from sellers and taking money from individuals running small businesses with tight profit margins. SHAME on Etsy. 

Translate to English There was a problem fetching the translation.
218 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Please provide the opt out link. I cant afford an additional 15% in fees.

Translate to English There was a problem fetching the translation.
152 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

This is the most ridiculous thing I have seen! I’m forced to pay 12%! Lucky me I get a discounted rate but am forced to pay almost ALL of my profit margin so you can advertise. I can’t make any money paying that amount! I’m not working for a few dollars an hour, so my once profitable business is now less than minimum wage! My items are $38 plus free shippingwhich was last years BIG idea. So now I have to pay $4.56 for each item I sell that was advertised? I’d rather not have any advertising. You are forcing me to reconsider my entire business. If I can’t make money, there is no point in continuing. This is your worst “idea” ever. My shop has been open since 2011, this is the worst. 

Translate to English There was a problem fetching the translation.
163 Likes
MicannaKits
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

I think it's absolutely unfair that I am being forced to advertise and be charged for it without consent, this sounds illegal. You want to take 12% from me without the ability of me opting into it? What if our profit margin is 12% or less than that, I will be losing from every sale converted by your advertising system? I do not want to be a part of this program and it seems like your just trying to take more money from shop owners. Not giving us the right to decide how we advertise and to what extent is showing you do not care about shop owners. Can we opt out of this corporate money grab?

Translate to English There was a problem fetching the translation.
122 Likes
GrandExpression
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

I have worked hard to grow my business of hand painting wooden dolls.  I am a homeschooling mom of 6.  I parent and teach all day and paint all evenings and weekends.  I made $17000 dollars last year painting at my max capacity.  I can't make more dolls, I only have two hands.  You forced me to have free shipping or I would be at the bottom of the searches.  AND now you are FORCING me to advertise even though I don't need or want it.  I can't make anymore than I already make.  My sales can't increase because I can't support that.   So, I will loose money so I can pay for advertising I don't need. Thank you for that.  I am a small business and you are working so hard to take money from people who make just over $10000. 

Translate to English There was a problem fetching the translation.
165 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

I've read the updated Fees & Payments Policy. I have 2 questions:

" If such advertising includes your listing, a buyer clicks on it, and then places any orders from your shop within 30 days of that click, you will be charged an advertising fee on these orders"

Does this mean the advertising fee will be charged on any order or orders this buyer places within 30 days of The Click, not just an order for the advertised item they clicked on?

"There is no limit to the number of Offsite Ads fees you may be charged on Attributed Orders, but the total Offsite Ads fee you’ll pay on a single Attributed Order will not exceed $100 USD."

Does this mean that if a buyer clicks through from more than 1 advert, then makes any purchase from my shop within 30 days, that I will be charged a fee for every one of these Clicks up to $100 USD?

Translate to English There was a problem fetching the translation.
61 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

If you are one of the shops that are being forced into this due to sales over $10,000 in the past 12 months, are you still forced into it if your sales for the next year are lowered to under $10,000.  Or is this a 'once you've hit the 10k you're in for life whether you like it or not' situation?

Translate to English There was a problem fetching the translation.
34 Likes
Former_Member
Not applicable

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Where do you OPT OUT of this BS money grab???  Forcing shops to automatically be opted into the program at launch is underhanded at best.  Look at the feedback you are getting from your customer and client base, very few people want this as a forced opt-in, and I feel for the shops that do a lot of money within Etsy that will be forced into this program.  This is a sure fire way to have people leave your platform and get a ton of negative publicity.  I don't do much on Etsy for a reason, you already take a large commission for sales and now you're forcing an opt-in advertising platform to your customers.   Bad PR move, Etsy... Bad move.   I will be closing my shop if the default 'opt in' policy isn't changed by launch. And I sure as h*ll hope other shops do the same.  Shame on you, Etsy.  

Translate to English There was a problem fetching the translation.
113 Likes
KitschRepublic
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hello, please coud you clarify with the new advertising charges you are imposing on me, without any way of opting out, will this extra 12% also come off the shipping charges - as I do these at cost - I do not make any money on these so will be thoroughly dissapointed if an extra 12% is taken by Etsy for 'Advertising' from my 'at cost' P&P rates?

Translate to English There was a problem fetching the translation.
38 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

This is a VERY bad idea!! Again etsy proves they are NOT seller friendly. Not only do you bully the hard workers that get you money, you play around with searches, so for weeks we go without sales, you now bring out this ad idea, that you will take MORE money from us, so we have to up our prices yet again! What world do you live in? You cannot expect my customers to pay £20 for a small candle , just because you want another 12% ontop of what we already pay in your fees. This is just greed! While us who work hard suffer. 

Translate to English There was a problem fetching the translation.
76 Likes
sohojewelers
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

I would love to hear from ETSY in regard to caps for these forced advertising fees.   Will there be any? We sell higher priced items.  As it stands now if we sell for example something that's $10,000 through the ETSY adds the fee would be $1,200.  Our margins do not allow for that kind of expenditure.  I don't know what type of business would be able to stomach a $1,200 fee for an add.  So as of now our options are 1. remove all the higher priced items from ETSY 2. price all the higher priced items 12% higher then they are listed for on competing platforms because of a chance they will sell through an online add 3. cancel any transaction on a higher priced item that comes through the adds.  Please advise what ETSY would recommend we do. thank you

Translate to English There was a problem fetching the translation.
32 Likes
WIBN
Inspiration Seeker

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

This actually sounds good to me. However, my products are higher dollar items and one of a kind. I am wondering what the likelihood might even be for that kind of product to be chosen to advertise.

 

Translate to English There was a problem fetching the translation.
13 Likes

Re: Q&A with Etsy Staff: Etsy’s New Advertising Service

Jump to solution

Hi, I read the notice this morning, maybe in a rush but I didn't find the answer to the following questions:

1 - The fee of 12% or 15% is the total fee charged, once the item is sold, plus adding on top the extra fee for the shipping transaction and the payment transaction?... Correct?

2 - Is the Offsite Ads optional to enroll or not?

Thank you

Ch.

 

Translate to English There was a problem fetching the translation.
5 Likes
Reply
You must log in to join this conversation.
Remember that posts are subject to Etsy's Community Policy.