Why I discontinued Free Shipping/Discount Offers/Etsy Ads

[AmysRetroMinis]

I sell dollhouse miniatures so my items are very small and reasonably priced to ship. Most orders cost the customer $4.00 on average to ship.For the longest time, I offered free shipping over $35, but there were always issues that I couldn't resolve.  If the item (s) exceeded one pound, it defaulted to priority mail instead of parcel post (now known as Ground Advantage).  

I also took advantage of the "abandoned cart" discounts for the longest time. It is common practice now for buyers to let items sit in their cart and wait for that coupon to come, I've done it myself on larger purchases.  

Unlike many sellers, I have a full time day job and this is my side gig/hobby, so it doesn't "pay the bills" so to speak - it's more fun money. At the end of 2023 I sat down and did some hard math. I realized that I really wasn't considering my labor in my pricing and becasue my items are very small, customers assume the cost to make them is minimal. I realized that I had to make some touch choices if I want my store to truly be profitable.

So, instead of raising my prices, I took these steps.

Because shipping isn't outrageous on these items, I decided to discontinue the free shipping. I know that this affects your rankings in searches, but my store has almost 2K followers and I took the gamble that would enough to draw my customers back. I would say around 40% of my customers are repeat buyers.

I looked at my Etsy ads for a 2-year period. I spent $685.49 on ads and made 31 sales for a total of $882.98.  This made my actual net profit about the same as the advertising - not worth it for me. I promote my shop in Instagram and will occasionally "boost" a post for $50 here and there to gain new followers and announce new products - that has yielded more sales than Etsy Ads honeslty.

I discontuned the "adandoned cart" discounts of 10%. 

I still continue to offer discounts to repeat customers and if they make a purchase of $100 or more, I refund the shipping. I don't have this written anywhere, I just do it as a courtesy.

So, what have my results been so far in 2024? NO negative impact whatsoever. I am selling just as much as I did before (if not more, though that is just coincidental) and I have more money in my pocket. 

I know that this is not going to work for everyone, but it worked for me.

[OneEyeCatStudio]

From what I've read here, many Etsy sellers have come to the same conclusions.

The only thing I've really tried was the "free" shipping. I tried it off and on in two shops for several months.
The end result was it did not increase sales.

and your work is amazing. Well worth the money, IMO.

[Marmalady]

"I decided to discontinue the free shipping. I know that this affects your rankings in searches,"

Unless a buyer actually filters for Free Shipping, FS has little or no effect on search ranking.
At best it will boost you a place or two.
Good SEO will always outdo Free Shipping in search ranking.

Although Etsy promised "Priority in search" when the great Free Shipping push started 4 years ago -- this was quietly done away with after a month or two as it was impossible to give everyone priority and relevancy had a much better sales outcome than whether or not an item had free shipping.

Ads are similarly hit and miss. Some people do well with them, others do not. Again, with good SEO you can sell well without Ads (and indeed, you usually need good SEO for Ads to be effective anyway).

As for Abandoned Cart coupons -- they may have nudged a reluctant buyer into a purchase when sent a couple of days after carting -- but now they are often sent in a couple of hours or less -- its no wonder buyers are waiting for the coupon!

Not everything Etsy "recommends" will work for every seller -- you just have to pick and choose and run your business as you think best.

[naightydollfashion]

WOW! I am impressed how much money you invest into ads. I tried like a same strategy to invest a dollar a day and sometimes turning off the ads. Lately  I turned it off as I did not see it much effctive lately. I also have a permanent job and do it as a hobby meanwhile I would love to do it as a permanent job but cant take this risk yet. so what i wanted to say i had like december -february very active for sales and had some but now i have only visits without sales. Not sure what I am doing wrong or just buyers are less active in april. Does anyone suffer the same? I sell the clothes for fashion dolls. 

[Duckwells]

I applaud you for reviewing the costs incurred to sell, it would be great if everyone did.  Etsy has different goals than most sellers, they have investors to please, and generating revenue is the priority.  Sellers need to be aware that when Etsy provides suggestions, they may not always be in the best interest of your business, however they might improve Etsy's bottom line.  For example, almost all marketplaces would like sellers to offer free shipping, not only to  compete with the largest of all marketplaces, but to put all the financial risk on the seller as now the shipping is a total price of goods.  Do what is right for your business and your customer base first, follow Etsy's guidelines for SEO, titles, tags, etc.; and you can then determine if you can make a reasonable profit.  Best wishes for a successful future.

[Arcalliq]

I never offer free shipping. I don't do sales nor dicounts. I never offer any coupons nor run any ads. Only income I spent on advertising is off site ads that I cannot opt out of. And I would if I could. And this is not just my side kick. Of course, this approach will not work for everyone depending on the amount of competition but it is perfectly possible to run profitable business without any of those offerings.

[LastCentury]

I'm pleased to read that you took the time to give yourself credit for your hard work and honour the efforts you put into it by keeping a larger share of the pie for yourself & charging the buyer for shipping.

I pulled the plug on free shipping quite a ways back & it did not make a difference. If someone kindly asks me for a shipping quote on a bunch of things they are interested in, I will also ship it for free when I can. Saves me making a bunch of individual parcel boxes.

And thank you for sharing your experience with insta boosted posts. 

Good luck to all of us.

[hopeandjoystudios]

I offer return buyer discounts via Etsy emails but had few to no takers. I started writing the code on packing slips for orders that qualified. I have seen return buyers that way. I think most opt out of all the Etsy marketing crap..I know I  do. Some return buy and don't use the code which I figure is their choice. I think some just appreciate the offer even if they don't use it. Free shipping..no. I have never used an ad.

[JJewellerySuppliesUK]

The ROI on the Etsy ads is abysmal!  What an utter waste of your money and a wise move to pull the plug on this drain!

[JMOldeVintage]

Another reason for shops to reconsider free shipping - mandatory offsite ad enrolment - after a shop hits the 12 month $10K USD threshold.

From: https://www.etsy.com/legal/fees/?ref=list#fee-types

"For the purpose of calculating this $10,000 USD threshold, sales are calculated by multiplying item price by quantity (minus any discounts or formally cancelled orders), but excluding Pattern orders, In Person Payment orders, Etsy fees, or separately charged shipping, taxes, or gift wrap."