Recently, there has been a lot of discussion and feedback regarding the new algorithm changes on Etsy. Several updates have been implemented, impacting various shop features, and many sellers have noticed shifts in traffic and visibility across their Etsy stores. But what does it all mean?
If you have been selling on the platform for a while, you're aware that these updates can either boost or lower your shop's visibility in search results. This update specifically targets key areas like shipping costs, product photos, return policies, and customer service metrics.
While the changes might seem daunting, we will break down everything you need to know and share practical strategies to help you adapt and thrive with this new updates.
What is the key takeaway for sellers from Etsy's financial results for Q2?
One of the major insight that we get from the Etsy's latest financial results for Q2 that were surfaced on July 31, 2024 was the statements related directly to the listings visibility in search results.
Etsy has undergone significant changes in its algorithm over the past year, impacting shops across various niches. These changes, particularly in how search results are generated and shop visibility is determined, have affected many sellers. Additionally, Etsy’s introduction of landing pages has notably shifted customer behavior, altering how shoppers discover and engage with products on the platform.
According to Etsy's Q2 2024 financial report, they've reduced the percentage of searches where a single seller dominates page one results. You have may notice that last year, many of your products could be found on the first pages of seasonal landing pages or for specific niches by multiple listings. However, this year, that number has been reduced by half, which has affected many shops on the platform.
The full presentation can be found here.
Let’s dive in into some of the major updates to the Etsy search algorithm recently.
What are the major updates to Etsy's search algorithm?
1) For USA stores - shipping price prioritization in US search
From October 1. US listings that ship for $6 or less will receive higher ranking in the US search.
This is an extension of Etsy's Free Shipping and Free Shipping Guarantee prioritization which has been in place for years.
There are a lot of exceptions to this prioritization, aka ranking boost:
- this applies to you only if you are a US seller;
- if you are already offering Free shipping, you are already getting the boost;
- if you are using Etsy-calculated shipping prices in your shipping profiles - you are good as well.
For US-based shops that are shipping with USPS, your best approach might be switching to Etsy-calculated shipping.
And if you are offering Free shipping guarantee over $35, it's advisable to update your shipping for cheaper items to $6 - in most cases we are seeing $6.99 or $7.99.
If this applies to you, you will see a shipping recommendation on the Etsy Search visibility page:
The link will take you to a very convenient tool to calibrate the sale price and shipping price by $1-2 up and down respectively:
For stores with more expensive items - $100-500+, $6 shipping doesn't make much sense anyway but you have it as an alternative over Free Shipping. The best approach is to take a look at the what other stores in your niche are doing and adjust your strategy based on competitor analysis.
And once again - Etsy has clearly stated that the $6 shipping update applies only for US stores and only towards domestic shipping. Your international shipping prices are entirely up to you.
For more additional information on the new changes you can check our article about the Etsy Search Visibility Update
2) Etsy listing photos
While not a new rule, Etsy is emphasizing the importance of high-quality product photos. Listings with fewer than five high-quality images might experience a drop in visibility.
Additionally, Etsy flags images smaller than 2,000 pixels wide, so if your photos don’t meet this resolution, it’s time to update them. Ideally, your images should be well-lit and provide a clear, detailed view of the product.
Also, avoid using collages for your thumbnail photo.
3) Shop return policy requirement
Etsy now tells us that all listings must include a clear return policy, even if you don't accept returns. Listings without a stated return policy may experience a decline in search rankings, as transparency is increasingly important in Etsy’s algorithm.
If you haven't set a return policy yet, be sure to update it through your shop dashboard. Even if you don't accept returns, having a clear policy stating this can build trust with potential buyers and help prevent penalties in the algorithm.
4) Customer service stats or Stat Seller metrics
Etsy’s algorithm will place even greater emphasis on customer experience metrics when ranking listings in search results. Factors like average review ratings, message response rates, and on-time shipping will play a significant role. Offering excellent customer service throughout the entire buying process is now more crucial than ever.
If you've been overlooking these aspects, now is the time to focus on them.
We have shared more useful information for the customer service stats page in our blog article about the new Etsy Search Visibility Update.
5)Etsy landing pages (quick SEO boost)
If you looking to rank up your listings for the current trendy Etsy landing pages, try to incorporate keywords coming from the inside categories for any big theme on Etsy which you can find on Etsy.com homepage. At the moment Etsy is promoting the Halloween event and landing pages related to the subject.
Once you enter the main page you will find the button "Show more" that will take you to the specific search term. Add those search terms into your listings and periodically check your stats page of your shop if you are receiving any clicks.
Conclusion
Etsy's latest algorithm updates bring significant changes that sellers must adapt to in order to maintain or improve their shop's visibility. As a seller, it's crucial to stay proactive by adjusting your shipping prices, adjusting your keywords, ensuring your listings meet photo guidelines, and fine-tuning your customer service practices. By embracing these changes and taking strategic steps, you can keep your shop competitive and continue to thrive on the platform.
If you looking a ways to improve your listing's search visibility and looking an solution on how to adjust your SEO and visual strategy - you can check our Services at any time!
