Etsy’s new ad policies – How I feel about it!

It’s been a couple weeks since I’ve posted! My family and I took a week long vacation on a cruise and it was simply amazing. When I got back, I saw that Etsy announced a new change to their ad policy. After reading all the new information, I was excited about it! Then I went to the forum that discussed Etsy’s new ad policies and was shocked to see how many people were upset about the new changes. I’ll be breaking down what Etsy provides in their current ad policy to help illustrate what has changed, what’s being added and taken away!

Etsy’s current ad policy

Etsy’s new ad policy won’t go into effect until later this month (March 2020). So what has changed with Etsy’s new ad policies? Currently when you pay for Etsy’s ad services, you are paying for 2 types of ads in one charge/campaign.

In the first type of ad, your listings are seen in Etsy’s search results as ad listings. Just like a regular search pulls up relevant products, it will also pull ad products as well.

The second type of ad that you pay for in Etsy’s ad fees is for Google Shopping ads. These ads pull up on google searches when customers are searching for relevant products (which is why keywords are SO crucial both for SEO and Etsy search!).

Notice how ALL the products that came up from my pineapple decal search were all Etsy listings. It’s important to note that these listings that show up may or may not be from Etsy ads. Etsy naturally pays to put listings in google search results, but they’ll also push your paid ads to show as well. Etsy spends a lot of money towards their marketing and SEO because when you make money, so do they. They want you to be successful! (And you may notice that Etsy’s website is the first in search results too!)

Etsy decides where your budget will best perform (either on Etsy’s search or Google shopping). You set the budget that you’d like to spend each day, and Etsy does the rest. You’re only get a charge when shoppers click on the ads.

Basically in a nut shell, that’s how Etsy’s ads work currently.

What’s changing? Etsy ads

Etsy will now have two different ad campaigns that you can (or will) be a part of.

The first is Etsy ads – meaning your ads will display ONLY on Etsy search. It is removing the Google Shopping from these ad campaigns. From my understanding, it is the same as I’ve described above, minus the Google Shopping ads. This is nice because it’s all on Etsy!

What’s being added? Offside Ads

The second is Offside Ads. This is all new and really exciting! Here’s what you need to know about Offside Ads (taken from the announcement found here):

• Offsite Ads uses Etsy’s budget and expertise to promote your items on Google, Facebook, Instagram, Pinterest, and Bing.
• When a shopper clicks on one of those online ads for your products and purchases from your shop within 30 days, you’ll pay an advertising fee.
• You only pay an advertising fee when you make a sale—eliminating the risk you could pay for ads that don’t lead to a sale.
• All Sellers are automatically enrolled in Offsite Ads
• If you’ve made more than $10,000 USD in sales on Etsy in a 12-month period, you’ll be required to participate for the lifetime of your shop and you’ll get a discounted advertising fee.
• Sellers who have not exceeded the $10,000 USD threshold in any consecutive 365 day period after February 20, 2019, or as otherwise required by law, may opt-out of the program.
• The standard fee you will pay is 15% on Attributed Orders, unless the 12% fee applies as described below.
• If your shop has made less than $10,000 USD in sales over the prior 365 days (going back to February 20, 2019 and later), as calculated on the first day of the month, you will pay a fee of 15%.
• The 15% fee and opt-out apply until or unless you at any time meet the $10,000 USD threshold.
• If at any time your shop has made sales of $10,000 USD or more over the prior 365 days (going back to February 20, 2019 and later), as calculated on the first day of the month, you will subsequently pay a fee of 12%.

Basically, everyone is enrolled automatically in their Offside Ads. You can opt-out only if you shop has made less than $10,000 in sales over the last year. But if you choose to stay, the fee you will pay is 15% of the total sale. If your shop has made more than $10,000, you’re required to participate and your fee is 12% of the total sale. You only pay an advertising fee when you make a sale.

More information to know about Etsy’s new ad policy

I made 5 notes on some information that is worth noting about the new change with Etsy’s new ad policies. I gathered this information from their forum, fees & payments, and the advertising policy.

The first note is that Offside Ads fee applies to the order total if a customer purchases from your shop within 30 days of clicking on an ad. For example, if they click on a single ad and then end up ordering more items from your shop, the 12% or 15% fee is charged on the entire order (including shipping costs), not just the listing they originally clicked on.

Secondly, Etsy is able to track when shoppers click on one of your ads for 30 days. You’ll be able to see how many clicks and orders you’re getting in a new dashboard on Etsy coming soon.

For note number three, it’s nice to know what happens if a sale that is from an Offsite Ad needs cancellation and refunding. Basically, you’ll get a refund from the Offside Ad fee as well.

Fourth, Etsy chooses to advertise your listings on what will perform best on each channel. Which means your listings may not be seen on every site.

And last fifth, yes, this is legal for Etsy to do this. Remember, they are a business and they’re able to makes updates to their features and services anytime they want to. Being a seller on Etsy, remember that they are kind of like your boss. You follow their rules because you are selling on THEIR platform. If you want more freedom, you can sell your products on your own website.

How I feel about it

After reading the forums and people’s questions and comments, I was a little shocked at the amount of negativity towards this new change. Personally, I have wanted to do ads on other platforms. I’ve tried to in the past, but end up burning money for nothing. The risk wasn’t worth it. Now I get to participate in these other platforms. Plus, I don’t have to write the ads, set my own budget, track it, or pay for ads that don’t lead to sales. The 12% fee it will be for my shop doesn’t bother me one bit.

I’ve seen success in using Etsy ads this year. I’m excited to expand my reach into other places online to help drive more sales in Etsy’s new ad policies.

As for the feeling of Etsy “forcing” shops to participate; it doesn’t bother me. I know when I signed up for Etsy that I follow their rules, no matter what changes they make. Etsy is by far my largest performing platform, the least expensive at this point, and bring in the most customers. So I won’t be walking away anytime soon!

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