Guide to Using Etsy Ads

If you have an Etsy shop, you might be thinking about Etsy ads - how much they could cost, how to set them up and, mostly, if they’re really worth it.

Spending money on advertising can be daunting and paid advertising might be a big step for your small business. So we created this guide so you can take a deep dive into how Etsy ads work and if they could really maximise your sales.


In this guide:

  1. How Do Etsy Ads Work?
  2. How Much Does An Etsy Ad Cost?
  3. How To Do Etsy Ads?
  4. So Are Etsy Ads Really Worth It?
  5. What We Think


How Do Etsy Ads Work?

With Etsy you can advertise both onsite and offsite. Let’s look at what each involves:

Onsite Ads

You’ve probably seen onsite ads without even realising it as they show up quite frequently on Etsy’s search results page. Using onsite ads means your listings will appear higher up on the page when customers search for items similar to yours.

You can turn onsite ads on and off whenever you like and choose which listings you want to promote within Etsy’s website, so you have a lot of control when it comes to onsite ads.

Offsite Ads

Etsy also lists ads externally on Google, Facebook, Buzzfeed, Instagram etc. You might have seen targeted Etsy ads while browsing through social media.

You can opt out of offsite ads if your shop earns more than $10,000 (about £7,290*) a year. If you earn less than this on Etsy, you can’t opt out of offsite ads but you can choose which countries you want your shop to be advertised in in your shop settings.


How Much Does An Etsy Ad Cost?

Cost of Onsite Etsy Ads

You’re charged for onsite ads every time someone clicks on it, whether they buy a product or not. You’ll pay around 15-35 pence per click.

This is where having more control of your ads comes in handy, because it means you can set a daily budget for advertising on Etsy. The marketplace allows you to start with a maximum budget of $25 (about £18*) a day, but Etsy will review this regularly so you might have the opportunity to increase your budget later on.

If you’re not sure what your daily budget should be, we suggest starting small. Although it’s important to know that the higher your daily budget is to begin with, the quicker your allowance will increase.

Etsy updates your payment account every day so you can keep up to date with how much you’re spending and get a feel for your budget as you go along.

Cost of Offsite Etsy Ads

You’ll only be charged for offsite ads every time the ad is successful - so every time someone clicks on that ad and purchases an item from your shop. Per ad, Etsy charges a fee of either:

  1. 12% if you make over $10,000 (about £7,290*) a year
  2. 15% for all other sellers

This is in addition to the normal transaction fees you’ll pay with each Etsy sale.


How To Do Etsy Ads?

One of the best things about using Etsy ads is they’re so quick and easy to set up, as well as being relatively simple to manage - you just need to remember to check in with them!

Using Etsy ads is also a lot cheaper than setting up your own ads, which could involve outsourcing and the extra costs of labour.

Here’s everything you need to know about setting up Etsy ads.


So Are Etsy Ads Really Worth It?

Like most methods of advertising, what is worth spending money on really depends on you and your business.

But as a general rule of thumb, if the products you list are priced quite highly (over £20 each) or your shop is well established, then Etsy ads are more likely to work well for you.

Or you could use Etsy ads if the products you sell are quite competitive - for example if you’re selling candles or facemasks it can be hard to rank organically with so many similar products on the market. So Etsy ads could be a great and affordable way to get your listings higher up on that search results page.

And if you’re new and want to kickstart your Etsy shop quickly, investing in ads could get you the exposure you need to build a name for yourself and get orders steadily coming through the door.


What We Think

As with a lot of business ventures, the best thing you can do is to give it a go!

We know that’s easier said than done and you don’t want to feel like you’re rinsing money down the drain, but as pay per click is fairly cheap, Etsy ads are an easy way to dip your toes into paid advertising without breaking the bank.

It’s easy to find your ad stats with Etsy, so you can monitor how much you’ve spent on ads and how much revenue you’ve received from them - this way you can weigh up if the profit is worth it for you.

And if you sell on Etsy, are you using the best courier service to ship your products? If you’re not sure, use ParcelGo to compare the best couriers and get the cheapest shipping price in the UK.

You can integrate Etsy with Smart Send to make shipping even cheaper and automate your Etsy orders to save you time. Sound good? Get your quote today!


*Etsy charges in USD$ so the comparative GBP£ prices given on this page are subject to change as conversion rates fluctuate

Post your comments!