How do you make sure that you havethe best at selling your items? You make an offer that folks can’t refuse. How do you keep track of the effectiveness of your sales and pitches? Simple. You use sales metrics.
When it comes to Etsy, being a top Etsy seller isn’t just about the product. You have to be in constant touch with the numbers and stats. This helps you get a clearer picture of the past, present, and future. What are these sales metrics? Find out below!
The most obvious of them all. If you aren’t making those dough numbers, why do you even have a business? This sales metric is a given. If your revenue numbers aren’t solid, you are not doing enough.
The subsequent question thus arises—what do you even make of these? Revenue numbers are the most direct sales metrics that Etsy gives you. With this, you can tally other sales metrics (mentioned later). This not only gives you a good insight into how you are performing but also helps you understand your shortcomings.
For instance, if you are getting a healthy number of visits and views (keep reading in order to find more about them) but your revenue is still not up to the mark, you might want to monitor your traffic and other sources. If your order value is decreasing, chances are that you are getting outsold. Always have a thorough check on revenue numbers.
Your revenue numbers and visit metrics go hand-in-hand. Well, almost. Visits are a way to see how often people check your listings. In order to ensure constantly increasing traffic, you ought to do things that might create more scope for visits.
Increasing more listings? Creating better descriptions? Making your items more vivid and pleasing to the eye? You can try all of these, and some of them might be useful too. But bear in mind that visits are one of the least important sales metrics so to speak. Conversion rate (we’ll get to it) carries more heft.
Much like your visits, your views are an important metric, semantically. The difference between views and visits is that one entity visiting your listing can lead to multiple views from the same source. So if the same account checks your listing, your views will increase but your visits will remain the same.
There are reasons for this to happen. For instance, if you change your descriptions for your listing, there is a good chance that you might see an increment in the number of visits but only a few more views than previously seen. Speaking of which, having crisp and satiating content on your listing might help you with views.
Having more listings is another way. Or perhaps, providing your customers an interactive window on your page might be useful. Things like feedback and review sections help a lot.
More of a sales tactic than a metric, coupons are here to help you fish out more customers. Funnily enough, coupons work efficiently for both the brand new and the veteran customers. For the latter, it gives them a massive incentive to purchase in-bulk from your listings.
For the former, it keeps them around for good. If you intend on releasing new products in order to test the waters, using coupons can be a smart way to grab those older customers. Keep this in balance so you can make healthy profits without losing out on customers.
Remember when we said that views and visits aren’t enough? That conversion rates were a more important sales metric? Here we are. One of the most quintessential elements that determine how heavy your wallets will be.
Conversion rates are determined by percentages. The simplest way to calculate this is to take the number of sales and divide it by the number of visitors. Since it is expressed as a percentage, you then multiply the said entity with 100.
As a general rule of thumb, you should aim for over 2-3% conversion rate. While 2% is what an average e-Commerce provider gets, it doesn’t hurt to be a little more ambitious.
When it comes to getting a fair estimate of your conversion rates, there are a few predetermining factors. Your product price is one of the most important things, considering the price-centric world we live in. The appeal of your product is just as important. If it caters to a wide variety of audiences, a healthy conversion rate is bound to be there.
While conversion rates are efficient enough to understand sales, they aren’t as great a traffic metric. Moreover, AOV is a better metric if you seek growth. For these instances, the Average Order Value (AOV) makes more sense.
Average Order Value (AOV)
While getting healthy conversion rates is good enough, you ought to think of “growth” is synonymous with “business”. For this, AOV is the most appropriate sales metric. In order to get an accurate estimate of AOV, you need to make a minor calculation.
AOV is measured by dividing the total revenue divided by the number of orders. Ideally, if your prices are high, the average orders will be lower (unless you are selling something in-demand). Either way, your aim is to maintain a growing ratio here.
With a great AOV and conversion rate, rest assured you will keep growing as an enterprise. When it comes to paying the bills, AOV is a top priority.
Traffic metrics provide massive insight into you as an organization. Etsy has its search option, which unsurprisingly enough provides an accurate measure of the traffic you get. These are real customers scouting for your products. Owing to their natural course of searching, these are what we call “organic” traffic.
Traffic metrics are important for you to “study” your sales and metrics. Luckily, Etsy has its sets of traffic stats that you can monitor to comprehend the state of your business. In order to improve these numbers, you can try using keywords that you think the user is looking for.
This requires a fair bit of research. What doesn’t require as heavy a study session is to put your items out on social media. While social media traffic doesn’t directly increase your Etsy traffic, you need to create content that will make the users want to redirect from the said social media platform to the listing on Etsy.
Other than that, as a general rule of thumb, the sales metrics are in a way gateways to traffic metrics too. In other words, pragmatically speaking, if your views are greater in number, chances are that you are getting healthy traffic. Or if your revenue numbers seem delightful, that is because of great traffic.
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