How Are You Doing This Summer? And Reasons To Be Happy

Summer has been in full swing, and many are now focused on back to school. For many Etsy shops, that means the slow season is coming to an end and soon will be on the road to the holiday rush.

This is a great time to make sure your Etsy SEO strategy is ready. Fortune favors the prepared and it’s far easier to keep momentum than to build it. Especially as we’ve seen that listings with sales momentum have an edge in being found.

Be those listings with momentum early on!

Marmalead has the tools you need to build your strategy and get those early wins.

If you have questions about how to do that, we can help with that too. An Etsy SEO strategy doesn’t have to be confusing. It’s just new to many sellers. Like learning anything, we all start at square 1 and from there it looks confusing.

Let’s switch gears and talk about Etsy as a platform for a moment.

Whether you’re new to ecommerce or a seasoned seller, Etsy belongs in your stables. With a strong brand and over 20 million buyers and growing fast, Etsy is formidable.

Let’s look at some reasons be happy! 

Etsy competes with retailers for the attention of the Etsy buyer. An Etsy buyer has the choice of shopping with any online or offline retailer, whether large marketplaces or national retail chains or local consignment and vintage stores or other venues or marketplaces.

Etsy is able to compete for Etsy buyers based on the unique goods that Etsy sellers list in their marketplace, their brand awareness, the person-to-person commerce experience, their reputation as a trusted marketplace, their mobile apps, ease of payment and the availability and reliability of their platform.

Did you know that as of December 2015 there were 1.6 million active sellers?

How about that 13% of those sellers have been on Etsy for 4+ years?

That means 87% of Etsy Sellers are relatively new. New to Etsy, probably new to selling in general.

This is a community that’s still very much figuring things out. There’s a lot of opportunity for anyone to participate. That means you.

In a 2015 survey of Etsy buyers, 92% agreed that Etsy offers products they cannot find elsewhere.

They believe many Etsy buyers are motivated by more than simply price and convenience; they believe there is value craftsmanship, artistry, uniqueness, authenticity and sustainability.

Etsy buyers want to know how items were made, where they were made and who made them. Etsy buyers can enjoy a personalized shopping experience and build relationships through direct interactions with Etsy sellers.

In 2015, there were over 5 billion search pages viewed. That’s a lot of opportunity. Search is a powerful thing.

Where to go from here? 

Marmalead Entrepreneurs

If you’re already a Marmalead Entrepreneur, awesome! You have the tools you need to win the year! If you’re still unsure how to setup a strategy, no problem. Let us know and we’ll get you going in the right direction.

Dabblers

If you’re a Dabbler, now is the time to step up your game. I can’t tell you how many sellers wait until they’re stuck in a rut to try something different.

There’s a saying in sales, “the best time to make a sale is right after you made a sale.” It’s a contagious momentum.

Let’s talk about the cost real quick.

Would you spend $0.88 an hour for a month to reach your dreams?

Marmalead Entrepreneur is $19 if you go monthly.

What does that really mean though?

If you spend just 5 hours working on your Etsy SEO, over the course of a month, that’s just $0.88 (yes, that’s cents) per hour to super charge your efforts.

So when someone says they’re willing to do anything to get ahead and won’t spend $0.88, I know they’re not serious.

Really think about that.

Every time I try to be cheap, it sets me back and I regret it. There really is no free lunch. Don’t be fooled.

“Today I will do what others won’t, so tomorrow I can do what others can’t.” – Jerry Rice

What will you do today?

We’re very much looking forward to the selling season picking up again. Hearing your success stories keep us motivated too.

If you haven’t checked out our Podcast Etsy Jam, you should listen in and hear some inspirational interviews for yourself.

– Richie, Gordon, and Kevin

Etsy Jam Episode 8: Pricing

Welcome to Episode 8 of Etsy Jam.

This episode is about Pricing. Pricing your products, that you’re selling online whether that’s Etsy, Shopify, Amazon, or wherever you happen to be. We are going to talk about how you price things and how you decide how much or how little you charge for something.


The Two Common Methods of Pricing:

Cost-Based Pricing

This is the most common method of pricing. You may be familiar with a lot of people who have sorts of worksheets and calculators to help you price your listings and it will be a whole list of things about how much did it cost to make (your cost of materials), how much do you value your time at and how much profit (percentage-wise) do you want to make out of your product.
You add them all that along with other miscellaneous factors and now you know the dollar amount in which you should be charging.

Market-Based Pricing

Market-based pricing is the only kind of pricing that really should exist. The only purpose for having cost-based pricing is to make sure you’re making enough money in that market that the market is willing to pay.

The market doesn’t care what it costs you to make it. They don’t care if you make 1000% profit, 1% profit, or lose money on every one. They don’t care. Figure out what the market – your customers – are willing to pay. Not just any customer. For example, a customer shows up and says “Hey, your stuff is outrageously priced!” – now that is a good example of someone that’s not a good fit for you. It might be too expensive to them and that’s perfectly fine. They are not your customer. As long as you have customers then you’re perfectly fine.

If people are coming to you and saying that your stuff is too expensive yet they’re still buying it, that’s a sign that your pricing is in a very sweet spot. You’re just painful enough for them that they’re feeling the pinch of the pricing but they’re willing to pay because they believe in your product and they think it’s quality and they enjoy the experience of buying from you.

Once you figured out what the market is willing to pay, then your job is to figure out how you can make that product for as little as possible, as efficiently as possible and keep the most difference there. This is why companies invent new and cheaper ways to produce products. They don’t do that so they can lower the price, they do it so they can keep more profit.

How do we take something and figure out what the market value of that listing should be?

One thing that you can do when you’re trying to price listings is see who you’re competing against. Do a search on Etsy for whatever keywords you are targeting and see what the landscape looks like. Look at the first page of results that come up and where those things are priced at and how your pricing falls against those.

It depends on how you want to present your product.
Some sellers want to be the ‘bargain brand’. Maybe they want to be the cheaper ones that can undercut people because there is a market for that. There’s always people that are not willing to pay for the more expensive things. If you’re doing that, you can afford to price lower than the average price of that market. Maybe your costs are lower and you’re able to do that. If that’s the case, that’s fantastic! Go for it.

If you want to position your products and portray them more as a high-end merchandise, then you can price a little bit higher.
There is something that happens when people are looking at something that’s priced a little bit higher than all of the other ones too. Psychologically without helping it they think that that’s a better product.

Keep in mind that your listings should also reflect their premium price. This must reflect in your photos, materials, packaging, and the actual finished product.

Discounts hurt more than they help?

One of the mistakes that retailers make is conditioning their customers to expect discounts. “I will buy when this thing goes on sale!”
Example of this are car manufacturers. They do this in a couple of ways. No one pays sticker price for a car anymore because they conditioned the public that you don’t pay sticker price and you always get some sort of a discount. Secondly, they conditioned the customers that you have to sit around and wait for the sales and discount events to arrive.

Craft specific example, I know some people that won’t go to Jo-Ann Fabrics, Michaels etc. without a coupon because they heavily send out coupons. Why would you ever pay full price? That becomes a culture and that’s a big mistake people make with discounts and coupons.

What can you do instead of offering a discount?

Let’s look at something that Apple does. Apple doesn’t discount, but they are not above in giving you a little bit of bonus. During the holidays, you’ll see these different promotions where you go out and say you buy a Macbook; and they’re gonna give you a $100 Gift Card to the iTunes store. Instead of a discount, they’ve given you a bonus.
That’s something you can do too and it doesn’t have to be a dollar bonus either. One of the nice things about that is when they give you a $100 gift card, they are not really giving you $100 because you’re going to spend it in their store and they are making money off of that.

What you can do is if you make something, you can throw in a bonus. You can say “Hey, buy this necklace, and get this pair of earrings for free.” Or “Buy 2 and we will throw this ring as a bonus also.”
What’s also nice about that is you can say that this bonus is worth $20. Did it have to cost you $20? No. That just happen to be the price tag that you put for that listing. The $20 pair of earrings might actually just cost you $10. You actually get more mileage out of the bonus than if you just were to flat out discount.

How Discounts vs. Bonuses relate to Scarcity vs. Abundance

When people start to get in the mind of discounts, you get down this slippery slope of trending towards zero. Because when you start doing discounts, everyone’s like “If I can get 10% off, can I get 15%?, maybe 20%?”. Then all of a sudden they’re all looking for discounts and you’re racing your competitors down to zero. That’s not good for anybody.

What you really want to do is take them out of that scarcity mindset that there’s not enough in the world for everybody. Their bias towards the scarcity mindset is telling them that if they can’t get it at 20% off instead of 10%, then they will have to spend extra 10% on it and that makes it not worth buying.

Put them instead in the abundance mindset; you’re giving out bonuses so you’re adding value to it. The abundance point of view is the world is plentiful and there’s plenty for everybody. That is a very important thing about discounts and bonuses that most people don’t really think how that affects it.

Sadly, most people gear towards the scarcity point of view. Our aversion to loss (the aversion of “I just got 10% off but could I have gotten 20%?”) is so much stronger than our drive to win. That is something we should all be aware of.

How to use Marmalead to better understand the market you are in?

If you’re an Entrepreneur in Marmalead, you have the option of searching for 100 results, or 500 results. If you are looking at pricing information you are honestly better off looking at just the first 100 results. This shows you the listings that are at the top 3 pages and that’s really where you should be focusing your energy and your time because when the shopper is there and shopping for something, that is where they’re gonna be looking at. Most people pull off the search after 3 pages and so those are the listings that you will be ranking among and those are the products that your pricing will be compared against by the people who are shopping for your stuff,

Knowing where you are showing up.

People are going to be positioning against things that they are familiar with. When you’re searching, the things that are immediately around your listing are the ones that you are positioning against. That’s why it’s really important to know where you’re showing up. Showing up in the right places, showing up in the right searches in front of the right customers – that makes all the difference.

You also want to control the circumstances about who you are competing with. If you’re positioned against higher priced items and you want to be the low cost competitor, you can actually get more money than otherwise if you are competing against other lower priced items. If you are in a search where everyone is lower end discount items, then to be the low cost competitor amongst them, you have to be even lower priced. But if you want to be the low cost competitor in a premium search, then you don’t have to lower your price too much. You have to be lower in price, yes, but not as low as you’d have to be if everyone was lower.

Closing thoughts on Pricing

Test. Test your pricing. If you have some subset of people who thinks that your pricing is too expensive, you’re on the right track. As long as people are buying your product and you have a small group of people who thinks it’s too expensive, you’re in a good spot. If no one complains about your pricing, then you are leaving a lot of money on the table.
Everyone is not your customer. Know who your customer is, serve that customer and everyone who wants to complain about your pricing are not your customer and you should not worry about them.