THIS is Why You’re Losing Money with Etsy Ads (PROVEN FIX!)

Mistake 1: Misunderstanding Etsy Ads' Purpose [00:36]

• Etsy ads are for increasing visibility, not forcing sales.
• Ads amplify what's already working organically; they won't fix poorly optimized listings.
• Advertising products that don't convert well will lead to more visits and clicks, but lower conversion rates and negatively impact shop positioning.
• The fundamental principle is that ads drive traffic to listings that are already set up for conversions.

Etsy ads will not force sales to your shop, okay? They purely just increase the visibility of the products on your shop and they just put your products in front of more potential buyers.

Mistake 2: Advertising Every Listing [01:57]

• Spending money on every listing without evidence of performance is wasteful.
• Even small amounts spent on numerous listings can quickly add up to significant losses.

• The solution is to advertise only listings that show positive signs of buyer intent.

• This means selecting your top 10 highest-performing products based on organic sales, conversion rates, favorites, and visit-to-sale ratios.

• These products have the highest probability of converting clicks into sales, thus improving ad spend ROI.

You're just going to be spending money on a ton of listings that you have no evidence whether they're actually going to perform on ads or not.

Mistake 3: Poor Keyword Targeting [03:21]

• SEO that works against you means paying per click for irrelevant searches.
• If products appear and are clicked by low-intent buyers, the chance of a sale decreases.
• Analyze individual keyword performance within Etsy Ads stats to identify which keywords lead to clicks but not sales.

• The goal is to ensure keywords accurately reflect the product and have high buyer intent.

• For example, a listing for a clip art pack was shown for the search term "Christmas dragon," despite having no Christmas-themed images, resulting in wasted ad spend.

• Turning off irrelevant keywords stops them from triggering your ads, saving money and improving targeting.

So, a great way to fix this, guys, is to go into the detailed stats button within your Etsy ads for any of your products. And then you want to sort the individual keywords by spend so that you can then see which keywords people are searching for that then least then clicking on your products and making sure that it's people actually searching for keywords that are to do with your products.

Mistake 4: Advertising Low-Profit Products [05:04]

• Advertising products with profit margins under $3 is unsustainable due to Etsy's average cost per click (20-50 cents).
• A few clicks on a low-profit item can quickly erase any potential profit.

• The recommendation is to avoid advertising low-profit margin products altogether.

• Focus on creating higher-profit margin products or bundling items to increase perceived value and price point.

• Producing premium quality products that can be branded and sold for more money is also a key strategy.

So, if you're going to advertise a digital product, right, and you're only selling that product for, say, $2, $3, or you're advertising any product for that matter, where your profit margin is under $3, it's going to be very hard for you to ever be profitable.

Mistake 5: Advertising Unoptimized Listings [07:15]

• Etsy may charge more per click for low-quality products or listings in competitive spaces.
• To combat this, improve product quality, provide more value than competitors, and optimize listing elements.
• This includes enhancing images, descriptions, infographics, and overall design presentation.
• High-quality listings encourage Etsy to feature your products more prominently.

Etsy is going to charge you more per click on average if your product is either low quality or you're in a very competitive space.

Mistake 6: Turning Ads On Too Early [08:41]

• Many sellers turn on ads because they aren't making organic sales, which is counterproductive.
• Ads should enhance an existing business, not serve as a fix for a non-performing one.

• Three crucial rules before running ads:

  1. Achieve at least 5 organic sales.
  2. Obtain at least one 5-star review (ideally three).
  3. Ensure a shop conversion rate of at least 2%.

• The speaker's own shop conversion rate is 9.1%, but 2% is the minimum threshold.

Most sellers, they turn ads on because they are not making sales organically. And guys, like I said at the start, Etsy ads is not designed to be a silver bullet for your Etsy ads business.

Mistake 7: Changing Strategy Too Quickly [10:09]

• Etsy ads, like other ad platforms, are algorithms that need time to learn and optimize.
• Avoid looking at ad data daily or making decisions based on weekly performance.
• Wait at least 7 days before changing budgets and 30 days before altering ad strategies.

• This data-driven approach prevents emotional decision-making and leads to predictable, long-term scaling.

• The speaker emphasizes scaling based on data and facts, not emotions, to achieve predictable success.

• Increase budget incrementally when daily spend is met and the return on ad spend (ROAS) is positive, repeating this over subsequent weeks.

Do not look at your ads data on a daily basis. You need to look at your data on a much longer time frame to start basing strategic decisions from.

Scaling and Community Promotion [11:11]

• Scaling profitably involves increasing budgets gradually as data supports it.
• The "X Accelerator" community is promoted as a resource for step-by-step training and data-driven strategies.
• The community offers modules on creating premium brand products and includes a library of PLR digital products.
• The final segments reiterate the importance of data-driven decisions for predictable success and invite viewers to join the community or watch other free content.

Guys, on this channel, we scale based on data. We scale based on facts. We do not make emotional decisions like this.