Etsy Algorithm Changes: What You Need to Do Now

As an Etsy seller, it's crucial to stay on top of the latest platform updates and algorithm changes. In this blog, we'll dive deep into the recent Etsy algorithm update and unpack what it means for your handmade business.

Imagine you had a store where you sold items from hundreds of different makers, all under one roof. You'd make money every time one of them sold, and you'd charge them a little bit of rent for the space as well. To stay afloat and keep your business thriving, you'd likely prioritise the items that grab people's attention and are purchased over and over again. This is exactly what Etsy is doing with its latest algorithm update.

The question is, how do you get your products to be the "flavour of the month" and prioritised in search results? In this post, we'll cut through the clickbait and provide you with the real, actionable information you need to know about the Etsy algorithm changes.

Etsy's New Search Visibility Page: What It Means for You

Etsy has announced an algorithm change effective from October 1st, 2024. One of the key updates is the retirement of the Search Analytics Beta tool, which has been replaced by the new Search Visibility page.

The Search Visibility page is meant to provide sellers with more insight into how their shops are ranked on Etsy. A lot of it is stuff that we, at the Handmade Bosses, have been saying for years. It's not really super helpful, and some people have been finding it really super basic and not really digging into all of the nitty-gritty data that people want to see.

But, the Search Visibility page does provide some valuable insights into the factors that Etsy considers when ranking listings. Let's take a closer look at the two main areas Etsy has highlighted

Customer Service

• Average review star rating of 4 or 5 stars
• Responding to the first message from customers within 48 hours
• Cases where the refund payment was taken from your payment account, rather than being covered by the Etsy purchase protection program
• On-time dispatch and tracking

Etsy has made it clear that customer service is a crucial factor in determining your ranking. Maintaining a high average review rating, responding to customers promptly, and ensuring on-time dispatch and tracking are all essential for staying on top of the search results.

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Your Listings

• High-quality, well-lit, and clear product photos (no excessive use of mockups unless necessary)
• Minimal text overlays on images
• Accurate and up-to-date return policies (only if required by your location)
• Competitive shipping costs (for US sellers, domestic postage prices lower than $6 will be prioritised)

Etsy is placing a strong emphasis on the visual appeal and accuracy of your product listings. Clean, crisp, and well-lit photos are a must, and the platform is discouraging the overuse of mockups. Additionally, Etsy is starting to factor in shipping costs, with US sellers offering domestic postage prices under $6 being prioritised in search results.

It's important to note that Etsy has not announced a significant algorithm change, as some clickbait videos may have suggested. Instead, the platform is simply being more transparent about the factors that contribute to your ranking, many of which have been best practices for Etsy sellers for years.

Shipping Costs: The New Ranking Factor for US Sellers

One of the most significant changes in the Etsy algorithm update is the impact of shipping costs on search ranking, but this applies only to US-based sellers for now.

Starting October 1st, 2024, Etsy will prioritise US listings with domestic postage prices lower than $6 in their search results. 

Etsy have kind of said, "hey, if you're in the US and your domestic postage prices are under $6, we're going to prioritise you in search results." This means that if you're a US-based Etsy seller, you'll need to carefully review your shipping costs and make adjustments to ensure you're offering competitive rates.

It's important to note that the specific categories of items affected by this change are not yet clearly defined by Etsy. Sellers of larger or heavier items, such as furniture or chopping boards, may face more challenges in keeping their shipping costs under the $6 threshold. If you're unsure about how this change will impact your shop, it's best to reach out to Etsy directly for more guidance.

Optimising Your Etsy Listings for the New Algorithm

Now that we've covered the key changes in the Etsy algorithm update, let's dive into the steps you can take to optimise your listings and stay ahead of the competition.

Improve Your Customer Service

As we've seen, customer service is a critical factor in Etsy's ranking algorithm. Make sure you're maintaining a high average review rating, responding to customer messages within 48 hours, and providing on-time dispatch and tracking information.

If you're unsure about your current customer service performance, take a look at the new Search Visibility page on Etsy. This tool will flag any issues or areas for improvement, helping you identify where you need to focus your efforts.

Enhance Your Product Listings

• Invest in high-quality product photography: Etsy is placing a strong emphasis on clean, well-lit, and clear product photos. Avoid excessive use of mockups, and consider hiring a professional photographer if needed.
• Minimise text overlays on images: Etsy's data shows that images with minimal text tend to perform better in search results. Keep your messaging concise and focus on showcasing your products.
• Review and update your return policies: Ensure your return policies are accurate and up-to-date, only including information that is required by your location.
• Optimise your shipping costs: If you're a US-based seller, take a close look at your domestic postage prices and aim to keep them under $6 to take advantage of Etsy's new ranking factor.

By focusing on these key areas, you can ensure your Etsy listings are optimised for the platform's updated algorithm and give your products the best chance of being discovered by potential customers.

Instagram Updates: What Creators Need to Know

In addition to the changes on Etsy, the social media landscape is also evolving, and Instagram has introduced several updates that creators should be aware of.

Carousel Posts: Up to 20 Photos and Videos

Instagram has now increased the number of photos and videos that can be included in a single carousel post, from 10 to 20. This provides creators with more opportunities to showcase their products, share behind-the-scenes content, or tell a more comprehensive story through their posts.

Views as the Central Metric

According to Instagram, views have become the central metric for the platform. This means that the number of views your content receives, whether it's Reels, videos, or even carousel posts, will be a key factor in determining how often your content is shown to your audience and potential new followers.

The sad fact of it is is that you could have 100,000 followers, but your account is not really getting pushed out to that many people because people are not viewing your stuff. So views are the central metric.

Broadcast Channels: Two-Way Conversations

Instagram has also introduced a new feature for its Broadcast Channels, allowing creators to enable a two-way conversation with their audience. This means that followers who have opted into your Broadcast Channel can now reply directly to you, fostering a more engaging and interactive experience.

You have to be giving immense value that's not found anywhere else in order to keep people in there. Leveraging Broadcast Channels can be a powerful way to build a more direct connection with your most engaged followers.

Instagram's Best Practices Hub

Instagram has also launched a new "Best Practices Hub" within the Instagram Professional Dashboard. This educational resource is designed to provide creators with guidance on optimising their content, reaching more people, and achieving their goals on the platform.

While the information in the Best Practices Hub may not be groundbreaking for seasoned Instagram users, it can be a valuable resource for those who are newer to the platform or looking to improve their Instagram strategy.

Teen Accounts: Safer Experiences

Finally, Instagram has introduced a new feature for teen accounts, which aims to provide a safer experience for younger users. Accounts labeled as "teen" will have built-in protections, such as limiting who can contact them and the content they see, to ensure their time on the platform is well-spent.

This update is particularly relevant for creators who have a younger audience or are looking to reach the teen demographic on Instagram.

Your Homework: Actionable Steps to Implement

Now that you're up to date on the latest Etsy and Instagram updates, it's time to take action and implement the necessary changes to your business. Here's your homework:

Etsy Homework

1. Listen to the podcast version of this episode on How to Be a Handmade Boss for ongoing updates and insights. 
2. Search for the products you sell on Etsy and take a close look at the competition. Identify areas where you can improve your product photos and listings to stand out from the "sea of mediocrity."
3. Review your shipping costs, especially if you're a US-based seller, and make adjustments to keep your domestic postage prices under $6.
4. Evaluate your customer service metrics, such as response times and review ratings, and identify opportunities for improvement.
5. Watch Steph's in-depth video on How To Rank On Etsy for a deeper dive into the platform's algorithm.

Instagram Homework

1. Explore the new features on Instagram, such as the expanded carousel posts and Broadcast Channels, and consider how you can incorporate them into your content strategy.
2. Focus on increasing your video views, as this is now the central metric for Instagram's algorithm.
3. Check out the new Best Practices Hub in the Instagram Professional Dashboard and see if there are any tips or insights that can help you improve your Instagram presence.
4. If you have a younger audience, familiarise yourself with the new teen account features and consider how they might impact your content and engagement.

By completing these action items, you'll be well on your way to optimising your Etsy listings and Instagram presence to take advantage of the latest platform updates and algorithm changes.

Remember, staying ahead of the curve in the ever-evolving ecommerce landscape is crucial for the long-term success of your handmade business. Keep learning, adapting, and implementing the strategies that will help you thrive on Etsy and Instagram.

Keep crafting and stay inspired, because the world really does need those special creations that only you can make.

Love Steph xox

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