Etsy gives you a dashboard full of statistics to help you understand what is going on with your shop. The thing to keep in mind is that they only give you raw data. It’s up to you to analyze it to know what it actually says.
The most important thing to remember is that business data tells a story over time. The shorter the time, the less of a story it tells. Over a day or a week, it’s can’t tell much of a story at all. It takes at least 30 to 90 days.
If you are looking at stats for “Today” or “Last 7”, it’s really not enough to draw conclusions from.
I also don’t want you to immediately compare yourself to other shops. When you’re first starting out, it’s better to find out what your baseline is, then try to improve it.
Before we dig in, I want to define a few terms that Etsy gives you or that you can easily calculate from them.
Average Order Value: Total revenue / Number of orders. Tells you how much your average order is for.
Average CPC: Average Cost per Click. Total cost of advertising an item / Number of clicks. Tells you how much you are paying to advertise an item in Promoted Listings.
Conversion Rate: For the shop: Orders / Views. For Items: Visits to that item / Views. Tells you how likely someone viewing your item is to buy it.
Impressions: Number of people who see a listing or ad in their search results
Orders: Number of transactions your company has, including orders that were refunded.
Pages per Visit: Views / Visits. How many items a shopper looked at during a visit
Revenue: The amount of money your company receives as payment for items.
Return on Advertising: Total Revenue from Ads / Amount Spent on Ads
Views: Total number of pages a shopper looked at
Visit: For Etsy, this is a shopper looking at your site. If they leave and come back later, it counts as 2 visits though. Many eCommerce platforms let you track “unique” visitors, which uses IP address and device IDs to give you a closer estimate of how many people actually visited your site.
YoY: Year over Year, shown as a percentage. How much a statistic has changed since last year.
Stats that Etsy doesn’t give you:
Bounce Rate: The number of visitors who visit one page then leave without buying anything
Returning Visitors: The percentage of shoppers who return to your site
Time on Site: The average amount of time shoppers spend on your site. A higher amount is better because it means they are reading your descriptions and/or looking at your photos in more detail.
Financial Information You Need to Calculate on Your Own:
Cost of Goods Sold (COGS): Total of all material and labor costs directly associated with making the item. Tells you how much it costs to make each item.
Customer Acquisition Cost: Total marketing expenses / Number of New Customers. Tells you how much you spend to get a new customer.
Customer Lifetime Value: Gross Profit profit / Number of customers. Tells you how much a customer will spend with you. MUST be higher than Customer Acquisition Cost in order to stay in business. (some people use revenue for this, but I prefer gross profit. It tells a better story of how much a customer is worth to the business)
Gross Profit: (Item Price – COGS) / Item Price. (shown as a percentage). Tells you how profitable items are without considering your administration costs.
Net Profit: Total Revenue – All expenses. Tells you how profitable your company is after deducting all expenses (including labor!) from your revenue.
That’s it for this week. In the next article, I’ll go into more detail about which stats to track and what actions to take when you don’t like the direction they are heading.
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