How to Find Winning Products on Etsy: Stephen's $2.5M Sales Secrets

Part Two: The Process of Finding Winning Products on Etsy

• Steven shares his process for finding winning products on Etsy, building on the success he achieved with 2.5 million plus in sales.

• He emphasizes the importance of using data-driven approaches and recommends research tools like Elora and Everbee for product research.

• While he does not use external platforms like Pinterest, TikTok, or Instagram ads to drive traffic to his Etsy store, he leverages seasonal designs on evergreen products to capitalize on holidays and relevant niches.

• Steven also introduces his new Instagram account 'Ecom Steven', created at the suggestion of a friend, where he plans to share insights and updates about his business.

• Although he does not sell jewelry or mugs, he acknowledges the potential in these categories for Etsy sellers.

• Lastly, he talks about the significance of relevance and leveraging seasonal designs on evergreen products for optimal sales during specific seasons.

Part Two: The Process of Finding Winning Products on Etsy

Strategies for Finding Winning Products on Etsy

• When launching a new product on Etsy, especially for self-fulfillment, the investment is higher as compared to print on demand. This requires a more cautious approach to minimize the downside if the product fails.

• The process involves finding and mirroring successful Etsy shops that are relatively new, selling similar product types, and achieving sales metrics that align with one's own business goals. Tools like Everb and Chrome extensions are used to scrape necessary data from these successful shops to inform product launch decisions.

• By analyzing the predicted sales per month and the lifetime of products in successful Etsy shops, one can gain valuable insights into what works in the market and use this information to launch products with a higher probability of success.

• This strategy, which emphasizes thorough research and data-driven decisions, has been instrumental in achieving significant revenue growth for the speaker, making it a valuable approach for other Etsy sellers as well.

Strategies for Finding Winning Products on Etsy

Analyzing and Leveraging Data for Etsy Success

• The process begins by scraping data from 10 different shops, resulting in separate Excel files for each one.

• These files are then combined into a master list, creating a comprehensive database of 10,000 product listings.

• The next step involves leveraging this data to determine success attributes on both listing and design levels.

• Using filters in Excel, the listings are sorted based on sales performance in the last 30 days to identify top performers.

• It is emphasized that simply copying the top-performing listings adds no value to the market and takes away potential earnings from other sellers.

• Instead, the focus is on analyzing attributes such as main images, pricing, lead times, and design elements to understand the factors contributing to their success.

Analyzing and Leveraging Data for Etsy Success

Market Analysis and Launch Strategy

• The speaker emphasizes the importance of understanding what it takes to be successful in the market, focusing on both listing and design factors.

• He explains that success in today's markets is about meeting customer preferences rather than forcing sales, highlighting the importance of providing what customers want.

• He outlines the five key success attributes for both listing and design sides, emphasizing the need to add value to the market by meeting customer preferences.

• By using a targeted approach, he has been able to launch 100 listings instead of a thousand, achieving success through quality over quantity.

• He asserts that the thorough market research and high-quality listings have resulted in a significantly higher conversion rate, making the ad spend more effective.

Market Analysis and Launch Strategy

Effective Etsy Ad Strategy

• When launching a new product on Etsy, regardless of its quality, it is typically not automatically ranked on page one, which means missing out on 80% of the traffic. Thus, using Etsy ads immediately upon launching is crucial to drive sales velocity and increase the product's ranking.

• Etsy looks at sales velocity as the key variable to drive rank, as it is an indicator of correct product quality, listing, conversion rate, and customer service. Therefore, utilizing Etsy ads to boost sales velocity for a new listing is essential to improve its ranking.

• While some argue that Etsy ads are not necessary for making profit, it is emphasized that using Etsy ads as a tool, not just an expense, can significantly impact the sales and organic ranking of a product. By feeding sales velocity through paid listings, organic ranking is ultimately improved, leading to higher profits.

• The 'Halo period' on Etsy, which gives a new listing a boost in ranking, can be effectively utilized by turning on ads during this period to drive sales and improve ranking even faster. Combining market research strategies and Etsy ad strategies is the key to achieving success on Etsy faster.

Effective Etsy Ad Strategy

Conclusion:

Stephen's Etsy success secrets unveil the power of data-driven research, seasonal designs, and effective ad strategies. By understanding the market, leveraging data, and launching high-quality listings, sellers can achieve significant revenue growth on Etsy.