Yes, more Etsy SEO changes coming to their search algorithm that they hope to have implemented by the end of 2020.
Historically, Etsy’s SEO has focused on ranking listings that use the most popular keyword search phrases in titles and tags, but also taking into consideration other factors such as number of favorites a listing has, number of five star views, overall success of shop, and so forth when ranking a listing in search results. However, Etsy has announced that they will now be moving towards machine-learning technology or artificial intelligence (AI) for search results.
(update: Etsy stated that most changes for the new AI algorithm were made as of September 2020, as to not interfere with the holiday buying season. Additional changes might have also been made after the holiday buying season ended).
Etsy SEO Changes and Machine Learning
Machine learning / AI means that the search results any particular customer will see, will not strictly be influenced by keywords, but also by the customer’s:
- shopping patterns (i.e. the amount they tend to spend)
- purchasing history (i.e. the type of items they typically buy or have in their cart)
- location (i.e. city, state, country)
- even the time of year (i.e. fall items, spring items)
The goal is to present to the customer with search results that will have the highest tendency to result in a purchase, based on what the search engine knows about the customer.
Ety’s AI search results tend to also give preference to products that:
- are in stock
- are on sale
- ship quickly
- ship for free
- have the Etsy “Best Seller” distinction
as these factors all typically result in a higher conversion rate.
Etsy SEO Changes and Price
Another major change to the Etsy search algorithm involves price. In the past, Etsy said the search engine gave preference to lower priced products in search results as they typically have a higher conversion rate, however they just announced they are moving away from this strategy. They will now give more preference in search results to higher priced products (mainly because 5% of a $20 product is not as lucrative as 5% of a $100 product).
Now, it is not that cut and dry. What the search algorithm will likely be doing is finding the “sweet spot” price point that offers the best conversion rate and the best financial return.
For example, let’s say that in one day the marketplace sells:
- 10,000 necklaces that have an average price of $15.
- The gross revenue is 10,000 x $15 = $150,000.
- Etsy takes a 5% commission so they make $7,500.
Now, a slightly higher priced necklace may not sell as much in terms of quantity as it is a higher risk purchase, but that does not mean it is not more profitable. For example, let’s say in one day Etsy sells:
- 5,000 necklaces that have an average price point of $40.
- The gross revenue is 5,000 x $40 = $200,000.
- Etsy makes $10,000.
- So they didn’t sell as many, but because the price is higher it was still enough volume to make more money overall than the $15 necklace.
Now an even higher priced necklace may also not sell as much in quantity as the $15 or $40 necklace. Let’s say in one day Etsy sells:
- 2,000 necklaces that have an average price of $70.
- The gross revenue is 2,000 x $70 = $140,000.
- Etsy makes $7,000.
Therefore, the goal is that the Etsy search algorithm will use sales data, such as this above, to determine the optimal point where the price results in the most overall revenue. If research shows that the sweet spot for necklaces is $40, then maybe the 64 spots on the first page of search results might have 32 spots allocated for $40 necklaces (give or take $5), 16 spots allocated for $20 or less necklaces and 16 spots for $70+ necklaces. In other words, they might give 50% of first page space to the optimal price point, then split the other 50% between low and high price points. This way the search engine still targets all price points, but more weight is given to the price point that brings in the highest return.
Now, I am not saying this is exactly what Etsy is going to do, I have no idea. I am just giving you a possible scenario based on what AI algorithms are based on. It doesn’t mean everyone who is selling necklaces should all start selling them for $40. Remember, the search results will still also be customer-specific. This SEO strategy I outlined above will likely be for new buyers to Etsy, who are not signed into their account or have no buying history. For example, if my buying history shows that I only buy $20 necklaces, the search engine is not going to start showing me predominantly $200 necklaces. Same situation if I only tend to buy $200 necklaces, then why would they show me $20 necklaces? Again, everyone’s search results will be slightly different as they will be tailored to them.
Final Word on Etsy SEO Changes
Since over 80% of purchases made on Etsy via their search engine come from the first page of results, the ultimate goal for Etsy is to make sure that the first page of results that YOU see has the products YOU are most likely to buy AND will bring the best return to Etsy. That’s just good business.
As a seller, it means more factors will be out of your control SEO-wise. You can still make sure that you are using the most popular search phrases in your titles and tags, offer free shipping, ship worldwide, run sales every now and then, maintain a high conversion rate and make sure your products are in stock, but there will be no fool-proof solution for the masses.
Get more of my Etsy SEO advice in my Best-Selling Etsy SEO Guide 23-page download PDF, updated for 2022.
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