How to Set Up “Favorited Item” Coupons on Etsy (Strategy Guide)

Favorited Item coupons are Etsy’s built-in targeted offer that automatically emails a promo code to shoppers who hearted one of your listings, giving them a gentle nudge to come back and buy. Set them up from Shop Manager in Marketing, under Sales and discounts, where you choose the offer type (percent off, fixed amount, or free shipping), pick which listings are eligible, and set an expiration that fits your production timeline. The smartest setups protect your margins, avoid discounting items that already sell easily, and rely on clear pricing rather than a giant markdown. One common surprise: some shoppers never receive the email because they’ve opted out, so results can look uneven at first.

Favorited item coupons in Etsy Shop Manager: setup steps

Where targeted offers live in Sales and Discounts

To set up a “Favorited item” coupon, you’ll use Etsy’s targeted offers tool (not a regular sale banner).

In your Etsy dashboard, go to Shop Manager and open Marketing, then Sales and Discounts. In the “Connect with your buyers” area, look for the targeted offer option called Turn favorites into orders. This is the switch that tells Etsy to automatically email a promo code to eligible shoppers after they favorite one of your listings, so you do not have to message anyone manually. You can confirm the exact path in Etsy’s help guide on Sales and Discounts.

Creating the coupon code and discount type

After you choose Turn favorites into orders, Etsy will walk you through the offer setup.

You’ll pick the discount type first. Etsy supports percentage-off, fixed amount off, and free standard shipping promo codes. Percentage-off tends to be the easiest for shoppers to understand, while free shipping can work well if shipping cost is a common objection in your niche.

If Etsy gives you the option to choose eligible listings, avoid making it “everything in the shop” by default. Start with your higher-margin items or products that get a lot of favorites but fewer purchases.

Choosing offer expiration and minimums

Set an expiration that matches how your customers buy. A shorter window can create urgency, but it can also backfire for custom work or longer decision cycles.

Also look for any minimums Etsy offers during setup, such as a minimum order total or minimum item quantity. Minimums can protect your margins and gently push a multi-item order, but they should still feel realistic for your price point. If you add a minimum, make sure it aligns with your typical cart size so the code doesn’t feel unusable.

Favorited item targeting rules: who receives your offer

Shopper opt-in and eligibility basics

A “Favorited item” coupon only goes to shoppers who are eligible for targeted offers. The biggest gate is email preferences. Etsy will not send these discounts to everyone who hearts your listing, because some shoppers opt out of marketing emails and promotions.

There’s also a timing element. Etsy waits before sending the email, and if the shopper removes the item from their favorites during that window, they may not receive the offer. This is a common reason sellers think their favorited item coupons “aren’t working,” even when the setup is correct. Etsy summarizes these eligibility and timing factors in its targeted offers troubleshooting guide, “Why Aren’t My Targeted Offers Sending to Shoppers?”.

Favorited item vs abandoned cart targeting

Favorited item targeting is interest-based. The shopper is saying, “I like this,” but they may still be comparing options, waiting for payday, or planning a gift.

Abandoned cart targeting is higher intent. The shopper already added your item to their cart and then left without checking out. Etsy typically sends abandoned cart offers sooner than favorited item offers, because the goal is to catch the shopper while they still remember the cart.

Strategy-wise, treat favorited item coupons as a softer nudge. Treat abandoned cart coupons as your “close the sale” offer.

Limits on how many offers can send

Etsy applies frequency caps so shoppers don’t get an email every single time they favorite something. Etsy may also bundle multiple discounts into one email up to a platform-set maximum. The practical takeaway is simple: expect some favorites to never trigger an email, and expect Etsy to pace delivery.

Also remember that a targeted offer creates a standard coupon code. Once a code is shared, you generally can’t control who uses it, so build your discount with that in mind.

When favorited item offers send and how often they repeat

Standard delivery window after a favorite

Etsy does not send a favorited item offer the moment someone clicks the heart. Instead, the promo code is typically emailed 48 hours after the shopper favorites an item. If the shopper favorites an item and then removes it from their favorites within that 48-hour window, Etsy says they won’t receive the offer email. This timing detail is easy to miss, and it’s one of the most common reasons sellers think their favorited item coupons are “not sending” when they actually are set up correctly.

Frequency caps and resend restrictions

Etsy also limits how often a shopper can receive favorited item offer emails from the same shop. As of Etsy’s current guidance, a shopper can receive a favorited item offer email from your shop once every 7 days. That means if the same person favorites multiple listings close together, Etsy may bundle the experience rather than sending a new email for every single favorite. Etsy also applies platform limits to how many offers can be included in one send.

If you want to verify the current timing and limits Etsy is enforcing, Etsy keeps this updated in its help article on why targeted offers aren’t sending.

Expiration windows that affect redemption

Favorited item coupons also have a built-in expiration window. Etsy states that favorited item offers expire 60 days from the coupon’s creation date. Practically, this means you can see redemptions trickle in weeks later, especially for higher-priced items or gift purchases. It also means you should review your active targeted offers occasionally to make sure the discount still fits your pricing and production capacity.

Discount strategy for favorited items without eroding margins

Picking a discount range by product price point

A favorited item coupon works best when it solves a small hesitation, not when it turns your Etsy shop into a permanent sale rack. Start by backing into a discount that still leaves you room after fees, packaging, and labor.

For lower-priced listings, a modest percent-off often feels meaningful without wiping out profit. For higher-priced items, a slightly larger percent-off can be reasonable because the dollar value is noticeable. If your margins are tight, keep the discount conservative and be selective about which listings qualify. It’s often smarter to discount a few “high-favorite, lower-conversion” products than to discount your bestsellers.

If you are unsure, run the numbers on one item first: item price minus materials, shipping costs you cover, Etsy fees, and your labor target. Then choose a discount that fits inside what’s left.

Free shipping vs percent-off tradeoffs

Free shipping can convert well when shipping cost is the main objection, especially for heavier items or international buyers. The risk is that you are taking on a cost that varies by destination, so your real discount can swing a lot from order to order.

Percent-off is more predictable. You can estimate the impact quickly, and it scales cleanly across different prices. For most shops, percent-off is the safer starting point for favorited item coupons, while free shipping works best when your shipping costs are stable or already built into your pricing.

A simple rule: if shipping cost is a frequent question in messages or reviews, test free shipping. If not, test percent-off first.

Using thresholds to lift average order value

If Etsy gives you a minimum order option when you create the coupon, use it as a guardrail. A minimum can keep you from discounting tiny orders and can nudge shoppers to add a second item.

Two common approaches:

Minimum order total: Encourages bundles, great for shops with complementary items.
Minimum quantity: Useful when you sell sets, variations, or “add-on” products.

Keep the threshold realistic. If your typical order is around one item, setting a high minimum can make the coupon feel unusable and can reduce redemptions even when shoppers like the offer.

Why your favorited item coupons are not sending (and fixes)

Common reasons offers fail to deliver

Most “not sending” issues come down to one of these:

The offer is not actually turned on. In Shop Manager, confirm the targeted offer campaign is active (not paused).
You are expecting instant delivery. Favorited item offers are designed to send later, not right after the shopper favorites.
The shopper unfavorited the item before Etsy sent the email. If they remove the favorite during Etsy’s waiting period, no email goes out.
You are hitting Etsy’s sending limits. Etsy rate-limits how often a shopper can receive these emails and how many offers can be included per send.
The coupon expired. Targeted offer coupons can time out, so an older setup may quietly stop converting even if favorites continue.

Opt-outs, message preferences, and delivery delays

Even with a perfect setup, Etsy will not email every shopper who favorites your listing. Some buyers opt out of promotional emails, which makes delivery look inconsistent from the seller side.

Also remember: this is an Etsy email, not an Etsy message you control. That means delivery can be affected by normal email issues like spam filtering, the Promotions tab, or a buyer rarely checking that inbox. Etsy also waits before sending favorited item offers (typically 48 hours), and shoppers can only receive them from the same shop on a set cadence. Etsy keeps these rules updated in its help article on why targeted offers aren’t sending.

Stats and tracking time frames in Shop Manager

Before you conclude “nothing is happening,” check your Sales and discounts stats date range. The default view can hide older sends and redemptions if you are only looking at “This month.” Switching to All time often reveals that the campaign is working, just slower than expected.

Also give your stats time to populate. A favorited item today will not show as a send today if Etsy hasn’t reached the send window yet.

Quick troubleshooting flow

Confirm Turn favorites into orders is active (not paused).
Verify you are past the 48-hour send window.
Test your expectations against the 7-day shopper cap (no repeated emails to the same person every day).
Check whether the item may have been unfavorited during the waiting period.
Review Sales and discounts stats and switch the time frame to All time.
Confirm the coupon is still valid and unexpired.

Copy and A/B ideas to improve conversions from favorites

Message and offer wording that matches Etsy tone

With favorited item coupons, the “copy” shoppers react to is mostly the offer itself: the discount type, the expiration, and how easy it feels to use at checkout.

Keep it simple and Etsy-friendly:

Use a clear coupon code (readable, not cute). Think “THANKS10” or “FAVE15”.
Make the value obvious. “10% off” usually lands better than “Save $3” unless your prices cluster in a tight range.
Reduce friction in your listing. If a shopper is on the fence, a coupon helps, but clear photos, shipping expectations, and a short first paragraph often help more.

Also avoid anything that feels pushy. Etsy buyers tend to respond better to helpful, low-pressure language and straightforward savings.

Testing discount size vs expiration length

A clean A/B test here is to change one variable at a time:

Same expiration, different discount (example: 10% vs 15%).
Same discount, different expiration (example: 3 days vs 7 days).

Short expirations can create urgency, but they can also miss shoppers who favorite while browsing and return later. Longer expirations often work better for higher-priced or giftable items.

Measuring ROI: redemption rate and incremental orders

Start with the basics: how many codes were sent and how many were redeemed. Then sanity-check whether those redemptions are actually adding profit, not just discounting orders that would have happened anyway.

A practical way to estimate incremental impact:

Compare orders for the promoted listings before vs after you enable the offer.
Watch whether total revenue rises or if you’re just shifting buyers into discounted checkouts.
Track trends in favorites-to-orders in your shop analytics. Etsy explains how shop metrics work in How to Use Etsy Stats for Your Shop.