How Etsy Payments Work for Sellers
Discover how Etsy Payments pays sellers—payout schedules, payment methods, fees, taxes, deposits, and tips to keep your handmade shop cash flow happy.
I just opened a new Etsy shop and I’m listing handmade potholders and oven mitts. I’m trying to figure out whether Etsy Ads are a good use of money when a shop has no sales history yet.
Is it better to run Etsy Ads right away, or focus on improving listings (photos, SEO, pricing, shipping) first—and if I do try ads, what’s a reasonable way to test them without overspending?
Hi! Etsy Ads can be worth it for a brand-new potholder/oven mitt shop, but they work best as a “traffic amplifier” for listings that already look ready to convert—so I’d get your photos, titles/keywords (Etsy SEO), pricing, and shipping/processing time in a solid place first, then run a small, controlled test.
If you’re truly starting from zero, here’s the practical approach that usually wastes the least money:
1) Do a quick “listing-ready” check first (before spending on clicks)
Ads bring more visitors, but they don’t fix low conversion. Make sure you have:
2) If you test Etsy Ads, test small and long enough to be meaningful
A reasonable “don’t overspend” test is:
3) What to watch so you know if it’s “worth it”
Don’t judge ads by views alone—judge by whether you can afford the clicks.
4) A simple, safe testing rule
Only keep ads on listings that show signs of converting. After the test period, pause the listings that get clicks but don’t lead to favorites/carts/sales, and keep budget focused on the ones that do.
One more thing to consider: Etsy also has Offsite Ads (different from Etsy Ads). New/smaller shops can usually opt out if they want, and you’re only charged when an Offsite Ad leads to a sale—so just make sure you’re looking at the right ad program when you decide.
If you tell me your approximate price range (like $12 vs $35 sets) and whether you offer free shipping or paid shipping, I can suggest a tighter test budget and which potholder/mitt variations to advertise first.
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