What to Do Before You Open an Etsy Shop
Get ready to open a successful Etsy shop with smart product ideas, branding, pricing, photos, SEO keywords, fees, policies, and launch marketing already planned.
I’m new to selling on Etsy and I run a small shop with self-care items like candles and bath products. I’m considering Etsy Ads, but I’m not sure what a typical or reasonable ad spend looks like when you’re just starting out.
How much should a new Etsy seller budget for Etsy Ads, and what should I watch to know if the spend is actually worth it?
Hi! For a brand-new Etsy shop, a “normal” Etsy Ads daily budget is usually small—think $3–$10/day to start, then scale only after you see which listings actually convert. If your profit per order is tight (common with candles/bath items after materials + shipping), start closer to $3–$5/day so you can learn without burning cash, and only increase once you’ve got a couple of listings proving they can generate profitable orders.
A simple way to set a starting budget
What to watch to know if Etsy Ads is worth it
The mistake most new sellers make is looking only at “views” or “clicks.” What matters is whether ads create profitable orders.
1) Your break-even ad spend (the most important number)
Figure out roughly how much profit you keep on an average order before ads:
Whatever is left is your profit before ads. If you typically net, say, $8 per order, then you generally can’t spend more than $8 in ads to get one order and still come out ahead.
2) Cost per order from ads
In your Etsy Ads stats, look at how much you spent to get an order (or use):
3) Ad-attributed revenue vs spend (ROAS / “return”)
Etsy will show revenue attributed to ads. That’s useful, but don’t stop there—high revenue can still be unprofitable if your margins are slim. Use it as a direction signal, not the final answer.
4) Clicks without orders (listing problem vs keyword problem)
If you’re getting clicks but no sales, it’s usually one of these:
Practical “new shop” approach that usually works
If you tell me your average item price and your rough profit per order (even a guess), I can help you back into a daily Etsy Ads budget that actually makes sense for your margins.
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