Etsy's October 2024 Algorithm Update: Everything You Need to Know + My Recommendations

Etsy sellers, get ready - there’s a big update coming to the Etsy search algorithm starting October 1, 2024.

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If you’ve been selling on the platform for a while, you know that these updates can make or break your shop’s visibility in search results. This particular update focuses on several key areas: shipping costs, product photos, return policies, and customer service metrics.

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While the changes may seem overwhelming, I’ll go through everything you need to know in this article, and give you actionable strategies to help you adapt to this update.

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Let’s get started.

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Key Changes to Etsy's Search Algorithm

Prioritising US Domestic Listings With Low Shipping Fees

The biggest and most impactful change is that Etsy will now prioritise listings with domestic U.S. shipping fees under $6. High shipping costs have always been a deterrent for buyers, but now, they could also hurt your search rankings. Etsy's data shows that U.S. shoppers are less likely to complete a purchase if shipping costs exceed $6.

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So if your shipping costs are higher than that, your listings would rank lower in search results, making it harder for buyers to find you.

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This could be a significant challenge for true handmade sellers trying to compete with factory-produced products, as the costs of labour, materials, and shipping often adds up, making it hard to offer a competitive price.

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Etsy has introduced a new bulk pricing editing tool to speed up the process. The tool allows you to shift some of your shipping costs into the item price, which can help you stay competitive while still keeping your listings visible. For example, if you charge $10 for shipping, you could raise your item price by $4 and reduce the shipping fee to $6 or less, which helps you not get penalised by the search algorithm.

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Keep in mind that this update only affects domestic US to US sales. If you’re an international seller or selling to international customers, This change doesn’t affect you. This change also doesn’t apply to listings over $35 that already has a free shipping guarantee, digital products, or listings that use calculated shipping.

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Update In Etsy Listing Photos Requirement

While not a new requirement, Etsy is doubling down on the importance of product photos. Listings with fewer than five high-quality images may see a dip in visibility.

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Etsy also flags images smaller than 2,000 pixels wide, so if your photos have a resolution lower than that, now’s the time to update them. Ideally, your photos should be well-lit and give customers a transparent view of the product.

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You should also avoid using collages for the thumbnail photo (first photo).

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Etsy Shop Return Policies Requirement

Etsy now requires all listings to have a clear return policy, even if you don’t accept returns. Listings without a return policy could see their search rankings drop, as transparency is becoming an even bigger factor in Etsy’s algorithm.

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If you haven’t set a return policy, make sure to update it in your shop dashboard. Even if you don’t accept returns, having a policy in place that says so can improve trust with potential buyers and avoid penalties in the algorithm.

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Customer Experience Metrics: Reviews, Response Times, and On-Time Shipping

Etsy’s algorithm will now weigh customer experience metrics even more heavily when determining rankings of listings on the Etsy search page. This includes your average review ratings, message response rates, and on-time shipping performance. Providing great customer service at every stage of the buying journey is more important than ever.

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If you’ve been neglecting these areas, now’s the time to start paying attention. Let’s look at some actionable steps you can take to avoid getting punished by this algorithm update.

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Actionable Steps to Adapt to the Changes

Adjust Your Shipping Prices

To stay competitive, Etsy recommends that you shift some of the shipping cost into the product price. But this could be hard for handmade sellers where the creative process is highly manual. One way to tackle this is to revise and enhance your handmade product offer.

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Many Etsy sellers are worried about charging more, but from my experience with sellers, a lot of times charging a higher price actually helps shoppers have a better impression of your products. Higher price usually means higher perceived value, which means they think your product is of a higher quality the higher your price is. You can use this to your advantage. I’ve talked about this in more details with actionable strategies in this article (Skip to the part where I talk about price perception).

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Etsy’s new bulk pricing tool makes shifting your shipping costs to product prices easier. For example, if you typically charge $10 for shipping, you can raise your product price by $4 and reduce the shipping cost to $6. This ensures your listings don’t get penalised by the new search algorithm without cutting into your profit margins. Check your Search Visibility dashboard to see which of your listings are impacted by this change, and use the tool to edit the prices quickly.

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International sellers or those offering free shipping for orders over $35 don’t need to worry about this change, as this change doesn’t affect you.

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Upgrade Your Product Photos

I’ve always recommended using at least five photos for each listing, and Etsy is now making it clear that fewer images could harm your visibility.

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Your listing photos should do more than just show the product. Since Etsy doesn’t highlight the listing description, your photos have an important role of pushing shoppers towards the ‘buy’ button. Your listing photos should highlights the best benefits/features of your product, and answer common questions.

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Also showcase your product is different angles like:

• From the front, side and back
• At a 45 degree angle
• Top down
• Close up details
• In-use or in-action

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For the photo size and aspect ratio, I recommend using square images that are at least 2,000 x 2,000 pixels. For lighting, diffused natural light works best for most sellers, and try to avoid overly busy backgrounds. These simple updates can make a big difference in how your listings perform.

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Set a Clear Return Policy

Even if you don’t accept returns, you should set your shop return policy. This helps build trust with buyers and prevents confusion down the line. If you haven’t set a return policy, simply:

1. Go to your Etsy shop dashboard
2. Click the pen icon next to your shop name (under Sales Channel) on the left-hand side menu
3. Scroll to the section below your About section to edit the shop policy

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This simple fix could prevent your listings from being penalised in the search rankings.

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Improve Customer Experience Metrics

Etsy is paying closer attention to how sellers treat their customers. This means you need to focus on getting great reviews, responding to messages quickly, and ensuring that orders ship on time. Here’s how to improve in these areas:

• Reviews: Encourage buyers to leave positive reviews by offering exceptional service. You could send a follow-up message after the order arrives or even include a small thank-you note with the package. These small gestures go a long way in generating 5-star reviews. For more strategies, read this article on getting 5-star reviews.
• Response Time: Aim to respond to customer messages within 24 hours. This helps build trust and increases the chances of closing a sale. If you’re not always available, set up an auto-reply message for times when you’re offline.
• Shipping: Always ship on time and provide tracking whenever possible. Consider using Etsy’s shipping labels to streamline the process and ensure you’re meeting Etsy’s shipping performance standards. More tips on shipping for Etsy sellers here.

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Etsy’s Search Visibility Page

Check the Etsy’s Search Visibility Page regularly to see how your listings are performing against Etsy’s recommendations. Staying on top of that is one of the keys to maintaining your shop’s ranking.

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What’s Next for Etsy Sellers?

These changes may feel daunting, but my recommended best practices for Etsy sellers haven’t changed. The algorithm update simply reinforces the importance of offering high-quality products, great customer service, and transparent policies. And Growing Your Craft is committed to bringing you the best tips and strategies to stay ahead.

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For more practical strategies on improving your Etsy shop and boosting sales, check out this article I’ve written on the strategies top Etsy sellers use to skyrocket their success: Top Etsy Shops: Million-Dollar Sales Strategies You Can Apply Today.

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