3 ms·

That's one scenario. I can very easily gin up some numbers where it doesn't make sense: - Organic Orders: 500 - AOV: 20 - Gross: 10000 - Margin: 15% - Net:

That's one scenario. I can very easily gin up some numbers where it doesn't make sense: - Organic Orders: 500 - AOV: 20 - Gross: 10000 - Margin: 15% - Net: 1500 A nice little side business. Nothing amazing, but a little extra income. - Extra Orders: 100 - Gross: 12000 - Net: 1560 ([Orders * AOV * Margin] + [Extra * AOV * (Margin - Esty Ad Cut)]) Hang on - why am I doing 20% extra work for 60 quid? If Etsy takes some of my organic traffic, I make a _loss_: - Organic Orders: 450 - Value (AOV): 20 - Margin: 15% - "Extra" Orders: 150 (100 from above, plus 50 that _would_ have been organic but are now attributed to ads) - Gross: 12000 - Net: 1440 I'm doing 20% more work, and making _less_ money. Even if you increase the margin to 25%, you can still be looking at very marginal gains for the additional work if there is a shift from organic to ads (500 sales - net 2500; 450 sales + 150 ad sales - net 2640). As a seller, it's driving my workload up without giving a corresponding return, which might not be wanted. That's why not being able to opt-out is a problem - for some sellers, it could make a lot of sense and drive profits; for others, it could be an unwanted drain.

tomnipotent 7y ago
> I'm doing 20% more work, and making _less_ money. That's not how it works. Overall you're making less per hour, but making more overall money. Maybe you were at $20/hr, and now you're at $19.50. This is not a bad trade-off, as otherwise you wouldn't have made that money but you still would have had those hours of productivity available. Where do these exaggerated 10-15% gross margin numbers come from? These stores do not exist, or do not exist long. And I can't imagine any product at 10-15% that isn't being sold everywhere else because it's mass-produced. How much of every seller's business comes from free Etsy traffic? Should Etsy charge more for orders they can validate came from them, which the seller otherwise wouldn't see?

tomnipotent 7y ago

> I'm doing 20% more work, and making _less_ money. That's not how it works. Overall you're making less per hour, but making more overall money. Maybe you were at $20/hr, and now you're at $19.50. This is not a bad trade-off, as otherwise you wouldn't have made that money but you still would have had those hours of productivity available. Where do these exaggerated 10-15% gross margin numbers come from? These stores do not exist, or do not exist long. And I can't imagine any product at 10-15% that isn't being sold everywhere else because it's mass-produced. How much of every seller's business comes from free Etsy traffic? Should Etsy charge more for orders they can validate came from them, which the seller otherwise wouldn't see?