Change is Good

Whenever an online selling venue makes a change, or Google updates it's algorithm, or Facebook changes the layout (again), there is a flood of "woe is me" posts from business owners. Sometimes it's the very changes to exact same business owners have been clamoring for but it's not exactly the way they pictured it working so they aren't happy and want it tossed out immediately and everything back the way it was.This immediate negative reaction to a new feature that has just been released (or has only been announced and not released yet) is counterproductive.

If you are doing this, stop it, right now.  This is plain and simple fear of chance because the new feature hasn't even been giving a fair test ride yet and is being dismissed.

Stop immediately looking for what is wrong with new features and start giving them a fair chance to work for you. Look for the opportunities just as hard, or harder, than you look for the faults.

What prompted this post is Facebook Timelines for Pages. When they were announced many people hated them for a number of reasons, the big one for businesses was that you could no longer have a custom landing page to welcome people who hadn't liked your page yet and encourage them to do so (often with a coupon, free video, etc.). However now a month since Timeline became available for Pages and a few days after it became universal for Pages we have this article from TechCrunch on the impact of Timeline. Here's the key points for Pages under 1 million Likes (that's most of us):

• Rate of new Likes was virtually the same (down by 0.04% which is statistically insignificant)
• People Talking About This numbers went up by 67.4% on average
• Comments per post went up by 40% on average
• Likes per Post went up by 60.3% on average

So while Timeline isn't getting pages Likes at a faster rate than before (or more importantly the rate hasn't gone down even with the loss of custom landing pages), your existing fans are interacting with your Page far more and that is incredibly important.

Sometimes new features do flop or negatively impact your business no matter what you do. When that happens it's terrible and you may feel at a loss for what to do and it makes you fear every new change. Fearing change though makes you less flexible and adaptable which becomes a cycle where every change, even those that might have helped you, are resisted until you either pull out of the cycle or your business fails. Even big companies that have been around for decades can succumb to this, look at Kodak which used to be the premier name in photography but is now in bankruptcy because it held on to film for so long that it was too far behind when it started making digital cameras to catch up.

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pompod-123-copmetallic-1, originally uploaded by 11BOLDstreet.

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The Pychology of Free Shipping

Many handmade sellers are skeptical of free shipping, because free shipping isn't free for the seller. This attitude though ignores the psychological aspects of how you set your prices. Here are the two most common scenarios for free shipping:

Always Free - The seller offers free shipping all the time. In this scenario the seller has to build the cost of shipping into the price of the items.
Free as Sale - The seller occasionally offers free shipping as part of a sale or promotion. In this scenario the seller needs to have a high enough profit margin all the time to afford to run discounts*

However why offer free shipping when you still have to pay for it? For the same reason that a seller would offer 10% offer or run advertising: as a promotional tool. "Free" is a very powerful word and for online retailers an easy and affordable way to bring in extra business. In fact at least one consumer researcher has shown that shoppers will often pick free shipping over a discount even if the discount would save them more money.

For the time being I'm only offering free shipping as an occasional discount but with the prices for my raw materials and postage going up I'll soon have to revise my prices and I'm debating whether I should build the shipping costs into my prices. Regardless of what I decide in the end, free shipping will remain a valuable promotional tool for me and other online retailers.

* In my opinion this should be all sellers. If you don't have a high enough profit margin to be able to afford to discount either for a sale or for wholesale buyers then you don't have enough profit built in to adequately reinvest in the business and pay yourself a reasonable amount for your time.

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button clutch :: interior, originally uploaded by Saídos da Concha.

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Christmas tree soap ornament set, originally uploaded by AquarianBath.

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Successfully Promoting a Sale

With Black Friday and Cyber Monday at hand here are my tips to running a successful sale. Feel free to reply with your own ideas.

ON ETSY OR OTHER SHOP
1. Edit your shop banner to announce the sale. This can be fancy or just adding a line of text in an eye catching color.
2. Also add text describing your sale to your shop announcement AND your Etsy profile
3. Edit your profile image to announce the sale as well.
4. Post in teams announcing your sale (make sure the team rules allow it first)
5. Add relevant tags for your sale, especially any official tags like "Black Friday Etsy"
6. Edit item titles to reflect the sale and put sale information at the very top of your item descriptions, I recommend edit express at craftopolis.com/ to make the process faster


OFF ETSY
1: Blog it, several times. I recommend once a few weeks out, again a week or 3-4 days prior, then finally on the day of the sale.
2: Post it on Facebook as an Event with all the details of the sale then share the event on your Facebook page. Again several time leading up to the sale.
3: Tweet the sale with a link to your shop, again several mentions prior to the sale and while your running the sale. Careful not to flood your feed with announcement tweets, every few hours is good.
4: If you have an email newsletter, send an email to your list announcing the sale
5: Post to deal sites like bigcrumbs.com
6: Run an ad on Google Adwords or Project Wonderful
7. Etsy on Sale automatically shares on their front page sales set up through the site.

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110bch, originally uploaded by River Valley Design.

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Renewing as an Etsy Marketing Strategy

Before Etsy switched their default search to relevancy you could pay $.20 to renew an item and get bumped to the top of the search results (which benefited larger sellers who could afford to spend the money to renew dozens of times a day). Relevancy search hasn't been a benefit to every seller but it is a much more fair system for sellers of all sizes, the quality of your titles and tags matters more than your budget for renewals.

Renewing items isn't totally useless though. Lets look at a few ways people find items:

• Search: Relevancy is king, if your items aren't relevant to the search you're unlikely to rank highly in results. Your titles and tags are the most important things here, however recency still plays a part so newer items that are highly relevant are more likely to show up at the top of search results.
• Categories: Etsy's category pages are still sorted by recency so people browsing that way will still see the most recent items listed or renewed.
• Your Shop Home Page: Renewed items get pushed to the top of your shop which makes it look fresher for returning visitors. You could also use the rearrange shop tool every day or so to do this as well.
• Etsy Mini: If you use this widget on your blog or other web page it is sorted by newest items (unless you choose to show featured items)
• Facebook Fan Page App: Etsy's official Facebook app puts a tab on your fan page that displays your shop ordered by most recent items.
• RSS Feed: Your shop feed (found at http://www.etsy.com/shop/yourshopname/rss ) can be used for automatically posting new or renewed items to various services like Twitter, Facebook, email newsletters, etc.

As you can see if you rely only on Etsy internal traffic then renewing helps but is limited, the vast majority of people browsing Etsy use the search rather than categories so making sure you have good titles and tags is a better use of your time than renewing items. If you use external tools then the impact of renewing can be greater. Should you rely on renewing to bring you all your sales? Absolutely not. Should it be a part of your overall strategy? Yes, renewing a handful of items regularly that are close to expiring is a good idea.

Renewing Tools
You can save yourself some time by scheduling your renewing using the following tools:

Clockbot - Lets you schedule specific items to renew, this is a free tool (not counting the $.20 listing fee from Etsy). You can schedule for days or weeks in advance but every item and time has to be selected for each scheduled renewal which can be time consuming.
Etsy on Sale - You can buy unlimited renewing options in monthly increments, I use this tool just because I can schedule renewing to occur at set intervals automatically (every 9 hours currently). It costs a small amount of money but I personally find it worthwhile for the convenience.

Don't be Fooled by Big Numbers in Ad Stats

I originally wrote this as a section of my Squidoo lens "Using Etsy Search Ads to Promote Your Shop" but I think it's so important I want to post it here too. While this is written for the new Etsy Search Ads it applies equally to Google Adwords, Project Wonderful, or any other advertising you run. To get the most for your money and to be the most effective you have to look objectively at the numbers.

Don't be Fooled by Big Numbers
Lots of impressions and clicks doesn't mean a good CTR. 

Here's a perfect example. For 6 days I ran "polymer clay" as a keyword for my ads. This is a term that you would assume would perform well for my items because I make polymer clay jewelry. It also garnered the most impressions and clicks for that time frame.

However when you actually do the math and look at the CTR for this keyword you can see that it wasn't actually a good keyword for me to use with a CTR of under 1%. In contrast, over the same period of time "squid" received 359 impressions and 8 clicks for a CTR of 2.23%, "octopus" had a CTR of 2.36% and my best keyword in terms of click through rate was "halloween jewelry" which had a CTR of 3.64% (though being a seasonal term will be just about useless for most of the year).

Be willing to waste a little bit of money to run ads for one week to determine click through rates then mercilessly eliminate those with low click through percentages. Those with low impressions (less than 100) and no clicks be willing to let run a bit longer to see if they do, a keyword that only get 30 views in 2 weeks but get 1 click may not be getting much visibility but when it does it's effective.

NOTE: Since the changes eliminating low performing keywords went into effect this morning the overall CTR for my ads today has improved dramatically. Next week I'll do another follow up with data from a longer time frame.

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Blue stripes stud earrings, originally uploaded by KooKooCraft.

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