What are Etsy Ads? How Do They Work and Are They Worth It?

Etsy is a popular platform for creative sellers and small businesses to offer handmade, vintage, and personalized goods. But with so many sellers competing for attention, getting your products seen isn’t always easy. That’s where Etsy Ads come in.

What Are Etsy Ads?

Etsy Ads are a form of paid promotion that lets your product listings appear at the top of Etsy’s search results, in other high-traffic spots on the marketplace, and in some cases, on external websites like Google or Facebook. In a crowded market, they are an easy way for sellers to compete without needing advanced marketing skills or outside tools.

When used correctly, Etsy Ads can help you:

• Reach more people who are actively shopping
• Promote your products in key locations across Etsy
• Increase store traffic and potential sales
• Grow your brand over time

How Do Etsy Ads Work?

Etsy Ads include two different ad programs: On-Site Ads and Off-Site Ads. While most sellers typically mean on-site ads when they talk about Etsy Ads, it’s important to understand how both work to get the most out of your advertising strategy.

On-Site Ads (Etsy Ads)

On-site ads are the main form of advertising on Etsy and are managed directly by sellers. These ads appear within Etsy’s ecosystem, including search results, category pages, and related product listings.

They work on a pay-per-click (PPC) basis, meaning you’re only charged when someone clicks on your ad. For these ads, you get to choose:

• Which listings to promote
• Which keywords to target
• How much you want to spend each day

Bidding plays a role in this process, where your bid is the maximum amount you're willing to pay for a click based on your daily budget. When multiple sellers target similar keywords, Etsy uses a mix of your bid and your listing’s overall quality, such as its relevance, images, and performance, to decide which ad appears where. Higher-quality listings often perform better, even with a modest bid.

On-site ads give you flexibility and visibility, and with smart budgeting and strong listings, they can deliver great returns.

Off-Site Ads

Off-site ads are promotions that Etsy runs for your listings on external platforms like Google, Facebook, Instagram, and Pinterest. These ads are fully managed by Etsy, meaning you don’t choose the audience, platform, or keywords, and there’s no need to set a budget or bid.

Off-site ads are commission-based and you only pay if a shopper clicks on an ad and makes a purchase. Hence, no sale means no cost.

Off-site ads are ideal for reaching a broader audience without any upfront investment. While you don’t control how or where the ads appear, the performance-based model makes it a low-risk option, especially for sellers looking to gain more exposure beyond the Etsy platform.

Side-By-Side Comparison

How Much Do Etsy Ads Cost?

Each type of Etsy ad comes with its own pricing structure, and knowing how costs are calculated can help you manage your ad budget more effectively.

On-Site Ads (Pay-Per-Click)

On-site ads use a pay-per-click model. You decide how much you want to spend each day, with budgets starting from $1 up to $25, and you're only charged when someone clicks on your ad.

The actual pay per click (PPC) usually falls between $0.20 and $0.50, depending on:

• The competitiveness of the keywords you're targeting
• Your daily ad budget
• The number of listings you're promoting
• The quality and relevance of your listings

Overall, on-site ads are flexible and relatively affordable,  especially for small businesses looking for budget-friendly ways to increase visibility.

Off-Site Ads (Commission-Based)

Off-site ads use a commission-based model, which means you only pay when someone clicks on an off-site ad and makes a purchase within 30 days. There’s no charge for impressions or clicks that don’t lead to a sale.

The commission rate depends on your shop’s total sales over the past 12 months. Etsy charges:

• 15% per sale if annual sales are below $10,000
• 12% per sale if annual sales are above $10,000

These fees are taken from the order total and are in addition to Etsy’s regular listing and transaction fees. Sellers below the $10,000 threshold can opt out of off-site ads, while those above are automatically enrolled.

Are Etsy Ads Worth It?

Etsy Ads can be a useful tool if you want to gain more visibility and drive traffic to your shop.

They’re especially helpful for:

• New product launches
• Seasonal promotions
• Driving traffic to well-reviewed listings
• Testing what types of products attract clicks

However, ads won’t magically fix poor listings. If your product photos, pricing, or keywords aren’t strong, ads may just burn through your budget.

In short: yes, Etsy Ads are worth it - but only if your shop is already optimized.

LianLian Global: Helping Vietnamese Sellers Grow with Reliable Etsy Payment Solutions

LianLian Global provides fast, secure, and cost-effective cross-border payment solutions for Vietnamese sellers on platforms like Etsy. Revenue can be received in Vietnam smoothly, without legal or technical hurdles, making it easier to manage finances while focusing on business growth.

With localized support and flexible financial services, LianLian Global empowers sellers to build long-term, sustainable brands and expand confidently into international markets.

Final Thoughts

For sellers looking to boost visibility, Etsy Ads offer an affordable and beginner-friendly way to reach more shoppers. Whether you're a new seller or an established brand, these tools can help you compete in Etsy’s crowded marketplace.

That said, advertising is only one part of your growth strategy. To truly succeed, combine Etsy Ads with strong product listings, SEO optimization, great customer service, and a clear brand identity.

LianLian Global supports Vietnamese sellers by providing cross-border payments solutions that are fast, easy, and secure, helping you overcome international payment barriers and easily scale your business.

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