$1000/Day Etsy Ads Strategy with a 2.5M Seller

$ 1000/Day Etsy Ads Strategy with a 2.5M Seller

Welcome, everyone! Today on our channel, we have a very special guest: an Etsy seller who has achieved an incredible $ 2.5 million in sales on Etsy and Shopify. We are thrilled to introduce Hannah, also known as Ecom Hannah on YouTube. Welcome to the channel, Hannah!

"Thank you so much, Heather. Thank you so much for having me. It's such a pleasure to be here," Hannah responds.

In our conversation before the interview, we realized that although we've known each other for a year and I've been on Hannah's channel, she has not yet appeared on mine. Hannah brings a wealth of knowledge in Etsy ad strategy, scaling an Etsy shop, and creating products that sell. Today, we're excited to learn from her insights and experiences.

Hannah's Journey with Etsy and Shopify

Heather: For the people who are new to your channel, could you give us a synopsis of your journey with selling on Etsy and Shopify and how you've done $ 2.5 million?

Hannah: Sure, I'll try to keep it brief. After college, I knew I didn't want a traditional job. I bartended while figuring out my entrepreneurial path. I sought time freedom, monetary freedom, and location freedom—things that a traditional job couldn't offer. Around 2018-2019, I started exploring ways to make money online and eventually found Etsy through a media buying agency I was building. One of my clients had an Etsy business, and I thought it seemed easier than Shopify, Amazon, or dropshipping.

My first venture was a fast fashion jewelry company with a production partner in Brazil, and we hit impressive numbers even before the pandemic. We faced challenges, including getting suspended on Etsy for nine months, which forced me to learn how to run Shopify properly. Although we regained our Etsy account, the iOS update impacted our Facebook ad costs, complicating things further.

Alongside that, I started a second brand with my dad. Both ventures taught me a lot about running successful ecommerce businesses on different platforms.

Ad Strategy for Different Types of Products

Heather, having experienced fluctuating success with Shopify, was curious about the specifics of Hannah's ad strategy. She pulled up her own Etsy shop to analyze the current 30-day performance using Hannah's app, The Profit Tree.

Heather: I sell mainly crew neck sweatshirts in my shop. What would the ad strategy be for someone like me compared to your higher-ticket items like pillows?

Hannah: For lower-margin items like print-on-demand crew necks, you need to be more strict about your ad spend. For example, if your shop is making a 29% profit margin before ads, ensure your ad cost percentage is less than 9%. You should invest wisely and optimize listings efficiently. Relying on visual tools like The Profit Tree can be beneficial to track profit and make informed decisions.

Analyzing and Optimizing Ad Spend

Hannah explained the importance of analyzing metrics such as net sales, operating profit, and ad spend.

Hannah: Comparing net sales to spend helps determine the profitability of listings. For instance, if a listing shows a 41% profit margin before ad spend and you see that ad costs are 15%, subtract ad costs to find your margin. Make sure your ad budget aligns with your overall profit goals.

It's essential to consider the proportion of spend to earnings over time rather than micromanage. Look at ads data month over month for a broader perspective. Be prepared to invest thoughtfully, not just spend on ads to increase revenue.

Beginner Ad Strategy and Budget Setting

Heather asked for advice on minimum ad budget settings for beginners.

Hannah: It depends on your comfort level. Even a minimal budget is better than none. When I started, I invested $ 15 a day and gradually increased it. Whether you start with $ 1 or $ 5 a day, remember that you're investing in data to make better decisions.

Final Takeaway on Starting an Etsy Shop

Heather: Any tips for beginners looking to start an Etsy shop in 2024?

Hannah: Have an honest conversation with yourself about why you want to start a business. Your "why" should be deeper than just wanting money. Understand what drives you and stay passionate about your vision. Success requires dedication and alignment with your goals.

Profit follows passion. With a clear "why" and excitement about creating products, you'll stay motivated through challenges.

Thank you, Hannah, for sharing your insights and helping us understand Etsy ads better. For more of Hannah's wisdom, check out her YouTube channel and podcast linked in the description below.

Keywords

• Etsy ads
• Shopify
• Ecom Hannah
• Print on demand
• Ad strategy
• Fast fashion jewelry
• Profit Tree
• Beginner tips
• Ecommerce

FAQ

Q: What should be the minimum daily ad budget for an Etsy shop?

A: Depending on your comfort level, starting with $ 1 to $ 5 a day is advisable. Remember, investing in data collection helps make future decisions.

Q: How often should I check my Etsy ads performance?

A: It depends on your ad spend and business scale. If you're spending quickly, check once or twice a week. Otherwise, a monthly review is sufficient.

Q: What's the best way to analyze the effectiveness of Etsy ads?

A: Compare net sales with ad spend to determine if the percentage spent is profitable. Use tools like The Profit Tree to make this process easier.

Q: Is Etsy too saturated to start a new shop in 2024?

A: While competition has increased, using ads effectively can help you stand out. A clear understanding of ad strategy is crucial to gaining a competitive edge.

Q: What common mistake should new Etsy sellers avoid?

A: Avoid micromanaging ads and turning them on and off too quickly. Focus on long-term data and performance to make informed decisions.