We started off our look at “Projects” (one of the modules in this crash course) with a happy exercise: an analytical look at what contributed to the success of your most successful products.
That’s to take the sting out of this week’s second of four entries on a 2023 look back on “Products”. This time, we rip the custom-printed-on-a-Cricut band-aid off our year and look at the products that we not successful.
First, it always helps to take a breath and remember what you have accomplished. Any attempt is a good attempt, and many unsuccessful attempts can yield invaluable insight for the next round of better products. You’re making progress no matter what.
With that in the back of our minds, let’s take our gloves off and do this.
Identifying Underperforming Products
Understanding why certain products underperformed starts with recognizing which items in your catalog did not meet sales expectations. This process involves a careful assessment of sales data, including sales volume, revenue, customer reviews, and favorites.
By comparing actual sales to initial projections, you can pinpoint products that need closer scrutiny, or complete removal from inventory.
One common factor contributing to underperformance is market saturation. In popular and high-selling categories on Etsy, competition is fierce.
Signs of market saturation include:
To determine if market saturation is affecting your products, look for these signs and consider potential solutions.
Pricing is a critical element in your product’s success, particularly in popular Etsy categories. Your pricing strategy should take into account production costs, the perceived value of the product, and competitive pricing. Overpricing or underpricing can have detrimental effects on sales and customer perception.
Pricing Data Analysis
To identify pricing issues, delve into your pricing data. Examine the relationship between pricing and sales performance. Are certain products priced significantly higher or lower than similar offerings in the market? Identify instances where pricing may have discouraged buyers or conveyed a perception of inferior quality.
We wrote a step-by-step guide to pricing products for Etsy, you’ll find it detailed and informative, just click here.
Effective marketing is a cornerstone of product success on Etsy. Your marketing strategies may encompass various activities, such as product listings, cover designs, keyword selection, social media promotion, and email marketing. The effectiveness of these efforts significantly impacts sales.
Marketing Data Analysis
To uncover issues with your marketing, analyze the data related to your promotional activities. Are specific product listings consistently receiving fewer clicks or views? Are customers not engaging with product descriptions or keywords? Identifying areas where marketing efforts have fallen short can provide insights into the root causes of underperformance.
Customer Feedback and Reviews
One valuable source of information for identifying root causes of underperformance is customer feedback and reviews. Negative feedback often contains constructive insights that highlight issues with product design, quality, or functionality. Engage with customers, address their concerns, and use their input to enhance future products.
Understanding what successful competitors are doing differently can reveal the strengths and weaknesses of your products. Conduct a competitive analysis to identify gaps in your product offerings compared to those of successful competitors. This understanding can be a powerful tool for improving future designs and marketing strategies.
Sale Samurai’s Competition Tracker will give you a detailed picture of what else is going on in your lane and who is doing it.
One effective strategy for overcoming underperformance is product innovation. Explore opportunities to introduce fresh designs and product ideas that resonate with your target audience. Experimentation and creativity in the design process can lead to unique and attractive offerings.
Fine-tuning your pricing strategies is another approach to address underperformance. Reassess your product pricing, taking into account factors like production costs and the perceived value of your offerings. Implementing limited-time discounts or promotions can incentivize purchases and attract budget-conscious buyers.
Optimizing your marketing strategies based on lessons learned from underperforming products is essential. Make data-driven marketing decisions, adapt to changing trends, and experiment with new approaches. A/B testing can help identify which marketing tactics are most effective for your target audience.
Etsy’s creative haven rewards entrepreneurs like you with opportunities to showcase your talents to a global audience. However, not every product achieves the expected level of success. By analyzing the root causes of underperformance, such as market saturation, pricing issues, and ineffective marketing, you can take decisive steps toward preventing future losses.
Product innovation, pricing adjustments, and marketing optimization are powerful strategies for improving future performance. Don’t fall into the trap of viewing underperformance as a setback. See it as an opportunity for growth and innovation. The dynamic marketplace of Etsy encourages creativity, adaptability, and the ability to learn from past experiences.
Underperformance is a challenge, but it is through such challenges that Etsy shopkeepers like you can discover new paths to success. Embrace the opportunity for improvement, and let it guide you on your journey to increasing success in 2024!