TLDR;
- A sudden drop in performance is rarely just 'bad luck' with the algorithm; it's usually a sign of a deeper issue in your customer journey, from the ad click to the final sale on Etsy.
- Don't just turn your ads off. First, you need to diagnose exactly where people are dropping off. Are they not clicking the ad, or are they getting to your store and then leaving?
- Your Etsy store itself is likely the biggest problem. Small issues like poor photos, no descriptions, and a lack of customer reviews can kill your conversion rate and make your ad spend feel wasted. Building trust is everything.
- Your ad targeting might be too broad. You need to get specific and target people who are actually interested in handcrafted goods, not just a general audience.
- This letter includes several interactive tools to help you: a Funnel Drop-off Diagnoser to find your weak spot, a Store Trust Score Calculator to audit your Etsy page, and a ROAS Calculator to see if your ads are actually profitable.
Hi there,
Thanks for reaching out.
I understand you're in a frustrating situation with your ads suddenly underperforming. It's tough when you're putting your own money into advertising and the sales just dry up. A lot of people's first reaction is to panic and switch everything off, but that's usually not the best move. A sudden dip like this isn't just the Facebook algorithm having a bad day; it's almost always a symptom of a problem somewhere in your sales process that was probably already there, but a change in traffic has made it more obvious.
So, instead of just guessing, let's try and figure out what's actually going on. I've put together some of my thoughts based on my experience working with lots of eCommerce sellers, including some in similar niches to yours. The goal is to give you a framework to properly diagnose the problem and fix it, rather than just hoping it goes away.
We'll need to look at where the drop-off is happening...
The first thing we need to do is stop thinking about "the ads" as one single thing that's either working or not. Think of it like a path a customer walks down. The ad is the signpost, your Etsy store is the shop, and the checkout is the till. If people are falling off the path, we need to know where. This is what we call the 'funnel'.
Your job right now is to become a detective and find the leak. You need to look at your metrics on both Facebook Ads Manager and your Etsy stats. Here’s what to look for:
1. At the Ad Level (Facebook Ads Manager):
Are people even clicking? Look at your Click-Through Rate (CTR). If your CTR has suddenly dropped, or if it's really low (say, under 1%), it means the ad itself isn't resonating with the audience you're showing it to. The image might not be grabbing attention, or the headline isn't compelling. Also, check your Cost Per Click (CPC). If this is really high, it's another sign that Facebook is struggling to find people who are interested in your ad.
- Low CTR / High CPC means: Your ad creative (the image/video) or your copy (the text) is the problem. It's not stopping people from scrolling.
2. At the Store Level (Etsy Analytics):
This is where things get more interesting. You're getting clicks from Facebook, but what happens next?
- Clicks but few Etsy Page Views? If Facebook says it sent 100 people to your store, but Etsy only registers 50 visits, you might have a technical issue (unlikely with Etsy) or, more probably, you're getting low-quality traffic. The people clicking aren't genuinely interested and are bouncing before the page even loads. This points to a targeting problem in your ads.
- Lots of Etsy Store Views but no Product Views? If people land on your main Etsy shop page but don't click on any of your individual product listings, it could mean your shop's homepage is confusing, cluttered, or the product thumbnails aren't appealing enough to warrant a closer look.
- Lots of Product Views but no 'Adds to Basket'? This is a super common one. People are interested enough to look at a product in detail, but something stops them from taking the next step. This is almost always down to the product page itself. Are your photos good enough? Do you have multiple angles? A video of you making it or someone wearing it? Is there a detailed, persuasive description that answers potential questions? Is the price clear? A lack of information or trust at this stage is a conversion killer.
- Lots of 'Adds to Basket' but no Sales? This is the final hurdle. The customer wants to buy, but something in the checkout process stops them. For Etsy, this is often unexpected shipping costs. Be upfront about your shipping prices. It could also be a lack of payment options or long delivery times.
To make this easier, I've built a little interactive tool to help you walk through this diagnostic process. Be honest with your answers, and it should point you towards the biggest area of concern.
The image/video or copy isn't engaging. Test new creatives immediately.
You're attracting low-quality clicks. Refine your audience interests.
It may be cluttered or your product thumbnails are unappealing.
Improve photos, write detailed descriptions, check your pricing. Build trust.
Are shipping costs a surprise? Review your delivery times and policies.
I'd say you need to audit your Etsy store...
To be brutally honest, for most small sellers running ads, the problem isn't the ad platform. It's the destination. You could have the best ad in the world, but if it sends people to a store that doesn't feel trustworthy or professional, they will not buy. It's like having a beautiful flyer for a shop with a dirty window and a broken door.
Since you're a small seller, this is probably your biggest area for improvement. People are taking a risk buying from a smaller, unknown brand. You have to work twice as hard to make them feel comfortable pulling out their credit card. Here are the things I'd be looking at immediately:
- Product Photography: This is non-negotiable. Your photos need to be crisp, well-lit, and show the product from multiple angles. For handcrafted items, photos of the making process or a video of you wearing/using the item can be incredibly powerful. Grainy, dark photos taken on a messy table will kill sales. I remember working on a campaign for a women's apparel brand; we saw a 691% return, and a massive part of that was just getting their photography right. Proffesional-looking photos are a huge trust signal.
- Product Descriptions: Don't just list the materials. Tell a story. What was the inspiration? What makes it unique? What problem does it solve or what feeling does it create? You also need to include all the practical details: dimensions, weight, care instructions, etc. An empty description box screams "I don't care that much about my own product."
- Reviews and Social Proof: Do you have customer reviews visible? If you have any positive feedback, make sure it's front and centre. Your Etsy star rating is critical. If it's low, you need to address that before spending any more on ads.
- About You Page: People buy from people, especially with handcrafted goods. Have a section that tells your story. Who are you? Why do you do what you do? A picture of you in your workspace can make a huge difference.
- Clear Policies: Make your shipping, return, and exchange policies incredibly easy to find and understand. Hidden information makes customers nervous.
Your store needs to look like a legitimate, established business, even if it's just you in your spare room. It's all about perception. I've made another little tool here. Go through the checklist and see what your "Trust Score" is. It might highlight some obvious gaps.
Etsy Store Trust Score Calculator
You probably should rethink your audience targeting...
If you've fixed your store and you're still not seeing results, the next suspect is your audience targeting on Facebook. Sending the perfect message to the wrong people is just as bad as sending the wrong message to the right people. You mentioned you're a small seller, which means you probably have a small budget. You can't afford to waste money showing your ads to people who will never buy.
A big mistake I see is people targeting very broad interests like "Shopping" or "Jewelry". Think about it – that includes millions of people who buy mass-produced stuff from Argos or Amazon. That's not your customer. You need to get much, much more specific.
Think about your ideal customer. What are they *really* into?
- What specific magazines or blogs do they read? (e.g., 'Mollie Makes', 'Etsy Journal')
- What specific brands do they love? (e.g., Other successful handcrafted brands, unique indie shops)
- What events do they go to? (e.g., 'Crafty Fox Market', local craft fairs)
- What other interests do they have that are related? (e.g., 'Sustainable fashion', 'DIY', 'Artisan goods')
Your goal is to find interests that your ideal customer is very likely to have, but that the average person is not. This is how you find pockets of high-intent buyers without competing with the big brands. Test these interests in seperate ad sets so you can see which ones are working.
Then there's the sales funnel. You shouldn't just be targeting new people all the time. Your most valuable audiences are people who already know who you are. I'd structure your campaigns like this:
1. Top of Funnel (ToFu) - Finding New People: This is where you use those specific interest audiences we just talked about. The goal here is just to get them to visit your Etsy store for the first time.
2. Middle of Funnel (MoFu) - Re-engaging Visitors: This is a retargeting audience. You'll create an audience of everyone who has visited your Etsy store in the last 30 days but hasn't bought anything. You show them different ads - maybe showing off your best-sellers, a customer testimonial, or a behind-the-scenes video. You need to remind them you exist.
3. Bottom of Funnel (BoFu) - Closing the Sale: This is an even more specific retargeting audience. It's people who have added an item to their basket but didn't check out. These people are so close to buying! The ad here could be a simple reminder, or if you can, a small discount code to nudge them over the line (e.g., "Still thinking about it? Here's 10% off to help you decide.").
Even with a small budget, splitting it between these different stages of the funnel is almost always more effective than just trying to find new customers all the time.
You'll need a better way to measure success...
Finally, let's talk about what "working" actually means. You said you're "not getting sales", which is definately the main thing, but to properly manage your ads, you need to know your numbers. The most important metric for any eCommerce store is Return on Ad Spend (ROAS).
ROAS is simple: for every £1 you put into ads, how many pounds in revenue do you get back?
ROAS = Total Revenue from Ads / Total Ad Spend
If you spend £100 on ads and make £300 in sales from those ads, your ROAS is 3x (or 300%).
You need to figure out what your break-even ROAS is. This depends on your profit margins. If your products have a 50% profit margin, you need a ROAS of at least 2x just to break even on the cost of the goods and the ad spend. Anything above that is profit. A lot of my eCommerce clients aim for a 4x ROAS or higher. We've seen some get much higher, like a cleaning products company that hit a 633% return, but that's after a lot of optimisation. For a small seller, aiming for a profitable 2.5x-3x is a great starting point.
Once you know your target ROAS, you can make much better decisions. An ad campaign might only get you a few sales, but if those sales were for high-value items and your ROAS is 5x, it's a brilliant campaign! Another campaign might get you lots of small sales, but if the ROAS is only 1.5x, you're losing money. Don't just look at the number of sales; look at the profitability.
Here’s a calculator to play around with. Plug in your numbers and see what your ROAS is. This will help you shift your mindset from "are the ads working?" to "are the ads profitable?".
So, what should you do now?
So, to answer your original question: No, you probably shouldn't just turn the ads off. You should pause them for a couple of days while you do this homework. Be methodical. Go through the steps and be brutally honest with yourself about where the weaknesses are. I've detailed my main recommendations for you below in a table to make it clearer.
| Area to Address | Specific Action to Take | Why It Matters |
|---|---|---|
| 1. Diagnosis | Use the flowchart and your Facebook/Etsy stats to find where your funnel is leaking. Check CTR, page views, adds to basket, and sales data. | You can't fix a problem you haven't identified. Stop guessing and start using data to find the real bottleneck. |
| 2. Etsy Store Trust | Audit your store using the Trust Score calculator. Focus immediately on improving product photography and writing detailed, compelling descriptions. | Your store is the most common point of failure. No amount of ad spend can fix a store that doesn't inspire confidence in buyers. |
| 3. Audience Targeting | Brainstorm and test hyper-specific interests that relate to your ideal customer. Avoid broad categories. Set up seperate ToFu/MoFu/BoFu campaigns. | A small budget demands precision. You must show your ads to the people most likely to buy, not the general public. |
| 4. Measurement | Calculate your break-even ROAS based on your product margins. Track ROAS for every campaign and ad set, not just the number of sales. | This shifts your focus from just "getting sales" to building a profitable advertising system that you can rely on to grow your business. |
This all might seem like a lot of work, and it is. Running paid ads effectively isn't just about clicking a 'boost' button. It's a skill that involves analysis, psychology, and constant testing. As a small business owner, your time is probably your most valuable asset, and it might be better spent on creating your products rather than trying to become an expert in the ever-changing world of digital advertising.
This is where getting professional help can make a huge difference. An expert can quickly diagnose these issues, implement a proper strategy, and manage the campaigns to ensure you're getting a profitable return, which frees you up to do what you do best.
If you'd like to chat through your specific situation in more detail, we offer a free, no-obligation initial consultation where we can look at your store and ad account together and give you some more tailored advice. It might be the quickest way to get things back on track.
Hope this helps!
Regards,
Team @ Lukas Holschuh