Breaking News: Etsy Is Changing SEO Forever with NEW Updates
Summary
TLDREtsy's CEO, Josh Silverman, has announced significant changes to the platform's search algorithm during the Q2 investor call. The update aims to enhance visibility for small and medium-sized shops by reducing duplicate search results and focusing on the diversity and uniqueness of listings. Etsy will empower sellers with more insights into listing quality and completeness to improve search visibility. The shift from a conversion-based approach to a recommendation engine is expected to increase buyer engagement and support niche-based shops, potentially changing the SEO landscape for the platform.
Takeaways
- 🔍 Etsy's search algorithm is undergoing changes to prioritize listing quality and diversity over pure conversion rates.
- 📈 Recent search experiments have led to approximately 70% of shops gaining more visibility in search results, especially benefiting small and medium-sized shops.
- 📊 The share of search impressions for small and medium shops has increased by nearly 30%, indicating a more level playing field for different sellers.
- 🛍️ Etsy aims to provide a more holistic shopping experience by reducing the occurrence of identical or very similar items dominating search results.
- 🤖 Large language models and generative techniques are being utilized to better understand shopping missions and seller inventory to enhance search and recommendations.
- 🚀 Later in the summer, Etsy plans to empower sellers with more agency and actionable insights related to listing quality and completeness.
- 🔑 The shift in Etsy's search algorithm is moving away from a keyword-based search towards a recommendation engine, similar to YouTube's browse and suggest approach.
- 📉 There is a potential risk that the new search algorithm could initially decrease conversion rates as it prioritizes discovery over direct sales.
- 🎯 Etsy is focusing on 'discovery' to show users items they might not have thought to search for, aiming to increase repeat visits and purchases.
- 🏷️ Sellers are advised to focus on high-quality images and relevant tags to improve their chances of appearing in Etsy's new discovery-focused search results.
- 🧩 Niche-based shops may have an advantage in the new ecosystem due to the associative data that ties into each other, making it easier for the algorithm to make relevant suggestions.
Q & A
What recent changes has Etsy made to its search algorithm?
-Etsy has shifted its focus from a conversion-based ranking system to a more diverse and quality-focused approach, aiming to highlight the best of Etsy and its sellers' unique merchandise.
How has the new search algorithm affected visibility for small and medium shops?
-The new search experiments have resulted in approximately 70% of shops having more visibility in search, with small and medium shops experiencing an increase in search impressions by nearly 30%.
What does Etsy consider as 'duplicate search results' and how are they addressing it?
-Duplicate search results refer to multiple listings that appear very similar when a user searches for an item. Etsy is working to diversify these results by incorporating a mix of the most likely products to be purchased along with other items that the user might not have considered.
What is the significance of using large language models and generative techniques in Etsy's new initiatives?
-Large language models and generative techniques help Etsy to better understand both the shopping mission of the user and the inventory of the sellers, allowing for more accurate and diverse search results.
How does Etsy plan to empower sellers with more agency and actionable insights?
-Later in the summer, Etsy will provide sellers with more control and insights into factors like listing quality and completeness that can impact how their products show up in search.
What impact has the reduction of identical listings in search results had on Etsy?
-The reduction has led to a more diverse and higher-quality set of listings being shown to buyers each time they visit Etsy, potentially increasing future visitation.
How does Etsy's new approach to search differ from the past focus on conversion rates?
-Previously, Etsy's search algorithms ranked each listing based on the likelihood to convert. Now, the focus is on showcasing a broader variety of items to cater to the needs of the majority of users who are not necessarily ready to buy.
What is the potential impact of Etsy's new search algorithm on buyer behavior?
-The new algorithm may encourage buyers to visit Etsy more frequently as they are presented with a more diverse range of products, potentially increasing the likelihood of repeat visits and purchases.
How does the new search algorithm relate to the concept of 'Discovery' on Etsy?
-The new algorithm aims to enhance the discovery aspect of shopping on Etsy by suggesting items and categories that the user might not have considered, moving away from a purely search-based experience.
What are the implications of the new search algorithm for niche-based shops on Etsy?
-Niche-based shops may have an advantage in the new ecosystem as the associative data from their specialized products and buyer behaviors can be more effectively utilized by the recommendation engine.
How should sellers adapt their strategies in response to Etsy's new search algorithm?
-Sellers should focus on improving listing quality, including high-quality images and relevant tags, to ensure their products are more likely to be featured in the new recommendation-based search results.
Outlines
🔍 Etsy's SEO Shift Focusing on Diversity and Quality
Etsy's CEO, Josh Silverman, announced significant changes to the platform's search algorithm during the Q2 investor call. The update aims to enhance visibility for small and medium-sized shops by focusing on listing quality and reducing policy violations. The new initiatives are designed to move beyond relevancy and conversion-based ranking, promoting a more diverse range of products and sellers. The changes have already shown promising results, with approximately 70% of shops experiencing increased visibility and a nearly 30% rise in search impressions for smaller shops. The update is expected to provide sellers with more agency and actionable insights to improve their search performance.
📈 Empowering Sellers with Insights for Enhanced Visibility
In the second paragraph, the discussion continues on Etsy's commitment to empowering sellers with more control and insights into their listing performance. The platform plans to roll out features by late summer that will help sellers understand factors affecting their visibility in search results. This includes listing quality and completeness. The changes are anticipated to not only benefit buyers by presenting a more diverse and higher-quality selection of listings but also support sellers, especially smaller ones, by leveling the playing field in terms of search visibility.
🤖 Algorithm Update for Enhanced Discovery and Reduced Duplicates
The third paragraph delves into the specifics of Etsy's algorithm update, which aims to improve the discovery experience for users and reduce duplicate search results. The platform is moving towards a recommendation engine that suggests products based on associative matching and buying patterns, rather than direct keyword relevance. This shift is expected to benefit niche-based shops that can capitalize on the associative data to increase their discoverability. The update also addresses the issue of similar listings dominating search results by incorporating a more diverse set of products in search outcomes.
🛍️ Opportunities for Sellers in Etsy's Evolving Ecosystem
The final paragraph discusses the opportunities and considerations for sellers as Etsy's search and recommendation algorithms evolve. While the platform is moving away from a purely conversion-based approach, sellers are encouraged to focus on high-quality images and listings that can perform well in the new discovery-oriented ecosystem. The update is expected to favor niche-based stores due to their ability to leverage associative data effectively. Sellers are also advised to pay attention to the insights provided by Etsy to optimize their listings for better visibility and conversion rates.
Mindmap
Keywords
💡Search Visibility
💡Search Impressions
💡Actionable Insights
💡SEO (Search Engine Optimization)
💡Conversion Rate
💡Diversity of Listings
💡Blackbox SEO Algorithm
💡Duplicate Search Results
💡Discovery
💡Niche-Based Shops
💡Recommendation Engine
Highlights
Etsy's search experiments have increased visibility for approximately 70% of shops in search results.
Search impressions for small and medium shops have increased by nearly 30%.
Etsy's CEO, Josh Silverman, discusses potential changes in SEO that could impact the platform significantly.
Etsy is focusing on using large language models and generative techniques to understand shopping missions and seller inventory.
New initiatives aim to highlight Etsy's unique offerings and differentiate from commoditized merchandise.
Etsy's search algorithms are evolving to move beyond relevancy, focusing on the diversity and uniqueness of sellers' merchandise.
The platform has reduced the percentage of searches showing identical items from the same seller by over 70%.
Etsy will empower sellers with more agency and actionable insights into listing quality and completeness.
Etsy's shift in search ranking is from conversion-based to a broader variety to better serve buyers not ready to purchase.
The change aims to improve the diversity of items and sellers shown on Etsy, potentially increasing buyer visitation.
Etsy's algorithm update is part of a larger move towards a recommendation engine rather than a keyword-based search.
Sellers will be given insights to improve visibility, such as enhancing image quality and tag optimization.
Etsy's update may favor niche-based shops due to the associative data tying into each other.
The platform is focusing on discovery, aiming to show users the next thing they might buy before they search for it.
Etsy's changes could potentially decrease initial conversion rates but increase repeat conversions.
Sellers are advised to pay attention to new insights from Etsy to optimize their listings for the updated algorithm.
Etsy's move towards discovery and suggestion is likened to YouTube's browse and suggest traffic, which accounts for 80% of its usage.
Transcripts
our latest search experiments resulted
in approximately 70% of shops having
more visibility in search with the share
of search Impressions from small and
medium shops increasing by nearly
30% later this summer we'll Empower
sellers by giving them more agency and
actionable insights than ever before so
there's some new breaking news from Etsy
once again and their CEO on SEO and that
it could be changing forever and
hopefully in a good way so what we're
going to do is we're going to turn it
over to Chris schaer who has a clip from
Josh Silverman that recently just
announced this and discussed it and
we're gonna actually hear people asking
questions about it so I'm really really
excited to hear this as well and this is
the first time I am listening to this
news so Chris I'm dying here to hear
this why don't you get this thing queued
up and uh let us let us get in on this
yeah so I I did the hard work of sitting
through the Etsy Q2 investor call which
I would not suggest that anyone does it
was one of the weirdest experiences of
my life but it was worth it Scott
because we were able to pull out a
couple key pieces of and what I did was
I took a portion from the regular
scheduled programming of the investor
call where they talk about what they've
done and what they're doing and then I
added in a part that came in to clarify
a little bit from the Q&A section at the
end and you and I did a video recently
on etsy's blackbox SEO algorithm and
some of Josh Silverman's thoughts on
this this is talking and expanding on
one of the points that you and I found
really interesting so if you're ready
I'll just go ahead and hit play on my
side here and we'll listen to what Josh
has go for it initiatives we're making
in quality to ensure we highlight the
very best of etsy differentiating
ourself in a sea of commoditized
merchandise we stand for keeping
Commerce human and we have an enormous
conviction that do doing this in a way
that no one else can is our most
important competitive advantage and that
these initiatives represent a tremendous
unlock for buyer consideration we
mentioned on our last call that we're
using large language models and gen
techniques to better understand both the
shopping Mission you're on as well as
our sell's inventory along these four
key Focus areas suppressing and removing
items that violate our policy UPR
ranking better quality listings in
Search and recommendations and better
curating and organizing our
Marketplace I'm extremely proud to
report on the Fantastic progress our
search team is making to move beyond our
historical focus on solving for
relevancy in search when you know what
you want and can't find it anywhere else
to new initiatives meant to also
highlight the best of etsy and feature
the incredible diversity and uniqueness
of our sellers merchandise in the past
our search algorithms ranked each
listing individually BAS based on
likelihood to
convert can can can I just say that I
feel Vindicated right any anybody that's
watch Brooklyn 99 uh give me give me
some hands in the chat or something
right I'm channeling Captain H right now
and screaming Vindication because this
is what you and I have talked about and
he he hinted at this in that blackbox
SEO call where he said look you know
we're if you go to you go to YouTube you
watch all these things they're telling
you it's all about stuff and keywords
and that's not really how we work he's
very explicitly saying here now that's
how it has always worked in the past
it's about conversion How likely is your
listing to convert if Etsy shows you for
that search term so Scott if everything
else is equal we have the same title
tags photos whatever you have a higher
conversion rate than I do you rank
higher than I he just said it right now
yeah he literally just said it so I'm
glad like you said Chris I'm glad that
we know that what we were saying was
pretty true at least that's what we're
thinking because well I mean the CEO
should probably know how things work so
I don't know it's almost like reading
all of those documents and and parsing
through the weird legal ease that as he
writes everything and paid off who
knew which often resulted in buyers
seeing far too many similar items rather
than a more more holistic set here's
some powerful data we roughly cut in
half the percentage of searches where a
high percentage of listings seen on page
one are from a single seller we reduced
the percentage of searches that have two
or more more listings that may appear
identical by over
70% we're incredibly excited about what
this might mean for future visitation as
buyers see a more diverse and higher
quality set of listings each time they
visit Etsy in addition to helping buyers
these initiatives also support our
sellers given how important it is that
we nurture the best of etsy across our
seller base our latest search
experiments resulted in approximately
70% of shops having more visibility in
search with the share of search
Impressions from small and medium shops
increasing by nearly
30% later this summer we'll Empower
sellers by giving them more agency and
actionable insights than ever before
into factors like listing quality and
completeness that can impact how they
show up in search that's a good our
search engine right now is pause that
Chris yeah so I think that's interesting
because that's what we said in the SEO
Black Box uh you know that video that we
did a reaction to it was audio if you
guys missed that we'll link that up in
the description that was the uh very
very uh private uh for investors really
uh it was a meeting that was held and we
got a hold of the recording um I mean we
did it legally it was out there we just
had to dig for it um and then we
listened to it and that there explained
what they call the SEO Black Box um and
Josh went ahead and talked about that
but he also talked about what he's
sharing now and he's giving a little bit
more clarity on when that we when we
could potentially see this is where
they're going to allow sellers to see
where they are lacking for visibility
and I think that's going to be
incredibly important so I'm excited to
hear that I think he said like late
summer um which we're approaching that
now so Josh let's get that thing out
there before Q4 what do you say Joshy
boy let's get that thing out the
door late late summer for a uh sevene
long beta potential right we know that
they are working on this and I think one
of the things that really stood out is
they said uh that they were able to
already diversify just on the changes
that they've made so far and I think
Etsy sellers may not feel this because
we're in the slowest part of the year
but one of the things that he pointed
out there Scott was 70% of the shops
that have they've tested this with had
more visibility in search meaning when
people searched they were seen more
frequently and the share of search
impressions for small shops and this is
something everybody's worried about and
one of the reasons they looked at
conversion and then had the Etsy listing
boost right you create that new Boost
and they're trying to figure out how you
fit into the whole Etsy ecosystem was to
account for the difference between large
shops and small shops they said this out
uh outperformed with small shops and
they were able to increase search
Impressions so how often you show up in
a search result for those smaller and
medium-sized shops by almost 30% so a
huge increase for those people by doing
it this way and I wanted before you and
I discuss what this actually looks like
I wanted to give the Q&A portion of this
because he does expand on that uh
teleprompter answer a little bit in
response to one of the investor
questions really optimized for
conversion which is why we have
historically shown you for example
multiple very similar variants of an
item if if the blackbox algorithm thinks
the most likely thing you're going to
buy is this it might show you eight
variants of roughly the same thing and
if that's actually what you wanted for
the two or three% of people who were
really ready to buy that thing that was
a great experience and it drives
conversion but what about the other 97%
who really weren't necessarily ready to
buy we would be much better served to
show them a broader variety of things so
that they understand everything we have
on offer whether they're going to buy
this session or come back more often so
I think what we're going to end up with
now dramatic improvements in the
diversity of items were showing on Etsy
the diversity of sellers were showing on
Etsy I think is going to drive a lot
more people to say wow there's a lot
more stuff for sale that I realize
there's more categories of items for
sale that I realize and they're going to
come back more often that's what I'm
what I'm really excited
about uh yeah so I would okay so I would
love to be at that little table that
they're at though right now because I
got some questions but my thing is is
like okay that sounds great in theory
okay the main thing that I heard there
was we want to let uh Shoppers know that
we have more than just from that one
seller right that's kind of what I got
there and they're saying like that's
going to make them go oh wow etsy's got
a lot of things on here that's great I'm
gonna come back versus if you split test
that the old way to the new way are your
sales going to suffer because you're not
showing them the ones that have gotten
the most sales which have the have more
reviews and have higher conversions is
that going actually decrease your
conversion rate on the front end for
Etsy not us but for Etsy the seller
that's getting more listing positions is
going to obviously benefit more but is
that going to hurt conversions overall
and I'm I'm sure they're split testing
that because if it if it if that shows
that experiment shows and they're like
okay cool but we can't prove that people
are coming back to this shop more and
buying more they might be coming back
but they're not buying but over here on
on test a we're showing them more of the
same but they're buying more why are you
going to change that right so for the
newer seller the medium-sized seller and
you're like oh cool this is going to
give me an opportunity to show in search
but if you're not getting sales is that
really going to benefit and are you
going to show up in search don't know
the ver will still be out but I know
they're going to be split testing this
because I mean that's going to be a huge
a huge thing that they got to look at as
far as the data you're not just going to
roll this out and go oh great we rolled
it out there's going to be data behind
yeah and I think I think think the real
impetus behind this and he said the word
and I'm not sure if you picked up on it
Scott and I have one more clip that I
want to share with you and I want to see
if you little bonus clip recall from
this uh another algorithm that you and I
are fairly familiar with that uses the
same word and so I'm G to pull this clip
in efforts we've had in place in the
past continue in terms of having a
robust toolkit for sellers so they can
put their items on sale they can offer
you know a discount to a returning
customer if you've left an item in
checkout they can offer you a coupon get
you to come back and close and we see
sellers continue to use and adopt those
tools um we uh have you know for example
as part of the Loyalty program deals and
drops we're going to be highlighting
like things that we think are really
cool value and really special value we
want to lean more into discovery on Etsy
where where have you heard that word
before
Discovery are are we what's that
suggestions Discovery yeah right instead
of waiting for you to search for the
thing yeah we're going to show you thing
so it's more I think we're piggybacking
off of the big giant out
there YouTube yes right and that that
change in YouTube's algorithm YouTube is
the second biggest search engine in the
world but 80% of their traffic comes
from browse and suggest the videos they
are giving to you yep 20% they are the
second largest search engine in the the
world and only 20% of their traffic and
so what I think Josh is saying here and
again you guys can go listen to the
entire investor call if you want to
watch your eyes bleed uh but what they
are saying is they want to move away
from only keyword relevance to say when
you come to Etsy we want to show you the
next thing you're going to buy before
you have right to think about it and if
we're thinking about it that way do you
still feel the same way about that
change in the the potential conversion
or you saying okay maybe the first
conversion is harder to get but the
repeat conversions are potentially
easier to get because every product
that's being shown to that user is
something they would potentially buy
before they type anything into the
search I guess I guess it would come
down to this though and this is this is
the
difference YouTube I'm looking at it as
that's an enter not an entertainment
it's like a um I'm bored let me go to my
um app and while my wife's in getting
groceries I'm going to scroll some
YouTube Right entertain myself educate
myself whatever if I don't find myself
going to Amazon let's say to just browse
for random stuff so I don't know if it's
G to have the same effect as that I
understand the logic but I don't know
and again maybe I'm wrong maybe there
are you know and again it's primarily
I'm sure women that are on Etsy I don't
know what the demographics are but I'm
pretty sure the last I checked it was it
was more Etsy uh was women than it was
men are they going to go there like a
Pinterest thing and kind of like just
scroll to see what what's new and then
get suggested things be like oh that's
sweet that's cool so it's not so much on
search I don't know if that'll ever
outperform search on a platform like
Etsy or like Amazon or like eBay right
you're going there looking for something
um I'm not saying that there's not
something there that while you're
searching you see recommendations for
other things that might have might be of
interest to you but for people to just
go there and browse I don't know maybe
I'm wrong but I don't see it as the same
I I don't see it as the same that's just
my take on it yeah and I think what what
they are telling us is there's
essentially two major changes to what
they're doing the first thing is they're
trying to eliminate eliminate uh
eliminate what they consider to be
duplicate search results right so
somebody on Google if you go to Google
and you type in how to feed a hamster
and you get seven articles in a row that
are essentially the same thing that's a
duplicate search result what Etsy is
saying is one of the biggest complaints
both from buyers and sellers is that
they type something in and because we're
only using the conversion-based
approach they will see seven listings or
10 listings that look fairly similar so
is there a way that we can incorporate
the highest one or two likely products
to be purchased from that search result
and then other things that they haven't
thought about yet and Scott they went in
in in the investor call they went in a
little bit to uh what they call Demi
Fine Jewelry where they're doing some
additional search refinement where
they're giving you like popup bubbl to
say okay you search this did you
actually mean this and what they found
was a lift in conversions and a lift in
Gross merchandise sales just in that one
specific category right and so if we're
thinking about layering those two things
together that starts to make a lot of
sense and then once you get a little bit
of data on somebody when they come to
Etsy and most people they're driving
towards the app now because what they
saw was browsing Behavior turned into
buying Behavior there frequently so
you're not necessarily losing out if
you're driving people to the app and
giving them that experience and saying
hey here's this really cool thing here's
this really cool thing here's this
really cool thing in the background
you're still going to be reliant on
conversion rate as a metric right
they're not just going to show you
something cool because they think it's
cool they're going to show you something
cool because they think you're going to
buy it but they're going to be much less
reliant on the words you type in and on
the actual conversion rate of that
product because they're moving away from
a keyword-based search and much more
towards a recommendation engine because
what they've seen over and over again is
that doing direct text matching is very
hard especially with the diversity of
things that Etsy has in the catalog and
so if they can figure out a better way
to do associative matching or figure out
uh buying patterns right this person
buys fishing stuff let's just keep
showing them fishing stuff every time
they come to the homepage you're much
more likely to turn any of that browsing
Behavior into actual purchase Behavior
so they're moving away from that direct
Association and more towards an indirect
Association as we start to see this what
do you think this means for sellers
moving forward well I I think it's an
opportunity I think it's an opportunity
uh but does it change anything does it
change like the way that you're putting
your listings together are you changing
the way you're titling are you changing
the way you're doing images no I don't
really think that you are so there's
really not a lot of control only thing
that I feel the control aspect is is
they're going to give us insight as far
as how we are performing and is our
listing giving all of the data that the
algorithm wants and I think that's the
big the big thing here for sellers to
understand is when that rolls out we
want to pay attention to that because
that is clearly telling us this these
are the things that potentially could
get you ranked higher right and it might
even be to the point where it's like
your conversion is uh you know
75 you know we well we would like to see
you increase that so what it's basically
saying is there's other people selling
here and they're converting higher than
you so let's try to get the conversion
up well here's some recommendations how
to do that improve your image quality
improve your you know your tags like
whatever right like those are some
things that might come into play that's
the more important piece here the
discoverability the suggestions like all
that stuff that stuff this is things I
can't control but what I can control is
having a really really good high quality
image that when I do get shown up in
these suggestions hopefully that people
are going to see it like it and click on
it I think for me the the immediate
alarm Bell trigger whatever we want to
call it that went off in my head Scott
is niche-based shops are going to have a
huge advantage in that ecosystem why
because that associative data all ties
into each other all of the listings are
roughly about the same thing right all
of the keyword data which they're still
going to use to some extent even YouTube
who relies 80% on suggestions and
Discovery uses that keyword data through
the transcript through the stuff that
you put in the descriptions right to
serve those videos to the right people
Niche based stores are going to have a
huge Advantage because they're going to
have the text that is all Associated
around that Niche they're going to have
the buyer behaviors that are associated
around that Niche right somebody who's
into avocados is not buying something
from a fishing store necessarily right
they're going to go buy from the avocado
store or whatever it is probably a
terrible example because there's a big
crossover there but you guys get what
I'm saying if we have an everything
store we lose out on the extra metrics
that we will get in a suggestion type of
a system when Etsy identifies that Scott
is a big bass fishing fan they're now
going to start favoring even more than
they already do from a personalization
in the keyword driven search results
something that they think he would buy
based on his purchase history based on
his browse history based on his
interests right the things he's
signaling to Etsy he might be interested
in they're gonna start showing him more
of that before he ever gets to the
search bar the best way to take
advantage of that again because they're
not going to tell us exactly how to do
it is to make sure that everything we
have
is related and if we can do that then we
can put ourselves ahead of the ball and
when we start to do some of the optim
optimization stuff when they
theoretically give us a score on how to
improve our stuff which may or may not
ever come out of beta we're at least
ahead of the Curve
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