the two pricing mistakes
Most new sellers either price too low (competing on value when they should compete on quality) or too high without social proof to justify it. Here's how to land in the right range.
competitor research method
Search your exact product type on Etsy. Sort by "Most relevant." Look at the top 10 results and note:
- The price range of sellers with 50+ reviews
- The price range of sellers with 5+ reviews
- Whether the top sellers are higher or lower than the median
Price at the median of established sellers (50+ reviews). Under-pricing signals low quality, not accessibility.
the $1.99 trap
Extremely low prices on digital products (<$3) attract high return rates and low-quality buyers. They also make your shop look like a race to the bottom. A $2.99 product that gets 1 review often performs worse than a $12 product with the same traffic.
sale pricing strategy
Set your list price higher ($19.99) and run a perpetual 15–30% sale to $14.99 or $16.99. Etsy shows the original price crossed out, which increases perceived value. Use Etsy's "sale events" feature to automate this.
testing prices
After 30+ impressions with no sales, try dropping price by 25%. After 100+ views with no sales, the problem is likely your photos or title, not the price. Fix those first.