← Etsy profit calculator

Is Etsy Ads worth it?

Sellers search for “is Etsy Ads worth it” because a 12% ACOS looks cheap next to a $30 sale. ACOS is spend divided by attributed sales — $4.20 on a $35 order. That cash leaves whether or not the buyer would have found you anyway. Offsite Ads is a different fee: a percentage Etsy takes when it sends the buyer.

Open the Etsy profit calculator, keep your shop fees, and type the ACOS from Ads Manager. Monthly spend is the same figure as the Plus table. The table below uses the calculator defaults: $30 item, $5.00 shipping charged, 6.5% transaction, 3% + $0.25 payment, $6.00 postage, $4.00 materials, 12% ACOS, $5.00 monthly Ads spend.

A 12% ACOS still leaves $17.03 on an extra order

The organic sale keeps $21.23. The advertised sale keeps $17.03 after a $4.20 Ads cost — $4.20 less (−$4.20). An extra advertised order still pays until ACOS reaches about 60.64%. A $5.00 monthly budget at this ACOS buys about 1.19 advertised orders and keeps $20.27 if they are incremental.

PathAds on this orderFeesKept
Organic sale$0.00$3.78$21.23
Advertised sale$4.20$3.78$17.03

A 70% ACOS loses money even as extra demand

Raise ACOS to 70% on the same order and Ads cost $24.50. The advertised sale keeps $-3.27 (−$3.27) even if the click is extra demand you would not have sold otherwise. The ceiling stays 60.64% — that is leftover profit divided by order revenue, not a fee Etsy publishes.

Offsite Ads lower the ACOS you can still carry

Turn on 15% Offsite Ads and keep the 12% ACOS. Organic keep falls to $15.98. Advertised keep falls to $11.78 after the same $4.20 click. The ACOS ceiling drops to about 45.64%. Offsite Ads and Etsy Ads stack; they are not substitutes.

If they would have bought anyway

That is a cannibalized sale. On the 12% example Ads cost you $4.20 versus the organic $21.23. Take the click when it is extra demand and the advertised path still leaves a profit.

Rates change. This page does not publish Etsy’s live Ads CPC or Offsite Ads schedule. Enter the ACOS and fees from your last statement and Ads Manager.

Common questions

Is Etsy Ads worth it?

On the worked example — a $30 listing, $5 shipping charged, 6.5% transaction plus 3%+$0.25 payment, $6 postage, $4 materials, and a 12% ACOS — the organic sale keeps $21.23. The advertised sale keeps $17.03 after a $4.20 Ads cost. An extra advertised order still pays until ACOS reaches about 60.64%. A $5.00 monthly budget at 12% ACOS buys about 1.19 advertised orders and keeps $20.27 if they are incremental.

Are Etsy Ads the same as Offsite Ads?

No. On-site Etsy Ads is a click you buy; ACOS is spend divided by attributed sales. Offsite Ads is a percentage Etsy takes when it sends the buyer from Google or social. Enter both. Raising Offsite Ads to 15% on the same 12% ACOS drops organic keep to $15.98, advertised keep to $11.78, and the ACOS ceiling to about 45.64%.

What if the Ads click would have bought anyway?

That is a cannibalized sale. On the 12% example Ads cost you $4.20 versus the organic $21.23. Take the click when it is extra demand and the advertised path still leaves a profit. A 70% ACOS on the same order costs $24.50 and loses $3.27 even if the click is extra demand.