Full transcript
0:00There is one setting that you can go in
0:01and change in your Etsy shop right now
0:03to instantly make 30 to 40% more profit
0:06than the competition. For those of you
0:09who don't know me, my name is Stephen
0:10Shin. I am the founder of Holoc Custom,
0:12where prior to launching Holoc Custom, I
0:14grew my personal Etsy business to over
0:16$3 million revenue and hundreds of
0:19thousands of products sold. where this
0:22one super simple strategy that you can
0:24go do in five minutes after watching
0:25this video netted us an extra $200,000
0:29profit for our business. So, the reason
0:32why we were able to scale our personal
0:34Etsy business to one of the top stores
0:36in the world was because we were
0:38constantly testing and we tested
0:40everything. We kept what worked. We
0:42stopped what didn't work. And over time,
0:44we created a unique system that no one
0:47was doing that allowed us to scale every
0:49single product that we launched to six
0:51and seven figures without fail. I
0:53actually revealed these unique
0:54strategies that we developed, that we
0:56battle tested, and we proved to work in
0:59our free Etsy print on demand course.
1:01I'll put a link in the description below
1:02where you can access our Etsy course and
1:04community 100% for free. So, you're
1:08probably thinking the only way that you
1:10can make 30 to 40% more profit than the
1:12competition is to simply raise your
1:14prices 30 to 40%. And and that's close.
1:18But the thing with selling on a third
1:19party marketplace like Etsy and Amazon
1:22is that your customer gets to see your
1:24competitor's products and their prices
1:26all around you, which makes it really
1:28hard to charge more than the average
1:30that that product type sells for on that
1:32marketplace. And what we found is that
1:34if we price our product above that
1:36average, yes, we make more profit per
1:38sale, but sales velocity goes down
1:41because less people are willing to pay
1:42that price point. And if we price our
1:44product below that average, yes, we make
1:46less profit per sale, but sales velocity
1:49goes up, which leads to higher organic
1:51rank, which leads to even more sales.
1:54So, there's pros and cons to both, but
1:56remember, we tested everything. I wanted
1:58to know if there was a way for us to
1:59take advantage of both the higher
2:01profits and the higher sales. And we
2:04were actually able to accomplish this
2:05through a strategic pricing method that
2:08I'm going to show you in this video. So,
2:10let me ask you, out of these two
2:12products, which one would you buy?
2:16In the end, they're both still $25. So,
2:19what we found was that charging shipping
2:20didn't affect our conversion rate, but a
2:23lot more customers clicked into our
2:24listings when we did charge shipping
2:26because that front-end price appeared
2:28lower and cheaper than the competition.
2:31And with more customers clicking into
2:33our listing at that constant conversion
2:35rate, we naturally made more sales. And
2:37I really wanted to see how far we could
2:38test this because how much should we be
2:40charging for shipping? We tested $3.99,
2:44$4.99, 5.99, $6.99. And what we found
2:47was that we were able to mark up our
2:49shipping a couple dollars more than what
2:51we were paying for shipping. And again,
2:53it did not hurt our conversion rate. We
2:56were just making more profit per sale.
2:58And this indirectly allowed us to raise
3:00our prices above the competition, above
3:03that average, and not have it hurt our
3:05sales because we raised our prices on
3:07the back end. And the reason why this
3:09works is because when that customer
3:11clicks into our listing, they don't know
3:12our shipping price compared to the
3:14competition. And by the time that they
3:16see our shipping price, they have
3:18already chosen our product. They've
3:19selected our variations. They've entered
3:21in their personalization information,
3:23added the product to cart. It would be
3:25way too painful to start over, shop
3:28around to potentially save $2. So, we
3:31rolled this out across our entire shop,
3:33was making more profit without the
3:35competition knowing about it, and it
3:36made us an extra $200,000 profit over
3:40our lifetime sales. So, I'm now going to
3:42show you how you can implement this
3:43strategy in your store in under five
3:46minutes. So, if we sign into our Etsy
3:48account right here, let's go over to the
3:50left, click on to settings, click on to
3:52shipping settings, and then that'll take
3:54you to your shipping settings page. And
3:56we're going to create a new shipping
3:58profile. If you scroll down and click on
4:00to create profile, that'll give you this
4:02popup where for the shipping price, we
4:05can choose between calculated or a
4:08manual fixed price. Etsy did make an
4:10update in October of last year that if
4:12you do a fixed price and have it be
4:14above $5.99, it can suppress that
4:17listing in rank. And again, we tested
4:19$3.99, $4.99, 5.99, $6.99. And we really
4:24want that shipping price to be closer to
4:26$6.99. So, we have to go above the 599
4:29for this strategy to work, which means
4:32we're not going to do the fixed price.
4:34We are going to do the calculated price
4:35right here. and we were able to kind of
4:38game the system to have the shipping
4:40price be closer to that $6.99 price
4:43point. So again, for the shipping price,
4:45have it be calculated for the origin zip
4:48code, paste in the zip code for your
4:50production partner. In this case, I'm
4:52just going to go ahead and paste in the
4:53zip code for inner circle print. Scroll
4:55down for the countries that we're going
4:58to ship to. Personally, I've only ever
5:00sold uh to North America, so I always
5:02have this one right here selected.
5:04Scroll down. In terms of the naming
5:06profile, I typically name the shipping
5:08profile what the product is. So if this
5:11is going to be the shipping profile for
5:12my ornaments, I would name this
5:14ornaments. Or if this was going to be
5:15for our dog collars, I would name this
5:17dog collars. For example,
5:23dog collars calculated and click on to
5:26save profile. All right, perfect. So,
5:29the next thing that we have to do for
5:30this strategy to work is scroll to the
5:32top, click on to rates and upgrades, and
5:36then just make sure that the Etsy
5:38shipping label rates is selected. By
5:40default, it might be the post office
5:42retail rates. When this one is selected,
5:44the calculated is a little bit too
5:46expensive. So, we want to make sure that
5:48we have the Etsy shipping label rates
5:49selected for this strategy to work. Now,
5:52we're going to go into one of our Etsy
5:53listings where again, the dog collar is
5:56going to be the product type in this
5:57example. So, I'm going to click into one
5:58of my dog collar listings right here.
6:00Scroll down to the bottom of your
6:02listing until you get to the part where
6:04it has the item weight and the package
6:07size. I'm also going to expand the
6:10preview shipping cost right here where
6:12we're able to plug in any weight and
6:14size we want right here for Etsy to
6:17calculate the shipping on what it is
6:19going to charge our customer for the
6:21shipping. So, we're able to plug in any
6:23information we want right here because
6:24your production partner, Innercircle
6:26Prints, for example, is not buying
6:29shipping from Etsy. They're not using
6:31this information to bill you. They're
6:33not using this information to, you know,
6:35use this information to send the package
6:36to your customer. We're able to almost
6:38game Etsy system to plug in what we want
6:41right here to charge what we want
6:44because we have to go the calculated
6:46route in order to charge more than $5.99
6:49and not get suppressed. So, right now it
6:51shows going from the west coast all the
6:53way over to the east coast, $5.15.
6:56We want to get that closer to that $6.99
6:59price point. Again, we tested the 3.99,
7:01the four, the five, the six, the $6.99,
7:04and we were able to charge all the way
7:05up to $6.99, not have it hurt our
7:08conversion rate, just make more profit
7:10per sale. So, I want to get this closer
7:12to a blended $6.99 average. So by 15, if
7:17I increase our weight from 4 oz to 10
7:20oz, that brings us closer to 637. Let's
7:24go ahead and change this from 10 to 13
7:27oz. Now we are at $747.
7:31Again, that is the West Coast all the
7:33way over to the East Coast. You can
7:34change the city right here cuz depending
7:36on how far it goes, the price will
7:38change. So the blended should be closer
7:41to that $6.99. So, let's go over to
7:44Chicago. 7.45.
7:46Los Angeles 659. So, 660 all the way up
7:50to 750. Blended is really close to that
7:53$6.99 price point. And again, we're able
7:56to now make an extra dollar profit going
7:59this route versus the 599 route uh fixed
8:03price. And again, we tested this across
8:05hundreds of thousands of sales. It does
8:08not hurt your conversion rate. we just
8:10make an extra dollar profit going this
8:12route. So on this listing we're going to
8:14do 13 oz 9x6 by 1 to get our calculated
8:19blended around that $6.99
8:22price point. So I'm going to go ahead
8:24and save this right here. Go back over
8:26to our listing page right here. And now
8:28we have to update that weight across all
8:31of our dog collars. So the easiest way
8:33to do this is to search for the search
8:36term for that product like ornament for
8:38example or in this case collar. That way
8:40it only shows this product type. You can
8:42go to the top right click on to quick
8:44edit. And this is where you are able to
8:46make some quick edits on the listing.
8:48And one of those is the weight and the
8:50size right here. So in this case I'm
8:52going to change this to 14 oz. I think
8:55it was 13 ounces.
8:58I'm going to copy this. And then you can
8:59just go down the listing and then just
9:01paste these in.
9:04It only takes a couple seconds per
9:06listing.
9:08I'm going to only do it for the first
9:10handful,
9:11but you would go through this across all
9:13of your listings. That way, your all of
9:14your listings have this correct weight
9:16and size for the calculated to be again
9:19that blended $6.99. So, once you have
9:22the weight and the dimensions updated,
9:24we now need to apply our shipping
9:26profile to these products. So again, I
9:28recommend searching for something. That
9:30way, only that product type shows up. In
9:32this case, my dog collar. That way, I
9:34can click onto this right here, and it
9:36will select 40 of my dog collars. Click
9:39on to editing options. Go down to change
9:42shipping profiles, click on to select
9:45profile, and then click on to that
9:47profile that we created. In this case,
9:49it is dog collars. And click on to
9:51apply. That will then update these 40
9:54listings right here. If you have more
9:55than 40 listings, you can go down to
9:57page two,
10:00scroll back up, select these 40, editing
10:04options, change it shipping profiles,
10:07select profile, dog collars, and apply.
10:10So again, you have to update all of the
10:12listings for this to take into effect,
10:14but it does go quick with these quick
10:16edits right here and the bulk options
10:19right here. And just like that, you're
10:21gonna make 30 to 40% more profit than
10:24the competition.