Step 4:
Shop Management
Congrats to have your Etsy shop running! It’s a big accomplishment and I am very proud of you! 

It’s time to tackle a few operational topics of running an Etsy shop, like shipping, reviews and customer service. 

We will also review and analyse different areas in your shop to make sure traffic coming in your shop will convert to sales.
Part 1
Impress With Customer Service

Good customer service can help you win sales and build long-term relationship with customers. Here are a few things to keep in mind:

  • Be Helpful - Most shoppers and customers reach out because they want their problems solved or questions answered. Keep this in mind when you reply to messages.
  • Reply in a Timely Manner - A lot of time when shoppers are trying to pick a shop to buy from, the shop that can answer their question the quickest will get the sale. This is because a responsive seller is seen as more trustworthy, therefore shoppers are more willing to buy. Also, replying within 24 hours after getting the message also contributes to being Star Seller.

I have written the Customer Message Swipe File where you'll find template replies to common customer service scenarios. I'd recommend setting up saved replies in your Etsy Messages to speed up your workflow.

Part 2
Shipping

If you are selling physical products, you would need to think about shipping, returns, refunds, exchange, and other issues.

How Much To Charge For Shipping

It depends on the products that you sell and what your competitors are doing.

If you sell a small size item that is not costly to ship or if most shop owners in your niche ship free, I would recommend to include the shipping cost in your product price. This way you can take advantage of the higher ranking in Etsy search (Since July 30th, 2019, Etsy gives priority in US search results if you ship for free to the United States for orders of US$35 or more)

However, if your item is more bulky, or if most of your competitors are not providing free shipping anyway, then charging an additional shipping fee would be ok.

Dealing With Shipping Issues

Returns can happen when the customer is not happy with the item or when they want to exchange for another item. It’s important for you to offer returns as an option because that is important way to make sure they have a good experience with their purchase.

If the return is not because of your fault, for example customers’ change of mind, then it’s normal to ask your customer to pay for the shipping fees. It could be a good idea to offer them the option for a discounted rate if they purchase an additional item from your shop.

However, if the item is damaged or the size is not correct, then usually Etsy sellers will pay for the shipping. If the item is not too expensive, it may even be a good idea to ship an additional one for free without asking the customer to ship back the original one.

Packages do get lost sometimes. That’s why it’s a good idea to include tracking for your orders if they are not prohibitively expensive. Insurance is a good idea for high priced listings.

For lost items, sellers would either resend a replacement at their own cost, or a refund would be given to the customer. Talk to the customers first and ask which option would they prefer.

Be sure to make it clear in your shop policy for these situations. And I've included these situations in the Customer Message Swipe File so that you can handle them more efficiently.

Part 3
Attracting positive reviews, and dealing with negative reviews

Reviews are extremely important on Etsy. In a competitive marketplace like Etsy, shoppers are much more likely to buy from shops with more positive reviews as they are an indicator of trust and reputation.

Here are a few ways to increase the chance of getting positive reviews:

  • Good quality products
  • Accurate product photography - Show the actual color, size, texture in your photo so that customers know what they are expecting and won’t be disappointed.
  • Reply to questions and concerns quickly
  • Include little touches to delight customers - Ideas include a handwritten thank you note or a small gift that's related to the main product.

Asking For Reviews

If time allows, it's a good idea to politely ask your customers for review. Here's the template I use and feel free to tweak it to fit your shop:

"Hello (name),
Thank you for your order! I really appreciate it!
If you like the (product), please consider leaving a review for my shop. It would help a small handmade business like mine so much. You can leave a review here:
www.etsy.com/your/purchases
Thank you again!
(Your name)"

Dealing With Negative Reviews

Bad reviews are inevitable for Etsy sellers. All sellers will encounter unreasonable customers at some point.

Before anything else, take a deep breath so you can handle this professionally without getting too emotional.

Remember don't reply to the negative review until you have tried everything, because replying to it will lock the review and the customer won't be able to change it even if they want to.

Some of the possible reasons for customer leaving bad review:

  • Faulty product
  • Didn’t meet expectation
  • Subpar service
  • Shipping problems
  • Simple misunderstandings

Here are the steps I use to communicate with unhappy customers and hope that they will change their minds:

  1. Let customer know you are willing to fix the situation
  2. Apologise - “I understand your review, and I’m sorry that the fit is not what you expected”, or “I’m sorry that the piece got damaged during shipping.”
  3. Empathise - "I understand how you feel", "I completely understand the frustration of ..."
  4. Offer options to fix the situation - A lot of times, bad review is just that customer's way of saying they want a fix. Be generous and clear with your offer, but know your bottom line. You should be able to offer discounts, resend of product, or even refund. But don’t get threatened to send customers 5 extra items that they did not order.
  5. Follow through with your promise - If customer says yes to your suggestion of the fix, then let them know clearly what to do and the time frame of when things will happen. E.g. “Thank you for letting me fix the situation. I’ll send you a new piece tomorrow.” or “I’ll send you a full refund right away. Thank you for your understanding and patience.”
  6. Follow up with customer - Be careful to not to ask for a positive review explicitly and violate the Etsy rules of review extortion. Instead, you can say something like: “As a small business, your satisfaction and feedback is very important. If after this (refund/replacement of product/discount), you feel more happier about your purchase, a revision of your feedback would be greatly appreciated.”

Again, copy my Customer Message Swipe File to streamline this process.