🎧 Listen to this blog post as a Podcast instead 

Feeling like your Etsy sales have dipped recently? You’re not imagining it and Etsy’s Q2 2025 earnings report confirms it.

In this episode, I break down exactly what’s going on behind the scenes at Etsy, why sales are down platform-wide, and what it means for you as a handmade business owner. We’ll talk about rising fees, buyer hesitation, and Etsy’s push toward AI and personalisation... all without the corporate waffle.

But more importantly, I’ll walk you through what to actually do about it. Whether you’re on Etsy, your own website, or both, you’ll leave this episode feeling calm, clear, and ready to take control of your strategy again.

✨ We cover:

• What Etsy’s report really reveals (and what most sellers miss)
• Why it’s not you - it’s the current buying climate
• 4 things you can do right now to strengthen your shop
• The truth about fees, platforms, and where to focus next

If you’re feeling a little lost or discouraged, this episode will help you zoom out, realign, and move forward with purpose. 💛

Etsy’s Latest Earnings: What It Really Means for Your Shop (And How to Respond)

Yep, sales are slower. No, it’s not just you. Here’s what’s actually going on and how to move forward without spiralling.

If you’ve been wondering “is it just me, or is Etsy really quiet right now?” - it’s not just you.

Etsy’s Q2 2025 earnings report just dropped, and I hopped straight on to the computer in seconds and I read it because I knew we needed to talk about this - without the financial waffle and definitely without the panic.

So if your views are down, your sales feel slower than this time last year, and you’re starting to question whether it’s you or your products… keep reading. This blog is going to walk you through exactly what Etsy said, what it actually means for handmade sellers like us, and how to respond without burning out, quitting Etsy, or suddenly feeling like you have to post on 14 platforms.

Let’s break it down.

📉 What Etsy’s Q2 2025 Results Actually Said

I won’t bore you with the full PDF, but here are the bits that matter:

1. Sales are down across the platform

Yep. Total buyer spend was 5% lower than last year. If your numbers have dipped - you’re not imagining it.

2. Etsy made more money anyway

How? They’ve increased seller fees (especially ad costs). That means Etsy is pocketing more per order, while sellers like us might be feeling the squeeze.

3. Buyer numbers are flat

They’re not getting loads of new shoppers in. And the ones who are shopping? Most are buying once and not returning. Repeat customer numbers are down.

4. They’re investing big in AI and personalisation

That means Etsy’s algorithm is changing how it shows listings to buyers - so if your photos, titles or tags are a bit outdated, now’s the time to freshen them up.

😰 What This Means (Without the Panic)

Let’s just say it how it is:

This feels wobbly.

Especially if your sales are your main income, or you were just starting to get some momentum.

But this isn’t new. It’s not the end. And you are not doing anything wrong.

Here’s what’s actually going on:

✦ Summer is always slower

I’ve been in this game over a decade, and this happens every summer. People are on holiday. School’s out. Spending habits shift. This is normal - even if it feels unnerving.

✦ Buyers are more hesitant

Post-pandemic, buyers aren’t impulse shopping like they used to. They need more trust, more connection, and more value before they click “buy now.”

That doesn’t mean they won’t buy - it just means our content needs to do more than look pretty. It needs to make them feel safe, seen, and ready.

✦ Higher fees mean tighter margins

You’re not imagining it. You might be making the same number of sales, but keeping less money. Now’s a good time to review your prices, test bundles, and make sure ads are only switched on for proven bestsellers.

✦ Jumping ship isn’t always the answer

Some sellers are panicking and saying “that’s it - I’m off Etsy.” And hey, you’ve got to do what feels right for you.

But here’s the thing: every platform comes with fees. Whether it’s Shopify, Amazon, your own website - you’ll either pay in money (ads) or time (content). Usually both. So don’t ditch Etsy just because the fees feel high… unless you’ve done the maths and have a clear plan.

💡 What to Do Right Now (Instead of Spiralling)

Here’s what I’m recommending to my students inside HBSA and RISE this month:

✅ 1. Refresh your top 10 listings

Don’t try to redo your entire shop. Just pick your top 10 listings and check:

– Is the first photo scroll-stopping?

– Is the title clear and searchable?

– Are the tags still relevant?

Small tweaks = big impact.

✅ 2. Simplify your strategy

You don’t need to be everywhere. Pick one or two channels that actually bring traffic or customers - and go all in there. That’s what I call your home hub.

If you’re not sure what that is, I’ve got a podcast episode that walks you through it (Episode 26 - give it a listen if you’re feeling pulled in too many directions).

✅ 3. Get personal with your buyers

Etsy says repeat purchases are getting rarer - so it’s time to build loyalty. Add a thank you card. Send a follow-up email. Offer a little incentive to come back. You’re not just a shop - you’re a brand. Make people want to stay connected.

✅ 4. Don’t put all your eggs in one platform

This doesn’t mean start 17 new things. But if Etsy is your only sales stream and you’re feeling nervous, maybe now’s the time to gently expand. Start that email list. Improve your socials. Explore Pinterest. Just do one thing at a time.

💬 My Final Thoughts

This season might feel tough, but you’re not behind. You’re not failing.

You’re in a transition phase and that’s where strong businesses are built.

The platform might change. The algorithm might update.

But you - your creativity, your care, your energy - are the constant.

And that’s what makes people buy from you.

So take a breath. Recalibrate. Tweak your strategy.

You don’t need to overhaul everything - you just need to move forward with intention.

You’ve got this 💛

Love Steph & Team HB xox

👋 Welcome everyone! My name is Steph, I've been running my handmade business full time on Etsy since 2016, and I'm here to help you! 

🧡 I'll help you to start an Etsy shop, Etsy ads, show you how to sell more on Etsy, get to grips with Etsy SEO, Etsy branding, Etsy product ideas, finding your target market, identifying your niche and many many more.

🛍️ If you have an Etsy shop or your own website selling handmade products, or want to start one, this is THE channel you need to be subscribed to!

💰 I help makers start, run and scale their handmade businesses. Turning them from an expensive hobby to profitable businesses making 4 and 5 figure months on Etsy and your own website.

✨ Join the HBSA waitlist

✨ Free resources: Want to make headway in your business but don't want to pay yet? You're in the right place! 

✨ Work with us for deeper transformative results

✨I go live most Mondays on YouTube and in my Facebook group for mini workshops to help you make more money from your handmade business! You can see our upcoming events here

That’s all for now! Be sure to subscribe and follow us on IG for announcements of new videos, workshops, content and more.