Etsy Funds 20% Coupons For Select Buyers

Liz Morton
Liz Morton


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Etsy is sending out 20% coupons to select buyers as holiday marketing ramps up.

Heads up: We’re sending Etsy-funded coupons to buyers again!
Hi all! Back in June, we let you know that we sent a select group of buyers an Etsy coupon for 20% off their next purchase to encourage them to come back and shop more on Etsy. This campaign was successful in bringing more buyers back to shop on Etsy, so we wanted to give you a heads up that we’re r…

Back in June, we let you know that we sent a select group of buyers an Etsy coupon for 20% off their next purchase to encourage them to come back and shop more on Etsy. This campaign was successful in bringing more buyers back to shop on Etsy, so we wanted to give you a heads up that we’re running another similar discount campaign next week.

A new group of buyers will receive an email with a 20% off coupon fully funded by Etsy that they can use towards their next purchase. The promo code will be unique to the buyer and will last for two days.

Etsy-funded discount strategies like these are one of the many ways we’re working to help bring you repeat buyers. Be on the lookout as we continue to build marketing opportunities and resources to help you grow your business.

As the announcement says, Etsy did the same thing back in June, offering a similar Etsy-funded 20% off coupon to a "targeted set of buyers" that was good for 2 days only.

I have to believe the timing of pumping out these discounts just days before the end of a quarter is likely not a coincidence and once again CEO Josh Silverman seems to be looking to his old employer, eBay, for inspiration.

Ex-eBay CEO Devin Wenig desperately threw eBay funded sitewide discount coupons out to buyers in 2018 at a rapid pace in what ended up being an expensive mis-step for the company.

Buyers became habituated to the couponing, so they actually bought less frequently as they sat around with items in their carts waiting for the next discount to drop and when they finally did buy, the discounts favored higher ticket items at lower return on investment (ROI) for eBay.

By Q1 2019, Wenig was forced to admit the massive discounting strategy didn't work and eBay reversed course. (emphasis mine)

As we mentioned last quarter, we entered the year with the intention to reduce low ROI marketing spend while maintaining the focus on driving positive buyer growth with new product experiences and targeted marketing. In Q1 that's exactly what we did. We removed the significant amount of promotional spend that tended to subsidize higher priced items at low ROI.


While the idea of having the marketplace fund coupons may seem attractive to sellers, there can be a downside to the practice as well, especially if done too often.

If you're an Etsy seller, what do you think of Etsy funded coupons for buyers? Would you rather see them direct that marketing spend toward ads or other strategies to bring more buyers to the site?

Let us know in the comments below!

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Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!


Recent Comments
Avatar PlaceholderNone such4 hours ago
Thank you for this very clear explanation. Yes, when extended to all countries this will basically kill off my desire to buy almost anything from abroad, and I have bought collectibles regularly from the UK and Europe. That will end. If other countries retaliate, this will also kill the remainder of my overseas sales. Those sales have been profitable for me. I use PirateShip Export Rate if it cannot be shipped in a letter or large envelope.
Avatar Placeholderbeagle69er7 hours ago
It sucks. It's taken away the ability for the seller to combine purchases on multiple items 'won' [in auctions] and to be able to only pass on the actual cost of postage, which as a courtesy I've always strived to do. I list at £2.70 postage per item BUT if anyone were to win more than one auction item, I'd post them together and only charge £2.70 for all items until the package weighs more than 750g, whereupon I'd go to the next stage of £3.39 for up to 5kg.
Under the new scheme all this is no longer possible. This week, a buyer 'won' 7 items in my auctions, and without any input from me whatsoever (Ebay have stripped me of the ability to invoice buyers now) they charged him £5.54 postage fees. This is just over 100% more than the £2.70 I'd have charged him. The £5.54 postage now gets paid directly to Ebay, so I'm unable to refund any part of it to my buyer. What really sticks in my craw, is that the 'free' [prepaid] label that Ebay send me, is identical to one that I could've previously purchased via Royal Mail for £2.70! So an easy £2.84 straight into Ebay's pocket (if not more, as I'm sure Ebay/Royal Mail agreement means that they get charged less than Joe Public!)
Also, they rely upon A.I. to calculate what they believe to be the weight/dimension of your items regardless, so I've had to take a risk and omit extra stiffening material (to avoid item getting bent) so to be within the 100g limit the label states.
Finally, today I received a panic message from the buyer asking if I'd made a typo on the tracking number (it's auto-generated by Ebay not me) for the label I've just printed and not yet sent out, The tracking number on the label Ebay have provided, when followed up on Royal Mail's site, relates to a completely different tracking reference for an item already sent (from Northern Ireland) and already successfully delivered back in October 2024! I thought Royal Mail tracking numbers would be 'unique' - but nothing surprises me any longer in the dystopian new Ebay world!
Avatar PlaceholderSeller542818 hours ago
Received a message via the Mercari app to verify credit card information. This was for a listing that was just listed. I did not do it. It had a link that I was to paste into my browser. How can I tell if this is a scam? I just started selling on this app so not sure how it all works