Etsy introduced promoted listings on its Depop marketplace, which it acquired last year for $1.6 billion (primarily cash). The ads are called Boosted Listings, and sellers will pay 8% whenever any of their boosted listings sell.
Etsy has to show investors they will get a return on their $1.6 billion investment – so expect it to monetize Depop as it has with its own Etsy marketplace. (Etsy executives may address the new feature when it holds its 3rd quarter conference call with Wall Street analysts on November 2,)
An EcommerceBytes reader sent us the following email he received from Depop announcing the ad program on Tuesday of this week:
Get more eyes on your items with Boosted Listings. Now available on desktop, use Boosted Listings to reach more buyers and promote the pieces you’re selling.
Your listing will be highlighted with a boosted icon to make it stand out in search results. Head to Selling Hub > Boost Listings to try it out.
There are no upfront costs – you’ll only be charged the boosting fee if your item sells via a boosted tile in search. If it does, you’ll be charged an 8% boosting fee on the total transaction amount (including shipping costs), in addition to Depop selling fees and transaction fees. Try it now.
Depop invited some users to try out the feature over the summer. A seller who operates Loveless Vintage on Depop started using the feature in July and published a YouTube video of his experience using Boosted Listings on September 18.
As a beta tester, Loveless Vintage wasn’t charged fees as he tried the feature. At one point during the test, he “boosted” all 600 items in his shop. His conclusion: it didn’t do much for him. And, he thought the fee was high.
Loveless Vintage theorized that promoted listings might work better on eBay because it has an older customer base that is more interested in reliability, whereas he believed Depop’s younger base is looking for the cheapest item. He also noted that sellers can boost listings on eBay for under 8%.
The YouTube video was helpful in understanding how sellers feel about the new ads, and the comments under the video were also interesting to read. You can learn more about Depop Boosted Listings here.