How Etsy’s Algorithm Works and How to Rank Higher

The Etsy algorithm can feel like a mystery, but it's actually a sophisticated system designed to do one thing: connect buyers with the products they are most likely to purchase. Understanding how it works is the key to unlocking more visibility, traffic, and sales for your shop.
This guide will break down the Etsy algorithm in simple terms and give you actionable tips to rank higher.
The Two Main Phases of Etsy Search
Etsy search works in two stages:
- Query Matching: First, the algorithm scans all listings to find those that are a potential match for the buyer's search term. It looks at your titles, tags, categories, and attributes. This is the "relevance" part of the equation.
- Ranking: Once it has a pool of relevant listings, the algorithm ranks them based on a variety of factors to determine their placement in the search results.
Your goal is to optimize for both phases: first by being relevant, and second by signaling to Etsy that your listing is high quality and likely to result in a sale.
Key Factors That Influence Your Ranking
1. Relevance: Keywords Are King
This is the most important factor. If your listing isn't relevant to the search query, it won't even be considered for ranking.
- How it works: Etsy matches the buyer's search terms with the keywords in your titles, tags, categories, and attributes.
- Seller Tip: Use a tool like Rankista's Keyword Tool to find the exact phrases buyers are using. Place the most important keywords at the beginning of your title and use all 13 tags with specific, multi-word phrases.
2. Listing Quality Score (Conversion Rate)
Etsy wants to show listings that sell. The "listing quality score" is an internal metric that reflects how likely a shopper is to purchase your item.
- How it works: This score is heavily influenced by your conversion rate—the percentage of people who view your listing and then make a purchase. Great photos, positive reviews, and competitive pricing all contribute.
- Seller Tip: Invest in high-quality photography. Your main photo needs to be scroll-stopping. Encourage reviews by providing an excellent product and customer service.
3. Recency
The algorithm gives a small, temporary boost to new and recently renewed or edited listings.
- How it works: This helps Etsy learn about a new listing's performance and gives new products a chance to be seen.
- Seller Tip: Instead of constantly paying to renew listings, make small, meaningful updates. You can swap out a photo, update a tag with a new keyword, or tweak your description. This signals to Etsy that you are actively managing your shop.
4. Customer and Market Experience Score
This score is based on your shop's overall performance and reputation.
- How it works: It looks at your customer service history, whether you have positive reviews, a completed About section, and clear shop policies. A shop that appears trustworthy and professional will rank better.
- Seller Tip: Fill out every section of your shop. Respond to messages promptly and professionally. Ensure your return and shipping policies are clear and fair.
5. Shipping Price
Buyers love affordable (or free) shipping. Etsy knows this and gives preference to listings with lower shipping costs.
- How it works: Etsy's data shows that shoppers are more likely to purchase items with free shipping.
- Seller Tip: If you can, offer free shipping by incorporating the shipping cost into your item's price. If not, use calculated shipping to ensure the price is fair and accurate for the buyer's location.
Common Etsy Algorithm Myths to Avoid
- Myth #1: You need to renew your listings daily.
- Truth: While recency helps, constantly renewing provides diminishing returns and costs money. Focus on quality improvements instead.
- Myth #2: Favoriting your own items or having friends do it will boost your rank.
- Truth: This has no impact on your search ranking. The algorithm looks for genuine engagement that leads to sales.
- Myth #3: Using ALL CAPS in your title helps you get seen.
- Truth: This can actually hurt you. It looks unprofessional and can be harder to read, potentially lowering your conversion rate.
By focusing on these core principles—relevance, quality, and customer experience—you can work with the Etsy algorithm, not against it, to steadily climb the search rankings and grow your shop.