The problem
Shoppers favorite items and fill baskets, then wander off. If a maker could turn 8 of those into orders each month at $37£28€33A$54C$53 less a 10% discount, that's 8 x $33.52£25.20€29.99A$48.38C$47.38 = about $269£202€240A$388C$380 a month in sales that otherwise drift away.
What the AI does
Etsy's help page describes targeted offers: promo codes Etsy emails automatically to shoppers who have shown interest in your items. You set them under 'Send offers to interested buyers' on your Sales and discounts page, choosing from abandoned basket, favourited item, interested shopper and thank you offers. They go only to shoppers opted in to Etsy's marketing emails. An offer runs until you stop it or it expires; shoppers can use one targeted offer at a time, and if an item is on sale the highest discount applies. The same page shows orders with a discount, items sold and revenue from discounts.
A worked example
A maker of ceramic mugs in Bristol sets 10% targeted offers for favourited items and abandoned baskets, and expects about 8 extra orders a month.
Before
0 follow-ups when shoppers favorite an item or leave it in their basket
After
8 orders a month at $37£28€33A$54C$53 less 10% ($33.52£25.20€29.99A$48.38C$47.38) = about $269£202€240A$388C$380 in sales
What it's worth
About $108£81€96A$156C$152 a month in profit, at an assumed 40% margin on about $269£202€240A$388C$380 of discounted sales (8 x $33.52£25.20€29.99A$48.38C$47.38 x 0.4). The 8 extra orders is an assumption, not a promise, and some of them may have bought anyway. There's no fee for the offers; the discount comes off your price and Etsy's normal fees apply.
How to set it up
- Go to Sales and discounts in Shop Manager and find 'Send offers to interested buyers'.
- Set a discount you can afford after materials, fees and postage, such as 10%.
- Turn on favourited item and abandoned basket offers with an end date.
- Check the offer stats each month: orders with a discount and revenue from discounts.
- Stop or change the offer if most orders start arriving with a code.
What goes wrong
- Regular discounts teach buyers to favorite and wait; keep the discount modest and time-limited.
- You're responsible for following consumer protection rules on sales and discounts; don't show a 'was' price you never charged.
- Not every shopper receives offers, as some opt out of Etsy's marketing emails.
- If a listing is already on sale, only the highest discount applies, so overlapping offers won't stack.