Round Up Pricing Experiment

Overview

Etsy.com is currently running an experiment that allows sellers to round up their prices after a currency conversion, helping to make the converted prices more consistent and attractive to buyers. Sellers can opt in to this feature, and the prices for all of their listings will be rounded up after conversion into currencies that use decimals. (Prices in currencies that don’t use decimals, like Japanese Yen, will not be rounded.) The additional proceeds from sales of these rounded up items will go directly to sellers, less any applicable fees.

Why Round Your Prices?

Our analysis of sales data suggests what many sellers already believe: Certain prices, such as those that end in .00 or .99, seem to be more attractive to buyers than others. Many of our sellers already take that into consideration when they price their items in their shop currency, but they face a challenge when trying to make their prices similarly attractive in other currencies.

When a buyer’s preferred currency and a seller’s shop currency are not the same, the price set by the seller is converted based on foreign exchange rates. This can result in a converted price that may be less attractive to buyers than the original price. For example, the converted price of an item listed for 35.00 EUR (Euros) might be displayed to a buyer as 39.46 USD, making the converted price less attractive. An analysis of sales data showed that converted prices that happened to end in .00 or .99 were more likely to sell than converted prices that did not end with rounded numbers.*

Price Rounding Rules

Prices converted into a buyer’s currency will be rounded based on the unrounded price as described below. These rounding rules may change as we gather more information about buyer and seller response.

Unrounded prices from... Will be rounded up to...
0.00-9.99 Not rounded
10.00-99.99 Round to the next .10*
100.00-999.99 Round to the next .00**
1,000.00 - 9,999.99 Round to the next 10.00***
10,000 + Round to the next 10.00****

 

Exceptions

 

No rounding when the converted price already ends in .00.

*When the converted price ends in .90-.99, it is rounded to .99

**When the converted price is XX9.XX it is rounded to XX9.99

***When the converted price ends in X,999.XX it is rounded to X,999.99

****When the converted price is XX,999.XX it is rounded to XX,999.99

Tips for Sellers

  • During the experiment, prices from participating sellers will be rounded up for 50% of the buyers viewing the seller’s listings.
  • You can view your listings in other currencies by changing your region settings.
  • You can opt out and back in to this feature via Shop Manager.
  • Digital item prices will not be rounded as part of this experiment.
  • Participating sellers are required to comply with all laws and regulations that apply to pricing their items.

*Based on an analysis of listings sales data from 486,176 sellers who did not use USD as their shop currency and whose prices were converted for US buyers checking out in USD between August 2018 and August 2020.

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