Increasing Profit by Raising Prices – A Practical Testing Guide for Unique and Handmade Products on Shopify and Etsy

Why Raising Prices Can Be Your Best Profit Lever

Raising prices is one of the fastest, easiest, and most effective ways to increase profit — especially for sellers offering unique or handmade products on platforms like Shopify and Etsy.

When done right, even small price increases can lift margins without hurting sales. But when done carelessly, they can drive customers away — especially if you underestimate the influence of alternative products buyers might compare you to.

This article walks you through a practical, low-risk method for testing price increases in small steps, even if your products have no direct competitors or market benchmarks.

1. When Not to Raise Prices

Avoid testing price increases on:

🔴 Products with zero sales — no baseline means no way to assess impact.

🔴 Poor performers — low sales may worsen if price rises.

🔴 Basket openers — first items added to cart; raising their price may reduce conversions or basket size.

✅ Focus on:

• Mid- to high-performing products,

• Items not added first to cart,

• Products that are not directly comparable to others in the market (e.g., custom-made, niche designs).

👉 On Shopify, use tags and collections. On Etsy, use Shop Stats to track add-to-cart behavior and sales volume.

2. What Does “No Competitor Pricing” Really Mean?

Selling unique or handmade products often means you’re not competing on identical SKUs. But that doesn’t mean you’re not being compared.

You’re likely competing with substitute products — those that fill a similar function, aesthetic, or emotional appeal.

Examples:

• A handcrafted leather phone case → Compared to high-end factory-made cases on Amazon or luxury brands.

• A minimalist wall print → Compared to mass-market framed posters on Society6 or Wayfair.

These comparisons are hard to predict or track — but they influence how customers perceive your pricing.

👉 That’s why even when you don’t know your competitor’s prices, you need to assume substitutes exist — and test your prices carefully.

3. How to Safely Test Price Increases (The Small Steps Method)

The safest way to increase prices — without hurting profitability — is to take small steps and monitor results.

Step-by-step approach:

1. Pick 5–10 products with solid sales volume.

2. Raise price by ~1% (e.g., $100 → $101).

3. Monitor for 1 week or longer depending on sales cycle.

4. Track key metrics: sales volume, margin, total profit.

5. If margin and profit improve and volume holds → raise again.

6. Stop if you hit any of the following:

   • Sales volume drops sharply

   • Total profit declines

   • You reach a margin target (e.g., +3%)

   
   

💡 Fast sellers: test every 3–4 days

💡 Slow movers: test over 2–4 weeks

Practical Tips for Increasing Profit by Raising Prices

✅ Start with small groups and limited changes

✅ Define success/failure (e.g., -10% units sold = stop)

✅ Communicate your product’s value clearly

✅ Document what worked (or didn’t) for future decisions

✅ Always assume buyers are comparing you to alternatives, even if you don’t see them

Conclusion

Raising prices is a high-impact way to increase profit — especially when you sell unique or handmade products.

But without clear market references, your safest move is to:

• Take small, measurable steps

• Focus on margin, not just sales volume

• Respect the influence of perceived competition

You don’t need to guess your product’s price ceiling. You can test it — and grow your business with confidence.