tracking etsy order on laptop

So, you’ve just launched your dazzling Etsy shop and stocked it to the brim with your creative masterpieces. But how do you keep track of all the orders once they start rolling in? Etsy order management might appear overwhelming, but understanding how to do so effectively is vital to the success of your Etsy store.

Order management encompasses inventory management, effective customer communication, and order tracking. As your store grows, you may even want to think about tagging a 3PL for help with these processes. This article aims to unpack the components of Etsy order management, including a comparison of doing this process yourself or using a 3PL for your order management and tracking, offering expert advice and practical tips to manage your Etsy orders efficiently and effectively.

Importance of Etsy Order Management

etsy on laptop screen

Effective Etsy order management involves juggling multiple tasks, including processing orders, organizing inventories, tracking shipments, and communicating with customers. It serves as the backbone of your operations, facilitating the smooth transition from order placement to delivery.

Having a clear system for managing orders acts as a safety net, preventing mishaps such as late dispatches, out-of-stock items, and miscommunications with customers. 

Benefits of Efficient Order Management and Tracking

 Minimizes Risk of Errors: Efficient order tracking reduces the risk of order discrepancies and delivery errors.

Saves Time and Resources: By minimizing mistakes, it reduces the time and resources spent on fixing these issues.

Aids Future Predictions: The efficiency of the order management system directly impacts the profitability of your store. With effective tracking, you can make more accurate predictions for future orders.

Helps in Resource Planning: It enables effective resource planning based on predicted sales and inventory needs.

Empowers Customers: The system provides customers with real-time visibility into their orders, enhancing transparency from order placement to delivery and fostering customer trust and loyalty.

The efficiency of your order management system directly impacts your store’s profitability. It’s not enough to attract customers; you must also deliver an outstanding shopping experience from start to finish.

Want to Simplify your Etsy Order Management?

How to Customize Etsy Order Statuses

Etsy Shop Manager Order Status

An essential part of managing your Etsy orders involves understanding and customizing your order statuses. This allows you to keep track of which orders still need to be made, packed, or shipped. Etsy provides default statuses to track the progress of an order, but the ability to create custom statuses allows for even better control over your unique processes. Let’s delve into these in detail.

Explanation of Etsy Shop Manager’s Default Order Statuses

Etsy provides a basic set of default order statuses to track the lifecycle of an order. These include:

New: The order has just been placed.

In progress: The order is being prepared for shipping.

Completed: The order has been shipped.

These statuses provide a rudimentary roadmap for tracking each order.

How to Create and Use Etsy’s Custom Statuses

Etsy allows you to add custom statuses to better represent your unique order processes. Follow these steps to create and implement them:

Log in to your Etsy store admin.

Navigate to “Orders & Deliveries“.

Click the pencil icon to edit your current statuses.

Choose “Add a new step” to insert a new status.

Arrange the statuses in your preferred order.

Save changes to confirm the updates.

Examples of Custom Statuses and Their Relevance to Order Processes

Custom statuses reflect specific steps in your unique order fulfillment process. Here are some examples:

“In design” – The item is in the pre-production stage.

“Delayed” – The order is delayed due to material shortage or other issues.

“In production” – The items are currently being manufactured.

“Pre-delivery” – The items are being prepared for shipment.

Remember, these custom statuses are not visible to the customer. However, they provide you with a better overview of your order processes and help identify any bottlenecks or issues.

Looking for more information about Etsy Order Fulfillment?  

Check out our ultimate guide to Etsy Order Fulfillment! Learn more about managing your Etsy Orders, Shipping, Packaging, and best practices when choosing a 3PL for your Etsy Order Fulfillment.

Introduction to Etsy Seller Order Tracking


The Importance of Order Tracking

Order tracking is crucial for providing a positive customer experience. It reduces customer anxiety about when and if their purchase will arrive, decreases the number of queries you receive about order statuses, and ultimately strengthens your shop’s reputation.

How to Implement Order Tracking

Implementing order tracking can be straightforward. Once an order is placed and paid for, mark it as ‘In progress’ immediately. When shipping the item, update the status to ‘Shipped’ and provide the tracking number. Regularly check the courier’s website and update the status as the order progresses through the shipping process.

As an Etsy seller, you might also opt for a less automated, more personalized touch. Although more time consuming, messaging customers directly about their order’s status can also be a way to build customer relationships. Doing this keeps a form of open communication between you and a customer and can be a differentiator for you and your Etsy Shop.

Customer’s Expectations of Order Tracking

In the fast-paced world of online shopping, customers expect complete visibility into their order’s status from the moment they click ‘buy’ until the product arrives at their doorstep. Providing timely and accurate order tracking information helps meet these expectations, enhance the customer experience, and build customer loyalty.

Effective and transparent order tracking can also boost your shop’s reputation, contributing to positive reviews and higher ratings. Remember, customer satisfaction is key on Etsy. The more organized your tracking system, the happier your customers will be.

Tools for DIY Etsy Order Tracking


Several tools can assist in streamlining your DIY order tracking system on Etsy:

Etsy Shop Manager:

This in-built tool allows you to manage all aspects of your business, including order tracking. It enables you to see all your orders, their status, and update them as needed.

etsy shipping labels

Order Auto-Updating Feature:

Etsy offers an Order Auto-Updating feature that automatically updates your orders’ status when you purchase shipping labels directly from Etsy. If you’re shipping with a different courier, remember to manually input the tracking number for real-time updates.

While DIY order tracking can be manageable for smaller operations, it can become overwhelming as your shop grows. Consider transitioning to a third-party logistics provider (3PL) for a more efficient order tracking system.

Challenges of DIY Order Tracking

DIY order tracking for your Etsy shop, although beneficial, can present a set of unique hurdles. As your store scales up, you might find yourself grappling with the following challenges:

Time Commitment:

DIY order tracking is a hands-on process that requires continuous attention and updating. This process can eat up a sizeable chunk of your time, which could have been otherwise utilized to boost other dimensions of your business.

Potential for Human Error:

When you’re tracking orders manually, there’s always room for human error. Misplaced digits, incorrect status updates, or the simple overlooking of a crucial detail could lead to hiccups in your operations, potentially sparking customer dissatisfaction.

Scalability Issues:

As your Etsy shop flourishes and the volume of orders swells, the DIY approach might struggle to keep up. You could find yourself overwhelmed by the sheer volume of order data, prompting you to consider the switch to a Third-Party Logistics (3PL) provider.

Using a 3PL for Etsy Order Management and Tracking


A 3PL (third-party logistics) provider can be a game-changer as your shop expands.

The Role of 3PL in Order Tracking

A 3PL manages all or part of your shop’s logistics, including order tracking. Their role is to provide a comprehensive, automated system that handles all your order tracking needs. A reliable 3PL will have a robust system that can manage large volumes of orders, provide real-time tracking updates, and integrate directly with your Etsy shop for seamless operations.

Choosing a Suitable 3PL:

When selecting a 3PL, consider factors such as their integration capabilities with Etsy, the technology they use for order tracking, their reputation, and their cost structure. A reputable 3PL should offer a transparent tracking system, constant communication about order statuses, and ensure that both you and your customers are kept informed.

Comparing DIY and 3PL for Order Tracking

Choosing between DIY and 3PL order tracking depends on the size and needs of your Etsy shop. Both options have their strengths and weaknesses.

DIY Order Tracking:


Control: You have complete control over every aspect of the order tracking process, from the packaging to the tracking information. This can be beneficial if you want to add personal touches or if your products require specific handling. Although, some 3PL’s also have this capability.

Cost-effective: for small businesses with very low order volumes.


– Time-Consuming: Managing every aspect of order tracking requires a significant amount of time. This includes packaging orders, creating shipping labels, dealing with couriers, and handling customer queries about their shipments.

Error-Prone: Handling order tracking manually increases the risk of errors, like incorrect shipping labels or lost packages, which can lead to customer dissatisfaction.

Scalability Issues: As your order volume increases, it may become challenging to handle all order tracking by yourself. This can limit the growth potential of your Etsy shop.

3PL Order Tracking:


Efficiency: A 3PL provider has systems in place to handle order tracking efficiently. This can free up your time to focus on other aspects of your business, like product development or marketing.

Customer satisfaction: 3PL providers typically have more reliable tracking systems and better relations with shipping companies. This can lead to more accurate tracking information and faster delivery times, enhancing customer satisfaction.

Scalability: As your business grows, a 3PL provider can easily handle an increase in order volume. This allows your Etsy shop to scale smoothly without the logistical challenges of DIY order tracking.


Cost: May not make sense for shops with very low order volumes.

Integration challenges: Not all 3PL’s offer an Etsy integration or specialize in Etsy fulfillment. It is important to do your research and find a 3PL that has worked with Etsy’s sellers and understands their unique challenges.

Ultimately, selecting the right option depends on your specific circumstances and overall business requirements.

Ready to Make the Switch to a 3PL?

Key Take Aways

Etsy Shop Dashboard: This is the centralized hub for managing your listings, orders, and customers, tracking your store’s performance, and gaining valuable insights to boost your business. Key features include tracking visits, sales, revenue, and inventory levels.

Order Management Systems: Etsy’s Shop Manager system provides details like customer information, order specifics, payment status, and shipping details, and also enables you to update order statuses, create shipping labels, and communicate with customers. Consider multi-channel management integration through a 3PL if selling across multiple platforms.

Customizing Order Statuses: Etsy allows the creation of custom statuses beyond the default (New, In progress, Completed) to better represent unique order processes.

Order Tracking: An essential feature that improves customer experience by providing them with real-time visibility into their orders. Several tools, like Etsy Shop Manager and the Order Auto-Updating Feature, can assist with DIY order tracking. However, as your business grows, you may need to consider a 3PL provider.

DIY vs. 3PL for Order Tracking: DIY gives you control and is cost-effective for very small businesses, but it can be time-consuming and error-prone. On the other hand, 3PL provides efficiency, better customer satisfaction, and scalability, and some 3PLs even specialize in Etsy fulfillment and order management.