How Etsy has Built Its Market Value? – Complete Details

Etsy is the best online marketplace which allows people to sell high quality handcrafted and vintage items around the globe. It was launched in 2005 by Robert Kalin, Jared Tarbell, Haim Schoppik and Chris Maguire.

The objective of building Etsy was to create the identification of artisans and their talent across the world. Using this platform, even a small artisan is able to show his talent to the world in the form of handcrafted items and earn money for his work. It also allows vintage items to be listed on its portal for example if you bought a dress last season but never worn, then you can list your dress for sale.

Etsy has developed its business model such that it concerns about its sellers as much as customers. Let’s have a look at facilities provided to seller & buyer:

• Free Registration: Sellers and buyers both can register for free.
• Individual Seller and customer account: Seller and buyer have the different account and will be provided with different functionality.
• E-commerce store for sellers: After seller registration, an individual store is created automatically for a seller. Thus seller is able to manage his products in a store. Seller is provided with all functionality to be needed by him.
• Unlimited category listing: There is no restriction over categories. The seller can add his own category according to the product. Users are allowed to create as many categories over the portal.
• Seller Education: Etsy provides the tutorial to their seller in which they are told about how to manage their accounts, how to make their work qualitative. They also teach them how to click good photos. So that the thing which looks good is then quality checked by curators and then approved for sale.
• Secure payment and transaction: Seller and buyer need not worry about transaction and payment. It has implemented a secure and robust method for money transaction.
• Buyer/seller forum: It gives a discussion forum for buyer and seller where they can have the conversation about the product and related concerns.
• Multi-language: Etsy portal is available in popular languages that make easy for regional people to understand the content and helps in encouraging them to sell or buy products.
• Multi-currency: It also supports various popular currencies in the world which makes comfortable to do business in regional currency.
• Mobile Apps: Etsy has launched the mobile app for sellers and buyers individually for iPhone, iPad and Android phones. It created a boost in the business and registered sellers are now able to manage their store through their mobile phones. Using mobile apps, a customer can explore items and make shopping from the phone. Users are also able to connect to the members of Etsy community.

This much independence to sellers cannot be seen in any other marketplace website. This led Etsy to a successful height today and now bankrolling in billions. Let’s see the market of Etsy and revenue generated.

Here is the total annual merchandise sales report of Etsy from the year 2005-2013.

Here we can see, although, in 2007, sales slightly fall down but after that total annual sale had grown exponentially. It explains quality product and services provided to its customers. Now let’s know how much revenue Etsy generated for years 2008-2013 in million US dollars.

It is the monthly revenue generated by Etsy from the year 2008-2013. In the above table, we can see that every month, revenue has increased only and sales revenue growth is exponential.

Behind the success of any big organization, employees play an important role. As of January, Etsy has 496 employees across the world and they find themselves happy working at Etsy. This fact was found out by Etsy by making a survey using third-party. There were 85% of the employees responded out of which 80% employees responded positively. So a company whose employees are satisfied and happy, how can it be stopped to grow?

Etsy not only concerns with its business but also committed to ecological responsibility. In regard of this, Etsy has tried to reduce their electricity usage which was fallen by 19% in 2013 comparing to 2012. Also, Etsy reduced the amount of energy used by data centers per dollar of sales.

So besides of earning money, Etsy also worries about nature.

Because of Etsy, artisans are getting recognition around the world and also getting paid for their unique work. Etsy always follows its principles of keeping things real and humane business.

Etsy has become this much popular that people are now cloning the business model of Etsy. Regarding this, various web development companies are building Etsy clone solutions which are popular like The Nine Hertz Etsy Clone and Clone Shope website clones. These companies sell Etsy clone to people that enable individuals to create their own online marketplace like Etsy and also put their innovative ideas according to their business needs.

Lastly, if we summarize the whole blog we got to know exclusive features that Etsy provides to its users including the seller, buyer and partners, unique marketing strategy and principles it follows and how it deals with its partners, sales and revenue growth generated and what Etsy thinks other than its business.

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Hemendra Singh

My name is Hemendra Singh. I am a Director and Co-founder of The NineHertz, IT Consulting Company. I am having a keen interest in the latest trends and technologies that are emerging in different domains. Being an entrepreneur in the field of the IT sector, it becomes my responsibility to aid my audience with the knowledge of the latest trends in the market.