Etsy is a website where independent artists and craftspeople may sell their goods. Etsy is most known for its handcrafted toys, collectibles, art, home goods, antique furniture, jewellery, apparel, and holiday products, as well as crafts and craft supplies. It’s a story of highly successful startup brand that provides a platform of artisans to sell their craft
Unlike Amazon and Walmart, the site’s sellers create, gather, curate, and sell everything on the site. These self-employed entrepreneurs not only manufacture their items but also handle their orders and inventories. Etsy operates as a middleman, providing a platform for smaller, independent producers to discover and attract buyers.
Etsy was created in 2005 to link small, independent artists, producers, and collectors with buyers searching for unique gifts, collectibles, and commodities. According to VentureBeat, the site had nearly half a million members and $26 million in sales just two years after it began. By 2018, the e-commerce company had racked up some 2 million sellers and 50 million products.
The business model
The retail platform categorises its goods to assist users narrow down their search queries, and it also recommends items and merchants based on their browsing history. If you’re looking for anything specific, use the search box at the top of the page to locate it.
Anyone may buy products on the site, regardless of whether they have an Etsy account or choose to checkout as a guest. The purchase experience is similar to that of other online stores, with the option to add things to a digital cart before checking out. Credit cards, debit cards, Etsy gift cards and credit, Apple Pay, Google Pay, and various bank transfer services, as well as PayPal, are accepted by the e-commerce company.
As a worldwide store, certain customers can pay using country-specific payment plans. Because all Etsy store owners handle their goods, they are also in charge of shipping. Most Etsy sellers ship internationally and provide a variety of delivery options, including free shipping.
Because each seller selects their own delivery method, purchasing from numerous vendors means you’ll likely receive shipments from different carriers at different times, even if you purchased everything at once. If a shipment problem arises, Etsy provides a facility to check your order number and shipping confirmation, as well as a chat app that will put you in direct touch with your seller to address the issue.
Building a more human platform
Silverman, the creator of Etsy, saw that Etsy’s specialisation was linking artisan merchants with consumers looking for a one-of-a-kind item, and he sought to capitalise on those qualities. One of his top goals was to build a world-class search and discovery engine. Over half of the time, searches would produce more than 800 results, and a third of the time, more than 10,000 things. This overwhelmed new customers, while frequent purchasers resorted to their own tricks to find the products they want. Today, the firm employs a better search engine that offers results depending on the interests of each individual buyer.
Additional platform enhancements focused on the capacity to build human relationships and a trusted brand. Several features were developed to make it easier for merchants to communicate with consumers in order to modify items or answer queries. The firm offered access to dependable and quick delivery methods, allowing merchants to more precisely notify consumers when products will arrive.
Investors
Etsy has raised a total of $97.3 million in financing over nine rounds. Their newest money was raised on May 15, 2017 from a Post-IPO Equity round.
Etsy is listed on the NASDAQ with the symbol NASDAQ:ETSY. In their first public offering on April 1, 2015, its shares began trading at $16.00. Etsy is backed by 19 investors.
The most recent investors are Dragoneer Investment Group and TPG. Etsy has purchased nine businesses. On June 28, 2021, they made their most recent purchase, Elo7. They paid $217 million for Elo7.
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How Etsy works?
Selling on Etsy is basic and easy. However, it takes consistent effort and attention on the side of the seller to develop searchable and appealing listings, as well as to give outstanding customer support.
Plan: If you’re crafty and thinking about selling on Etsy, you’ve undoubtedly already got some ideas for what you’d like to sell. If you’re unsure, look around Etsy to see what kinds of innovative items are being sold. Begin with a single kind of goods to make marketing and organising easier. As your Etsy shop expands, so will your offers.
Register: Make an Etsy account and select a username. Choose a profile photo, create a bio, and complete the other setup boxes. Read over all of the terms of service and policies.
Open a shop: Once you’ve created an Etsy profile, login, go to Sell on Etsy (found to the right of the search bar on any Etsy page). Choose your preferred language, country, currency, and shop name. You should have a professional user photo or logo, as well as a store banner, to attract consumers.
Research: Because most Etsy consumers use search to locate stores and listings, you’ll need to employ SEO best practises to appear in search results. Keywords should be included in your store description, bio, listing titles, tags, and product descriptions. Spend time researching comparable items so you know which keywords to target. You could also look at the pricing points for comparable properties to info.price your items
Stock: Once your business is up and running, it’s time to start creating listings. Include high-resolution images. Use your research to generate searchable listings with appealing descriptions. Set your rates to reflect the cost of goods, as well as your time, listing, and shipping expenses.
Sell: Keep an eye on your account to observe what type of traffic you’re getting. If buyers aren’t discovering your items, you might need to update your listings with fresh keywords or images to boost sales. To boost attention to your listings, you might want to try running advertisements for certain keywords.
Ship: Etsy shoppers may provide feedback regarding you as a seller and the product’s quality. Provide excellent customer service, including information on how quickly the item is sent and a means for the client to contact you if there is a problem, for the top ratings.
Future Ahead
This growing firm has established a strong brand and a complete set of tools for connecting vendors and customers. However, it is not resting on its laurels and recognises that developing its platform is a never-ending process. It is working on tools of the future such as augmented-reality that would offer consumers a chance to preview how things may appear in their homes.
Etsy has only grabbed around 5% of its addressable market today, but it has a lot of tailwinds, including a robust seller base, ongoing e-commerce growth, and a focus on an ever-improving platform.
Etsy will be bigger and better, but it will still be focused on its objective to “keep commerce human.” Shareholders will gain as the company expands its niche for selling distinctive and unique goods online.
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