● Etsy is a website similar to eBay where two types of customers exist: buyers and sellers● Sellers upload pictures and descriptions of handmade items and buyers can purchase them● Rob Kalin, Founder of Etsy decided to start the company so people can have completely original and unique items and stray away from commercial stores like Wal-Mart
Rob Kalin, Founder● Rob Kalin graduated from New York University After transferring to 6 different schools within 5 years● Created Etsy at age 25
● Etsy started in 2005, and became profitable in 2009.● They are valued at around $600 million● Etsy earns 3.5% commission on each product sold, and for every item in a sellers storefront, Etsy charges the seller 20 cents for four months.
Items on Etsy
Marketing● Etsy markets themselves by entering in Strategic Partnerships and hosting events.● Word of Mouth advertising is most successful to the company because it has low costs and personal interaction with potential customers● Target Market includes young adults from 20-30 who are interested in crafting and handmade products
Competitors● Amazon and eBay are competitors● Etsy is unique because the only products sold on their website are handmade.● eBay is an online auction, but Etsy charges the customer what the product is listed for