Etsy Presentation

1. Etsy
Etsy is an e-commerce website where you can buy and sell handmade
or vintage items, arts, crafts and supplies all over the world.
Thousands of small businesses from around the world come together to
for this artsy explosion of e-commerce.

2. Business Overview
• Site launched June 18, 2005 and is based in Brooklyn, New York with offices in Hudson, New York, San
Francisco, California and Berlin Germany.
• By December of 2020, Etsy had 14 million registered users and $ 314 million in revenue.
• By 2012, sales were up to 70% new buyers increased 80% and there were 10 million new members.
Statement
• Mission
Our mission is to enable people to make a living making things and to reconnect makers with buyers.
• Vision
Our vision is to build a new economy and present a better choice i.e. Buy, Sell and live Handmade.

3. • Etsy implements the peer production business model as well as some decentralized and
chaordic activity.
• Etsy relies on the collaboration of small business owners selling through their site to reach the
goals of the company.
• The efforts of the large number of people come together, to share unique and creative products
with people all over the world.
• Strong community engagements that attract new buyers and sellers.
• Limited regulation by Etsy.

4. Competitors
• E- Commerce Websites, Ebay, Amazon
• Direct Competitors
• DaWanda, Bonanza, Zibbet
• Partners
• Thousand of Sellers and Small Businesses worldwide.
• Shipping Companies (FedEx).
• Facebook (likes).
• Twitter (Tweets).
• Pinterest (Pins, share Etsy sites easily).
• Google (Search)

5. User Based
• Mostly Women Age 18-24.
• People interested in Craft, trade, small businesses and vintage items.
Sellers
• College educated women in their twenties and thirties.

6. Stakeholders
• Management.
• Sellers with an Etsy account.
• Buyers.
• Investors.
Value
• Wide variety of products all sold on one website.
• Unique, handmade, Vintage goods.
• Convenience.
• Supports small businesses and educates sellers.

7. Peer Production & the Eco System
• Peer network business for revenue generation.
• Etsy connects buyers and sellers together and takes a percentage of each side.
• The eco system is a community in which everyone feeds off one another.
• The company and the sellers have shared visions and goals and collaborate together to reach them.

8. A more social, collaborative way to do business
• Communities and networks becomes market that drive products and sales through them., creating a
profitable eco system.
• This model is not fueled by competition, but more of a community like atmosphere.
• Commerce is being initiated by the community with a more bottom up approach based on real needs.

9. Assets and Tools
• Favorites
• Like products they appear at the top of the site.
• Seller ratings and feedbacks.
• Company Collection of big data.
• Direct contact with shop owner.
• Create your own personal page.
• Blogs.
• Registry.
• Mobile Apps
Engage in social media.
MIXEL (Similar to Pinterest).

10. User to User distribution
• Etsy does not make any products and has no production model. They rely on sellers to provide goods for the
buyers.
• Individual sellers sell to buyers, who seek out their products.
• Eliminates the need to hire internal and external marketing staff.
• Seller is responsible for packaging & shipping.

11. Funding & Revenue
• Peer network business for revenue generation. Etsy connects buyers and sellers together and takes a
percentage of each sale.
• Etsy has 3 sources of revenue
• 20 cent listing fee.
• 3.5% sales fee.
• In-house advertising program called the showcase, so sellers can promote their items.
• It is smart to have a lower fee so not to drive customers away to cheaper markets, but still high enough to
make profit.
• New York based Etsy has raised about $ 150 million from investors including index ventures, Union Square
ventures and Accel partners.

12. Etsy Business Model
Partners
Community and Business Alliances.
Third Party developers .
Local organizations and Businesses.
Key Activities
Building the Etsy Community.
Seller Education.
Platform development & creation of tools to streamline
the sales process.
Key Resources
Etsy Community
Pipeline of rare, high quality handmade products.
Etsy Platform.
Customer Relationships
Online community building and support.
Seller education and support.
Host events to share knowledge and increase local
commerce.
Channels
Social media and online community developers.
Etsy events is Hello Etsy.
Word of mouth.
Local Community events.
Partner Programs.
Cost Drivers
Platform development.
Seller Education Initiatives.
Staff Salaries.

13. Products
• Personalized Products that are unique, creative and in high demand.
• Customers more willing to search Etsy for meaningful items rather than go to big box retailers.
• Etsy provides feedbacks and ratings on how your personal site is doing.