1. Business Case
Presentation
Dominique
Meinke
Marketing
476
June 18, 2013

2. ABOUT ETSY

3. HISTORY OF ETSY
 Started by iospace on June
18, 2005
 Founded by Robert Kalin,
Chris Maguire and Haim
Schoppik
 From the Italian “etsi,”
meaning “oh yes.”

4.  Online marketplace (p2p =
people to people)
 Mostly DIYs (15 million in
150 countries)
 Products listed for $.20
 Once product sells, Etsy
charges 3.5% fee on price
of item
 Offices in Brooklyn, San
Francisco and Berlin
OVERVIEW

5. HOW ETSY WORKS

6. DECENTRALIZATION
 Considered a decentralized
network
 Non-linear: Users can connect
with one another (users), as well as
central node (Etsy)
 Adaptive: Organizes self through
functions
 Self-organized: Users learn to
create stores, pages
 Organized complexity: “Bottom-
up” properties emerge, including
page marketing, pricing,
branding, etc.

7. ETSY’S ECO-SYSTEM

8.  Competitors: Artfire, Big
Cartel, Bonanza, Cargoh,
Coriandr, DaWanda, Folksy,
iCraft, Made it Myself, Not on
the High Street, Storenvy,
Supermarket, Yokaboo,
Zibbet
COMPETITORS AND PARTNERS
 Partners: Nordstrom, West
Elm. Paypal for payments

9.  Other Partners (social
media): Pinterest,
Facebook, Twitter,
Google, Flickr, etc.
COMPETITORS AND PARTNERS

10. OTHER PRODUCTS, SERVICES

11. USER BASE, CUSTOMERS

12.  Investors: Union Square
Funding (Flickr), Accel
Partners and Index
Ventures
 Users: Buyers, Sellers /
Stores
 Employees of Etsy
STAKEHOLDERS

13.  Sellers set up “Etsy stores” to sell
products, provide inventory
(posted for sale)
 Buyers purchase products from
Etsy stores, bringing buyers and
sellers together from all over the
world.
 Etsy charges fees, maintains site
 Investors contribute funds to
allow growth
 Etsy created pages for “groups”
and “teams” to connect to sell
products together
 Etsy stores create products for
branding to other Etsy stores
HOW ETSY WORKS

14. SUCCESS

15. BUSINESS AND
REVENUE

16.  Task of obtaining and
managing inventory given
to community (or “crowd”)
through open call
 Uses “Individual
Production” to create
inventory
 Relies on “user to user”
distribution
CROWDSOURCING

17.  Funding through investors
 Revenue created through
selling fees
 Other revenue from paid
search ads
FUNDING AND REVENUE

18.  Long-tail goods: large
number of unique items
with small quantities of
each
 Etsy long-tail goods:
Handcrafted, unique
items with lesser quantities
DISTRIBUTION

19. REVENUE MODE AND
INTELLECTUAL
PROPERTY

20.  Win-win: Both Etsy and
seller win with each sale,
revenue earned
REVENUE MODE

21.  Policies to protect
Etsy property
 Profits shared
between Etsy,
sellers
INTELLECTUAL PROPERTY