Business Case: Etsy

Rio BellMarketing 476

HistoryCreated in 2005 by a

small company called iospace Founded by Robert

Kalin, Chris Maguire and Haim Schoppik

Currently located and working in Brooklyn, New York

OverviewEtsy is an e-commerce marketplace specializing in

handmade items, vintage items (20 years and older) and craft supplies

It also serves as an online community/social media siteallows you to create and manage a personal profilecreates easy communication with Etsy’s ever-growing

community of over 15 million people worldwide

With a free account you can browse many categories such as: art, home, women, men, kids, vintage, weddings, craft

supplies and gifts

In each category there is a large variety of different types of items you can browse and purchase ex. under Art you can browse paintings, prints, posters,

drawings, objects, etc.

If you wish to sell items or create a business on Etsy you can open an Etsy Shop No membership feesList an item for $0.20 When the item has sold

Etsy collects a 3.5% fee on the sale price

StructureEtsy has a

decentralized/collaborative organizational structureA decentralized

organization is self-governing, self-organizing, adaptive, non-linear complex organization

It works by distributing the power among the company’s community of buyers and sellers

Each individual on Etsy has a profile, a conversations page, favorites and followersAs a buyer you can browse and purchase items from

other individuals with Etsy accountsAs a seller you can list products for sale from your

account that can be purchased by another individual through the Etsy site

Anyone can ‘favorite’ an item they like or want

Etsy’s EcosystemPartnerships

Mall stores such as Nordstrom and West Elm with new business-to-business platform: Etsy Wholesale

Twitter offers an etsyday with special offers and promotions

StoreYa to help sellers market products on their social media

TaskRabbit to help sellers produce more products in less time

User baseThe millions of people worldwide who have

registered to trade crafts and vintage items in this e-commerce marketplace

Key competitorsLarge scale e-commerce websites such as

Amazon and eBayCompanies such as DaWanda, Bonaza, iCraft and

Artfire that specialize in art and fashionOther competitors consist of local artists,

festival/fair marketplaces, boutiques and craft supply stores

StakeholdersEtsy users who have created their business through the

online marketplace website Employees who run the website in New York and offices

in the United States and EuropeReceived funding from Union Square Ventures, Hubert

Burda Media and Jim Breyer Supported through Facebook, Twitter and Pinterest

It’s easy to share Etsy finds with friends and followers on Facebook and Twitter

Many Etsy items for sale can be found on Pinterest

Assets/ToolsAssets

Created a unique online marketplace specializing in homemade goods, vintage items and crafting supplies

New partnerships with companies to help user’s productivity and increase traffic flow to the site

Member information acquired

Tools

An easy to use and well established website

A fun and customizable mobile application

FundingFunding

Angel Investor: Caterina Fake (now Chairman of the Board of Etsy)

Series D, Series E and Venture Round Funding

Received funding from Union Square Ventures, Hubert Burda Media and Jim Breyer

Production

Production Individual production:

buying and selling of goods is performed by the users of Etsy

DistributionDistribution

Niche Goods: focuses on a market of homemade goods, vintage items and crafting supplies

Consumer-to-consumer: users buy and sell goods to each other on this online marketplace

RevenueRevenue from transactions

Obtained from the sellers$0.20 per product listing3.5% of the final sale

(Broker’s Fee)Obtained from the buyers

Receives 3.5% of the buyer’s purchase

Directed from other websites (mainly social media platforms such as Twitter and Pinterest)

Intellectual PropertyIntellectual Property

While Etsy does not have a logo or own a distinct brand name it does have a a Copyright and Intellectual Property Policy for the users (buyers/sellers) of it’s website

To view the policy click here

Employee BenefitsHealth benefits

Provides family and domestic partner benefits

$100 credit per employee on Etsy to decorate their workspace

Generous time off

Weekly company meal

Works Citedhttp://en.wikipedia.org/wiki/Etsy

http://www.zagg.com/community/blog/etsy-overview-how-to-get-started/

http://www.etsy.com/about

http://www.forbes.com/sites/barbarathau/2013/03/07/etsy-partners-with-nordstrom-west-elm-more-mall-stores-in-store/

http://blogs.cornell.edu/newmedia13egw29/2013/02/05/rb-the-world-of-etsy/

http://www.crunchbase.com/company/etsy