An online marketplace is a web portal where selling and purchasing are performed over the internet. There are several online marketplaces, but an online marketplace that created a difference from others is Etsy.
Etsy is an online marketplace that allows people to sell their handcrafted and vintage items. It was founded by Robert Kalin, Jared Tarbell, Chris Maguire, and Haim Schoppik in the year 2005. Now it’s a billion-dollar company. Behind their success, the business model of the company worked, though they faced many challenges. So let’s talk about their business model.
Etsy has a partnership with community and business alliances, local organizations and businesses, third-party developers, and e-commerce apps like West Elm.
Founders build an Etsy community. The company also provides seller education in which they tell sellers how to use the portal and how they can make a profit from the website. The company has created tools to streamline the sales process.
It’s free to register on Etsy and simple to set e-commerce accounts of sellers. Etsy provides high-quality products by artisans and small merchants. Today Etsy has covered almost 200 countries in the world. Thus it’s been the largest online community of handmade products.
Sellers of all handcrafted items, in which fashion, art, and jewelry are among the most popular segments. Etsy has a young demographic of 67% of females. All global customers who want to buy high-quality handmade items from a local or small producer.
Meanwhile, Etsy has faced lots of challenges. In February 2008, many Etsy sellers were not satisfied with the handling of complaints about stores. In July 2008, Rob Kalin left his position as CEO and appointed Maria Thomas for the job. After this, in August 2008, some longtime employees left the company. In Sept 2008, they hired Chad Dickerson for CTO position and in 2011 became CEO. After that, Etsy never looked back.
Etsy Success Story
It’s not the end of the story. There are a lot more things to know about Etsy. You can go through the infographic – Etsy success story, which contains more interesting information.