Etsy: A Marketplace and a Community Case Solution
Question-1
Business Model
Etsy is a website and marketplace for only artists to sell their handmade and vintage products. It deals with both; buyers as well as sellers, where sellers are given personal stores to list and sell their products online. Etsy’s business model is based on 230 employees, 15 million members, and 800,000 active sellers, which helps Etsy in generating revenues. Etsy has 15 million marketplaces in 150 countries, which is a competitive edge for Etsy, utilizing which, it can earn more.(LAUD-ON, 2013)
Revenue Model
On Etsy, the sellers are in a huge number having different backgrounds and with various product offerings. Etsy earns revenue through the fee charged to the sellers, who are required to pay $0.20 to display their products on their website. For each sale of an item, it offers its sellers a sales commission of 3.5%per item. They also earn through advertising options on their website. Due to the aforementioned reasons; Etsy derives a huge amount of sales, i.e. $525 million and generates a revenue of $70 million.
Question-2
In this video, the Brooklyn headquarter is depicting the Etsy’s culture and value system. The company is empowering people, the whole office is decorated with handcrafted goods to get the customers connected with sellers, as shown in this video. The Brooklyn office has Etsy’s labs for employees,so that the employees could experiment with the homemade products themselves.
Question-3
To build Community is of Etsy’s policy, that’s why they provide opportunities to artists, more buyers, sellers, and small business entrepreneurs earn through their website. They have improved communication between sellers and buyers by proving them with options to share ideas’ see banners related to ‘up to 50% Sales ‘which reflects that they are offering seasonal sales for their customers.. They also describe items as Unique, offer new collections, and suggesting gifts too. They have introduced Etsy Insights where the community members and experts share business ideas. Etsy also opens its labs to the public and allows them to make friends and keeping records of their favorite shops and purchases on their websites. (See Appendix 1)(Officials, 2021).....................
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