business case etsy; bell
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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