{"id":2627,"date":"2015-12-07T21:11:37","date_gmt":"2015-12-08T02:11:37","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/etsy-is-reimagining-commerce-in-ways-that-build-a-more-fulfilling-and-lasting-world\/"},"modified":"2015-12-07T21:12:54","modified_gmt":"2015-12-08T02:12:54","slug":"etsy-is-reimagining-commerce-in-ways-that-build-a-more-fulfilling-and-lasting-world","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/etsy-is-reimagining-commerce-in-ways-that-build-a-more-fulfilling-and-lasting-world\/","title":{"rendered":"Etsy is Reimagining Commerce in Ways that Build a More Fulfilling and Lasting World"},"content":{"rendered":"

\"Etsy<\/a>Etsy successfully operates a marketplace where people around the world connect, both online and offline, to make, sell and buy unique goods.\u00a0 Etsy’s values are integral to everything they do and the Company believes that it is creating a new economy, which it calls the Etsy Economy, where creative entrepreneurs find meaningful work and both global and local markets for\u00a0their goods, and where thoughtful consumers discover and buy unique goods and build relationships with the people who sell them.<\/p>\n

Etsy has built an innovative, technology-based platform that connects over 50 million members, including nearly 2 million active sellers and 20 million active buyers in nearly every country in the world.\u00a0 Etsy’s business model is based on shared success: the Company makes money when Etsy sellers make money.\u00a0 Etsy’s revenue is diversified, generated from a mix of marketplace activities and the services provided for Etsy sellers to help them create and grow their businesses.<\/p>\n

\"Etsy<\/a>Marketplace Revenue: <\/strong>Consists of the 3.5% fee that an Etsy seller pays for each completed transaction on the Etsy \u00a0platform.\u00a0 It also consists of a listing fee of $0.20 per item that the seller lists (up to four months).<\/p>\n

Seller Services Revenue:\u00a0 <\/strong>Includes fees an Etsy seller pays for services such as prominent placement in search results via Promoted Listings (cost-per-click), payment processing via Direct Checkout (3% – 4% of item’s total sale price plus a flat fee) and purchases of shipping labels through the Shipping Labels platform.<\/p>\n

Other Revenue<\/strong>: Includes the fees Etsy receives from a third-party payment processor.<\/p>\n

Etsy operates a truly unique and authentic marketplace unlocking latent supply and demand for handmade goods<\/strong><\/em>\"Etsy<\/a><\/p>\n

Etsy’s operating model facilitates a two-sided marketplace where Etsy focuses on connecting buyers and sellers.\u00a0 Etsy does not hold inventory – sellers ship goods directly to the buyer and Etsy offers support to facilitate this transaction\u00a0and helps address any issues, but\u00a0is not directly involved in the processing of the transaction or shipment of physical goods.\u00a0 Items sold on the site do not have SKUs and cannot be found elsewhere, and therefore,\u00a0sellers offering goods on the site must meet strict standards confirming that the goods are handmade and not available in large, commercial quantities.\u00a0 The Company\u00a0powers a sophisticated platform\u00a0with innovative technology that enables millions of sellers and buyers to interact and transact.\u00a0 The technology infrastructure\u00a0which facilitates\u00a0this\u00a0extensive platform, as well as the engineers who run this system are thought to be some of the best in the market and give Etsy a strong competitive advantage.\u00a0 Technology ultimately brings the community together, driving transactions across borders, languages and devices.<\/p>\n

The technology team at Etsy, made up of industry-leading engineers, solves the challenge of searching across 30 million unique goods to connect the right buyer to the right seller with the right product.\u00a0 The products have no SKUs or structured data which makes big data a core strength for Etsy as they successfully and seamlessly support this marketplace.\u00a0 Engineers employ continuous site deployments which enable thousands of site updates every year.<\/p>\n

Etsy has an incredible opportunity to reimagine commerce worldwide with a strong technology-driven operating platform that facilitates a solid business model\u00a0which continues to experience strong growth every year.\u00a0 Etsy is known for crafts but it has now grown to be part of a much larger retail ecosystem.\u00a0 The Company’s values emphasize craft, community, fun and long-term thinking which are consistent in the way they run their day-to-day operations.\u00a0 Etsy hires people who are smart and passionate about making a difference in the world, and who embody the values of the company – which is representative in the community you instantly feel when you walk through Etsy’s headquarters in Brooklyn, NY.\u00a0 Etsy is transparent and consistent in the way they operate which has created high loyalty and engagement across the platform\u00a0that then ultimately\u00a0drives consistent retention in\u00a0its community.\u00a0 The operating model supports sellers through every component of the transaction: from creating an Etsy shop, listing an item, facilitating the transaction\u00a0to providing shipping services.\u00a0 \"Etsy<\/a><\/b><\/i><\/u><\/p>\n

Etsy went public in April 2015, and though has had mixed results from investors, continues to operate a successful, seller-aligned, profitable business model\u00a0that will continue to\u00a0do well\u00a0because it is ultimately built around a passionate, engaged and loyal community.\u00a0\u00a0 The Company will\u00a0prosper\u00a0because it is using advanced technology,\u00a0with a focus on community, to take advantage of several converging macroeconomic trends in online and mobile commerce, consumption and manufacturing.<\/p>\n

The\u00a0integration of Etsy’s\u00a0operating and business models has been successful because it combines vision and execution with values and community.\u00a0 The resources that the incredible technology platform provide to sellers is aligned well with the Company’s model of shared success –\u00a0Etsy makes money when the sellers make money.\u00a0 As Etsy continues to scale and become more profitable, it can use this capital to invest in the growth of the business, and\u00a0the\u00a0Company’s\u00a0increased visibility will help elevate Etsy sellers and attract more buyers, which creates opportunities for everyone.<\/p>\n

\"Etsy<\/a>\u00a0 \"Etsy<\/a>\"Etsy<\/a>\u00a0Sources:<\/strong><\/span><\/p>\n

http:\/\/www.etsy.com<\/p>\n

Company Filings and Initial Public Offering Prospectus<\/p>\n

http:\/\/www.usatoday.com\/story\/tech\/2015\/11\/26\/etsy-ceo-strategy-holidays-mobile-overseas-chad-dickerson\/76387698\/<\/p>\n

http:\/\/fortune.com\/2015\/11\/13\/etsy-marketplace-that-could\/<\/p>\n

http:\/\/www.wsj.com\/articles\/etsys-unique-ipo-crafts-a-stock-swoon-1432249972<\/p>\n

http:\/\/www.wsj.com\/articles\/even-etsys-initial-public-offering-process-is-artisanal-1428596586<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Etsy is a global marketplace where people around the world connect, both online and offline, to make, sell and buy unique goods<\/p>\n","protected":false},"author":920,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[345,219,501,502,55],"class_list":["post-2627","hck-submission","type-hck-submission","status-publish","hentry","category-community","category-ecommerce","category-etsy","category-marketplace","category-technology"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\nEtsy is Reimagining Commerce in Ways that Build a More Fulfilling and Lasting World - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/etsy-is-reimagining-commerce-in-ways-that-build-a-more-fulfilling-and-lasting-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Etsy is Reimagining Commerce in Ways that Build a More Fulfilling and Lasting World - 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