Sunday, June 24, 2018

BUSINESS: The Same As Etsy? I Don't Think So.

Many handmades sellers today are scrabbling for a tolerable place to sell in light of Etsy's recent changes. The FVF of the mammoth makers site has been raised by 1.5% and the fee will now be applied to the shipping charges. Over the years, I've heard sellers compare Etsy's success to some challenged listing sites. In some forums, the consensus is that the sellers are responsible for making a selling venue successful like the sellers did at Etsy. However, when some struggling handmades selling venues are compared to how Etsy began, I don't think a complete comparison is shared.

Etsy was launched by 3 partners and joined by a 4th. Three years later a high-profile, NPR executive was brought on board as COO. Etsy had 4 individual investors in the beginning years, a venture capital firm and the experienced founders of Flickr and Delicious. The name Etsy was chosen because in Italian it means Oh Yes, and in Latin and French it means What If. Etsy was able to please its sellers, in the first year, by adding new features and capabilities that attracted attention, traffic and exposure.

I do understand why creative sellers consistently compare some floundering sites with Etsy, but let's be real. To compare Etsy's success with the struggles of crippled selling sites, and to place the responsibility for making them a success on the sellers is neither accurate nor fair. Two years after launch when Etsy was not profitable, $27 million additional dollars were channeled into the company by the original venture firm and 2 additional individual investors.

Despite the fact that the site has degraded for many independent creatives, Etsy had quite an auspicious beginning. Without the early financial support of a venture capital firm and 6 investors, and the collective management and experience of 6 people, handmades sellers alone would not have been able to make Etsy the success that it is today.

Source: Wikipedia

Note: Wikipedia is not an academic source of info, but I've been reading the site for at least 15 yrs. The easy-to-comprehend facts that I find there have been enough for my purposes.

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