Etsy: Profitable Artisan Site Looks to the Future

[mandy]

BW has a 2-page article on Etsy:

In its two years of operation, nearly $10 million worth of handmade goods has been sold on Etsy, with the average sale around $15 or $20 (see BusinessWeek.com, 2/26/07, "Bringing Your Art to the Online Market"). Jewelry is the top category in both listings and sales. Kalin says 95% of Etsy sellers are women (average age, 33), mostly stay-at-home moms and college students looking to supplement their income rather than make a full-time living. About 500,000 items currently are listed on Etsy.

Expansion Plans

Over the past few months, traffic volume has increased so rapidly that "just keeping the site up and running" has been the team's top priority. But with the spate of new hires, including a senior programmer swiped from eBay, the Etsy team hopes to make headway on some ambitious new developments. So with a growing staff that's set to reach 35 employees by the time the new San Francisco office opens at the end of this summer, the Etsy team has begun to formalize many of its formerly informal processes...

Next up on Etsy programmers' to-do list is a new payment system that will allow buyers to pay for items from multiple sellers in one transaction. And because Etsy sellers already hail from 84 different countries, making the site truly international—adding currency conversion, foreign-language support, and other features—is another project in the works for 2008...

full article: http://www.businessweek.com/smallbiz/con...488723.htm

[mandy]

Somewhat related:

Kalin chooses site improvements carefully, not wanting to alter Etsy's homegrown feel. A new payment system will allow buyers to purchase from multiple sellers in one transaction. Since Etsy sellers already hail from 84 different countries, adding currency conversion and foreign-language support is in the works for 2008. German publisher Hubert Burda Media has signed on as a partner and investor, and Kalin's team is scouting for offices in Berlin and London.

Kalin also hopes to expand Etsy's offline ventures. Etsy runs workshops open to local crafters and would like to provide support services, such as business advice and small loans. "The big goal is to enable people around the world to make a living making things," Kalin says, and that includes the man himself...

full article: http://www.businessweek.com/magazine/con...op+stories

Meanwhile, Randy Smythe speculates that Etsy may some day be acquired by eBay:

They're coming! Those wonderful little niche sites that are taking little bits and pieces away from eBay. StubHub was the first to see eBay gold, who's next?

My bet is a little site called Etsy.com...

This appears to be the model to compete against eBay. Target a segment of eBay that is not performing well, build a community of loyal buyers and sellers and grow it organically. At some point eBay will realize they've been beat and move to buy you. My guess is that Etsy's payday will come sooner than most think. Perhaps by the end of the year...

full article: http://rksmythe.blogspot.com/2007/07/att...icals.html