Etsy SWOT Analysis Analyzes, Etsy has come to dominate the handcrafted and vintage goods market by focusing on a niche market, leveraging network effects, prioritizing technological investments to win on ease of use. … Etsy, a publicly traded e-commerce marketplace, focuses on connecting buyers to sellers of handcrafted and vintage goods.
Did You Know? Etsy sellers live all over the world, in 234 countries.
Online marketplace Etsy says its mission is to “keep commerce human.” Founded in 2005 by three pals looking to create an online community to sell their handcrafted goods, Etsy has grown from a tiny startup to a mega-successful company worth billions of dollars — and the company is seemingly only growing more and more successful.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Etsy.
Etsy At A Glance – Etsy SWOT Analysis
Company: Etsy, Inc.
Founders: Rob Kalin | Jared Tarbell | Haim Schoppik | Chris Maguire
Year of establishment: 18 June 2005, Brooklyn, New York, United States
CEO: Josh Silverman
Headquarters: Brooklyn, New York
Employees (Dec 2020): 1,400
Ticker Symbol: ETSY
Annual Revenue (Dec 2020): US$1.7 Billion
Profit net income (Dec 2020): US$603.7 million
Products & Services: Jewelry & Accessories | Clothing & Shoes | Home & Living | Wedding & Party | Toys & Entertainment | Art & Collectibles | Craft Supplies & Tools | Gifts & Gift Cards
Company Website: www.etsy.com
Top Etsy Competitors
Competitors: Amazon | eBay | Craigslist | Flipkart | Zalando | 1stdibs | Big Cartel | Storenvy | Shopify | ArtFire | Aftcra | IndieMade | Bonanza | Zibbet | Spoonflower | Folksy | Icraftgifts
Etsy SWOT Analysis – SWOT Analysis Of Etsy
SWOT Analysis Of Etsy analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Etsy SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Etsy SWOT Analysis. Below Is The Detailed SWOT Analysis Of Etsy.
Etsy Strengths – Etsy SWOT Analysis
1. High Customer Satisfaction: Based on Sitejabber.com, Etsy has a 3.5/5 stars rating which means most of customers are satisfied. Etsy is rated with an 3.9/5 stars rating on 3,319 ratings on consumeraffairs.com however it is rated with a 4.6/5 stars out of 85 ratings on bestcompany.com. In an effort to improve the customer experience of the company it has launched an enhanced propriety search feature which allows customers to locate the information they’re seeking faster and more efficiently. In addition the brand has also allowed sellers to incorporate videos into their listings of products to show how the items are created and the ways they can be utilized. The brand also launched an “star seller” section to help customers respond faster and expedited delivery times of up to 95 percent. This will give more insight into the customer experience.
2. The Customer Base is Growing: The number of customers for the company increased to 9.32 million active customers at the end of 2012 and 81.9 million users active by 2020. The greatest growth occurred between 2019 and 2020 which saw the company experience nearly double the growth rate between 46.35 millions active customers up to 81.9 millions active customers. Increases in active users are an indication of growth in revenue and the volume of gross merchandise. In in the 2nd quarter 2021 the company saw an increase of 67% the number of active users year-over-year. This is also positive as it will allow for increased growth because of the networking of active users, and reducing the costs for the acquisition of new active users on the platform. The Etsy network of active users increases as does the benefits of the network expand.
3. Stronger Dealer Base: Etsy is determined to strengthen its relationship with dealers. It aims to assist dealers in increasing their service levels in order to make more sales. As an example, Etsy introduced offline advertising for seller in 2020 in which Etsy is the one to pay for the upfront advertising fees and the seller is only paid a small percentage for each time a user clicks the offsite ad and then makes an order at the seller’s site. It is built on trust and excellent services. The company doesn’t just offer its dealers products they sell; it also helps dealers in promoting their products. This helps establish a mutually beneficial partnership and to build strong dealer relations.
4. A Strong E-Commerce Presence: Etsy is mostly an online platform for selling goods and services and has a strong integration of social functions like profiles of users and collections onto its website. It also has integrated stores for sellers as well as the ability to connect to other social platforms. The site is straightforward, however equipped with powerful tools and is designed for people who are not tech-savvy.
5. Reliable Suppliers: Etsy has a trusted supplier network. From this trustworthy supplier base that Etsy is able to provide the most secure and safe trading experience. The supplier base is led by highly educated and trained experts who ensure the safety of the business along with its merchandise. They also charge an entrance fee of $0.20 each supplier as an assurance of credibility and honesty.
6. Growth In Financial Strength: Etsy has announced a 144.1 percent growth in its revenue year-over-year, and 132.3 percent year-over-year GM growth. First quarter 2021 concluded at $1.7 billion worth of cash and short-term investment. In 2020 and through 2021 The world has reacted to the distinctive value of the brand’s preposition. The company has also witnessed a steady increase in its investments, which is expected to continue in the coming years. The result is that the company’s earnings increased by 211% during the time period that ended in August 2021. In addition, its share price increased by 150 percent in 2020.
7. Strong Distribution Network: Etsy as a business has outlets in the US and UK as well as other countries. Supply chains that are reliable support these stores to ensure that they can provide the best products at the appropriate moment for consumers. A reliable distribution network is essential in reducing cost of opportunity, costs for holding and order costs as well as other costs. The result, ultimately will increase the profitability.
8. Strong Product: Etsy is an online marketplace, is renowned for its vintage and handmade items. The unique products, combined with top-of-the-line tools for discovery and search an established brand and an enormous amount of visitors to the website makes the entire shopping experience on Etsy enjoyable.
Etsy Weaknesses – Etsy SWOT Analysis
1. Low Barriers to Entry: The company is in an industry with very low barrier to entry. Although the company was a relatively early participant in the industry however, it is necessary to make a greater effort to be coordinated as well as network effects and an initial investments in technology to increase the entry barriers that can help safeguard the market share of the company.
2 . Customers aren’t satisfied with the customer experience: Etsy has an average rating of 3 stars. The average score is higher than average, the business needs to enhance the customer experience in order to minimize any negative experiences that lead its users to other sites to seek more satisfaction. There is room for improvement from 5 stars to upwards.
Etsy Opportunities – Etsy SWOT Analysis
1. Technology: Technology is constantly providing many unexplored opportunities to improve Etsy’s strategy for growth. Technology is crucial to the creation of innovative products, improving both seller’s and buyers’ experiences on the internet and giving Etsy a an advantage in the market.
2. Growth In Talent And Unique Products: The human capital required to develop unique products is vast and unstoppable. Etsy should invest more money in recruiting top talent as well as the creation of new products that are unique to its market.
Etsy Threats – Etsy SWOT Analysis
1. Fierce Rivalry: The world of online marketplaces is a battleground and, given that the market’s low obstacles to entering, Etsy should have an aggressive strategy to allow the company to defend the market shares it holds. Etsy will have to constantly invest in technologies and user experience, customer experiences, marketing, advertising, as well as market surveillance.
2. Irregular Supply Of Vintage And Unique Products: While this is the main role of Etsy however, the constant and constant supply of exclusive and vintage items can’t always be assured.
Etsy SWOT Analysis Overview Template
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