Etsy – Fast growing Tech commerce with a Human TOUCH

  1. Etsy, Inc. is the global marketplace for unique and creative goods. Company mission is to keep commerce human. Etsy connect millions of buyers and sellers from nearly every country in the world through their Marketplace. Successfully grown from $1 Mn Gross merchandise sales in 2006 to $3.3 bn GMS in 2017
  2. There are 2 Million active sellers or creative entrepreneurs and  33 Million plus consumers on Etsy platform. Etsy buyers and sellers are located all over the world, and six core geographic markets are the United States, United Kingdom, Canada, Australia, France, and Germany
  3. 87% of sellers in Etsy are women who are able to make a living while making a life on their own terms. There are more than 50 Million items sold in this marketplace. Customers also finds the human touch valuable and tough to switch when there is associations relating to special situations. It shows when 87% of revenue is from repeat buyers
  4. Key risks exists from competition from similar business enablers like Shopify, Adobe. Also increasing seller services charges and listing charges can hit a wall at some stage where the ROI should be commensurate with the increase in cost of set up for sellers.
  5. Etsy is currently valued at Market Cap of $5.2  Bn at a 60 times Trailing Twelve Months Earnings & 50 times Trailing twelve months cash flows. Etsy invests 80% of incremental revenue with a flow through rate of 20%.

Etsy 1Etsy 2Etsy 3Etsy 4Etsy 5Etsy 6

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s