Brooklyn, NY-based Etsy is primarily an e-commerce service provider, which operates a two-sided marketplace platform called Etsy.com. The company completed Initial Public Offering (IPO) in 2015.
Etsy’s core operational countries include the United States, the U.K., Canada, Germany, Australia and France.
Notably, Etsy reported revenues of $818.4 million in 2019. Notably, the company generates revenues from marketplace activities and other optional services.
The company generated $593.6 million worth marketplace revenues, which accounted for 72.5% of the total 2019 revenues. Further, it generated $224.7 million of services revenues, which accounted for 27.5% of the total revenues.
It allows various merchants to list and sell their unique and creative products belonging to categories like homewares and home furnishings, jewelry and personal accessories, apparel, craft supplies, paper and party supplies, and beauty and personal care via its marketplace platform.
Further, this platform, which emerged as the cash cow of the company, enables merchants to manage products and inventory, process orders and payments, ship orders, and build customer relationships seamlessly.
Further, the company’s strong technology infrastructure helps it deliver robust buyer and seller experience, and analyze the huge volume of customer data to strengthen the performance of its marketplace platform.
Additionally, gross merchandise sales (GMS), which is the key growth metric of the company, is generated from the strengthening marketplace activities.
Further, the acquisition of Reverb, which offers a marketplace for musical instruments, has added strength to the company’s marketplace business. Additionally, Etsy leverages machine learning algorithms in the search and discovery feature on the Etsy marketplace with the help of which it allows shoppers to browse easily, filter and purchase products.
Meanwhile, services revenues are generated from fees that sellers pay for the optional services on both Etsy and Reverb marketplace. Advertising services and Etsy Shipping Labels are optional services available to sellers on the Etsy marketplace.
Further, on-site advertising products namely Bump and Reverb Shipping Labels are optional services available on the Reverb platform.