You’re probably thinking that competition became tough for Etsy with the unwavering presence of Amazon and eBay. While it's true that these competitors have long been established with thousands of online shoppers and resellers under their names,Etsy found their market by specifically selling handmade vintage items, art and craft supplies. These include photography, clothing, jewelry, bath and beauty products, quilts and much more. With this product line, the New York Times called Etsy “a crafty cross between Amazon and Ebay.”
Two years after it was created, Etsy passed $1.7 million in sales, prompting The Wall Street Journal to include it as one among 50 top venture-backed companies. Sales continued to rise with new tools and functionalities, which gave the site more traffic and exposure. Trouble at eBay also helped boost Etsy’s online presence.
But as the company began to grow, changes in the management could not be avoided. In 2008, Kalin resigned as the CEO, and a month later his original partners followed. Under a new management, the company began to grow with the use of social media platforms.Etsy was promoted on Twitter to bring extra attention to the site, and more recently implemented a Facebook-style social networking system. This is in line with their goal of connecting both buyers and sellers easier.
Last year, Etsy’s revenue reached $314 million dollars. Could arts and crafts take it to the top?