Etsy
Etsy is a global marketplace for unique and creative goods.
They connect millions of buyers and sellers from nearly every country around the world to leverage the power of business.
These marketplaces—which collectively create a “House of Brands” — share their mission, common levers for growth, similar business models, and a strong commitment to using business and technology to strengthen communities and empower people.
Employees: 2,790 +
Revenue: £13.32Bn for FY2022
HQ Location: Brooklyn, New York, U.S.
What they do:
"Keep Commerce Human"
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world.
These marketplaces share a mission to “Keep Commerce Human,” and they are committed to using the power of business to strengthen communities and empower people.
Their primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs.
For sellers, they offer a range of tools and services that address key business needs.
Their portfolio ‘House of Brands’ :
Etsy developed focused investment plans designed to deliver value creation throughout their House of Brands portfolio. They see opportunities to benefit from shared expertise in product, marketing, technology, and customer support across all four marketplaces.
Etsy.com
Reverb
Elo7
depop
Their purpose:
Their Right to Win strategy is focussed on these objectives:
Building a sustainable competitive advantage - their “Right to Win;”
Growing the Etsy marketplace in their seven core geographies
Leveraging their marketplace playbook across their “House of Brands.”
Q1 2023 Guidance
Things to know right now
Marketplace information:
The Etsy, Reverb, Depop, and Elo7 marketplaces collectively connected a total of 7.5 million active sellers to 95.1 million active buyers as of December 31, 2022.
2022 Statistics:
22 million active buyers are identified as men
They reactivated 24 million buyers in one year
There are over 120 thousand active sellers. With 5 million listings in India alone.
They have become more inspirational, efficient, and reliable
Inspirational
they add 20% more items to their collections
36% increase in the number of shop follows
12% increase in the number of favorites
Efficient
Search Relevance - Improvements drove lifts in sitewide conversion rate and average buyer spend
Buyer Experience- Improving the type of information they present a buyer and how they present it
Site Performance - Improvement wins drove nearly $100M in sitewide GMS
Reliable
Improved delivery transparency for non-U.S. listings by 95%
Focused on improving the returns experience
Their Marketplaces:
Etsy.com
Buyers come to the Etsy marketplace for meaningful, one-of-a-kind items handcrafted and curated with passion and expertise by our creative entrepreneurs. They are focused on attracting potential buyers to Etsy for everyday items that have meaning and those “special” purchase occasions that happen throughout the year. These include items that reflect an individual’s unique style; gifting that demonstrates thought and care; and celebrations that express creativity and fun.
The Reverb Marketplace
Reverb, headquartered in Chicago, is a two-sided marketplace launched in 2013 on the principle that buying and selling musical instruments should be easy. Reverb connects buyers and sellers of new, used, and vintage music gear from all over the world, uniting music makers with the gear that inspires them. As of December 31, 2022, the Reverb marketplace had 811 thousand of active buyers and 229 thousand active sellers. Reverb’s buyers and sellers range from beginners looking for their first instruments to professional musicians expanding their gear collections, local music stores that use Reverb to do more business online, and the largest music retailers in the world that use Reverb to reach an even larger audience.
The depop Marketplace
Depop, headquartered in London, is dedicated to building the world’s most diverse and progressive home of fashion. Since its founding in 2011, Depop has evolved to become a community-powered fashion marketplace to buy and sell unique fashion, with approximately 30 million registered users. Depop had approximately 3.3 million active buyers and 1.8 million active sellers at December 31, 2022. Approximately 55% of Depop sellers who made a sale in 2022 also made at least one purchase in 2022 which they believe shows the strong engagement of Depop’s user base. Approximately 92% of Depop’s GMS is in the apparel category.
The Elo7 Marketplace
Elo7, known as the “Etsy of Brazil,” was founded in 2008 and is headquartered in São Paulo, Brazil. Elo7 specializes in custom and made-to-order merchandise, connecting approximately 53 thousand active sellers and 1.6 million active buyers as of December 31, 2022. Approximately 64% of Elo7’s GMS is from repeat buyers.
Their Competitors
Amazon Handmade
eBay
Bonanza
Artfire
litcommerce
Their financial calendar
Q1: February - April - 4th May 2023
Q2: May - July - 27th July 2023
Q3: August -October - 2nd November 2023
Q4: November - January - Earnings 22nd February 2024
Next Earnings Report: 4th May 2023
Positives from the last earnings report Q4FY22:
Strong Q4 22 revenue was primarily driven by the Etsy marketplace transaction fee increase and Etsy Ads growth
Q4 22 Consolidated Revenue $807M, up 13% Y/Y
$807M Q4 22 Revenue +12.6% Y/Y
They slowed our rate of hiring throughout 2022
They dramatically increased revenue per headcount for their Etsy marketplace since 2019
Product Development spend as a % of Revenue has returned to a healthy, pre-pandemic range
Etsy marketplace
CAGR has far exceeded the 16-20% target they set in 2019
3 Yr Etsy marketplace GMS growth3 accelerated in Q4 +145%
45% of their Q4 22 GMS was generated when a buyer or seller or both were located outside of the U.S. 34 million were non-US .buyers. ~70% of UK & ~80% of Germany FY22 GMS
Top 6 categories in the order represented ~86% of GMS in 2022
Home and living
Jewellery and accessories
Apparel
Craft Supplies
Paper and party supplies
Toy supplies
They acquired 9.5M new buyers in Q4 22; up 51% sequentially higher sequential growth than in comparable periods of 2020 and 2021
elo7
Elo7 enhanced search capabilities by making listings with fewer clicks more prominent on the site resulting in an increase in views of listings for new sellers. Elo7 tested an online marketing campaign aimed at driving brand awareness as it builds a broader marketing strategy.
depop
Depop accelerated its product experimentation velocity, an important foundational focus area, nearly tripling velocity rate from the first quarter of 2022. Depop improved the quality of search by applying personalization from browsing history and adding new modules for complementary items to the website. Depop also improved pricing transparency that decreased the number of product views in search, driving discovery efficiency.
Reverb
Reverb continued to improve the buyer and seller experience, adding regional shipping rates to drive increased adoption of free shipping and free two-day shipping, making improvements for sellers to more easily send offers to interested buyers, adding signals to highlight recently listed items that increased conversion, and promoting its ‘Watch List’ that helps buyers track desired gear and price changes. Reverb also continued to optimize its performance marketing investment, which drove a higher ROI, and tested new advertising channels.
Challenges from the last earnings report Q4FY22:
Consolidated GMS was $4.0 billion, down 4.0% year-over-year
Down 0.7% on a currency-neutral basis;
Etsy marketplace reported GMS of $3.7 billion, down 3.5% year-over-year