Etsy Popularity Continues to Grow
Etsy.com has grown in popularity over the last several years as merchants working from home profit from the online marketplace that has been described as a mix of eBay and Amazon. In 2010, Etsy saw merchants revenue rise to $314 million from $180 million in 2009. Even with the strong growth 2010 was still a year in which the online retailer missed estimates of $400 million. In 2011 Etsy plans to make well over $400 million but it will be interesting to see if they can keep of the growth rate of 75%.
Over the last decade many interior design and decor blogs have popped up which have helped online sales greatly. Prior to 2007 it was the case that American shoppers were just getting used to spending money online. It was also the case that many of these same shoppers were reluctant to put credit or debit card numbers on the web. With online security much more advanced and free shipping offers from many retailers it is now a popular trend to purchase arts, crafts and decorating merchandise from online retailers.
Amazon.com vs Etsy Online Sales Growth
Since 2007 Amazon.com has seen total assets grow 229% while search trends for “Etsy” have exploded over 2000%. In the last year alone Google has seen “Etsy” related searches increase 85.2%. While these numbers are quite impressive it is important to recognize that there are many other technology websites selling services that are publicly traded companies that have seen an even bigger increase in search. When compared to February of 2010, searches for “Netflix” related terms were up 104.5% in February 2011.
With a growing number of websites promoting arts and crafts for decorating it will be interesting to see what happens to the growth of Etsy. In a Wall Street Journal article in March of 2010 the Etsy CEO had this to say
Q. Why do you think Etsy has been able to grow so fast?
A. It’s always been important to me that Etsy the company is part of Etsy the community. If you can keep that direct connection to your community, that’s vital to success. I actually dislike the word ‘users.’ I don’t see people in the community as those who ‘use’ us, and we’re not trying to ‘use’ them either.
Over the next several months it will be interesting to track the growth of Etsy and find out if the CEO has any ambitions of taking this company public. Etsy sellers continue to look for ways to save money rather than borrow money. It should be interesting to see how individual sellers take advantage of Mother’s Day 2012.
Memorial Day Sales in May 2012
Etsy is one of the many online retailers that greatly benefits from Memorial Day Sales. Mothers Day and Memorial Day happen to fall in the same month so some only sellers will have to prepare ahead of time. Getting merchandise ready months in advance could help some Etsy businesses increase revenues year over year. While many men are looking for Memorial Day Car Sales 2012 some women will be looking for the best crafts and decorating ideas. This means that sellers will have to hit their niche and make certain they have enough products to go around. There is nothing worse than selling out knowing that there are more buyers out there.
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