StartupTalky

Tag: Handicraft Startups

  • Etsy – Start your Small Business Today!

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Etsy.

    Everyone has vintage products, handmade things, crafty goods, etc., but there is always a shortage of such products. Money is not always the key to reach towards the things desired. People need to enter the right place at the right time. This is the only way to find out extraordinary things.

    Leading Sellers on Etsy Worldwide in 2022
    Leading Sellers on Etsy Worldwide in 2022

    Etsy is such a place that especially focuses on handmade, vintage, and craft supplies. These three sections have got some categories within them. Here is the Etsy success story and exactly how it works!

    Etsy – Company Highlights

    Startup Name Etsy
    Headquarter Brooklyn, New York, US
    Sector E-commerce
    Founders Rob Kalin, Chris Maguire, Jared Tarbell, and Haim Schoppik
    Founded 18 June 2005
    Website etsy.com

    Etsy – About
    Etsy – Startup Story
    Etsy – Founders And Team
    Etsy – Logo
    Etsy – Business Model
    Etsy – Revenue Model
    Etsy – Funding And Investors
    Etsy – Growth
    Etsy – Competitors
    Etsy – Future Plans

    Etsy – About

    Etsy is an American e-commerce company that has a wide range of categories. It includes bags, clothing, jewelry, furniture, toys, art, and tools. The specialty of the company is that it provides vintage, handmade, and crafty supplies to its customers. All vintage items available on the website have got the least age of twenty years. The present CEO of Etsy is Josh Silverman.

    The Guide To Start Your Business On Etsy From Beginner to Expert
    Etsy is a unique marketplace for handmade items, vintage goods, and craftsupplies. Whatever objects you love to craft, no matter what niche, there arehuge customers out there looking for your product, and most of them are browsingon the Etsy marketplace. You’ll find a community of makers, small-b…
    StartupTalkySouvik Dey

    Etsy – Startup Story

    In the year 2005, the four founders of the company started Etsy in a Brooklyn apartment. The company started as a virtual storefront for arts and crafts. The actual vision of the four founders was to help the craftsmen sell their goods on an online platform. Rob Kalin, a founder of the company removed himself from the day-to-day operations. After a lot of struggle, today the company is an artisanal marketplace.

    Etsy – Founders And Team

    Rob Kalin, Chris Maguire, Jared Tarbell, and Haim Schoppik are the Etsy Founders.

    • Rob Kalin is one of the Founders of Etsy. He was the CEO of the company from December 2009 to July 2011. His CB Rank as a person is 4,224.
    • Chris Maguire was the Co-founder and director of Etsy from December 2004 to August 29th, 2008. Now, he is the chairman and CEO of Cypress Equities.
    • Jared Tarbell is an entrepreneur. He is the Co-founder of the company Etsy. His CB Rank as a person is 76,313. He completed his education at New Mexico State University in the year 2000.
    • The founder of Etsy Haim Schoppik is also an entrepreneur. His CB Rank as a person is 6,161.
    Rob Kalin | Etsy Founder
    Rob Kalin | Etsy Founder

    Etsy has a simple logo with the words Etsy written on it.

    Etsy Logo
    Etsy Logo

    Etsy – Business Model

    The Etsy business model is that of an e-commerce marketplace. It enables artists to sell handmade unique products. Handmade products do not interest all. This platform is especially for those few interested and selective people. The business model of the company is almost like eBay or Amazon.

    But the difference here is Etsy provides amazing value to both its buyers as well as sellers. The business model of Etsy is a vertical one. It only focuses on handmade items. The company has got an android app, a website, and an iOS app to sell its products.

    How To Start An Etsy Shop: A Complete Guide
    This post is no less than a comprehensive guide if are looking to set up an Etsyshop from scratch. Setting up an Etsy shop can seem a little bit overwhelming. By the time you are done reading this post, you will become familiar withcreating an Etsy shop. As of 2019, more than 2.5 million dealers…
    StartupTalkyDevashish Shrivastava

    Etsy – Revenue Model

    The Etsy revenue model is unique.

    Etsy charges sellers to list items on its platform. The fee is meager for listing items. It is $0.20. The money paid is valid for four months. So, it’s a big point for the sellers.

    Etsy charges a commission fee for every sale, 6.5% is the fixed commission fee. Sellers have got the option of setting their own desired sale price. But Etsy cuts a commission of 6.5% from the sale price as mentioned above.

    Etsy – Funding and Investors

    The company has raised a total amount of $97.3 million in funding over nine rounds. The latest funding round took place on May 15, 2017.

    Date Transaction Name Money Raised Lead Investor
    May 15, 2017 Post-IPO Equity – –
    May 22, 2014 Private Equity $5.6 million –
    May 9, 2012 Series F $40 million Index Ventures
    August 26, 2010 Series E $20 million Index Ventures
    January 1, 2008 Series D $27 million Accel
    July 1, 2007 Series C $3.3 million –
    January 1, 2007 Series B – –
    November 1, 2006 Series A $1 million Union Square Ventures
    June 18, 2005 Angel Round $400,000 –

    Etsy has got 19 investors and TGP is the most recent investor.

    Etsy – Growth

    The company is trying its best to grow bigger. Etsy announced that they would start advertising on behalf of the sellers. It is also changing many designs to boost sales and show growth to its sellers. In the year 2015, Etsy hit the stock market. Investors were super excited at that time by seeing the potential of the platform. The company is willing to provide a fascinating look to an idealistic group of people. They are also trying hard to fulfill the demands of the public market.

    Etsy – Competitors

    The top competitors of the company are Shopify, Big Cartel, Zibbet, and Handmade at Amazon.

    • Shopify is a Canadian multinational e-commerce company.
    • Big Cartel is a unique online store. It helps people run creative businesses.
    • Zibbet is a marketplace. It helps people to know more about artists, entrepreneurs, and creativity.
    • Handmade at Amazon helps people to shop for handcrafted home decor, jewelry, accessories, and many more gifts.

    Customized Gift Store Start-up Plan: Things You Will Need To Initiate
    A gift is something that always makes one happy, regardless of the value. Andwhen it comes to something that you personally like are no less than bliss. Soimagine being able to produce gifts that are close to someone’s heart for anyreason. Making someone happy with the exact things they prefer is…
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    Etsy – Future Plans

    The company has got a long-term strategy. The goal was, is, and will be to bring unique and creative things to the market. They have plans to deliver sustained growth. The company believes that four elements will help them grow its business better – a collection of unique items, first-class discovery, human connections, and trusted brands. These four things are very essential for a company. This applies not only to Etsy but also applicable in other companies to enlarge their businesses. Chief Financial Officer commented in a meeting that he and his team believe that product improvements have taken place.

    Conclusion

    Etsy is an e-commerce platform that focuses on handmade, vintage, and unique items. It allows small business owners and independent creators to sell their products to a global customer base. It has become a popular destination for unique and handcrafted items.

    FAQs

    What is Etsy?

    Etsy is a US-based online marketplace where anyone can sell handmade products.

    Is Etsy Available in India?

    Yes, Etsy is available in India.

    Is Etsy owned by Amazon?

    No, Etsy is an independent company.

    Who founded Etsy?

    Robert Kalin, Chris Maguire, Haim Schoppik, and Jared Tarbell founded Etsy on June 18, 2005.

    How much does it cost to use Etsy to sell?

    Etsy will charge you $0.20 for listing each item and a 6.5% transaction fee for every sale.

  • Launching a Startup in Handicraft Market: Challenges & Solution

    This article is contributed by Mr. Meet Shah, Founder of Craftezy.

    Entrepreneurship as a concept has picked up pace over the years. The excitement and the pride associated with launching one’s venture and finally converting that dream into a reality is indeed indescribable!

    The effect of the pandemic on the Indian handicrafts sector –

    As much as the journey is a roller coaster ride, it is full of roadblocks as well. This is mainly witnessed in the handicrafts sector. Ever since the pandemic outbreak, the livelihood of artisans and the handicraft community has been impacted severely. The production hit the pause button, unsold inventory started piling up, and the demand for orders from the customers came to a halt. Businesses also faced a lack of capital with reinvesting and continuing the operations. To sum up, the community witnessed a dearth where the meager survival of artisans was in danger. In such a scenario, launching a startup in the handicraft community seems to be a daunting task.

    Roadblocks faced in the path of launching a startup

    The Indian handicraft segment is a highly unorganized market. Consequently, the gap between sellers and buyers remains prominent at the global level. One of the significant challenges an entrepreneur faces while launching a startup in this sector is bringing decorum to a chaotic market. Adding to it, the industry also envisions offering equal growth opportunities to both sellers and artisans, and this aim comes with its fair share of challenges.

    As most sellers hold a strong presence in the local markets and not the global marketplace, it’s a significant hurdle for them to help reach international audiences. Providing solutions for payments and keeping a check on the quality of the products is another major hurdle for the sector, which is primarily driven by exports and is addressed as an export-centric business. The authenticity of crafts and having a robust logistics model are other major road bumps faced by startups planning to enter the handicraft ecosystem.

    While the challenges disrupt the optimal functioning of the sector, they also come with a silver lining. They have eventually paved the way for the digitization of the handicraft sector. A segment that was always working with a brick-and-mortar model is now undergoing significant transformations. Realizing that to thrive through the troublesome situations and enjoy a competitive edge in the market, technology deployment is essential; the players have been focusing on introducing innovations and digital transformations in their operations.

    Digitization: The feasible solution and the dire need of the hour

    In an attempt to sail through the turbulent times induced by the pandemic, the sector is embracing digitization. The industry is hopeful that adopting technology will create employment opportunities and help businesses drive more significant revenues. The players are also focusing on leveraging the power of technology to bring convenience to the doorstep of their customers. While on the one hand, tech solutions have made payments smooth, quick, easy, and secure, on the other hand, the logistics and the marketing activities have also boosted exponentially, all thanks to technology!

    Digital deployment has enabled the handicraft ecosystem to tap the global markets, and the players have been able to engage and establish a customer base at the international levels. On the whole, with the tech revolution, the handicraft sector has been upscaling significantly and will help in easing out the journey for aspiring entrepreneurs to launch their startups in this domain. Technological disruption will also help streamline the unorganized sector into a structured one.

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    Craftezy, one of the leading B2B marketplaces, has successfully understood the pain points of the handicraft industry. Ranging from authenticity and credibility of the crafted masterpieces to ensuring equal compensation for the sellers and educating them about the crafts’ business models, the brand has designed its offerings to ensure the players have access to apt solutions for the problems faced by them. Understanding the needs of the buyers and the sellers and the diversely growing preferences of the customers, Craftezy leaves no stone unturned to come up with viable solutions that are suitable for all! Becoming an end-to-end solution for sellers and buyers implies ensuring the provision of a platform that would simplify and ease out the operations of businesses.

    Conclusion

    As much as ‘Vocal for local’ and ‘Make in India’ campaigns are boosting the handicrafts sector, there are various hindrances in the journey for startup launches. However, the answer to all the troubles is digitization and collaboration with the marketplaces! A recent report by IMARC Group points out this trend and states that the Indian handicrafts market is projected to witness significant growth in the times ahead, primarily due to the surge in the e-commerce industry.

    Ensuring that the entire process of buying, selling, and delivering is fool-proof and error-free is one of the most appropriate ways to gain consumer trust. This would eventually lead to customer loyalty and increased revenues. Furthermore, providing marketing support to an otherwise un-exposed form of business would help small enterprises to tap the international market. This is the reason why marketplaces are rendering a helping hand in providing solutions. They are giving relevant opportunities to aspiring entrepreneurs and are helping them mark their presence in the market. These platforms take care of the entire buying and selling processes, transactions, along with end-to-end operations in a seamless, safe and secure manner.