Etsy boasts more than 1 million active sellers and 19.8 million active buyers on the site. But what is Easy really all about? Here are 10 facts you probably don't know about the buzzing, Brooklyn-based company:
1. Etsy began with a wooden computer.
Etsy would, in fact, trace its founding back to a wooden computer (oh the irony!). Back in 2005, Rob Kalin, a woodworker who grew frustrated when he had a hard time selling a wood-encased computer, joined together with friends Chris Macguire and Haim Scoppik to create a craft marketplace where other crafters could more easily sell their goods. After several months of work.
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2. It's name has origins in a Fellini film.
In a 2010 interview with Reader’s Digest, Kalin revealed that he wanted his company’s name to be “a nonsense word because [he] wanted to build the brand from scratch.” “I was watching Fellini’s 8½ and writing down what I was hearing. In Italian, you say etsi a lot. It means ‘oh, yes.’ And in Latin, it means ‘and if.’”
3. It’s quite similar to Pinterest.
Like Pinterest, Etsy is a haven for crafters and shoppers alike. The two companies share a similar technique: you are able to favorite the items you like or want and organize them onto specified boards. On Etsy, all of your favorites are stored in your account, so when you are ready to buy that necklace or hand-painted coffee mug, you can do so in one click.
4. Etsy's original aesthetic has changed drastically.
At first, Etsy had only one rule for sellers: everything that you sell must be handmade by you. This “handmade-only” rule quickly vanished, as the company realized they would never be worth a billion dollars if they continued to only sell knitted scarves and crocheted pot holders. So, Etsy allowed factory-made goods into their handmade marketplace. But there is a catch: if goods were not handmade, then they must be allowed to be distributed by a company.
5. You can actually talk to your favorite shops’ sellers.
Do you have a question about the size and fit of that vintage dress? Or a question about getting an item in a different color? Then you’re in luck because Etsy lets you contact the shop seller directly. This move enhances the company’s neighborly vibe, providing a sense of community when you hear back from someone regarding any question or concern.
6. Etsy is also an advertising company.
Disclosed in an SEC filing during their IPO process, Etsy announced that it brings approx. $75 million from paid links and advertisements. The company has a smart, robust ad system in place. It allows Etsy to expand its revenue stream despiteremaining a niche company.
7. Its employees get schooled.
In a blog post, the company describes its “Etsy School” where employees teach each other and learn from one another about a variety of subjects: Mindfulness 101, Big City Biking, and Feminism and Technology, among many others. The school “fosters cognitive development” and “community connections,” as well as “tangible lessons and empowering opportunities.”8. Its employees receive a desk decorating stipend.
In a report by Business Insider, it was revealed that every new employee at Etsy receives a stipend when they first start to buy things off of Etsy.com to decorate their desk area with. The publication didn’t disclose how much the employees are given, however.
9. As a dot-com company, Etsy is subject to high losses.
According to its IPO filing, over the past three years, the company has lost nearly $18.4 million. However, despite these high loss numbers, Etsy is also seeing enormous sales growth. Revenue has more than doubled in the same period. Etsy also warned in its IPO filing that it may never even become profitable.
10. Etsy has created a new kind of economy.
Dubbed the “Etsy Economy,” CEO Chad Dickerson believes that “Etsy has the long-term potential to transform the world economy into one that is more people-centered and community-focused -- one that values and honors designers and makers and one that creates stronger connections among people who make, sell and buy goods,” he wrote in a letter included in the company’s IPO registration. In this economy, employees need no reliance on a 9-to-5 job to make ends meet. Instead, they can live on ideas of creativity, high-quality design, and personal inspiration.
