Three Reasons Why Etsy Still Grows in Q3 2021
- Xavier Thomas
- 10 Nov 2021
Etsy, the world’s most famous marketplace for handmade and vintage goods, still grows. While the overall growth in revenue (over Q3 2020) is $532M, and the increase in selling merchandise is about $3.1B, the overall growth is slower than expected. Still, Etsy is on the rise, and it’s among those giants who seemed not to suffer from pandemic time (and even earn many millions in designer masks).
So, what does keep Etsy afloat and up in these hard times? There are at least three reasons that seem obvious but go under the radar in numerous discussions. Here they are.
First, new customers come in crowds and search for unique handmade items – made with soul, as they say. Not only are these exclusive items in demand because of their lack of brick-and-mortar stores. Another reason is the experience of a big garage sale and the treasure hunt that Etsy creates with minor site updates. These minor improvements contribute to the major success.
Second, the company invests in advertising and comes with new solutions that help sellers find customers. This is the second biggest revenue source, with a 28% increase over the last year. No wonder: sellers see now how much more efficient these ads become, so they are ready to invest to boost their sales.
Third, Etsy has done a lot to make buying habitual. A one-and-done buyer is no buyer, so efforts were put into making them want to repeat the experience. And Etsy seems to sweeten this candy well. And not only was it about user experience online but also about providing the best delivery experience. Each pair of a seller and a customer was offered the best shipping service from A to B, with minimum costs and delivery time.
Maybe these efforts don’t reflect in numbers. Still, they are investments into the better future of Etsy and its customers and partners, and they will keep paying for years from now on. Do you use Etsy? Share your experience in the comment below.