How To Make An Online Marketplace Like Etsy
With the changing lifestyle and technological advancement, websites like Etsy and eBay gained popularity around the world. Creating an online marketplace for e-commerce is a successful business with global e-retail sales of $2.3 trillion in 2017 worldwide. With 10.2% share of e-retail sales in 2017, it is expected to reach 15.5% share of e-retail sales by 2020. Websites similar to Etsy and eBay contributed to much extent to create interest of people to online marketplace websites.
Etsy is an e-commerce online marketplace for buying and selling of vintage and handmade products. Etsy was founded in 2005 and is based in Brooklyn, New York. In 2017, Etsy has 1.93 million active sellers selling goods to 33.36 million active buyers. Online marketplace website Etsy generated 441 million US dollars revenue in the last year. Etsy
The online marketplace is an e-commerce business that connects multiple buyers with multiple sellers on the same platform. Creating an online marketplace enables customers to buy and sellers to sell anything on marketplace websites. With a large portion of the unstructured market in the different industry like healthcare, food, and beverages, cab service, rental industry, fashion, and grocery industry, create an online marketplace has huge potential to structure or organize the industry and create benefits for both buyer and seller firm.
Etsy founders, funding received & IPO
Founders: Robert Kalin, Haim Schoppik, Jared Tarbell, and Chris Maguire
Founded Date: June 18, 2005
Headquarter: Brooklyn, New York
Number of Funding rounds: 9
Total Funding Amount: $97.3M
Number of Acquisitions: 7
IPO date: April 2015
IPO share Price: $16.00
Valuation at IPO: $1.8B
Etsy Business Model
Etsy is an online marketplace website for buying and selling of vintage and handmade products. Etsy makes a bridge between buyer and seller and connects artists, craftsmen to create a marketplace for their products. Websites similar to Etsy create an online marketplace for vintage and handmade products. Etsy has revenue growth of around $73M year to year.
Etsy has three revenue generation sources:
1. $0.20 US dollar for the listing of each product on the website for 4 months.
2. 3.5% revenue of total sales value.
3. Advertising revenue from featured sellers or products.
Features of Etsy
Etsy seems like a common online marketplace like Amazon or eBay but Etsy is very different in its operations and products listing. Etsy lists only unique, vintage and handmade product categories. Vintage products must be at least 20 years old and offer delivery of products around the globe. Sellers has an option to create a virtual shop on online marketplace platform with their own name and a feedback to help the buyer to make their buying decisions. Etsy is quite popular among women and 67% of registered buyers are women members.
Why Etsy is Popular
Etsy is an online marketplace for unique. Vintage and handmade products. Etsy buyers are usually repetitive buyers who want traditional, vintage and handmade products. Etsy lets buyers to connect directly with sellers and buyers can buy customized and personalized products on Etsy. Etsy is the best online marketplace to start the business for artists and creative business persons. Etsy sellers pay for space the seller use and are cost effective for the seller.
Why create an online marketplace?
Building a marketplace website helps the seller to expand the business to newer geography and to connect with multiple buyers around the world. Websites like eBay and Etsy tapped a larger share of the market by creating an online marketplace. Marketplace websites similar to Etsy and eBay engage the customers in a way to control the supply-chain of product delivery.
To build a marketplace website like Etsy, some common features are
1.Online ordering platform to allow buyers to buy and sellers to sell products efficiently.
2.Details of buyers and sellers are sensitive information and need to be protected.
3.Merchant panel to manage the listing of products on the platform with respective price list.
4.Notifications to keep buyer and seller up to date with relevant information and alerts.
5.Review and rating platform for buyer and seller to rate and review to improve services by getting genuine reviews and rating.
How Yelo help in creating an online marketplace:
Yelo brings both buyer and seller to a single online marketplace to bid to buy and sell product or services. Yelo offers a fully customizable online marketplace for business with two-way bidding option available to both buyer and seller.
Check out some features of Yelo to build a marketplace website:
1. White Labeled: Create an online marketplace with Yelo for completely customizable solutions and completely branded website and application. Create multiplatform marketplace that response with websites and application.
2. Payment and support: Yelo take no changes for any transactions and support direct payment solution with banks in 170+ countries with 24*7 customer service facility.
3. Management Panel: Analyse and track each product listing with bid pricing. Take control and track each product bidding price, winning bid and buyer history.
4. Merchant Panel: To allow the merchant to list their products and services on the platform and update their catalog. Permits the merchant to add discount schemes and update the bidding price.
5. Auction and Product panel: list the products on the platform with a bidding price and buyer can bid the price for products and services offered.
An online marketplace is a new form of business in the competitive world. Create an online marketplace permits business to create the trust of buyer easily and provide the opportunity for overseas sales. Optimising the spending for the seller and increasing the revenue fascinate sellers to online marketplace and availability of various options at one online marketplace website similar to Etsy engage more buyers.