oHow the startup team found the early traction? oHow they have managed to scale/grow the business? oHow you could apply the growth case to your own entrepreneurial initiative or an existing business...

Running Head: ETSY CASE STUDY                            1
ETSY CASE STUDY                                        3
ETSY CASE STUDY
Table of Contents
Q1    3
Q2    3
Q3    3
Organic growth:    4
Revenue growth:    4
Q4    4
Value creation:    4
Scalability:    4
Sustainability:    4
References    5
Q1
Etsy was founded in the year 2005 when it provided a platform to creators to sell their products online. E-commerce created disruption in the marketplace and at Etsy employees believed in offering new ways to shop online. The story behind getting Etsy as a name for the business is also quite interesting (Arantes, 2019). It was adopted from the movie 8 ½. Within two months, Etsy was launched and the first item uploaded on the portal was sold in first four days. It raised $400,000 from first angel round. The early traction consisted of comparison with eBay within seven months at Tech Crunch. At 11 months, $170,000 worth of goods had already been sold at Etsy.
In second year, Etsy raised funds and Fred Wilson joined the league of Board of Directors. By this time, more than 10,000 artists were serving 40,000 plus buyers. More than 70,000 items were sold and over 100,000 listings were part of the e-commerce platform (Church & Oakley, 2018). By March 2007, the value of goods sold rose to $1.7million. They have 365,000 users, out of which 60,000 were sellers. December created a history with 412 million page views, which showed that consistent hard work and the enthusiasm to offer unique products to customers, which never goes out of fashion.
Q2
The business model of Etsy is same as that of Amazon where they invite sellers to sell their products. The only difference is that it offers creative and unique products. These products are mainly craft items in specific categories, which help customers to choose from wide range of portfolio. It can be said that Etsy is a world of extraordinary and specialised items from vintage to handcrafted treasures (Davis, 2021). Sellers who have speciality items to offer in the marketplace have created two customer segments- customers and sellers respectively.
The revenue model is based on charges, which are levied on sellers that are $0.20 for a small bunch of products listed on the website. The listings are expired after the span of four months. It charges commission of 3.5% on every sale or a cut out price is set on every product. It also allows the sellers to advertise the products by paying a nominal fee. These promotions are of following types: shop-specific promotions,...