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This statistic highlights Etsy’s Revenue Breakdown Worldwide, split between Marketplace Revenue and Services Revenue, from 2016 onwards.
Etsy Inc is an American E-commerce company that focuses on selling handmade, vintage items and craft supplies. It is headquartered in Brooklyn, New York.
|Segment||Q1 2020||Q2 2020||Q3 2020||Revenue Share in Q3 2020|
(All figures in millions, except percentages)
Marketplace revenue is comprised of the fees a seller pays for marketplace activities. Marketplace activities include listing an item for sale and completing transactions between a buyer and a seller.
A majority of Etsy Inc’s revenue comes from Marketplace, which contributed about 76% of total revenue in Q3 2020 amounting to $341.62 million. There was a 3% increase in revenue compared to Q2 2021 where the revenue generated was $332.03 million. Further, there was a 119% increase compared to Q1 2020 when $155.92 million was earned.
This growth was possible due to an increase in the volume of Etsy marketplaces and the pricing related to the introduction of Etsy’s new Offsite Ads transaction fee in May 2020. Another factor that led to this growth was its acquisition of Reverb in the third quarter of 2019, whose revenue consisted principally of Marketplace revenue.
Services revenue is comprised of the fees a seller pays for Etsy’s services. Services primarily include on-site advertising services, which allows sellers to pay for prominent placement of their listings in search results and shipping labels, which also allows sellers in the United States, Canada, United Kingdom, and Australia to purchase discounted shipping labels.
During Q2 2021, Services revenue contributed about 24% of the company’s total revenue. There was a 13% increase in the company’s revenue from this segment, from $96.70 million in Q2 2020 to $109.85 million in Q3 2020. But there was a 52% increase compared to Q1 2020 when $72.13 million was earned.
The growth in Services revenue was primarily driven by an increase in on-site advertising revenue, which represented a significant majority of the overall Services revenue growth, and, to a lesser extent, an increase in shipping label revenue. The increase in advertising revenue was primarily due to higher click volume on Etsy Ads (formerly Promoted Listings).
Despite the COVID-19 pandemic, the total revenue of Etsy Inc has increased from $228.05 million to $451.47 million, between Q1 2020 and Q3 2020, which was a 98% increase. This increase was due to the significant shifting of global consumer shopping behaviour towards online purchases of many retail categories due to the COVID-19 pandemic. Millions of buyers found Etsy for the first time, or discovered Etsy again, for many everyday items, including those that were temporarily unavailable elsewhere. This enabled Etsy to reinforce its brand messaging by aligning “special” with everyday purchase occasions. The company highlighted sellers’ merchandise and categories to focus on essentials and developed a thoughtful and powerful strategy to define what “every day” means for Etsy, bringing it to life in the marketing and product experiences for buyers.
Etsy Inc is a public limited company founded by Haim Schoppik, Robert Kalin, Chris Maguire, and Jared Tarbell, in 2005. As of 2021, the number of employees of the company worldwide was 1,400. The stocks of Etsy Inc are listed on the New York Stock Exchange under the ticker symbol “ETSY”. Etsy Inc’s key managerial persons are Josh Silverman (President and CEO), Rachel Glaser (CFO), Merilee Buckley (CAO), Melissa Reiff (Director), Fred Wilson (Chairman), and Edith Cooper (Director). The competitors of Etsy are Big Cartel, ArtFire, Amazon Handmade, IndieMade, Shopify, eCRATER, Zibbet, Volusion, Society6, Misi and iCraftGifts. They deal in a wide range of products such as jewellery, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools. Etsy had over 60 million items in its marketplace as of December 31, 2018, and the online marketplace for handmade and vintage goods united 2.1 million sellers with 39.4 million consumers. Etsy announced in November 2016 that it had paid $32.5 million for Blackbird Technologies, a business that creates AI software for shopping context/search apps. It paid $275 million in July 2019, for the music marketplace Reverb. The company announced on June 2, 2021, that it had agreed to buy the shopping app Depop for $1.63 billion.
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