Etsy.com Gets $27 Million Investment

Etsy Logo
Etsy.com, the online store that enables you to sell your homemade goods, just announced that they’ve accepted a $27 million dollar investment to further establish their online community.

taken from their site:
“What does this investment mean?
This means that we now have the resources to extend Etsy’s reach in this world, to enable so many more people to make a living making things. We want Etsy to exist for hundreds of years. Our goal is for Etsy to be an independent, publicly traded company, focused on all things handmade.”

They’ve seen a lot of growth since five friends started the site in 2005 to what they now claim to be a community with over 650,000 members, all purchasing wares from more than 120,000 registered vendors in 127 different countries. From their news post, they try to outline what the investment will be used for – multiple language translations of the site, a better checkout process (which is currently pretty low-fi for a site as large as etsy’s is), as well as being in a position to better service the vendors who rely on Etsy.com for their living. Ohh, and something else about wanting to give their employees dental benefits (pffffffffsh). 

Another venture they plan on trying is a cooperative advertising program where Etsy’s would take out print ads in various magazines/newspapers, and select vendors would be given the opportunity to showcase their “store” and one of their products. With enough vendors, Etsy’s promises to split the cost of the ad if the combined vendors come up with the rest. This idea is just being talked about now, but judging from the results, it looks like it is plausible in the very near future. 

To read more about their Marketing Plans for 2008, click here.

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2 comments

  1. They should spend a good chunk on marketing because there are still a lot of people who are not avid online shoppers that might be attracted to a site like this because of its more personal feel, but simply don’t know about it because they aren’t up to date on the online shopping scene.

  2. I’ve had an Etsy shop for a couple of years. My specialty is primitive folk art dolls — i.e., cloth dolls that look like they’ve been around since the Gold Rush (I live in California so it’s a good comparison!). Unfortunately, the Etsy “admins” (as they like to call themselves) are only now, after having their site up for 3 years, beginning to catch on to just how many primitive folk artists there are online. Some of us had an online meeting with one of the Etsy representatives a month or so ago; we were trying to explain to her just how many of us there are, and also how we feel it could only help their business to represent our interests a bit more. I think they’re starting to come around … at least I hope so! :-)

    Thus far, I’ve had better luck selling from my web site than from Etsy, and I mostly sell my “destash” supplies on Etsy these days. I’m thinking about doing a little “Christmas in July” on Etsy with some Santa dolls and snowfolk, but in the meantime (or if I don’t get this done), everything’s available on my web site!

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