E-Commerce Project: Etsy

E - C O M M E RC E & D I G I TA L B U S I N E S S M O D E L S

7 T H N OV E M B E R , 2 0 1 4

Eiva Orce

14201122

Lara Zaccaria14200346

Chen Xu

12251219

Sandeep Ravindran14200640

RoshaniThomas

14204128

Table of Contents

Introduction & Overview

Value proposition

Website and mobile app performance

Social Presence - Pinterest, Facebook, Twitter

E-SWOT Analysis

E-TOWS Analysis

Recommendations

Sources

Introduction

ETSY

Founded in 2005

Community-based

marketplace

B2C/C2C

Over 40 million

members

Over 1 million online active

shops

Over 26 million items

listed

$1.35B in 2013 total

merchandise sales

Over 200 countries with

annual transactions

Social presence

2,375,278 followers

1,851,099 likes

480,965 followers

219,922 followers

853,497 followers

219,922 followers

Figures corresponding to November, 2014

Value proposition

C2C

StrongPresence

Sellers benefitsArtesanal Handcraft

Originality

International Designers

√ X

Website navigation*

Top 5 in organic search

Interaction with Social Media Storytelling

Secure payment

Store usability

On-page SEO

Website

For Buyers For Sellers

Mobile App

• Shop Activity Feed- track customer• Orders Management• Listings Manager• Conversations• Shop Statistics• Notifications

• User interface • Follow other members• Trending list

√ X

Interaction with website

Boards Organization

Quality of the pictures

Connection with sellers’ profiles

Responsiveness

Lack of keywords

Pinterest

√ X

Editorial plan

Interlink to website

Customer engagement

Comments can’t be posted on timeline

Hashtags

Milestones

Facebook

√ X

Facebook

Etsy Worlwide Etsy AU/NZ Etsy WeddingDiva

Etsy Theme Shop

1,851,918 likes 22,376 likes 21 ,068 likes 35,582 likes

1-2 posts a day 2 posts/week 2 posts/4 weeks 1 post / week

Differentiation - share your #etsyfind

Catered to Auz and NZ Crafts

Handmade wedding crafts and attire / wedding team page & sellers

Buy digitalconfectionary

High Interaction – 500 likes– 100 comments

Medium interaction - 30 likes 10 comments

Poor interaction Poor interaction – 60 likes , 12 comments

Link – Twitter,Pinterest, Blog

Link – twitter, pinterest, blog

Link – Website & blog Link website & Blog

Negative – Spam by sellers & Commentary by buyers/artists

Negatives – less interaction

Negatives – less interaction

Negative – less interaction

No contests/ games Pop up events No contests/ Games No contests/ games

Highlight – EtsyRoadtrip

Highlight – Etsy design awards

Highlight – One of a kind dress and Crafts

Highlight – themes, digital basket of goodies

Twitter

Corporate and Multiple Twitter accounts

@Etsy@Etsystatus @EtsyCOUNTRY@EtsyHelp @EtsyWholesale

Etsy integration-Interlink with the website.

Factors affecting eCommerce:

Engagement- MEDIUM

Impact- HIGH

Responsiveness- LOW

Integrationwith twitter

Allowssellers toannouncenew items.

Powerfultool forbrand

awareness.

Retaincustomers.

Buildbusinessgrowth

Customerengagement

Increase of traffic-

drive sales.

E-SWOT Analysis

Strenghts Weaknesses

ThreatsOpportunities

E-SWOT Analysis

STRENGHTS

B- Corporation considering society and environment in addition to profit.

Leader for online handmade items.

Low service fees for sellers & Free for buyers.

Trustful online Payment - Paypal.

World-wide reach for consumers.

Efficient internal Search Engine.

Website gets user deeper into the site experience. User friendly- “Ask a question”-option included. Includes customer’s review on items. Easy checkout- one click.

Mobile App- offers analytics for optimization.

Engagement with use of multiple digital platforms-Multichannel retailing

Digital tutorials- a new concept for e-Commerce

• Delivery process- min 5-weekday processing time.

• Delivery cost of goods + tax

• Abuse of value “ handmade by you” products

• Trust over products- authenticity of handmade.

• Strong competitors of eCommerce handmade products.

E-SWOT Analysis

WEAKNESSESS

“Guarantee Tag” from Etsy

Improvements in the customer-seller gap

New niche target for luxury goods

Improvements in the connection between the website and Social Media

3D product experience

Round Robin system

Virtual try for certain products

Seller and Buyer Loyalty Program

E-SWOT Analysis

OPPORTUNITIES

Seller loyalty

Tax issues.

Website vulnerability.

Competition- Current and future.

Seller price fixing

E-SWOT Analysis

THREATS

T O W S A N A L Y S I S

E-TOWs Analysis

E-TOWs Analysis

S.O. Strategies

“Etsy Control” of pricing.

Request an Out-of-Stock option.

Suggestion of similar products.

Follow up feedback email.

Discounts with loyalty program.

“Guarantee Tag” from Etsy to avoid handmade label issue.

Improvements in the customer-seller gap.

Strategically placed warehouses.

Improvements in on-page SEO.

E-TOWs Analysis

W.O. Strategies

Low service cost + brand loyalty

= seller loyalty.

A good website coupled with Paypaldecreases the chance of threats.

Seller price fixing can be initiated.

E-TOWs Analysis

S.T Strategies

Decrease the overall delivery timelines.

Authentication of products.

Enhance responsiveness and engagement to lower the impact of competitors.

E-TOWs Analysis

W.T Strategies

Recommendations

Improve customer engagement on social platforms.

Signing in using social media on mobile app.

Creating warehouses in strategic locations.

Keep the important data above the fold, fix on page SEO.

Guarantee tag.

Sources

http://www.handmadeology.com/sell-on-etsy-mobile-etsy-app-for-sellers/https://blog.etsy.com/news/2013/new-delivery-process-for-digital-goods-on-etsy/http://socialmediastrategiessummit.com/blog/brand-need-multiple-twitter-handles/http://www.lumosforbusiness.com/EtsyBusinessModel.pdfhttps://ecommerce.shopify.com/grader?url=www.etsy.com

http://www.alexa.com/siteinfo/etsy.comhttp://likealyzer.com/etsyhttps://www.etsy.com/http://www.lumosforbusiness.com/blog/835http://www.huffingtonpost.com/shannon-whitehead/how-etsy-changed-the-rule_b_5708565.htmlhttp://www.slideshare.net/katymorgan89/etsy-business-case-presentationhttp://savvypanda.com/blog/intermediate-level/ecommerce-lessons-from-etsy.htmlhttp://www.slideshare.net/ChirapatVorratnchaiphan/etsy-presentation-11723448

http://platformed.info/uber-etsy-and-the-internet-of-everybody-a-visual-guide-to-networked-businesses/http://www.nytimes.com/2013/11/12/opinion/etsys-industrial-revolution.html?hp&rref=opinion%2Finternational&_r=1&http://itrevolution.com/building-resilient-user-experiences-with-mike-brittain-of-etsy/http://swot.advisorgate.com/swot-e/13792-swot-analysis-etsy.html

http://conversionxl.com/how-to-come-up-with-a-value-proposition-when-what-you-sell-isnt-unique/#.