Josh Silverman has been a successful entrepreneur since he started his company in 1998, and his latest company, Etsy, is the first e-commerce store to reach a billion dollars in revenue. This has attributed to his innovative marketing strategies and the growing popularity of his platform. The emergence of ETSY has accompanied by several challenges and hurdles, but his leadership has helped him overcome them.
Top three selling categories
Etsy, an online marketplace for handmade and vintage goods, is in a state of transition. It is attempting to change its focus from an undifferentiated marketplace to one that caters to specialty products and discoveries.
For now, the Etsy search feature has proven to be an effective way to drive traffic to sellers’ shops. One of the more popular features that Etsy has introduced is the ability for buyers to save searches. This has allowed an additional 11% of users to use this feature again.
A lot of the top selling items on Etsy are unique handmade items, such as custom jewelry and Stickers. Sellers have also come up with creative tactics to help their products stand out from the crowd.
Etsy has a long history of innovation. The company launched its own TV show, Etsy Plus, in 2015. Etsy has also made some notable changes to its ad platform, Etsy Ads, which went live in July of this year. These include a move to charge a monthly fee of $10 for sellers.
Another thing that Etsy is doing is making its own proprietary payment processing system a mandatory option. Previously, sellers had the choice of using an individual PayPal account or using Etsy’s own payment service.
Etsy is now able to offer free shipping by mid-September. In addition to that, it has announced a 30-percent increase in transaction fees for sellers.
Etsy is now one of the most profitable companies in the world. Last year, it made the most money in its history. As a result, the company now poised to become a household name. But the growth targets that Etsy has set for itself have also made it harder for some sellers to make a profit.
Revenue growth
Etsy announced an increase in its revenue and net income in the second quarter of the year. It also raised its outlook for the rest of the year.
Etsy is on a growth trajectory that has been very impressive since its 2010 IPO. The company has added millions of users each year and increased revenue by a wide margin. In fact, the company has increased its gross merchandise sales by 20% annually.
Last year, the company increased its headcount by 70 percent. Earlier this year, the company acquired an online musical-instrument marketplace called Reverb for $275 million. A new seller app, dubbed Etsy Studio, launched in May.
While Etsy’s revenue is growing, it is a bit behind the market’s expectation of 6.44% growth. Etsy’s executive team refocused their efforts to prioritize top initiatives. They are doubling down on product execution, and focusing on the core marketplace to drive sales.
The marketplace has doubled its active buyers to 90 million. Habitual buyers have increased to 9% of total buyers. Etsy also launched site-wide sales events in Q1 and Q2, with the goal of increasing the volume of traffic and capturing more buyers.
Etsy plans to expand into new areas. For example, the company has made a commitment to reach out to men. Another initiative is to build a hub of apps.
Etsy has been a solid investment. However, the company has suffered a drop in stock value in the past year. As a result, it is now trading at about a two-year low.
The Etsy management is aiming for revenue to grow between 33% and 35% for the full year. Net income will be $0.00 per share for four quarters before April 30, 2022.
Layoffs
The online marketplace for handmade and vintage goods, Etsy, is facing a leadership shake-up and layoffs. Etsy’s stock, which has been trading at $14 a share since it went public last year, has seen little growth. However, its gross merchandise sales are on the rise. It has added 1.9 million sellers and is selling more goods than it did a year ago.
Etsy expected to cut about 140 employees worldwide in the coming months. Most of the layoffs will be in administrative, product management, and marketing roles. Some of the cuts will targeted at the company’s Brooklyn headquarters.
In addition to its layoffs, Etsy is also suspending brand marketing until the end of the year. This move is likely to cost the company at least $6 million to $8.8 million in severance packages, according to a spokesperson for the company.
As it stands, the layoffs have led to the drafting of a petition. This petition, which has signed by 50 people, calls for Etsy to make a meaningful change. Among other things, the employees want a six-month parental leave policy. They also believe it’s important to have an open discussion about the various restructuring efforts at the company.
Etsy is hoping to turn around its struggling business by increasing the effectiveness of its marketing efforts. It is attempting to improve its search functionality and build seller marketing tools. It has also launched local shopping guides.
At the same time, the company is attempting to focus on its core marketplace and deprioritize other projects. According to CEO Elliott Silverman, this will help drive focus at the company.
The company has also recently run into conflict with private equity firm Black-and-White Capital LP, which has called on Etsy to take a more strategic approach. Black-and-White has said it wants the company to improve its retail sales, fix its search functionality, and improve its overall profitability.
Board of directors’ appointment
The Board of Directors of Etsy has appointed Josh Silverman as its incoming CEO. As a former Chief Executive Officer and Vice President of Product Development of a major technology company, he brings a wide range of knowledge and experience in leading global marketplaces and marketing campaigns.
For the past five years, he has been an independent non-employee director of Etsy. Since his appointment, he has helped the online marketplace increase customer adoption and achieve financial results. He has also led the development of new advertising and personalization products, and helped the company grow its portfolio of strategic companies.
In addition to Josh Silverman leadership roles with Etsy, he is currently a member of the Board of Directors of Slack and the Museum of Modern Art. His past experiences include a variety of leadership positions at Goldman Sachs and Morgan Stanley.
In June, Etsy acquired Depop for $1.6 billion. This is a strategic move for the company, which will allow it to expand its global reach and product portfolio. The two companies will work together to develop a platform for creative merchants.
Etsy also announced the appointment of Raina Moskowitz as its Chief Operating Officer. She will be based out of its Brooklyn, NY headquarters. From there, she will oversee two revenue-driving functions – Member Services and Trust & Safety. Currently, the company operates two-sided marketplaces that connect millions of creative buyers and sellers. Its product is unique and offers a community of thriving influencers.
Meanwhile, the board of directors has made several other appointments to the organization. They include Kim Seymour as its Chief Human Resources Officer. Previously, she served as the Chief People Officer of WW International.
Insider sale loss avoidance
In the context of Etsy Inc., the company’s stock has climbed by almost half in the past year. Although, it’s still an upstart compared to some of its competitors like Google or Amazon. It’s a good thing, because in this era of economic uncertainty, a company’s reputation can make or break its stock price. To top it off, the company is during a reorganization, in which some employees may laid off. That means it’s an ideal time to buy stock in the company.
The company has been a runner up in several competitive surveys, and the company’s stock has been a hot commodity. With an expected IPO on the horizon, investors are on the prowl. In fact, the company’s current stock options are at the highest levels in years, with some insiders taking to the open market to buy, sell, or cash out. While some of the stock’s high-paying executives may be reluctant to hand over their hard-earned cash, they’re often not the only ones looking to recoup their investments. Hence, it’s important to stay on top of the game.
