Etsy is well known and a major player in the handmade and vintage arena with a marketplace that offers curated collections and suggestions.
Etsy CEO Josh Silverman on Etsy’s long-term strategy
“Unique items, best-in-class search and discovery, human connections, and the trusted brand,” is how Etsy CEO Josh Silverman describes the four-pronged elements Etsy aims to take advantage of for their long-term strategy.
This statement highlights the central position of Etsy’s sellers in the marketplace’s future development. The marketplace is famous for their unique items that are exclusive to Etsy so merchants should capitalise on this competitive benefit to differentiate themselves.
It’s also an advantage to sellers that the marketplace they trade on appreciates human connections. This goes both ways in terms of marketplace-sellers and merchants-customer relationships. While there are many benefits of automation, communication with an actual seller on an item or an assistant of seller support often makes a difference in how fast and efficient your issues get solved.
Speaking at a meeting Unlocking Opportunity: the Path to Owning ‘Special,’ Josh considered a plan for Etsy’s growth. He said that in the long-term Etsy will use the key four ingredients to differentiate the business. Josh said with those features Etsy have the right to win. He also pointed to a large and growing market across Etsy’s retail categories within their six core geographic markets, which he believes would help their growth and continue to outpace overall ecommerce.
Etsy’s five-year plan
Etsy’s chief financial officer, Rachel Glaser added to the conversation by saying that Etsy’s product improvements and investments would lay the foundation for Etsy’s growth for the next five years. She expects to see an annual GMS growth in the range of 16-20%, and she currently anticipates that revenue will grow slightly faster than GMS. Etsy has been growing faster than the overall ecommerce market, says Rachel, and this outlook suggests that we will continue to grow faster than the market. Rachel said that with a disciplined approach to investment and continued focus on optimisation, Etsy expect adjusted EBITDA margins to expand to 30% or higher over that time frame.