The History of Etsy

Introduction - "keep commerce human."

In a Brooklyn apartment, Rob Kalin, Chris Maguire, and Haim Schoppik started the business that would become Etsy - the year was 2005. For context, 2005 was the height of the Myspace era — which means dinosaurs still roamed the earth.

Their initial goal was to establish a company that would serve as an online marketplace for artisans to sell their wares. The site saw an increase in traffic throughout Etsy's first year as the creators continually launched new tools to aid sellers in getting noticed. Billionaire tyrant Jim Breyer recognized the potential of the company, and causally reached in between his couch cushions to pull out 27 million dollars as an early investment into the company.

Jim Breyer - Smiling After Investing Early in Etsy and Making Tons and Tons and Tons of Cash.

Fueled by the millions of dollars Jim Breyer found in an old leather jacket in his closet, Etsy would begin an incredible rise in registered sellers. Within two years (2007) Etsy had almost 450,000 registered sellers who generated $26 million in annual sales. By 2015 that number was 1.5M active sellers and by 2019 it had almost doubled at 2.5 million sellers.

Origin Story - Necessity is the mother of invention:

Rob Kalin was originally a bookseller and construction worker. As a side gig / hobby he made furniture and he was looking for a means to sell his handcrafted house furnishings online. Remember, this is 2005 - so dinosaurs were still roaming around and people were using Myspace. As it happened, Chris Maguire and Haim Schoppik, two of Kalin's close friends, were also considering starting an internet shop to sell their handcrafted products. Necessity is the mother of invention, so the solution was obvious - start an internet store where he and his friends could sell their handcrafted goods. The American dream in action.

“Etsy” Where the Name Came From

After years of pretending he didn’t remember where the name “Etsy” came from Rob Kalin, finally disclosed the true source of his company's name in a 2010 Reader's Digest interview, saying, "I wanted a nonsensical term because I wanted to establish the brand from scratch."

The entrepreneur then went on to say, he was watching some weird Italian movie called 8 1/2 and the characters keep saying "Etsi." Apparently, “Etsi” is a common word in Italian. It conveys "oh, yes."

Etsy's Mission & Philosophies

Etsy is committed to building a creative economy that empowers entrepreneurs and celebrates craftsmanship. Its mission is to reimagine commerce in ways that build a more fulfilling and lasting world, on and offline. Etsy aims to be a platform where people can connect with each other to make meaningful contributions and purchases while still having the freedom to experiment and create. The platform also stands behind ethical labor practices, environmental sustainability, transparency, fairness and equity in all its business dealings. In order to carry out its mission and philosophies, Etsy has implemented several strategies. These include creating an open platform for easy access by buyers and sellers around the world, offering personalized experiences for both buyers and sellers on the marketplace, enabling an environment for experimentation for those who use their services as well as embodying core values of trustworthiness, respectfulness and creativity throughout their business model.

The creative economy refers to the sector of the economy that is devoted to producing, promoting and distributing creative goods and services, including areas such as design, arts, crafts, and media. Etsy, an e-commerce platform for handmade and vintage goods, is contributing to the growth of the creative economy by providing a platform for creative entrepreneurs to sell their goods and reach a global market. This allows them to generate income from their creative pursuits and helps to foster the growth of small businesses within the creative sector. Additionally, Etsy's focus on sustainable and ethical practices aligns with the values of many consumers within the creative economy, further contributing to its growth and development.

Swimmy

Swimmy is a children’s book by Leo Lionni about a small fish named Swimmy who overcomes obstacles and finds strength in the power of togetherness. After the death of his family, Swimmy joins a school of other fish and helps them outsmart a greedy tuna by forming themselves into a shape that is larger than the tuna. In the end, Swimmy proves that even when faced with adversity, one can still achieve great things through teamwork and collaboration.

Kalin famously used this book to help explain the philosophy of the company. He famously recorded himself reading the book aloud and put the video on Etsy's blog in January 2008. "Those tuna are the huge firms that all of us little businesses are joining up against," he added, explaining to the readers.

Swimmy - A story about little fish coming together to terrorize an innocent and defenseless giant predator fish.

Business Model & Strategies

To facilitate its growth, Etsy has adopted a marketplace business model. This model creates value for both buyers and sellers through its network effects. Buyers can access the platform to shop for unique items that they wouldn’t be able to find anywhere else. Meanwhile, sellers benefit from a larger customer base and an increase in sales potential with the use of this collaborative platform. The company also utilizes several strategies to drive growth. One such example is by providing tools and resources that help entrepreneurs scale their businesses on the platform faster. Additionally, Etsy places emphasis on offering personalized experiences for both buyers and sellers as well as recruiting quality merchants who create high-quality goods in order to keep shoppers coming back. Furthermore, they also focus on developing relationships with global partners to expand their geographic reach and attract more customers from around the world.

Conclusion

The history and origin of Etsy has been traced back to 2005, when it was founded by a small group of entrepreneurs in Brooklyn. Since then, the company has evolved to become a leading online marketplace for handmade and vintage items. Thanks to the platform's user-friendly interface, dedicated customer support, and vast range of unique products from independent artists and small businesses around the world, Etsy has become one of the most successful online marketplaces. With its strong commitment to bringing creativity and connection together, Etsy continues to be an important platform for shoppers all over the world.