Ety’s Competitive and Macroenvironments



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Ety’s Competitive and Macroenvironments

Amanda D Nelson

Purdue Global University

MT140: Introduction to Management

Professor Joyce Boone

March 28, 2021


Ety’s Competitive and Macroenvironments

Etsy, Inc. is an online marketplace that serves as a platform for individuals and small business owners to sell their handmade, vintage, and digital items, and also craft supplies for the creation and production of those handmade items. Etsy serves as a sort of “middle man” between the buyer and the seller by completing the actual financial transaction, processing the payments, and providing a way for the buyer and seller to communicate. As a small business owner myself who primarily uses the Etsy platform to sell most of my items, it has a lot of benefits for smaller businesses by providing lots of helpful tools, integrations, advertising, and marketing, as well as support when needed. Etsy’s Competitive Environment One way that Laws and Regulations have affected Etsy is those new laws that specifically target large sales platforms like Etsy to impose sales tax requirements on online sales. Gomez (2021). Etsy now automatically collects and handles submitting state sales tax for 42 states and the District of Columbia. Castillo et al. (2017).

While 2020 was a tough year for a lot of businesses, due to uncontrollable factors in the economy, such as the pandemic, Etsy flourished and benefited because of it. Since Etsy features handmade items, the sale of face masks provided great opportunities for online sellers. Etsy also benefited greatly from people being urged to stay at home and many people turned to online sources to buy things, instead of going into brick-and-mortar stores. These factors, along with Etsy’s low barriers to entry, helped a lot of sellers who were stuck at home still be able to earn an income by selling online. (Seeking Alpha, 2021)

Technology is a very big part of Etsy, Inc.’s day-to-day operation. It actually is completely technology-based. The only way to use Etsy is by using technology and Etsy uses things like marketplace insights, search engine optimization using keywords, integrations with other online companies and tools, having both a desktop site and mobile app, and lots of tools to help sellers.

Demographics reports show that most buyers on Etsy are young females and most products are now targeting those buyers. According to Sullivan (n.d.) of techpenny, 81% of Etsy’s buyers are female.

Etsy also has made sure to stay socially responsible and address issues that matter to the current population, and they are the first e-commerce company to offset 100% of their emissions (WBR Insights, 2021), along with showing gender diversity and environmental sustainability. They also have encouraged that people to “shop small” and support black-owned and women-owned businesses.

Some of Etsy’s rivals include Amazon Handmade, Facebook Marketplace, and eBay, just to mention a few. But Etsy still has qualities that continue to make it unique and special because they don’t allow reselling regular items like other marketplaces do. (Castillo et al., 2017).

Some new competitors that Etsy has are ArtFire, Bonanza, and Craftline, but as mentioned in (2021), they have a long way to go before catching up with Etsy’s revenue.

The main customers of Etsy are young women, as mentioned above in Demographics.

As far as products, things are a bit different in this environment factor because Etsy does not actually produce or sell its own products. Since it is merely a platform for sellers to sell their items, Etsy does not have complete control over this. However, as an Etsy seller, they do provide sellers with insights and trend reports, based on what buyers are searching for and this gives sellers new ideas for what to make next.

Suppliers is a category that would not really apply to Etsy at all since they don’t actually make any items.




Castillo, A., Kumar, A., Susarla, A., & Jayachandran, D. (2017). Etsy Inc. ($ETSY) –Short.

Etsy, Inc. (2019). Shop Improvement and Search Engine Optimization (SEO).

Etsy, Inc. & Mosley, R. (2020). Marketplace Insights: Early 2021 Trends. Etsy, Inc.

Fletcher, R. (2021, January). Etsy’s Trend Expert Shares 2021 Predictions. Architectural Digest.

Gomez, V. (2021, January 27). Making Sales: How to Handle Sales Tax on Etsy. 1-800 accountant.

Reinicke, C. (2019, October). Here’s why one Wall Street firm thinks Etsy will be able to keep Amazon off its turf (ETSY). Business Insider.

Seeking Alpha. (2021). Etsy: A COVID E-Commerce Winner That Will Keep Winning In 2021. Seeking Alpha.

Sullivan, S. (n.d.). What’s The Typical Audience on Etsy? (Demographics & Stats). Techpenny.,25%2D40%20years%20of%20age.

Waldrop, J. (2020). Sell on Etsy: How to Sell What Customers *ACTUALLY* Want. Birch, please!

WBR Insights. (2021, February 23). Companies Hoping to Make a Positive Social Impact Should Follow Etsy’s Example. WBResearch. [WCS]. (2021). Top 3 Etsy Competitors & Alternatives In 2021.,their%20approximately%206.6%20thousand%20employees.


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