What Is Etsy: Getting to Know One of the Famous Marketplaces

With the growing number of people shopping online, “What is Etsy?” is a common question you’ll hear from those who want to venture into the e-commerce business.

Basically, it’s a USA-based online marketplace for selling and buying unique, special, and creative items, making it easy for sellers to connect to a specific target market.

Thus, you'll surely benefit from opening an Etsy seller account, whether you’re a retail business owner or a hobbyist who wants to earn money from your creations, passion, and collections.

It would be impossible to have zero sales as long as you maximize what the platform offers and use the right tools, like the Alura Keyword Research Tool.

With that said, let’s learn more about Etsy through its history, interesting facts about it, and other essential pieces of information beginner sellers (or even experienced ones) will benefit from.

What Is Etsy?

Established by crafty friends in 2005, Etsy is like any other e-commerce platform that connects buyers and sellers.

The difference is that it only allows one to sell decorative, giftable, collectible, and wearable pieces under the following general categories:

• Handmade and Custom-Made Crafts: These are any items the sellers made or designed themselves. They can be pre-made or made specifically based on the customer’s specifications.

• Arts: It includes traditional arts like paintings and crocheted pieces and digital art products, such as printable and/or downloadable Canva designs.

• Vintage Goods: For Etsy to consider an item vintage, it should be at least 20 years old.

• Arts and Craft Supplies: From patterns and yarns to frames and kits, these are simply items anyone can use to make arts and crafts.

The History

Like any platform or business, Etsy didn’t achieve its current success overnight; in fact, its first office was one of the owner’s Fort Greene, Brooklyn apartment.

The first thought of creating an online shop came to Rob Kalin when he had difficulty selling his wood-encased computer.

He was joined by his two friends, Haim Schoppik and Chris Maguire, who also wanted and needed to sell their handmade projects online.

In their first year, they had already caught the attention of many sellers because of how quickly the developers added beneficial functionalities and tools.

By July 2007, it was able to reach its one-millionth sale. However, by the end of the said year, the platform wasn’t as profitable as the owners expected.

While they received millions of funding from generous donors in January 2008, Etsy experienced several problems from February to August of the same year.

From dissatisfied sellers and a number of complaints to stiff competition with eBay and the resignation of employees and two of its founders, 2008 was the most challenging year for the company.

Thanks to Chad Dickerson, who became part of Etsy in September 2008, the most critical concerns of sellers were acknowledged and addressed.

With that, along with effective social media promotions, the company was able to gain a considerable profit in 2009.

In the following years, Etsy added more functionalities that weren’t free from controversies, such as personal information privacy and security, and lawsuits that were all addressed and resolved.

They were also able to acquire the B Corp status, expand in international markets, and purchase other companies like Reverb, Blackbird Technologies, and the Depop app.

All these allowed them to open doors to more sellers, buyers, and collectors.

Fast forward to 2022, Etsy has over 80 million active buyers and over five million active sellers from around the globe.

Other Interesting Facts About Etsy

Apart from its humble beginnings, controversies, and improvements, there are other fun facts about the platform that will help you to get to know Etsy better.

Here are five of them:

Got Its Name From a Movie!

For years, the reason why the company was named Etsy remained a mystery until Kalin revealed it in an interview in 2010.

According to him, the 8 1/2 movie directed by Federico Fellini was his inspiration, as it kept mentioning the Italian word e si, which he misheard as et si.

It meant “Oh yes”, but in Latin, it translates to “And if”, which seems odd considering that the platform is designed for selling and buying products.

However, Kalin aimed to build a brand from scratch, and he thought that using a nonsense but catchy word would help him achieve that goal.

Hence, he decided to name the company Etsy since it resembles two cute-sounding English words: eensy and cutesy.

Fortunately, he was right because it's now one of the household names in the e-commerce industry.

A Children's Book Helped Explain Etsy's Vision

As creative and witty as he is, Kalin used Leo Lionni’s children's book “Swimmy” to explain the company’s overall vision in an interesting and easy manner.

He video-recorded himself reading the book and then posted it on Etsy’s blog, explaining how well their vision relates to the story.

He reiterated that they don’t want to be the big tuna fish in the story, which he likened to the big companies.

Rather, the company and its sellers are the small schools of fish (small companies) teaming up against the tuna (big companies) for them to succeed and achieve their goals.

Values Equality and Diversity in the Workplace

Poor gender, racial, and ethnic diversities and equality in the workplace have always been a problem.

In the past few years, this issue has caught the attention of more people from around the world, leading to them calling out companies and even boycotting products and businesses.

However, ensuring that there are exactly equal opportunities for everyone is challenging because of many factors, such as qualifications for specific roles.

Nonetheless, Etsy continues to put effort into achieving diversity and equality in the workplace.

They’ve updated their facilities, such as including gender-inclusive restrooms. They also sponsor and support programs for the under-represented population in the workplace.

Likewise, they created Etsy.org, a non-profit where people, especially the under-represented populations, can find learning resources to help them improve and upskill.

Thinks About Its Employees’ Welfare

While Etsy’s effort in achieving equality and diversity may be enough to make them a good employer, there are other things that its employees love about them.

One is the headquarter’s design that helps inspire creativity or creative thinking.

It has outdoor and indoor meeting spaces and workshops where employees can brainstorm, discuss matters, and work on their assignments or projects.

Etsy even has breathing rooms with meditation cushions where employees can relax and de-stress.

Even better? The company is dog-friendly!

New employees are also given stipends for simply decorating their desks, which encourages self-expression and creativity.

Lastly, every staff has the opportunity to improve and upskill through Etsy School, where one can attend different classes, such as computer programming and screen printing.

Most Etsy Sellers Succeed in the Industry

Most sellers on Etsy started selling on the platform to have a side hustle or passive income while enjoying their passion.

However, some have gained significant profits that their Etsy store turned into their primary source of income, leading them to quit their 9 to 5 jobs.

One example is a former NHS employee who started selling her crafts on Etsy after giving birth.

Fortunately, her hobby turned into a profitable online business, so she can spend time with her child and enjoy her passion while having a good source of income.

Another is a former warehouse forklift operator turned personalized gift seller.

What Beginner Sellers Should Know About Etsy

Now that you have a general understanding of what is Etsy, there are essential facts that you must also know about the platform as a seller.

This knowledge will help you decide whether Etsy is the right marketplace for your products and how you can maximize the use and benefits of the platform.

Easy and Free Etsy Seller Account Sign Up

When you want to start selling on Etsy, you’ll find that opening a shop or store isn’t as difficult as one might assume.

You won’t need advanced technical and technological skills and knowledge to do so.

All you need is a clear plan of what to sell, your shop’s specific information, a computer, and an internet connection.

You’ll also find that signing up for an Etsy Seller Account doesn’t require you to pay any fee.

However, note that it will charge specific fees once you start listing products, accepting payments, advertising, and shipping items.

Several Helpful Tools Are Available

As a first-time seller on a platform competing with more established entrepreneurs, you will need to spend more effort and time in making sure your target market finds you.

The good thing is that many tools can help you do just that. One great example is Alura, an all-in-one platform with a keyword research tool.

Alura's Keyword Research Tool

Keywords are terms that internet users, specifically buyers, use to search for particular products they need or want.

Knowing what keywords related to your products and business are in demand will help you choose the right term to describe your listings and write captions.

Doing so will make it easier for your target market or customers to discover your Etsy store or shop and/or products.

With the Alura Keyword Research Tool, you won’t have to do much research just to find the right keywords that you should use.

Not only does it use data from Etsy itself, but it also integrates Google’s keyword trend reports, so you can add terms that can help make your store rank on the search engine.

Of course, the tool isn’t exclusive to finding high-demand and trending keywords. It will also give you an idea of the number of competing shops or stores under your niche.

Has a Community You Can Interact With

As someone starting in the e-commerce business or on Etsy, interacting with buyers and other sellers is important.

It will help you grow your network, build rapport and credibility, and learn more about entrepreneurship and e-commerce.

The forums and discussions allow you to share your ideas, tips, and knowledge with everyone.

They’re also where you can seek help on how you can increase your sales, clear your inventory or merchandise, improve your store, and more.

Browsing the Etsy Teams and joining a group of individuals with the same interests as you will also benefit you.

You can even join groups with store owners selling products in the same niche as your business and those using the same materials, such as eco-friendly ones.

While competition is typical in any business, you’re assured that some established business owners and newbies on Etsy, even your competitors, are very open to sharing their experience and knowledge.

That said, some groups have strict guidelines and requirements you need to meet before you can join to ensure all members have the same goals and interests.

A Plethora of Information to Help You Succeed

Apart from what you can learn from other sellers and even buyers, Etsy’s website has a blog section.

It’s where the people working behind Etsy, even its owners and higher management, share tips, guides, and other essential information that will be helpful for sellers and buyers alike.

You can even leave a comment to share your thoughts and ask questions about the specific topic and interact with other users.

The e-Commerce Platform With a Personal Touch

Etsy connects millions of collectors and buyers looking for special or extraordinary items with a human and personal touch to passionate, imaginative, and creative sellers.

One of its guiding principles, from when it strived to become a leader in the business to its current popularity, is to spread responsibility and sustainability ideas far beyond the industry.

This is evidenced by the kind of a workplace they offer their employees and by encouraging their sellers to build a community beyond competition.

If you’re ready to start earning from your creations or collections, it’s time to open your Etsy store or shop.

You won't want to miss their current offer: 40 free listings upon signing up for an Etsy seller account, as it will save you a few dollars.

Also, don’t forget to take advantage of one of the most helpful tools to increase your visibility and traffic: Alura Keyword Research Tool or Finder.

Good luck on your journey to becoming a successful entrepreneur!