SWOT Analysis of Etsy

Etsy is an online platform that gives the sellers a marketplace to sell their handmade items to buyers around the world. Some of the competitors of Etsy include Amazon or EBay, but Etsy claims to provide value to both sellers and buyers which make them unique from other competitors.

Doing a SWOT analysis for Etsy, we can see that company has some strength which is making its revenue grow stronger but there are still some weaknesses that it needs to work on.


• Etsy sells products that are unique as well as handmade or vintage which makes it different from other online selling platforms. Sellers can make their own shop on through this website.

• Sellers on Etsy cannot sell anything they want; rather it is approved by the website which makes the website even more credible. So the idea of rare products being sold in this marketplace is one of its major strengths. (Clicklabs, 2015)

• The reach of the website is global; anyone can buy or sell their products on Etsy which results in far spread reach of the business.

• The online payment method used by Etsy is very reliable and flexible which makes it easier for sellers and buyers to trust the website.

• The website is very user-friendly, gives a unique experience to buyers as well as sellers. Features like customer reviews and easy checkouts make it convenient for their clients. Mobile App has made it even more expedient than ever.


• Etsy has some set of rules for its sellers because of which the sellers are unable to make a reasonable amount of money by selling online.

• Due to the business being spread out worldwide, sometimes it takes more than week to process the delivery which is a weaknesses.

• Since the items include arts and craft, handmade or vintage products, sometimes the buyers do not know if these homemade items are authentic or not.

• The website operates around the world so sometimes the buyers have to pay huge shipping and handling costs including the taxes and this makes the buyer frustrated.

• The concept of handmade items is not something that can guarantee to generate profits in the coming years.


• Addition of new category of products can increase their value. Something like luxury products could be added and they will sell because of the established brand name of Etsy.

• The growing economy in some countries may also result in higher profits for Etsy.

• Creating a different strategy and dealing with various countries separately will increase their demand in growing economies.

• Invest in more CSR activities by empowering the local artists and encouraging them to use Etsy to sell their products. (Forbes, 2016)

• Developing more on the website and App by providing the buyers a visually appealing and engaging experience while shopping on Etsy.


• Increasing competition from other competitors like Amazon, EBay and new entrants entering in the online selling industry.

• The bargaining power of sellers is very high which makes Etsy vulnerable to damages to brand name because of lack of seller loyalty.

• Etsy has become a private company because of its growth and because of that it sometimes faces government rules and regulations when marketing in different countries.

• The sellers have the right to fix the prices and because of it they are dependent on sellers for their profits.

• The whole setup of the business is online and the website is always vulnerable to hackers and viruses which can affect their business model completely.


Etsy Business & Revenue Model Explained: How Etsy Works & Makes Money. (2015, October 29). Retrieved July 30, 2017, from http://click-labs.com/etsy-business-model-revenue-how-etsy-works-makes-money/
Armstrong, P. (2016, December 15). What You Don’t Know About Etsy (And Its 2017 Strategy). Retrieved July 30, 2017, from https://www.forbes.com/sites/paularmstrongtech/2016/12/15/what-you-dont-know-about-etsy-and-its-2017-strategy/#33b8ec5a64b0
Rutherford, Z. (2014, March 12). All About Etsy: An E-Commerce Site Analysis. Retrieved July 30, 2017, from https://www.salehoo.com/blog/all-about-etsy-an-e-commerce-site-analysis#

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