Etsy SWOT Analysis [Update 2022] ❤️

Etsy SWOT Analysis 2022

Etsy SWOT Analysis: Etsy is an American company that concentrates on vintage or handmade items and crafting supplies. 

It was established on the 18th of June in 2005. Its headquarters are located in Brooklyn, New York. 

The website follows the model of open-source crafting tools and supplies. A SWOT analysis on Etsy helps the executives of the company to analyze and analyze all the aspects that are external and internal to the community.

The Etsy SWOT analysis is a tried and true management framework that allows brands to evaluate their business and performance in relation to competitors and the industry.

About Etsy

Established in 2005, Etsy was founded in 2005. It is an American online marketplace that is a specialist in hand-crafted or antique items and craft materials. 

Many different items can be found on the site, including bags, jewelry and clothing, home decor and furniture as well as art, toys, and crafting supplies. 

The concept is based on the traditional open craft fairs, where sellers set up their stores where they sell their goods for sale.

It was 2005 when Robert Kalin, Chris Maguire, and Haim Schoppik launched Etsy. They created the first version of the site within less than two months. They began to launch it the following year.

According to Kalin’s perspective that he wanted to create an original brand that was constructed from scratch. 

Etsy is translated to “what is if” and “what if” in French as well as Latin.” Kalin said that he chose the name due to the fact that it was because he “wanted an untrue word.”

In this way, the potential buyers would not have developed an association with the brand, and this could increase the value of the brand.

Etsy – At A Glance

Name Etsy, Inc.
Founders Rob Kalin, Haim Schoppik, Jared Tarbell
Chief Executive Officer (C.E.O.) Josh Silverman (3 May 2017–)
Headquarters Brooklyn, New York, United States
Type of Corporation Public
Year Founded 18 June 2005, Brooklyn, New York, United States
Revenues (2019) $1.7 Billion
Key Products/Services handmade or vintage items and craft supplies like jewelry, bags, clothing, home décor and furniture, toys, art, as well as craft supplies and tools
Key Competitors after, ArtFire, Big Cartel, Storenvy, and Shopify

Etsy SWOT Analysis

The SWOT Analysis is a framework for strategic planning that is used by company executives to conduct a thorough assessment of the situation of the business. 

An Etsy SWOT Analysis framework could aid them in identifying the strategic aspects of their own internal environment like strengths and weaknesses and also their external strategic elements like threats and opportunities.

Etsy Inc. maintains its formidable presence in the business world solely by reviewing its SWOT analysis frequently and constantly improving the analysis itself. Thus an analysis of Etsy SWOT can be a huge asset to this business.

Strengths In The SWOT Analysis For Etsy

Etsy Inc. has many strengths that make it an industry leader in the market.

  • A Very High Level of Consumer Satisfaction A excellent reputation for Etsy is due to its ability to offer the most unique products to its customers. This is because they are a global company that can provide kinds of goods. Dealers and customers alike enjoy the special and satisfying experience of dealing with Etsy. Customers can also write reviews and make them feel valued. In the end, this creates the satisfaction of customers.
  • A Flow of Cash that is Strong Etsy’s liquidity has been stable throughout the years thanks to the huge variety of antique and artsy things that customers purchase from Etsy. This means that the company can maintain its profit and expenses in check.
  • the Dealer Community Is Strong Etsy’s dealers maintain an excellent relationship with Etsy. They have developed a relationship built on trust and loyalty as well as excellent service. This means that a mutually beneficial partnership can be established. This builds a solid dealer base.
  • Trustworthy SuppliersThis site is brimming with trusted suppliers. Etsy is proud to offer the most secure and secure experience. It is managed by professionals that are educated and skilled. In order to promote and sales of their goods, the suppliers are required to pay an 0.20USD entrance fee. In this way, the company is made more trustworthy and consumers start to believe in them.

Weaknesses In The SWOT Analysis For Etsy

Internal factors of an organization can be a source of the weaknesses of the organization. A number of these weaknesses can be identified by SWOT analysis.

  • Discrete Structure Etsy’s structure of the organization is extremely rigid. This makes it difficult to adapt to the culture of a new business in the event of a merger with another. As a result, the loss of valuable work hours can make the business less efficient.
  • More Funds in the technology Sector: All though Etsy has spent the money necessary to create its tech-savvy websites. Etsy is still far behind because the majority of rivals are ahead of it. This affects the team’s spirit, which can be quite a hassle for the entire team.
  • Research and Development: Etsy Inc. spends more than the typical in this sector on research and development. However, it’s not enough. It spends less than its rivals. Due to this, the company is losing market share to the market.

Opportunities In The SWOT Analysis For Etsy

Opportunities in business are external and can be utilized to earn gains and profits.

  • The low inflation rate: Inflation has been very low in the past year, and experts anticipate that it will remain this way for quite a long time. It is an excellent chance for companies to earn an impressive profit. This will also ensure that the price of inputs is low for this time.
  • The new markets are: As the government has stepped in to help the development of the economy, new markets are being created. There are 2.1 million-seller and 39.4 million buyers registered on Etsy. With the development of new markets, the numbers could go more.
  • Due to globalization With the increase in globalization, Etsy will not be limited to its old boundaries. This could become an entire chance to show the world precisely what Etsy can do.

Threats In The SWOT Analysis For Etsy

In a SWOT assessment, the threat is crucial. An Etsy Inc. SWOT analysis will identify the dangers which have been holding the community behind.

  • Unique items are not always available: It is recognized that Etsy is famous for providing the most unusual and unique products. Additionally, these items are both unique and gorgeous. Therefore, it is very difficult to find a duplicate replica of the item even after a massive demand from the public. For antique collections, this is particularly challenging because they are very difficult to locate.
  • A wildly inconsistent exchange rate Exchange rates can fluctuate. Because of Etsy’s sales regulations for international sales and the impact of these fluctuations on the company. In a flash, the company could see massive losses or profits for the business.
  • Competition: Several new companies have grown in recent times. This has increased the level of competition. Etsy’s earnings will decline If competitors win this race.

Limitations of SWOT Analysis for Etsy, Inc.

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning However, the analysis has some limitations.

  • Certain abilities or aspects of an organization can be both strengths and weak points at the same. This is among the most important limitations in SWOT analyses. For instance, changing environmental regulations can be a threat for companies, but as well as an opportunity in the sense that it can allow the company to compete on the same level or even gain an advantage over competitors when it is can develop its products quicker than competitors.
  • SWOT is not a method of determining how to get a competitive edge and therefore it shouldn’t be a complete solution.
  • The matrix serves as an initial point of reference for discussions on how suggested strategies can be implemented. It offered an evaluation window, but not an implementation plan that is based on the strategic competitiveness of Etsy, Inc.
  • The SWOT model is a static analysis and analysis of the current conditions with only a few potential modifications. As the environment, circumstances, as well as threats, and strategies, evolve, the dynamics of the competitive landscape cannot be analyzed in one single matrix.
  • SWOT analysis could make a firm overemphasize the importance of a single external or internal element in formulating strategies. There are interrelations between the important external and internal aspects that SWOT cannot reveal that could be crucial in determining strategies.

Weighted SWOT Analysis of Etsy, Inc.

Due to the previously stated weaknesses of the SWOT analysis/ matrix, the management of corporations has decided to assign an appropriate amount of weightage for every internal strength and weakness of the company. 

They also consider the likeliness of events that will occur in the near future, and the impact they can be on a firm’s performance.

This technique is known as the Weighted SWOT analysis. It’s superior to simple SWOT analysis as With weighted SWOT analysis Etsy, Inc. managers will be able to concentrate on the most crucial aspects and ignore the less important ones. 

It also eliminates the problem of the long list, which is when organizations make lengthy lists but do not address any of the items that are considered crucial.


What is Etsy business model?

Etsy uses a seller-aligned model of business, meaning that it makes money only when its sellers make money. Etsy provides sellers with a marketplace that has millions of buyers, as well as a variety of tools and services to help them increase sales and scale up their businesses.

What is Etsy’s core strategy?

Etsy’s core competencies are the creation of tools and educational material to empower sellers and the growth of a vibrant buyer and seller community.

What is Etsy’s competitive strategy?

The company has several competitive advantages, including a unique assortment, personalization, connections to sellers, network effects, and a strong management team. Etsy commands only a small portion of the total market, so there is still plenty of room for growth.

What is Etsy’s competitive advantage?

Etsy’s fee system is where most of its revenue comes from. It charges sellers a flat fee ($0.20) for each listing and a 5% transaction fee. This is supplemented by ad products, which are classified as services revenue’. These products are intended to help sellers increase their revenue and scale up their shops.


Etsy has made great strides in recent years which have had a positive impact on their financials as well as the creation of wealth for investors. 

This is however only calling for more effort in the acquisition of new items, increasing the barriers to entry, as well as blocking inactive users from the platform, in order to safeguard Etsy’s market share.

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