According to the data from Macro Trends, Etsy has earned $0.181B revenue for the quarter ending June 30, 2019, with approx 36.79% increase year-over-year. Sounds amazing! Are you also dreaming to earn such a huge amount of revenue? Are you looking to create a marketplace like Etsy? If yes… You should understand about Etsy Business Model first. When you know how Etsy works, you’ll be able to get started with your dream marketplace.
The advantages are many in taking your business online. Without any huge amount, your first profitable eCommerce website will get ready.
In this post, you will learn how you can create an e-commerce marketplace like Etsy Business Model.
Understanding Etsy Business Model
Etsy says “If it’s handcrafted, vintage, custom or unique, it’s on Etsy.”
And, that’s true!
Etsy has a strong market position in the online world selling handmade, custom, vintage, and unique products. Note that vintage products must be of approx 20 years older or more.
While Amazon and Flipkart work on the Horizontal eCommerce, Etsy works on verticle eCommerce. It has confined itself to only crafted, vintage and unique items. Just like other eCommerce Marketplaces, Etsy also sells goods and earns revenue by charging a certain percentage of commission from sellers.
We have analyzed deeply about Etsy and have come forth with the following information that you must understand properly in order to create your own marketplace.
1. Key Activities On Etsy Marketplace
- Online marketing of Products.
- User Management (Buyers and Sellers)
- Managing Payment Gateways
- Customer Support
2. Value Proposition of Etsy For Sellers
- Sellers can create their own shop.
- They can display their items worldwide.
- No limitations on selling the number of items.
- Sellers can set the price of their items themselves.
- Etsy allows adding tags to their item that help sellers sell their products easily.
3. Value Proposition of Etsy For Buyers
- Buyers can browse unique handmade products from different sellers easily.
- Products can be shipped with international shipping options.
- Buyers can pay online from their cards.
4. Customer Segmentation
Customer segmentation of Etsy consists of its Sellers and Buyers:
- Individual sellers who make handmade products.
- Small industries that make handicrafts.
- Sellers who sell craft supplies.
- Sellers who have vintage products and want to sell out at the best price.
- Buyers are those who want to shop craft and vintage items.
- People who love to own unique kind of items.
5. Revenue Stream of Etsy
- Listing fee
- Listing Renewal Fee
- Commission on Sale
5 Simple Steps To Create Marketplace Website Like Etsy
All you need is:
- WooCommerce Plugin
- Dokan Multi-vendor Marketplace Plugin
- Dokan Multi-vendor Theme
Buy WordPress Hosting and a domain name for your marketplace from a trusted hosting company. Make sure you have researched well before buying any WordPress hosting. After that, install and setup WordPress.
And, if you’re thinking about why should you choose WordPress, you must take a look at the post on Future of WordPress. This post is all about WordPress #10Year Challenge – How Far Did We Come?
Now, after you have set up WordPress on your server, you need to visit your WordPress Dashboard. Visit on www.example.com/wp-admin and enter your Login credentials. From the back end, you can manage your WordPress Marketplace easily.
Time to integrate some functionalities that assist in turning your simple WordPress site into a marketplace just like you have studied in Etsy Business Model. First of all, navigate to the plugins tab and install and set up WooCommerce plugin.
When the WooCommerce has been installed and activated successfully, you need to install Dokan Plugin from the plugins section on your WordPress dashboard.
In this way, you can integrate multivendor functionalities on your WooCommerce site and can take advantage of all the features just like you have seen on Etsy store.
But that’s not the end!
In order to make your site look impressive and attractive, you will require a WordPress eCommerce Theme. The theme will help you make your eCommerce site organized well and classy.
Since you are using WooCommerce and Dokan Multivendor Plugin, make sure whatever WordPress theme you select, it is compatible with these plugins.
One innovative and elegant eCommerce WordPress theme is Reign StoreMate that you can explore.
It’s simple and intuitive interface makes it easy to manage your site and is also compatible with both the WordPress Plugins.
Benefits of Using StoreMate With Dokan
- The best eCommerce WordPress Theme to create an instant marketplace like Amazon, eBay or Etsy.
- Compatible with the powerful eCommerce plugins— WooCommerce and Dokan.
- BuddyPress Support to create Social Marketplace
- Different Shop Layouts
- Incredible Dokan Page Designs
- Exclusive WooCommerce Page Designs
- Unique Single Product Page Customization
- Automated Mega Menu Support
- Interactive Ready To Use Demos
- Additional Dokan Widgets
- Stunning Header Layouts
- RTL Supported
- Unlimited Customization Options
To get started with Dokan, here is a complete review of Dokan Multivendor Plugin. Do check it out and explore how easily you can set up your own marketplace.
Words over to you
Gone are the days when people only prefer traditional methods of buying. First of all, they explore it online and then make a buying decision after comparing it from different sites. It also saves time. So, if you still haven’t made up your mind, do it now. Else you’ll miss out to grab such a wide market of your target customers.
Get started with your dream marketplace now!