Planning to place your foot in the eCommerce arena? You can build a fascinating eCommerce store like Etsy. This blog gives you an idea of how to create an online marketplace like Etsy. It handpicks the best eCommerce platform to help you sell a ton of merchandise.
Many online marketplaces are hard to construct. It requires knowledge in programming, startup capital, and workforce. Today, it has become easier to start online marketplaces like Etsy. All you need is an amazing ready-made multi-vendor marketplace script. This makes it easier to build an online marketplace like Etsy. Moreover, websites similar to Etsy help you to sell both physical and digital goods.
What is Etsy?
Etsy is an online marketplace, to sell exclusive and creative products. It is a vast online space, selling unique handcrafted materials too. People who buy and sell on Etsy contribute to the sharing economy.
Rob Kalin, Haim Schoopik, and Chris Maguire launched Etsy in 2005. It was launched to allow crafters and vintage merchants to sell their goods online. It took a significant amount of time for creators of Etsy to launch their first version of the website. Thereafter, Etsy started witnessing a boom in business. As of, February 2018 Etsy had 31.7 million active buyers and 1.9 million sellers. Similarly, during the same period, Etsy had 50 million products listed for sale.
Etsy is available both on the web and mobile app with a common theme. Etsy easily lures users. Etsy also adapts itself to new updates and market trends based on the needs of users.
Related: Top 10 Websites like Etsy That You Should Know
How & Why Etsy Became Successful?
The success of Etsy is credited to its business model and architecture. Unlike Amazon or eBay, Etsy is only a small domain consisting of craft, art, handicraft and handmade items. This threw in a positive advantage for Etsy in the eCommerce domain. Let’s explore what made Etsy successful.
Compared to Amazon and eBay it is the value ascertained, that sets Etsy apart in the eCommerce domain. Some of the featured qualities of Etsy website are,
- It has appealing aesthetics
- It encourages social shopping which is future of eCommerce
- The brand is built to establish and maintain credibility
- Has a personal approach towards customer service
- The site doesn’t shut-down due to minor problems
- It has a fast page loading time
- The search options are wide and interesting. Searching is not cumbersome.
- Customers are engaged with personalized newsletters
Therefore, Etsy has maximized eCommerce experience by fostering a vibrant community. Here, buyers, sellers, and employees get interested in each others’ success.
Etsy has its own Application Program Interface (API). This allows web developers to enter into the Etsy community and build their own Etsy-powered applications for web, desktop, and mobile devices. Several small businesses have utilized this approach to sell their products.
Word of Mouth Advertising:
Initially, Etsy was the only website to provide handmade products. 86% of Etsy businesses are run by women. These women are active word-of-mouth advertisers for Etsy. This has hugely contributed to the growth of Etsy.
Offline Help and Support to Artists:
Etsy conducts workshops for local crafters. This enables crafters to get support services and business consultations. In some cases, Etsy provides small loans to artists.
How Etsy Works?
- Vendors signup on the platform and list their products for sale
At Etsy, listing products are done with a fee. It charges an amount to list every product, which is valid for 4 months.
- Customers can browse these products and place order for the ones they want
Customers can use the advanced filters of Etsy to search for items. So, the customers have a choice to ask the vendor a question or can simply add the product to cart.
- Customers can make a transaction on the platform
Buyers can make all the transactions on Etsy. It charges a commission of 3.5% for each successful purchase. The excess amount is transferred to the vendor’s bank account.
- Customers have a choice to rate and review the products
Customers can rate and review products. These reviews will be useful for other customers. Besides, the rating system benefits other buyers to value the worth of an item.
Etsy Business Model
Here’s from Juggernaut, who made a detailed analysis of the 9 segments of Etsy’s business model in a chart below:
How Etsy makes money? What is Etsy’s revenue model?
Etsy is known for listing unique products on its platform. It is also known for its unique revenue model. Following are its major revenue models,
1) Sellers are charged to list items. The fee to list on Etsy is quite as low as $0.20 and is valid for 4 months. However, the overall sum of contribution from all listings amounts to be high.
2) Etsy also charges the seller a commission for every sale. Vendors have the option to fix their own sale price. But Etsy will take a commission of 3.5% before it pays to the seller.
3) Special features are available for sellers at an additional cost. They are basically advertising options like, featured products. Featured products can be showcased in their shop to enable more visibility.
Showcasing factory-manufactured items paved a huge way for Etsy’s growth. This allowed broader product listing, wider user base and yielded good revenue for the company.
In 2017, Etsy generated a revenue worth 441 million USD. It is higher than the 2016’s, 365 million USD.
How much does it cost to build a website like Etsy?
The cost of a website like Etsy will be around $70K, for an agency in Europe. They would charge $25/hr. The price in the US or UK, to build a marketplace like Etsy from a solution partner would cost about $250,000 to $400,000, to develop it from scratch.
Many multi-vendor marketplace platforms and softwares similar to a marketplace like Etsy have come-up. Therefore, it has become easy to build a marketplace like Etsy.
Surprisingly, with ionwe’s marketplace multi-vendor eCommerce website you can easily start an online marketplace like Etsy. You can build websites like Etsy at low budget with ionwe.
Features of Etsy Marketplace
Etsy is a single eCommerce website with marketplace model that sells goods and earns commission. Even though Etsy has a simple business model, it has got some special features like,
- Etsy accepts only unique product listing in arts and crafts categories. This includes handmade and vintage items.
- Vintage products only older than 20 years can be listed
- Vendors can create their shop
- Etsy provides global shipping
- Every seller has feedback that helps buyers to make decisions
- Customers have different options to pay money, provided by the seller
- Etsy is quite famous among women, and it has 86% of women users
How to create an online marketplace like Etsy?
Etsy was actually developed in 3 months from scratch. It initially had simple design and functionality. Later, the MVP version helped creators of Etsy to validate business ideas and attract audience. In the ensuing years the site got customized gradually.
To start with creating a marketplace website like Etsy, you must know the features required for sellers and buyers:
- Signup / Sign-in via email or popular social networks like Google and Facebook
- Account settings (name, address, email, password settings, etc.)
- User dashboard
Some important buyer features for the Etsy-like marketplace are:
- Create a Personal profile and manage
- Filters search (location, price, item type, shipping options, etc.)
- Able to choose a quantity, size, color and necessary options
- Send the message to sellers
- Rate and review items
- Manage a list of favorites
- Manage payment options
- Place orders
- Check transaction history
Some Seller features for the Etsy-like marketplace are:
- Create seller profile and manage the profile
- List items for sale
- Manage information of items
- Communicate with buyers via message
- Choose payment methods
- View transaction history
In the present scenario, building an online marketplace like Etsy has become a lot more easier. It is possible to build websites like Etsy, through prebuilt websites like Etsy and readymade clone scripts. Ionwe’s Etsy clone scripts help you to get the most powerful multi-vendor marketplace script. It is built with high-end technologies and responsive design. Other features of Ionwe’s Etsy clone includes,
- Unlimited product listing
- Huge number of seller accounts
- Free installation
- Maintenance and
- Special advanced features to make your marketing easier.
Why Need An Etsy Clone Software for Your eCommerce Business?
EEtsy Clone is an ideal eCommerce solution for you to start an online peer-to-peer eCommerce website like Etsy. The target segment, by default includes, vintage, fashion and handmade products. This enables business owners and entrepreneurs to sell their own craft or handmade items online. It is a multi-vendor eCommerce marketplace script that supports a single storefront with different sellers.
How will ionwe Help You to Build Your Online Marketplace like Etsy?
iowne has a feature-rich Etsy Clone Script for eCommerce website requirements. The advantage of working with us is the fact that we have already prepared the Etsy like marketplace base ready for you! Our Etsy clone software incorporates all the necessary features of multi vendor marketplaces like Etsy. It will enable you to drive a thriving eCommerce marketplace with no additional efforts.
We understand the needs of various startups and striving entrepreneurs. In the competitive market, we empower you to transform your eCommerce business dream into reality by giving the best Etsy Clone script. Our cutting-edge Etsy clone script includes features that are,
- User-friendly and
- That which can be quickly customized as per your online business needs.
Ionwe can help you create your multi-vendor marketplace website similar to that of Etsy. The Etsy like marketplace provides individual seller profiles for vendors to manage their products and content. Among other things, they will be able to modify content on their account including,
- Product descriptions
- Social networking links, etc.
Another specialty with ionwe’s Etsy-like marketplace is that you can set different commission for every product and seller, based on your requirements.
To know more about our Etsy-like marketplace, you can feel free to drop a query in the comment section or contact us over here. Click below if you want to know more about our multi-vendor marketplace software. Subscribe to our newsletter below to keep yourself aware of our updates and eCommerce ideas for your business.