Etsy runs online marketplaces connecting independent sellers with buyers, specializing in handmade goods and vintage items, plus Depop for secondhand clothing.
Money comes from marketplace fees like listings, transactions, and payment processing, plus ads and seller tools. Gross margin is 72.3%, but net margin is only 7.3%, showing high operating costs.
Etsy's brand and seller community create switching costs, but Amazon Handmade and eBay actively compete for the same sellers and buyers, eroding its uniqueness.
