Founded in New York City in the year 2005, Etsy is one unique marketplace platform that has gained immense popularity for presenting real talent to the world. Etsy, unlike other e-commerce platforms, targets a market of creative geniuses by facilitating the sale and purchase of unique handcrafted and vintage items. Why wouldn’t anyone be intrigued to know ‘how to create an online marketplace like Etsy’?
Surprisingly, it didn’t take too long for the company to set a global footprint. Nearly two years after its launch, it already had half a million users and $26 million in sales.
How did it set out to become one of the most established marketplaces in just a few years from its launch?
Etsy has time and again stood out for its unique products, but there’s much more to the platform than we know. The company has appealed to the rising entrepreneurs with its robust and consistent business model that we will discuss in this extensive guide today. So, if you’re starting and have no clue where to take the inspiration from, Etsy should be your go-to platform.
Here’s your ultimate guide to building a successful marketplace platform like Etsy.
To know how to create an online marketplace like Etsy, we must know its revenue model to the maximum accuracy. We have done the homework for you below.
Etsy charges sellers to list items on the platform. While it may seem like a deficit deal to some sellers, they do get the desired traction on their listings, and the listing fee is as low as $0.20 which also contributes significantly to the overall revenue that Etsy makes. The listings, therefore, is a win-win deal for both sellers and Etsy.
In addition to the listing fee, Etsy also charges sellers a commission for every sale. The commission fee has been fixed at 3.5% so even if the sale price differs, Etsy cuts a commission of 3.5% from every sale, and the remaining amount is transferred to the seller’s account.
Etsy also gives its sellers an option to advertise on the platform, and this can be done by paying an extra cost. Sellers can market their products to generate more conversions.
Want to know how to create an online marketplace like Etsy? Well, we have a detailed four-step guide below that covers all the points to be taken care of while building and competing with an Etsy like online marketplace app.
We will broadly consider the three bulleted points here.
The competition analysis and market research always come first before building a successful online marketplace platform. For this, you must check out the existing app reviews and perform a SWOT analysis. You should also take the time to understand your user base and the sellers.
Besides this, identifying the right business model must be of prime importance. Choosing between different revenue models and the income generated from each one of them on existing platforms will give you a clear perspective on how to monetize your platform and launch an Etsy clone.
To create an online marketplace like Etsy, which caters to both sellers’ and buyers’ requirements, you must focus on the two most important points.
An efficient app development software like Code Brew will take both UX and UI into equal consideration before building a successful Etsy clone. Here’s the exclusive app workflow that Code Brew operates on.
Once you’re all set with the business model and platform development, here comes the testing stage. You must test the efficiency of the platform and gather some reviews from the early adopters.
It starts with creating a minimum viable product (MVP) that defines the core features of your marketplace platform. The objective behind creating an MVP is listening to the users, taking their feedback into account, and improving the product. Know Why Is MVP The Right Choice For Online Marketplaces here.
Once you’ve released your MVP marketplace platform, the next step is to validate your assumptions based on the first-hand experience. Analyzing user feedback to scale operations and integrate interesting functionalities should be your next goal. This way, you can continue developing your app based on the existing and future client and business requirements.
Well, the process of building a successful marketplace platform like Etsy certainly doesn’t end here. In fact, it’s just the beginning. Etsy left no stone unturned to appeal to its target audience and market its products on several advertising channels.
Most importantly, the real-time AI-powered data insights that helped the platform identify its strengths and weaknesses invigorated better and informed decisions. While the never-ending list of its unique features is infinite, we’re certain that the above-given information will help you kickstart your marketplace business.
However, remember, this can only be done with a successful app building software that offers everything that an Etsy like app must-have. Get In Touch with us to build your own Etsy Clone and shake the online marketplace. We burn the midnight oil regularly, to brew fresh success for you!February 10, 2021