Page 118 - Introduction to Electronic Commerce and Social Commerce

Closing Case: Etsy—A Social-Oriented B2C Marketplace 97

business news at bloomberg.com. After completing your Instagram page, so potential buyers can see products avail-
research, as a team, prepare a report on disintermediation able to purchase. This is how Etsy emphasizes its social pres-
in your assigned area. ence. For tips on social networking success on Etsy, see blog.
5. Watch the video “Internet Marketing and E-Commerce etsy.com/en/tags/etsy-success-social-networking.
with Tom Antion Part One” (9:06 min) at youtube.com/
watch?v=tc1u9eqpf68 (Part Two at youtube.com/
watch?v=7jmK0_QTguk is optional) and answer the The Company’s Mission
following questions:
(a) What revenue sources are cited? According to etsy.com/about, the company’s mission is “to
(b) What B2C revenue sources that you are aware of are re-imagine commerce in ways that build a more fulfilling
not cited? and lasting world.” In 2012, Etsy became a “Certified B
(c) What are the two “affiliate” models? Compare these Corporation,” which is “a new kind of company that uses the
two models. power of business to solve social and environmental prob-
(d) Why is eBay so great for selling? lems” (see blog.etsy.com/news/2012/etsy-joins-the-b-
(e) Comment on the suggestions for products/services corporation-movement).
you can sell from your home.
(f) What problems and limitations do you see for con-
ducting business from your home? The Community
6. View some videos about future retail shopping (both off-
line and online). Discuss what B2C e-commerce may According to etsy.com/community, Etsy is more than a
look like in the future, considering future shopping inno- marketplace. It is a community of artists, creators, collectors,
vations (e.g., see Microsoft’s future vision on retailing thinkers, and doers. Members are encouraged to share ideas,
and several videos offered by Metro AG in Europe on attend events (in your area), and join streaming workshops.
future shopping). Community members can post comments and stories. Etsy
7. Your mission is to help people find jobs online. Each team describes itself as “the marketplace we make together.”
evaluates several job sites and lists their capabilities and Etsy uses several social media tools and networks. For
shortcomings. (Starting list: craigslist.org, career- example, in April 2009, it organized an “Etsy Day” promo-
builder.com, dice.com, glassdoor.com, linkedin.com, tion on Twitter. In March 2011, the company introduced a
mediabistro.com, monster.com, simplyhired.com, and Facebook-type social networking system called “People
tweetmyjobs.com.) In addition, check virtual job fairs Search,” a tool for people to search through all Etsy buyers
such as “Monster Virtual Job Fair” (virtualjobfair.be). and sellers and add people to their “Circle.” This addition
8. The team(s) investigates Pandora Radio (pandora.com). resulted in criticism regarding privacy, and subsequently to
Concentrate on: the protection of such personal information on Etsy’s site.
(a) All sources of music they can stream. For more details, see huffingtonpost.com/2011/03/15/etsy-
(b) All devices that can be used to access Pandora. privacy- debacle-site_n_836277.html.
(c) Their business model and competitiveness.
(d) Present your findings.
The Business and Revenue Models

CLOSING CASE: ETSY—A SOCIAL-ORIENTED Etsy is a for-profit private company. Although there is no
B2C MARKETPLACE membership fee, Etsy charges 20¢ for each item listed for
four months, or until that item sells. There is an additional fee
Etsy is online marketplace where designers across the world of 3.5% of the sale price of that item once that item is sold,
sell unique handcrafted jewelry, clothing, vintage items and if the seller uses the site’s payment system (called Direct

(20 years or older), art, prints and posters, handmade goods, Checkout), there is an additional 3% fee (or more, depending
craft supplies, and more. According to its website, Etsy has on location of bank account) per transaction. Etsy declared
created a community of sellers, each with a virtual store- that the company is profitable and intends to go public.
front. The sellers are usually independent designers who sell
small quantities of unique handcrafted goods. Etsy can be
viewed as a designer’s virtual fair where creators have their Competition
own virtual store with an “about” link so buyers can learn
about the shop, read reviews, and contact the seller with any Many of Etsy’s direct competitors are located outside the
questions. Each seller may offer a link to their Facebook or USA (e.g., German-based DaWanda; en.dawanda.com,