Both Etsy and eBay are two-sided marketplaces or platforms, business models. The interactions between buyers and sellers on the platforms enable them to generate revenues based on a take rate.
| Business Model Element | Etsy | eBay | Similarities | Differences | Competitive Advantage |
|---|---|---|---|---|---|
| Customer Segments | Independent artisans, crafters, and vintage sellers | Individual sellers, small businesses, collectors | Both platforms cater to individual sellers, small businesses, and collectors. Etsy focuses on independent artisans, crafters, and vintage sellers. eBay has a broader seller base, including individuals and businesses. | Etsy’s specialization in handmade and vintage products. eBay’s diversity in seller types, including individuals, small businesses, and collectors. | Specialization in Handmade and Vintage (Etsy), Diverse Seller Base (eBay). |
| Value Proposition | Unique, handmade, and vintage products | Wide variety, auction-style listings, rare items | Both offer unique and rare products. Etsy emphasizes handmade and vintage items, providing a niche marketplace. eBay offers a wide variety of products with auction-style listings. | Etsy’s focus on offering unique, handmade, and vintage products. eBay’s broad spectrum of products, including rare and collectible items, with auction-style listings. | Unique and Handmade (Etsy), Variety and Auctions (eBay). |
| Channels | Online marketplace | Online marketplace | Both operate as online marketplaces. | Etsy’s marketplace focuses exclusively on handmade, vintage, and craft items. eBay’s marketplace caters to a broader range of products, including electronics, fashion, and collectibles. | Niche Marketplace (Etsy), Broad Marketplace (eBay). |
| Customer Relationships | Community, trust-based | Buyer-seller interactions, ratings and reviews | Both platforms foster trust through community engagement. Etsy emphasizes a sense of community and trust among artisans and buyers. eBay relies on buyer-seller interactions, ratings, and reviews to build trust. | Etsy’s community-driven approach and trust-based relationships. eBay’s reliance on buyer-seller interactions and a robust ratings and reviews system. | Community and Trust (Etsy), Ratings and Reviews (eBay). |
| Key Activities | Hosting listings, promoting artisans | Hosting listings, facilitating transactions | Both host product listings and facilitate transactions. Etsy focuses on promoting and supporting artisans and sellers. eBay provides tools for listing and managing products efficiently. | Etsy’s focus on promoting artisans and assisting sellers with their businesses. eBay’s provision of tools for efficient listing and management. | Promoting Artisans (Etsy), Efficient Listing (eBay). |
| Key Resources | Online platform, seller community | Online platform, seller network | Both rely on their online platforms and seller networks. Etsy’s key resources include its community of artisans. eBay’s resources include a vast network of individual sellers and small businesses. | Etsy’s community of artisans and crafters as a valuable resource. eBay’s extensive network of sellers and businesses. | Artisan Community (Etsy), Extensive Seller Network (eBay). |
| Key Partnerships | Independent artisans, crafters | Businesses, individual sellers, e-commerce partners | Both partner with sellers and businesses. Etsy collaborates with independent artisans and crafters. eBay partners with a wide range of businesses, individual sellers, and e-commerce partners. | Etsy’s specialization in collaborating with independent artisans and crafters. eBay’s diverse partnerships with businesses and individual sellers across various product categories. | Specialized Artisan Partnerships (Etsy), Diverse Seller Collaborations (eBay). |
| Revenue Streams | Transaction fees, listing fees | Listing fees, final value fees, advertising revenue | Both generate revenue through transaction and listing fees. Etsy charges transaction and listing fees. eBay charges listing and final value fees, in addition to advertising revenue. | Etsy’s primary revenue streams from transaction and listing fees. eBay’s diversified revenue streams, including final value fees and advertising revenue. | Diversified Revenue Streams (eBay), Transaction-Focused (Etsy). |
| Cost Structure | Hosting and maintenance costs | Hosting, maintenance, marketing costs | Both incur costs related to hosting and maintaining their online platforms. Etsy’s costs also include marketing expenses to promote artisans and sellers. eBay’s costs encompass hosting, maintenance, and extensive marketing efforts. | Etsy’s marketing expenses for promoting artisans and sellers. eBay’s higher marketing costs for broader advertising campaigns and brand recognition. | Marketing for Artisans (Etsy), Broad Advertising (eBay). |
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