How Much Does Etsy Take? Etsy’s Take Rate Analysis

In 2021, Etsy’s take rate was 17.26%. It means that on each sale that happened through the platform, Etsy was able to retain over 17%. Indeed, on a total Gross Sales Volume of $13.5 billion in 2021, Etsy generated over $2.3 billion in revenues.

YearTake Rate
Etsy’s Accelerating Funnel
Active Buyers88.3M
Repeat Buyers35.5M
Habitual Buyers7.6M

Etsy’s marketing strategy explained.

In 2022, Etsy had 88.3 million active buyers, over 35 million repeat buyers, and 7.6 million habitual buyers. Etsy’s funnel is skewed toward enabling active buyers to become habitual buyers, which is critical for long-term sustained growth in a two-sided digital marketplace.

Building a long-lasting advantage for a digital platform requires a company to combine product/engineering, marketing, and distribution to enhance a growth funnel.

In the case of Etsy, its funnel is focused on ensuring that sellers list unique items on the platform while buyers become repeat first, then habitual buyers.

This is the Etsy marketing strategy in a nutshell.

Etsy business model explained

Etsy is a two-sided marketplace for unique and creative goods. As a marketplace, it makes money via transaction fees on the items sold on the platform. Etsy’s key partner comprises sellers providing unique listings and a wide organic reach across several marketing channels. Etsy generated over $2.3 billion in revenues in 2021; it counts 88.3 million active buyers and 5.3 million active sellers as of 2022. 

For that matter, Etsy’s business model is focused on the two sides of its network, sellers to list unique items and buyers to transition from first-time to habitual buyers.

That is where technology, marketing, and distribution come together.

To enable a customized journey for users to be prompted to purchase continuously to Etsy while providing enhanced trust through the platform.

Read Next: Etsy Business Model, Etsy Flywheel, Etsy Marketing Strategy.

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