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.
Year | Take Rate |
2019 | 16.4% |
2020 | 16.8% |
2021 | 17.26% |
Etsy’s Accelerating Funnel | |
Active Buyers | 88.3M |
Repeat Buyers | 35.5M |
Habitual Buyers | 7.6M |
Ket Highlights
- Etsy’s Take Rate:
- In 2021, Etsy’s take rate, which represents the percentage of each sale that Etsy retains, was 17.26%.
- This indicates that Etsy was able to retain over 17% of the value of each transaction that occurred on its platform.
- Revenue Generation:
- User Engagement Funnel:
- Etsy’s user engagement funnel reflects the progression of user activity on the platform.
- The platform had 88.3 million active buyers in 2021, representing the total number of individuals making purchases.
- Among these buyers, there were 35.5 million repeat buyers who engaged with the platform more than once.
- Additionally, Etsy had 7.6 million habitual buyers, indicating users who regularly and consistently made purchases on the platform.
- Yearly Take Rate Trends:
- Over the years, Etsy’s take rate has shown an upward trend:
- In 2019, the take rate was 16.4%.
- In 2020, it increased to 16.8%.
- In 2021, it further rose to 17.26%.
- Over the years, Etsy’s take rate has shown an upward trend:
Etsy’s marketing strategy explained.
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
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.
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