Etsy SWOT Analysis 2022: A Detailed Report!

etsy swot analysis

Etsy is an American company that mainly focuses on handmade or vintage items and craft supplies. It was founded on June 18, 2005. Its headquarters are in Brooklyn, New York. This site follows the tradition of open craft supplies and tools. An Etsy SWOT analysis helps the company executives to analyze and assess all the internal and external factors of the community.

An Etsy SWOT Analysis is a proven management framework that enables a brand to benchmark its business & performance as compared to the competitors and industry.

Etsy – At A Glance

Company Name Etsy, Inc.
Industry E-commerce
Founded June 18, 2005
Founders Robert Kalin, Chris Maguire, Haim Schoppik, and later Jared Tarbell
CEO Josh Silverman
Headquarter Brooklyn, New York, U.S.
Annual Revenue $1.725 Billion (FY 2020)

Etsy SWOT Analysis

SWOT analysis is a strategic planning frame that can be used by the company managers to get a successful situation analysis of the company. An Etsy SWOT analysis framework can assist them to realize their internal strategic factors such as strength and weakness, also their external strategic factors such as opportunity and threats.

Etsy Inc. maintains its intimidating presence in the business sector only by reviewing the SWOT analysis regularly and improving itself. So, an Etsy SWOT analysis will be of great use for this company.

Strengths of Etsy in SWOT Analysis


Etsy Inc. has a plethora of strengths that will help it to thrive in the main field. An Etsy SWOT analysis will help to focus on these strengths. Based on Fern Fort University’s studies, some of these strengths are enlisted below:

High tier consumer satisfaction: Etsy has a good reputation for delivering the most unique products to its customers. As they are a worldwide organization they can serve many different products. They can cater to the wishes of both the customers and the dealers, giving them both a pleasant and one-of-a-kind experience. The customers feel like they are well served. Also, they can leave their reviews which gives them a high sense of importance. This ultimately results in a very satisfied consumer base.

Strong free cash flow: Etsy has a steady flow of cash as many people are constantly depending on them for vintage and artsy products. It has quite several regular customers who like to buy from them and several regular dealers who like to use their site to make their deals. This creates a steady and sure flow of money that helps the organization to keep its profits and expenditures in check.

Strong dealer community: The dealers who deal through Etsy have a strong relationship with the company. This relationship is based on trust loyalty and great services. Etsy does not just provide the dealers with products, it also helps them to promote their products. This helps to build a mutually beneficial relationship. This create a strong dealer base.

Reliable suppliers: This site is packed with reliable suppliers. Etsy prides itself in giving the safest and secure economic experience. It has qualified and well-trained professionals who work for them. These professionals help Etsy to be the safest. The suppliers are also expected to give a 0.20$ entry fee to promote and sell their products. This adds to the company’s credibility and makes people trust them more.

Distribution and reach: Etsy has its outlets spread out in each state of the United States. It also has outlets in the UK and many other countries. These outlets are supported by a reliable supply distribution network. This network helps so that these products are available to visitors the public on time.

Financial position: Etsy has a strong financial base. It has garnered a total of about 42 million dollars. It has been gaining market slowly but surely. It has earned the public trust as a rising star company. Its financial position has it on a point of pure advantage that increased its market value and brand name by leaps and bounds. So, this financially secure position does good for the company.

Weaknesses of Etsy in SWOT Analysis


Weaknesses are part of the internal factors of a company. An Etsy Inc. SWOT analysis will bring many of these to light.

Stiff organization structure: The organizational structure that Etsy follows is not very flexible. So, whenever they merge with new companies it always faces a great deal of trouble to adjust with its working culture. It makes them lose several valuable working hours that puts the company’s activities at a disadvantage.

Higher funds for the technology sector: All though Etsy spend enough money to develop its technological sites. It is still quite behind on this matter since many of its competitors are ahead of it in this matter. This puts it on quite an inconvenience as they put a damper on the team’s morale.

Research and development: Etsy Inc. spend more than that is average in this industry on research and development. Even so, it is not enough. It is still spending less than what many other players in the field are spending. As a result, they are falling behind in the competition.

Opportunities for Etsy in SWOT Analysis


The opportunities are outside factors of a company that they can exploit for profit and benefits for themselves. An Etsy Inc. SWOT analysis will help the executives to contemplate them before their next big move.

Low rates of inflation: The rate of inflation is very low this year and experts believe that the rate will continue to lie low for a while. This presents the company with an excellent opportunity to earn a good amount of profit. It also saves the company from the risks of potential losses. It will also ensure that the cost inputs are low for that period of time.

New markets: As the government has agreed to lend a hand to the economic development there are new markets in the making. This will help Etsy broaden its already wide horizon of business. It has already connected 2.1 million sellers with 39.4 million buyers. These numbers can rise higher thanks to the new markets.

Globalization: The increase in globalization does not mean that the Etsy will be constricted within its own shackles. It can turn around in what one can expect as a full-blown chance to show the world exactly what Etsy is capable of. This can result in more customers, interested dealers and much more profit and popularity.

Threats for Etsy in SWOT Analysis


Threats are the most important part of a swot analysis. An Etsy Inc. SWOT analysis will point out the threats for this community that has been holding it back.

Irregular supply of unique products: As it is known to all that Etsy holds the reputation for supplying the most eccentric and valuable products. But these products are rare as well as beautiful. So even after strong public demands, it is extremely hard to find another copy of the sold product. This is especially troublesome when the product is one of the vintage collections as they are extra rare to get by.

Inconsistent exchange rate: The exchange rates are prone to fluctuate. As Etsy regulates its sales internationally, these fluctuations affect it very deeply. This can lead the company to heavy profits to heavy losses in the matter of a heartbeat.

Increasing competition: In the recent times many new companies are mushrooming in this new market. This increases the competition. If the competitors get ahead of this race, it will mean less revenue for Etsy. Amazon, Walmart are one of the biggest competitors for Etsy.

Etsy SWOT Analysis Overview Template


Conclusion and Recommendations for Etsy

Here are some recommendations for Etsy to improve their market game from the experts:

  • They should recruit more people across the globe as it would diversify their workspace and boost team morale.
  • They should try to make their business more well-knowned.
  • They should focus on training their workforce.

In conclusion, it can be said that a steady line of profit and global reach are the key strengths of Etsy. As for its greatest weakness, that woul be it stiff structure of organization. It may not look like much but it is a huge load to carry.

An Etsy SWOT analysis helps the community in many different ways. Only because it would allow the executive directors to theoretically take apart the community’s strategic approach to this day and scrutinize them.

picture of Angela N. Davis

Written by: Angela N. Davis

I'm Angela, founder & content creator of SWOT Hub. As an entrepreneur, I love to explore various brands/companies & write about them.

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