Etsy has gone public. It has been one of the niche ecommerce platforms in the world and had its share of popularity alongside larger and more diverse global marketplaces. But what was considered kitsch has now become a public company with its IPO fetching as much as $31 for a share.
Etsy has carved out its niche in handmade products and it is also a sort of unique peer to peer ecommerce platform. The surprising factor in Etsy’s rise has not been its inventory or what it promotes and the values the company champions but the fact that it has not posted any profit in recent years and has still managed a handsome debut with its IPO.
The successful IPO is being attributed to the community which is vibrant, unique and is supremely dedicated to their respective crafts. It is different from every other peer to peer network or community out there. Quite a few entrepreneurs on the site are raking in substantial money. There are many who are making six figures in a year. Obviously these are savvy entrepreneurs but it just goes onto say how ecommerce can work wonders if the strategy is right.
Etsy going public has a huge takeaway from ecommerce in general and for associated industries. For instance, parcel courier services that have long attended to personal consignments and have over the years turned into the most valuable partners of online retailers or ecommerce giants, will now have to adhere to new standards that will be set by the virtue of companies like Etsy going public. Companies that are publicly traded will have to be subject to greater scrutiny so parcel courier services that Etsy community members or sellers hire will have to deliver on the high expectations. A normal parcel delivery England to Germany may not be the same for some resellers as they try to capitalize on the transformation. Going public makes a company a brand and a brand cannot endorse policies nor have practices that other companies, apparently inferior to them, will possess.
Whether or not Etsy can continue its dream run and hold on to its unique market share is something that remains to be seen. For now, it is great news for ecommerce and for the logistics industry. It is also good news for sellers and buyers. But most importantly, the event marks a tectonic shift for the industry of handmade goods and crafts.