Integration is becoming a trend, Etsy may implement an acquisition strategy

Recently, Etsy CEO Josh Silverman said that e-commerce is currently moving towards integration. Under this trend, some companies will face risks. But he said that Etsy will survive the great wave of integration .

Josh Silverman said that as the integration trend continues to expand, one or more companies similar to Amazon will emerge in the future , and these companies will become substitutes for Amazon. In fact, it means that such companies are expected to become "another Amazon." As for the Amazon substitute market he mentioned , Josh Silverman said that Etsy and its affiliated markets Depop and Reverb have very high possibilities.

In addition, in a speech at the Global Technology Conference held on September 14 , Josh Silverman and Etsy CFO Rachel Glaser discussed many of Etsy’s current problems, including Etsy’s brand awareness, the Indian market, the star seller program, off-site advertising plans , etc.

According to the discussion reported by foreign media, 2% of sellers are currently withdrawing from Etsy 's cost-effective off-site advertising plan, and Etsy's investment in products , engineering and experiments are not going well, which undoubtedly hinders Etsy 's development process. In response, Etsy said that they will carefully study the problems and deal with them in a timely manner to ensure the company's rapid development.

In addition, at the conference, they also said that the company may adopt an acquisition strategy in the future and will be very strict in selecting the target to be acquired. To this end, they will formulate a set of acquisition criteria, including whether the acquired company meets Etsy 's mission and vision for business development , whether it implements non-commoditized inventory, whether it has established a true peer-to-peer market ( sellers sell products directly to buyers ), and whether it implements a light capital model ( Etsy will not hold inventory ) .

As we all know, Etsy focuses on handmade products, while Amazon focuses on comprehensive products. If we really compare the two, it is obvious that Amazon still has a huge advantage. However, in terms of platform features, Etsy has always been in the leading position in the field of handmade products. Therefore, it is bound to be a bit far-fetched to compare the two rigidly.

But as the company grows and expands, it’s hard to say whether Etsy will transform like Amazon did in its early days and eventually become a leader in comprehensive e-commerce.

Etsy

Acquisition