COMPANYETSY

Etsy

Etsy is a marketplace for handmade goods with seller advertising monetisation.

Etsy operates in the Retailer & Marketplace segment.

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Distinction

Etsy is not a standalone merchant shop builder like Shopify and not a generalist marketplace like Amazon. It is a two-sided marketplace focused on distinctive goods while also operating an internal seller advertising product.

Founded
2005
Headquarters
55 Washington Street Suite 512, Brooklyn, NY 11201
Core Segment
Retailer & Marketplace
Company Size
1,001–5,000
Official Links
Website
Verified
2026-04-22

Etsy: About

Etsy operates a two-sided marketplace business model. It aggregates buyer demand for unique goods and supplies sellers with the tools, audience access and transaction infrastructure needed to run shops on the platform. Value is created by matching niche consumer intent with long-tail merchant supply, while Etsy captures revenue from seller activity, transaction flow and paid visibility within the marketplace.

Products & Services in Categories

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Etsy: Market Position

Etsy is a US-based public e-commerce marketplace operator that connects independent sellers with buyers seeking handmade, vintage and other distinctive goods. Its core business is the Etsy Marketplace, which provides seller storefronts, product discovery, checkout, payments and order workflows across web and mobile. The company serves both consumers and a large base of independent merchants, artisans and small businesses.

Etsy generates revenue primarily through marketplace take-rates charged to sellers, including listing, transaction and payments-related fees, and through advertising products sold to merchants within its marketplace. Its self-serve Etsy Ads product adds a second monetisation layer by allowing sellers to buy sponsored placement inside Etsy search and browse surfaces, making the business a blend of marketplace operator and retail media platform.

Etsy: Key Competitors & Alternatives

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Etsy: Frequently Asked Questions

What is Etsy?

Etsy is a public online marketplace that connects independent sellers with buyers looking for handmade, vintage and unique goods.

Who uses Etsy?

Consumers use Etsy to discover and buy distinctive products, while independent sellers and small businesses use it to run shops and promote listings.

How does Etsy make money?

Etsy makes money from seller listing and transaction fees, payments-related charges, on-platform advertising such as Etsy Ads, and some subscription-style seller tools.

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