E-Commerce

E-Commerce

E-Business Case Questions

Etsy's Business Model

Etsy is basically a store whose main concept is to connect very small business owners directly to consumers. That is why; the company feels pride in saying that it brings health to commerce and thus making the world more sustainable, fair and making it more fun. Therefore, for this reason, the business model used by Etsy is a value network in which the members could be either a seller or a buyer. However, in addition to this, Etsy operating itself in a marketable niche by connecting the customers to unique and innovative products that actually not easily available in the physical market. Due to this reason, it is said that such type of business model is almost impossible to develop with brick and mortar store. The business model is success in itself because creating a feasible transportation and logistics system in almost 150 countries of the world is near to impossible. Secondly, the business model based on online store through which it created strong customer engagement because to sell or buy any product from online store, the customer need to enroll him or herself as a member on the website (Flandez, 2013).

Etsy's Revenue Model

As per the report by Carpenter (2010), Etsy revenues had witnessed a consistent increase since its launch in 2005, while it established itself as an international trusted brand, which provided platform for all makers of all kinds of wares that they need to sell. The revenue model of Etsy is based on the number of products that sold through its marketplace. As per the research, 6.7 million products are listed on the marketplace for sale, among that half of which fall into just three broad categories; vintage, jewelry and art supplies. Therefore, based on this, Etsy established itself as an important part of the market that is known for buying and selling from the same platform. At last, the revenue model of Etsy is based on the considering the community as the core part of selling-buying experience and through this the company able to attract the higher end sellers (Carpenter, 2010).

Etsy's Headquarters Culture and Values

Etsy's Brooklyn headquarter reflects the culture and values in terms of doing work with all teams at Etsy to ensure that company's vision, mission and values must be integrated together to conduct the daily activities. Therefore, it means that looking at everything of the business, for instance from where the milk bought and to whom it need to be sold on a larger scale. The reason behind highlighting this is that the company employees are fully integrated with the organizational operations because the culture and values of the business based on the concept of 'doing good' (Mastny, 2013).

The company culture and values that reflected from the video shows that management trying hard to convert the Etsy offices to almost 100 percent solar power and for this purpose the company already involved in getting bids. But still as per the research, the company's main issue ...