Etsy 2015 Annual Report Download - page 15

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locally-relevant tools and enhancements around the world to encourage these connections. We believe our locally-focused work will broaden the reach of our
global platform.
 Seller Services, such as Promoted Listings, Direct Checkout and Shipping Labels, help an Etsy seller spend more time on
the pleasures of her craft and less time on the administrative aspects of her business. We launched our first seller service in late 2011 and in 2015 Seller
Services represented $136.6 million, 49.9% of our revenue, a 65.6% increase over 2014, and $82.5 million, or 42.2% of total revenue in 2014, a 92.7%
increase over 2013. According to our 2014 Seller Survey, for every hour that an Etsy seller spends making her products, she spends another hour doing
business-related tasks, including inventory management, shipping, customer service, marketing and accounting. We intend to enhance existing Seller
Services, extend their geographic reach and introduce new ones to increase the amount of time an Etsy seller can devote to her craft.

 We intend to fulfill our mission to reimagine commerce by expanding the impact of our platform. By further developing our
manufacturing program, we believe we are helping Etsy sellers who want to grow their businesses connect with skilled partners, while helping to revitalize
manufacturing in local communities. We will also continue to focus on our Wholesale offering, which we launched in August 2014, so that Etsy sellers can
sell their products to select retail partners such as Land of Nod, Lou & Grey, Macy's and Whole Foods.
We plan to focus on strategic partnerships, technological advances and public-private endeavors such as our Craft Entrepreneurship program, which we
believe will bring the benefit of the Etsy Economy to more people and more communities. Craft Entrepreneurship is an educational program intended to
empower creative people in underserved communities with the resources to start and run an online business with Etsy and/or elsewhere. As of December 31,
2015, we’ve partnered with local organizations in 23 cities in Australia, Canada, the United States and the United Kingdom to provide Craft Entrepreneurship
classes. We've committed to expand Craft Entrepreneurship to a total of 30 cities by June 2016.
Competition
We compete with retailers for the Etsy seller. An Etsy seller can list her goods for sale with online retailers or sell her goods through local consignment and
vintage stores and other venues and marketplaces. She may also sell wholesale directly to traditional retailers, including large national retailers, who discover
her goods in our marketplace or otherwise. We also compete with companies that sell software and services to small businesses, enabling an Etsy seller to sell
from her own website or otherwise run her business independently of our platform. We are able to compete for Etsy sellers based on our brand awareness, the
global scale of our marketplace and the breadth of our online presence, the number and engagement of Etsy buyers, our Seller Services, our seller education
resources and tools, our policies and fees, our mobile apps, the strength of our community and our values.
We also compete with retailers for the attention of the Etsy buyer. An Etsy buyer has the choice of shopping with any online or offline retailer, whether large
marketplaces or national retail chains or local consignment and vintage stores or other venues or marketplaces. We are able to compete for Etsy buyers based
on the unique goods that Etsy sellers list in our marketplace, our brand awareness, the person-to-person commerce experience, our reputation as a trusted
marketplace, our mobile apps, ease of payment and the availability and reliability of our platform.
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