Etsy 2015 Annual Report Download - page 47
Download and view the complete annual report
Please find page 47 of the 2015 Etsy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
 |
 |
We refer to active buyers as of December 31, 2011 as “2011 Active Buyers.” Forty-five percent of 2011 Active Buyers remained active buyers through their
fourth year on the platform, as of December 31, 2014. The average annual GMS per 2011 Active Buyer in 2014 was 89% higher than in 2011.
We refer to active buyers as of December 31, 2012 as “2012 Active Buyers.” Forty-three percent of 2012 Active Buyers remained active buyers through their
fourth year on the platform, as of December 31, 2015. The average annual GMS per 2012 Active Buyer in 2015 was 89% higher than in 2012.
Our business model is based on shared success: we make money when Etsy sellers make money. For that reason, we provide services to an Etsy seller to help
her start and grow her shop. As of December 31, 2015, 48.1% of active sellers used one or more of our Seller Services compared to 46.1% of active sellers as of
December 31, 2014. For December 31, 2015, this included 16.7% of active sellers using Promoted Listings, 40.2% of active sellers using Direct Checkout and
23.9% of active sellers in the United States and Canada using Shipping Labels. We expect seller services revenue related our existing offerings to continue to
grow in 2016, driven by increased adoption and product enhancements. Additionally, we expect to see moderate contributions to revenue related to new
product launches and types of seller services. Our effectiveness in increasing the uptake of our Seller Services, enhancing existing Seller Services and
extending their geographic reach and introducing new Seller Services will directly impact the success of Etsy sellers, our revenue growth and our operating
results.
Our growth will depend in part on international Etsy sellers and international Etsy buyers constituting an increasing portion of our community. International
GMS was 29.8% of GMS in 2015 compared to 30.9% in 2014. We expect our percent international GMS to remain stable in 2016, assuming that currency
remains stable compared to average levels in December 2015. We continue to believe that we can grow international GMS, over time, to represent 50% of our
total GMS. Etsy sellers and Etsy buyers are based in nearly every country in the world, and our marketplace is available in 10 languages. Although we
promote cross-border transactions, our strategy is to build and deepen local Etsy communities around the world, each with its own ecosystem of Etsy sellers
and Etsy buyers. For example, although GMS generated between a non-U.S. buyer and a non-U.S. seller both in the same country is a small percentage of our
total GMS, excluding our French marketplace ALM, this GMS grew approximately 50% in 2015 compared with 2014. To meet our goals, we plan to invest in
local marketing and other locally-relevant tools and enhancements around the world to encourage these connections. An inability to develop these Etsy
43