Why ETSY has become my biggest investment

     
     
        Etsy is a global online marketplace, where people come together to make, sell, buy, and collect unique items... Spread across 83 countries, they have over 50 million available products sold by almost 2 million sellers- And these numbers have been steadily increasing. The active seller numbers are up 35% in the last four years and the amount of buyers has nearly doubled in the same time frame. Meanwhile their shares are up 183% in the last year- but with the 52-week high, why would I want to buy shares?

                                           CEO- Josh Silverman
          For one, I love their management team, their CEO Josh Silverman has been great since taking the helm in May of 2017. Before ETSY he held many executive roles for companies such as Ebay, Skype and American Express. He has been able to successfully churn in profits and pay down debt. In fact- Revenue is up 20%, net income is up over 300% and debt has actually decreased by 10%.

          The tear they have been on recently may be a reaction from the recent earnings call. Which is when Josh Silverman announced that they will be raising the sellers fee from 3.5% to 5%. The 1.5% change may not seem like much, but when you factor in a 40% increase on your largest revenue stream it adds up quickly.

But even before the increase in seller fees they have been killing it.. Since 2014 assets are up 245%, net income is up 636%, gross profits are up 96%, total revenue is up 125% and research and development is up 103%

Popular items sold on ETSY

                 Even if the entrepreneurs that are selling on the site are upset about paying 40% more in fees- they have no other option. The lack of competition is astounding. The biggest competition has been Amazon handmade- Who's fees are higher on top of a monthly maintenance fee. plus,  not many people are aware of Amazon handmade.  Amazon at it's core is known for an endless reservoir of inventory, something that is not compatible with the hand made movement.

The entrepreneur numbers have been steadily increasing too- A report from the Kauffman Index of Startup Activity  shows 550,000 Americans start new businesses every month. Experts attribute the rise in entrepreneurship to cultural and economic factors. 


With the mixture of a great management team, increased revenue great financial statements and the increase of entrepreneurship around the world- I am excited to see what this company can do.


Some other fun facts about ETSY that I like/found interesting

- 80% of all buyers are repeat customers
- 55% of employees are women
- They are ran on 30% renewable energy- they plan to hit 100%.
- 15,000 Etsy sellers sent more than 50,000 messages to congress about protecting net neutrality
- 97% of sellers run their shops from home
- 80% of sellers are business' of one
 
 
Here's a great snippet of Etsy  
 

 

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