TechCrunch Interview With Etsy Founder Robert Kalin

Summary

In this engaging interview, Robert Kalin, the founder of Etsy, discusses the platform's evolution since its launch in 2005. Etsy, an online marketplace for handmade goods and craft supplies, has grown significantly, with a market size of around a hundred billion dollars. Kalin shares insights on the platform's success, the importance of storytelling in the items sold, and the diverse range of products offered. He also touches on Etsy's revenue streams, including listing fees, sales fees, and in-house advertising, and the company's notable investors like Union Square Ventures and Accel.

Takeaways

• 📅 Etsy was launched in June 2005 by Robert Kalin.
• 🎉 The platform is an online marketplace for handmade goods and craft supplies, emphasizing the stories behind the items.
• 💰 The market for handmade goods was around a hundred billion dollars the previous year.
• 🔢 In 2008, Etsy saw sales of nearly a hundred million dollars worth of goods.
• 📈 Jewelry is the top-selling category on Etsy, reflecting the platform's predominantly female user base at 97%.
• 👕 Robert Kalin himself curates his life with handmade items, including clothing and a guitar made by a luthier on Etsy.
• 📊 Etsy has experienced record growth month after month, even during economic downturns.
• 💼 The company has three revenue streams: a 20 cent listing fee, a 3.5% sales fee, and in-house advertising.
• 🤝 Early investors in Etsy included Union Square Ventures led by Fred Wilson, and later, Jim Breyer, who is also on the board of Walmart and Facebook.
• 👥 Etsy's growth has been organic, with no employees coming from eBay, reflecting a distinct culture and management style.
• 💡 The average transaction size on Etsy is fifteen dollars, indicating that customers often purchase multiple items at a time.

Q & A

When did Etsy officially launch?

Etsy was launched in June of 2005.

What was the initial reaction to Etsy when it was first introduced?

The first person to write about Etsy was in 2005, indicating early recognition and interest in the platform.

How old was the founder of Etsy when the platform was launched?

The founder was 28 years old at the time of the launch.

What is the market size for handmade goods according to the transcript?

The market for handmade goods was about a hundred billion dollars the previous year mentioned in the transcript.

What was the volume of goods sold on Etsy in 2008?

In 2008, Etsy sold a little under a hundred million dollars worth of goods.

What are the most popular categories of items sold on Etsy?

The most popular categories on Etsy are jewelry, followed by clothing and accessories, given the platform's predominantly female user base.

What is the average transaction size on Etsy?

The average transaction size on Etsy is fifteen dollars.

What are the different revenue streams for Etsy?

Etsy has three revenue streams: a 20 cent listing fee, a 3.5% sales fee, and in-house advertising.

Who are some of the investors in Etsy mentioned in the transcript?

Some of the investors mentioned include Union Square Ventures led by Fred Wilson, and Jim Breyer, who is also on the board of Walmart and Facebook.

What is the relationship between Etsy and eBay as portrayed in the transcript?

The transcript suggests a competitive relationship, with Etsy offering an alternative to eBay, especially for sellers dissatisfied with eBay's platform.

How does the founder of Etsy describe the company's growth and success?

The founder describes Etsy's growth with record months of sales, even during economic downturns, and a focus on handmade items with stories.