Airbnb, Etsy, Uber, Case Analysis

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 What Are The Commonalities Of Etsy Approach To Gather
Customers On The Supply Side And The Demand Side?
• Etsy is a two-sided electronic business website centered on vintage items and craft
supplies.
• These commodities fall under a wide range of classifications such as jewels, bags,
apparel, and aircraft supplies.
• Etsy generated revenue primarily from three revenue streams:
(1) a marketplace revenue fee of 3.5% of sale and a listing fee per item
(2) seller services such as promoted listings, payment processing, and purchases of
shipping labels
(3) fees received from third-party payment processors.

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 Cont…
• The company developed from a thousand to a million consumers from roughly 2005 to late 2008 (Teixeira
& Brown, 2016).
• Etsy succeeded with organic marketing, whereby the company spent next to nothing on consumer
acquisition.
• Organic marketing is the natural attraction and conversion of interested and motivated people into new
customers.
• It aims to bring in new customers by being in the right spaces rather than paying for advertising
• The trend remained relatively constant as the firm develops.
• From 2011, organic channels represented 87-91 percent of the firm’s traffic, whereas the paid ads were
accountable for an increase of traffic from 2 to 7% (Teixeira & Brown, 2016).
• For every 100 dollars of sales that happened on the firm’s platform, Etsy used roughly 2 dollars to market
its commodities.
• Etsy’s early support of artisans at craft fairs aided bring buyers and sellers to the fledgling marketplace.
• As the company grew, it continued to offer support for vendors, who marketed their wares and, in turn,
marketed the Etsy platform to their own loyal customers.
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Could Any Of These Approaches Used By These Three Companies
At This Stage Of Their Life Cycle Work For Other Two Sided
Platforms Or Markets In Very Different Industries?
• The three companies employed different approaches in gathering customers on both the supply and demand side.
• Uber used a deliberate city to city technique which is analogous to the word of mouth technique to get the
customers.
• Airbnb reached its first thousand consumers with first centering on capturing the supply side and later on
embarked on the supply side (Teixeira & Brown, 2016,).
• The Etsy approach could work for the other two-sided platforms, including Airbnb and Uber.
• Etsy used an organic marketing approach.
• This is the natural attraction and conversion of interested and inspired individual into new customers.
• It aims to bring in new customers by being in the right spaces rather than paying for advertising.

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 Cont…

• The reason why this Etsy approach could work with the other two-sided platforms is that
they have analogous goals and expanding internationally.
• However, all the companies can utilize this approach by first focusing more on the supply
side as opposed to the demand side.
• The companies can also use this strategy to find early consumers by matching them by
hand with early distributors.
• For instance, Etsy can scour crafts fairs to sign up artisans, Uber can conduct promotions
during concerts and events.
• Airbnb can hire qualified photographers to take inviting pictures of hosts’ apartments.
• Following these procedures may enable the companies to enhance their products and
recognize what makes them resonate most with consumers and suppliers.
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 References

• Teixeira, T. S., & Brown, M. (2016). Airbnb, Etsy, Uber: growing from one thousand to one
million customers.

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