The Start:

Etsy was founded in 2005 by Rob Kalin, Chris Maguire, and Haim Schoppik. Rob Kalin, an artist and carpenter, was frustrated with the lack of online platforms that catered to independent artists and crafters.

He had previously studied at the School of the Museum of Fine Arts in Boston but dropped out. Kalin met his co-founders in New York, where he shared his vision of creating an online marketplace specifically for handmade goods.

Chris Maguire and Haim Schoppik, both tech-savvy individuals with backgrounds in computer science, joined Kalin to bring this vision to life.

Together, they developed Etsy, aiming to provide a global platform for artisans to sell their unique creations and connect with a wider audience.

The Problem:

Before Etsy, there were limited options for artists and crafters to sell their handmade goods online.

The existing platforms were primarily focused on mass-produced items, leaving little room for the unique and personalized products created by independent makers.

This gap in the market was particularly challenging for small-scale artisans who struggled to reach customers beyond their local communities.

Recognizing this issue, the founders of Etsy aimed to create a dedicated space where artisans could showcase their handcrafted items, connect with like-minded creators, and build sustainable businesses.

This vision addressed the need for a community-driven marketplace that celebrated creativity and craftsmanship, differentiating Etsy from other e-commerce sites and filling a significant niche in the online market.

Getting their first customers:

The founders made Etsy free for both sellers and buyers until they could bake payments into the product. they focused on two leading forum websites and established working partnerships with them: Getcrafty.com & Craftster.org.

These two partnerships were enough to have "thousands of sellers excited to register and try it [Etsy] out by launch time."

Their goal was to extend an accommodating bridge to a preexisting online community, and people jumped aboard happily. Their supply strategy was to get the best creators onboard while hoping the sellers' audiences would follow.

The store set up on Etsy, and it's focusing on people lets sellers shop more of their personality and brand and build relationships with buyers and other sellers.

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