Etsy
A sign advertising the online seller Etsy Inc is seen outside the Nasdaq market site in Times Square following Etsy's initial public offering (IPO) on the Nasdaq in New York, April 16, 2015. Reuters/Mike Segar

Etsy, the online crafts supplier, reported significant growth in its gross merchandise sales (GMS) for the fourth quarter that ended on Dec. 31, 2016. The company’s GMS stood at US$865.2 million (AU$1137.5 million), a jump of 16.7 percent for the same period the previous year.

Etsy saw an increase of 11.8 percent year-over-year in its active sellers and 18.8 percent year-over-year in active buyers – a factor the company claims responsible for the growth. Etsy’s mobile visits also increased – from 61 percent in the fourth quarter of 2015 to 65 percent in the fourth quarter of 2016. The number stood flat as compared to the third quarter of 2016.

On the other hand, mobile GMS rose to 49 percent in the fourth quarter of 2016 from 44 percent in the fourth quarter of 2015. It stood flat in comparison to the third quarter of 2016.

Etsy generated US$110.2 million (AU$144.8 million) in total revenue. This, too, was an increase of 25.4 percent year-over-year – with growth in markets and seller services revenue being the most influential factors. The gross profit for the fourth quarter of 2016 was US$73.2 million (AU$96.2 million), a jump of 26.9 percent year-over-year. At the same time, gross margin was 66.4 percent. The same stood at 65.6 percent in the fourth quarter of 2015.

Etsy had as many as 1.74 million sellers (a hike of 12 percent than the previous year) while the number of buyers rose by 19 percent to 24.04 million. The growth of active buyers outpacing sellers comes as good news for the company. Etsy takes a 3.5 percent cut of its sales. It charges US $0.20 (AU$0.26) for each product listing.

The company is looking to launch Etsy Studio, a central hub especially for craft supplies, in April 2017. At the same time, the crafts supplier will also support the Shop Manager tool – which gives sellers the provision to, among other things, manage inventory, track orders, view metrics and statistics, and interact with buyers.

In order to better its checkout process, Etsy is planning to introduce a new multi-shop checkout service. “Multi-shop checkout enables buyers to complete purchases from multiple sellers with Direct Checkout in one simple transaction,” the company said. “Guest checkout will allow buyers to make purchases from sellers without creating or signing into an Etsy account.”

“These announcements underscore our bold, ambitious efforts to support creative entrepreneurs and we believe they create new long-term growth opportunities for Etsy,” CEO Chad Dickerson said.

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