In this episode of The Synopsis, we cover everything from Etsy’s founding history and early strategic errors to how Josh Silverman quickly reaccelerated growth and improved profitability after several years of sagging performance. We dovetail into what makes the platform unique and how Etsy has been able to succeed where both eBay and Amazon failed. We draw on Speedwell’s 79 page report to teach not just about Etsy, but also help investors learn about how great CEOs run a business.  

 

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Show Notes

 

(0:00) Intro

(0:54) Founding History

(3:01) Where the Name “Etsy” Comes From

(6:45) Issues with Founder Robert Kalin

(10:45) New CEO, The Chad Dickerson Era

(14:02) Foolish Endeavors

(19:48) Turning Around Etsy, Josh Silverman Appointed CEO

(25:29) Identifying Where Etsy Can Improve, Initiatives to Improve the Buyer Experience

(35:40) Etsy Advertising, A Fumble Recovered

(41:16) How Etsy Makes Money

(44:41) Covid Ecommerce Boom, 2021 Bull Market, Metric Distortions

(51:09) Changing Buyer Behavior, Improving Frequency 

(59:21) International Opportunity

(1:03:03) Capital Allocation, Acquisitions

(1:12:07) ROIC

(1:14:22) Competition, Take-Rates

(1:26:56) Pre-Mortem

 

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Purchase Speedwell's full 79 page ETSY research report here: https://speedwellresearch.com/2023/09/28/etsy-deep-dive/

 

Speedwell's free newsletter: https://speedwellsnippets.substack.com/

 

More on Speedwell: https://speedwellsnippets.substack.com/p/speedwell-research-process-and-philosophy

 

Twitter: @Speedwell_LLC

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Email us at [email protected] for any questions, comments, or feedback

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. At the time of publishing, one or more contributors to the podcast had a position in ETSY. Furthermore, accounts one or more contributors advise on may also have a position in ETSY. This may change without notice. Please see our full disclaimers here:  https://speedwellresearch.com/disclaimer/