how is etsy's business model different from ebay's business model for the makers of handmade goods


  • How is Etsy's business model different from eBay's business model for the makers of handmade goods?

    eBay is an online marketplace focused on both new and used items that are often mass-produced. On the other hand, Etsy is an online marketplace that focuses on original artisanal goods.
  • What is Etsy's current business model?

    In short, the company makes money from fees on the transaction and by selling services to sellers on the platform. In Etsy's specific case, the 5% transaction fee is charged to the seller, which is, therefore, the primary “customer” of the platform.
  • What type of business model does eBay use?

    eBay is primarily a consumer-to-consumer ecommerce marketplace, which generates revenue through transaction fees and marketing services. The company is heavily invested in other companies and has, at one time or another, owned all or part of PayPal, Skype, StubHub, and others.
  • Everything listed for sale on Etsy must be handmade, vintage, or a craft supply. Handmade items are items that are made and/or designed by you, the seller. Read our full Handmade Policy here. If you sell handmade items, you agree that: All handmade items are made or designed by you.
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