1 Smart Business Move That Gives Etsy a Huge Advantage Over the Competition
To say that (NASDAQ: ETSY) shareholders have been on a roller-coaster ride would be an understatement. The stock was up almost 10-fold from its initial public offering in April 2015 to an all-time high in November 2021. But since that peak, shares have cratered 75%.
That wild swing doesn't do the company justice. Etsy operates a unique business model that gives it an advantage in the retail sector more broadly, and the e-commerce space more specifically. Let's take a closer look.
Etsy operates various online marketplaces where shoppers can find unique and handcrafted merchandise. However, investors unfamiliar with the company likely don't know that the business doesn't own any inventory itself. This means no warehouses, trucks, or delivery drivers. Instead, Etsy just collects revenue when its 8.3 million sellers conduct transactions with its 96.3 million buyers. There are add-on services too, like payments and advertising.
Source Fool.com
