BROOKLYN, N.Y., June 14, 2018 /PRNewswire/ -- Etsy, Inc.
(NASDAQ: ETSY), the global marketplace for unique and creative
goods, today announced new subscription packages and enhanced tools
to support global sellers at different stages of growth. The new,
optional monthly plans begin to roll out next month. Etsy also
announced that it is revising its seller transaction fee, which
will support increased investments in the growth and health of the
marketplace.
"Empowering creative entrepreneurs is at the heart of Etsy's
mission to keep commerce human," commented Josh Silverman, Etsy, Inc. CEO. "Our two million
active sellers have individual business goals and aspirations, and
we want to support them no matter where they are on their journey.
By listening to the needs of our sellers, we designed our new
subscription packages with a combination of tools to help them
succeed at each phase of their business lifecycle."
Seller Packages
Starting in mid-July, sellers looking to jump-start their growth
can opt into Etsy Plus for an introductory rate of
$10 per month. In 2019, Etsy also
plans to roll out Etsy Premium, which will be geared towards
larger, more established creative businesses. Sellers who do not
opt into Etsy Plus or Etsy Premium will have access to the same
tools and services that are currently available on Etsy without an
additional monthly fee as part of Etsy Standard.
Etsy
Standard
|
Etsy Plus
Available July 2018
|
Etsy Premium
Available 2019
|
- Access to the
nearly 35 million active buyers in Etsy's marketplace
- All the seller
tools and services Etsy currently offers that help creative
entrepreneurs start, manage, and grow a business
|
- Access to
everything in Etsy Standard
- Advanced shop
customization options
- Targeted restock
notifications
- Discounts on
branded packaging and promotional materials
- Free or discounted
custom web addresses
- $5 monthly Promoted
Listing credit and 15 free monthly listing credits
|
- Access to
everything in Etsy Standard and Etsy Plus
- Advanced management
tools specifically designed for business owners with
employees
- Premium customer
support
- More details to be
announced in the coming months
|
Transaction Fee
Starting July 16, 2018, the
transaction fee charged when a seller makes a sale will change from
3.5% to 5%, and it will also apply to the cost of shipping. This
revised fee structure will enable Etsy to make further investments
in marketing to attract buyers, enhance customer support, and drive
product innovation.
Rachel Glaser, Etsy's Chief
Financial Officer added, "Our revised fee structure will allow us
to make more meaningful investments on behalf of our sellers while
remaining what we believe is the best value for entrepreneurs
looking to start, manage, and grow a creative business. We plan to
increase our 2017 direct marketing spend by at least 40% in 2018,
revamp our Etsy community platforms, and execute against an
exciting product roadmap. We believe all of this will help drive
near-term growth and increase buyer lifetime value."
Updated 2018 Guidance
In light of these changes to its fee structure, which will go
into effect July 16, 2018, Etsy is
revising its 2018 financial guidance (prior guidance provided on
May 8, 2018) as follows:
- GMS growth of 16%-19% (vs. prior guidance of 16%-18%)
- Revenue growth of 32%-34% (vs. May
2018 prior guidance of 22%-24%)
- Adjusted EBITDA margin of 21%-23% (no change from prior
guidance), reflecting Etsy's planned reinvestment in improved
seller tools and support, enhanced shipping experience, and
increased marketing.
For notes about the factors contributing to Etsy's guidance,
please see the investor slides available on Etsy's investor
relations website.
For more information on this announcement, please see our
post on our news blog and dedicated seller page.
About Etsy
Etsy, Inc. is the global marketplace for unique and creative
goods. Our mission is to keep commerce human, and we're committed
to using the power of business to strengthen communities and
empower people. We connect millions of buyers and sellers from
nearly every country in the world. Buyers come to Etsy to be
inspired and delighted by items that are crafted and curated by
creative entrepreneurs. For sellers, we offer a range of tools and
services that address key business needs.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
Cautionary Statement Regarding Forward-Looking
Statements
This press release (including statements quoted in this press
release) contains forward-looking statements within the meaning of
the federal securities laws. Forward-looking statements include
statements related to our updated financial guidance, our
expectations regarding the new subscription packages and updated
transaction fees, including the timing of anticipated launch dates
and the potential impact on our business and the businesses of our
sellers and our future growth.
Forward-looking statements include all statements that are not
historical fact. Forward-looking statements involve substantial
risks and uncertainties that may cause actual results to differ
materially from expectations. These risks and uncertainties include
the successful execution of our business strategy, the success of
our new pricing model and the impact of that model on our sellers,
our reputation and our business, GMS and results of operations, the
success of our marketing efforts, our active and engaged community
of Etsy sellers and Etsy buyers, the growth and performance of our
platform, and other risks and uncertainties that are more fully
described in our filings with the Securities and Exchange
Commission, including in the section entitled "Risk Factors" in our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, and subsequent reports that we
file with the Securities and Exchange Commission.
Forward-looking statements represent our beliefs and assumptions
only as of the date of this press release. We disclaim any
obligation to update forward-looking statements, except as required
by law.
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SOURCE Etsy, Inc.