1. Operations Plan
by

5. Mission
“ To enable people to make
living making things, and to
reconnect makers with
buyers.”

6. LOGISTICS OF THE BUSINESS
Search Engine & Marketing
Search engine & Marketing
Seller Sign Up Set Up Shipping
Virtual Shop
Buyer Sign Up Search Buy Receive Feedback

7. LOGISTICS OF THE BUSINESS
Search Engine & Marketing
Search engine & Marketing
Search engine & Marketing
Seller
Seller Sign Up
Sign Up Set Up
Set Up Shipping
Shipping
Virtual Shop
Virtual Shop
Buyer
Buyer Sign Up
Sign Up Search
Search Buy
Buy Receive
Receive Feedback
Feedback

8. CORPORATE STRATEGY
Current Objective
In 2010
Annual Revenue: $30 million
Annual Number of U.S. Customers: 2.2 million a mon
Average Dollar Sale: $18.26 per purchase

9. CORPORATE STRATEGY
Vision
“Right now it is far more important to build
engagements than build profits. We are focused on the
long-term. There is a huge opportunity to reinvent
what commerce means as native to the web, that is our
goal and we mean to pull it off in the next 12 to 18
months.”
Etsy CEO Robert Kalin
Interview by TechCrunch June 29, 2010

10. CORPORATE STRATEGY
Customer Service Engagement

11. CORPORATE STRATEGY
Engagement

12. CORPORATE STRATEGY

13. CORPORATE STRATEGY
Customer Service Department Etsy Pop-Ups

14. BACKGROUND
Trend
U.S. Online Retail Sales Will Reach $248.7 Billion by 2014
% of Total
6% 7% 7% 7% 8%
U.S. Retail Sales

15. BACKGROUND
Trend
U.S. Online Retail Sales Will Reach $248.7 Billion by 2014
$248.7
% of Total
6% 7% 7% 7% 8% 8%
U.S. Retail Sales

16. BACKGROUND
Customer
Etsy Unique Visitors
5.5M
5.0M
4.5M
08/ 09/ 10/ 11/ 12/ 01/ 02/ 03/ 04/ 05/ 06/ 07/
2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 2010

17. BACKGROUND
Customer
2008 2009 2010
Total Gross Merchandise
Volume (GMV) $ 88,000,000 $ 18,000,000 $ 383,300,000
Transaction Fees $ 3,072,300 $ 6,335,000 $ 13,415,500
Listing Fees $ 3,329,558 $ 8,907,869 $ 14,003,320
Total Revenues $ 6,401,858 $ 15,242,869 $ 27,418,820
Growth Rate 138 % 80 %

18. BACKGROUND
Market Overview
“How would you describe your executive team’s goal for customer experience?”
Differentiate ourselves from
all firms across any industry 13%
Differentiate ourselves from
competitors in our industry 67%
Maintain parity with other
leaders in our industry 13%
Keep from falling too far
behind leaders in our industry 4%
Stay slightly mainstream in
our industry 3%
Stay slightly behind the 0%
mainstream in our industry

19. BACKGROUND
Market Overview
“How would you describe your executive team’s goal for customer experience?”
80% want to differentiate
with customer experience
Differentiate ourselves from
all firms across any industry 13%
Differentiate ourselves from
competitors in our industry 67%
Maintain parity with other
leaders in our industry 13%
Keep from falling too far
behind leaders in our industry 4%
Stay slightly mainstream in
our industry 3%
Stay slightly behind the 0%
mainstream in our industry

20. BACKGROUND
SWOT
Market share:
• Leader of online homemade/craft No physical store:
market • Cannot physical touch and see
• Number of users (buyers and sellers)
worldwide participating Customer Service:
• No direct line
Fees: Low service fees for sellers; free for • No live person contact
buyers
Authenticity:
Community experiences: “Sparking • Verification of product
Creativity” • No warranty
• Online: Blogs, team activities, see
exhibit
(list of activities) S W
O TSeller Loyalty: Seller goes around Etsy’s terms
Build stronger engagement with buyers and and conditions and sells offline directly to
sellers buyer.
Redesign customer service Future online growth: For example, creating an
open source market such as handmade
Provide brand customization to the sellers for craigslist
their shops
Competition: Improve upon or copycat the Etsy
Link to social network: i.e. “like” on Facebook model. For example, Ebay “Homemade Section”

21. BACKGROUND
Competition

22. NEW ORGANIZATIONAL
STRUCTURE
Customer Service Department
Cusotmer Service Department
Customer Service
Director of Customer Engagement
and Etsy Pop-Ups
Managers
Live Chat / Call Center Etsy Pop-Ups
Manager of Online Manager of Local
Customer Engagement Customer Engagment
Departments
Live Chat / Call Center Etsy Pop-Ups

23. CURRENT ORGANIZATIONAL
STRUCTURE
ETSY
“People want something that is unique.”
- Robert Kalin, Co-Founder of Etsy
Board of Directors
Caterina Fake Robert Kalin Jim Breyer Fred Wilson Danny Rimer
Chairman of the Founder Investor Investor Observer Seat
Board of Directors Board of Directors Board of Directors Board of Directors Board of Directors
C-Suite
Adam Freed Robert Kalin Chad Dickerson
COO CEO + CCO CTO
Etsy Etsy Etsy
Managment
Jared Tarbell Simon Levene Kellan Elliot-McCrea John Allspaw Matt Stinchcomb
Co-Founder Advisor & Investor VP VP Technical VP Community
Etsy Etsy Engineering Operations Etsy
Beth Ferreira Sinohe Terrero Nizzi Karai Renaud Randy Hunt Jonathan Basker
VP Finance and VP Finance Head of Marketing, Design Director Senior Manager, HR
Operations Ecommerce & Etsy Etsy
Digital Media

24. NEW ORGANIZATIONAL
STRUCTURE
Current Proposed
6% 5% 5%4%
9%
10%
42%
47% 10%
11%
15%
21% 15%
Engineering Support Customer Service
Business Ops Community Marketing
Product

25. LOGISTICAL
MANAGEMENT

27. RECYCLED
DENIM
CURTAINS

28. RECYCLED
DENIM
CURTAINS
NATURE

29. RECYCLED
DENIM
CURTAINS COMPUTERS
NATURE

30. OFFICE
SPACE
RECYCLED
DENIM
CURTAINS COMPUTERS
NATURE

31. OFFICE
SPACE
RECYCLED
DENIM
CURTAINS COMPUTERS
DESKS
NATURE

32. OFFICE
SPACE
RECYCLED
DENIM
CURTAINS COMPUTERS
DESKS
NATURE
ENERGY
EFFICIENT
LIGHTS

33. OFFICE
SPACE
RECYCLED AMBIANCE
DENIM
CURTAINS COMPUTERS
DESKS
NATURE
ENERGY
EFFICIENT
LIGHTS

34. GUIDELINE
ENGAGEMENT

35. MARKETING PLAN

36. GUIDELINE
ENGAGEMENT

37. GUIDELINE
ENGAGEMENT

38. GUIDELINE
ENGAGEMENT

39. MARKETING PLAN

40. FINANCIAL MANAGEMENT

41. 2011 DEMAND FORECAST
Number of Unique Visitors (Millions)
92.9
80
83.4
78.4
66.3
60
40
20
0
2010 Last 5 Yearly Online
Projected Month Trend Shopping
Trend of Behavior
of 18% 25.6% Trend of 40%

42. 2011 DEMAND FORECAST
Medium Scenario - GMV Sales (Millions)
200
150
100
50
0
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

43. 2011 DEMAND FORECAST
Total Revenues (Millions)
80 $76.4
$69.4
60 $49.3
40
20
0
Low-2010 Trend MED-Average High- GMV Goal

44. TIMELINE
0-6 Months 6-9 Months 9-12 Months
Timeline
Framework: Department
rganize Department re Employees fficiency
re key players Training of New Employees r
Workstations Tr
reation of a Employee
T
9-18 Months 18-30 Months 30 Months
Timeline
s
T
T

45. SUMMARY
Vision
CORPORATE STRATEGY
Create a stand alone customer service department
ENGAGEMENT
1. Create a call / live chat center that will address customer needs
2. Create Etsy Pop-Ups that will bring the online store to the local
community and provide a physical customer service contact
FOCUS
Engage customers by putting people first
Bring Etsy online venue and labs to the local community
Provide excellent customer service

46. T H AN K YO
U