Etsy Inc (NASDAQ:ETSY) Is Betting On Platform Efficiency To Beat Amazon (AMZN)
Etsy Inc (NASDAQ:ETSY) understands that taking on e-commerce gorilla such as Amazon.com, Inc. (NASDAQ:AMZN) requires extraordinary execution. As such, Etsy is investing to build a more robust platform that is friendly to both vendors and shoppers as a way of protecting its turf from invasion Amazon Homemade marketplace. Etsy has put in place a more pointed engineering team task with the job of updating the platform with tools in a seamless manner.
Etsy Inc (NASDAQ:ETSY) has figured out that Amazon is a serious threat to its handcraft business and beating the competition requires doing things in extraordinary ways. Although growing revenue remains a challenge at Etsy with 3Q sales falling short of the consensus estimate, the company is betting on building a more powerful platform as a competitive advantage.
Seamless platform upgrade
At Etsy, a team of product engineers has come up with more efficient ways to update tools on the platform without causing painful downtime to users. For example, the team can easily and quickly deploy new tools on the platform without causing seriously disruptive outage. In the same manner, the engineers are able to remove old tools with minimum hitches.
By avoiding disruptions during platform upgrades, Etsy is hoping to offer its users a great experience that would keep them in despite the competition. Through a robust platform, Etsy is able to differentiate itself in a manner that enables it to attract new vendors to its platform and also improve vendor purchaser retention.
Taking a unique competitive approach
Because of Amazon’s might in the e-commerce space, Etsy Inc (NASDAQ:ETSY) knows all too well that it needs to innovate to remain relevant in the homemade business. Therefore, instead of following the usual trend of reaching out to vendors to sign up and pulling customer traffic, Etsy is building a more efficient platform whose experience is highly differentiated to protect its turf from competitive disruption.
Among other strategies, Etsy Inc (NASDAQ:ETSY) has developed an update system whereby it evaluates the platform to figures out how an update is going to affect it before it rolls out the new tools. Etsy also carries out extensive testing of new technologies to ensure that they are not adversely disruptive.
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