Celebrating Two Decades of Handmade Marketplace Evolution
Etsy’s remarkable 20-year anniversary marks more than just a milestone. It celebrates the platform’s profound impact on the world of handmade commerce, a vision first sparked by founder Rob Kalin. What began in 2005 as a small startup in Brooklyn has blossomed into a global marketplace, empowering millions of independent artisans and small businesses to thrive.
Whether you’ve been part of the journey since the early days or recently joined the Etsy family, this anniversary is the perfect time to reflect on how it all began, remember pivotal moments that shaped the platform, and celebrate the enduring spirit of creativity and connection that defines Etsy.
The Beginning of a Revolution
Etsy started as a simple idea—a virtual “craft fair” connecting artisans with customers worldwide. Founded in a Brooklyn apartment by Robert Kalin, Chris Maguire, and Haim Schoppik, the platform launched on June 18, 2005. Kalin, a frustrated woodworker, wanted an e-commerce space for selling unique handmade items.
The name “Etsy” reflects the company’s creative roots. Inspired by the Italian phrase “eh sì” (“oh yes”), the founders, including Rob Kalin, wanted a name that felt unique and imaginative. While this is the most widely shared origin story, the true inspiration behind the name remains a bit of a mystery.
From the beginning, Etsy stood out with its mission to “Keep Commerce Human.” It wasn’t just another e-commerce site, but a platform to nurture genuine relationships between creators and buyers, celebrating individuality, creativity, and the human touch behind every product.
This approach resonated deeply, fueling rapid growth. By 2007, Etsy had reached one million registered users and its one-millionth sale, marking a significant milestone in the history of Etsy. What began as a niche community of crafters quickly became a thriving hub for creativity.
Milestones That Define Etsy
Etsy’s meteoric rise was marked by key milestones that helped establish its role as a leader in the handmade marketplace. Below is a look at some of the pivotal moments in Etsy’s 20-year evolution.
- 2005: The Birth of Etsy—Etsy is founded as a dedicated online marketplace for handmade goods, vintage items, and craft supplies.
- 2005–2007: Tag-Based Categories Introduced—To improve search and product discovery, Etsy rolled out tag-based categorization (along with other tools), helping shoppers connect with relevant listings more easily.
- 2006: Treasuries Launch—Etsy introduced Treasuries, a community-curated feature that allowed users to create and share themed collections of listings.
- 2011: Etsy Goes Mobile—The first version of Etsy’s mobile app launched, making it easier for buyers to browse and shop from anywhere.
- 2011: Global Expansion Begins—Etsy began expanding internationally, reaching new audiences and supporting sellers around the world.
- 2014: Sell on Etsy App Launches— Etsy released a dedicated mobile app for sellers, “Sell on Etsy,” making it easier to manage listings, track orders, message buyers, and view shop stats on the go.
- 2015: Etsy Goes Public—Etsy held its initial public offering and was listed on the NASDAQ, signaling its growth and influence in the e-commerce space.
- 2016: Etsy Made Local Debuts—Etsy Made Local was launched to support in-person holiday markets, connecting sellers with nearby buyers through community events.
- 2017: Shop Manager Introduced—Etsy rolled out the Shop Manager dashboard, streamlining the tools sellers use to manage their shops, orders, and marketing.
- 2018: Etsy Ads Rolled Out—To help sellers reach more customers, Etsy launched its advertising platform, allowing listings to be promoted across the marketplace.
- 2019: Etsy Design Awards Launch—The first annual Etsy Design Awards—also known as The Etsies—celebrated outstanding creativity, innovation, and craftsmanship from Etsy sellers worldwide.
- 2021: Star Seller Program Launches —A new badge highlights shops with top-rated customer service, fast shipping, and quick responses, helping them stand out in search results.
- 2023: Share & Save Launches—Etsy introduced trackable links that give sellers a 4% discount on their bill for every sale made through them—an easy way to save on fees while promoting your shop.
- 2024: Etsy Insider Beta Launches—Etsy begins testing a buyer membership program offering exclusive perks like discounts, free shipping, and early access to sales—designed to boost buyer loyalty and repeat purchases.
Etsy U and Etsy Shop Camp
Etsy U, Etsy Resolution and Etsy Shop Camp have played a vital role for helping creative entrepreneurs grow their businesses. Through workshops, free resources, and live events, these programs covered key topics like SEO, social media, and branding, empowering entrepreneurs to succeed. For many, participating has marked a major milestone in their entrepreneurial journey.
Experienced Etsy sellers like Pam, a longtime member of the eRank team known for her educational YouTube videos, and Sophie, who joined eRank in 2022, have served as instructors, sharing their expertise in SEO. These programs remain a cornerstone of the Etsy seller experience, highlighting how learning, collaboration, and creativity shape small business success stories.
Building Connections: How Etsy Fostered a Creative Community
Etsy has long prioritized building community and connection between sellers and buyers.
In 2008, the launch of Etsy Teams gave sellers a way to collaborate, share knowledge, and build supportive networks. Even after Etsy stopped managing them during COVID, many of these Teams continued to thrive on their own.
Similarly, early tools like chat rooms in the late 2000s offered real-time spaces for brainstorming, encouragement, and connection—especially valuable for solo creators. Although chat was discontinued in 2011, it left a lasting impression. Treasuries, introduced in 2009,
offered another outlet for community creativity, allowing users to curate themed collections of products for inspiration and discovery. Even after their retirement in 2017, as noted by then-CEO Chad Dickerson, Treasuries are remembered fondly for the collaboration they fostered. Together, these tools reflect Etsy’s ongoing commitment to nurturing a vibrant, connected community beyond just commerce.
Etsy’s Past Ventures: Wholesale and Alchemy
Etsy has never shied away from experimenting with bold initiatives to expand seller opportunities. In 2014, it launched Etsy Wholesale, a program designed to connect makers with retailers for bulk sales. It even attracted major partners like Nordstrom. However, Etsy discontinued the program in 2018 to refocus its core strategy, leading many sellers to explore alternatives like Faire or build their own wholesale solutions.
Another early innovation, Alchemy, let buyers post custom product requests that sellers could bid on—a feature that embodied Etsy’s handmade spirit. While Alchemy was retired in 2013 due to scalability challenges, it remains a nostalgic favorite for longtime users. Although the feature is gone, custom orders live on through direct communication between buyers and sellers, a reflection of the personalized experience Etsy has always encouraged. Etsy also briefly ran Etsy Studio, a craft supply marketplace, from 2017 to 2018.
The Creation of the Etsy App and the Introduction of the “Cha-Ching”
To support its growing mobile audience, Etsy introduced the Sell on Etsy app in 2014. One of its standout features was the now-iconic “cha-ching” sound—a cheerful notification that played with every sale. For many sellers, that sound became more than a simple alert. It symbolized success, celebration, and connection with their customers. While some experienced occasional tech hiccups or sensory fatigue, the “cha-ching” remains a beloved feature and a hallmark of Etsy’s effort to make selling feel personal, fun, and rewarding.
Etsy’s Celebrity Partnerships and Design Awards
Etsy collaborates with celebrities like Drew Barrymore, Naomi Osaka, and John Legend to promote unique handcrafted items from its sellers. These stars act as curators, judges, or collaborators on exclusive collections, helping Etsy reach wider audiences and elevate independent creators. The Etsy Design Awards, launched in 2019, further celebrate seller creativity by recognizing standout high-quality handmade products. With judges such as Drew Barrymore and Sarah Jessica Parker, the awards reinforce Etsy’s mission to champion craftsmanship and one-of-a-kind designs.
Etsy Gift Mode: Making Gift Shopping Easier
On January 24, 2024, Etsy introduced Gift Mode, an AI-powered shopping assistant designed to simplify gift-giving. Using OpenAI’s GPT-4 and human curation, it customizes recommendations from Etsy’s catalog of over 100 million products.
After a short, interactive quiz, users receive suggestions matched to more than 200 recipient personas, from “The Music Lover” to “The Pet Parent.” Gift Mode removes the guesswork, making it easier—and more fun—to find the perfect gift for any occasion.
Pattern by Etsy
Pattern by Etsy lets sellers create a standalone website that syncs seamlessly with their Etsy shop. It’s great for those seeking an easy-to-manage extension of their Etsy store, offering streamlined inventory and order management. While ideal for beginners, Pattern lacks the advanced features and flexibility of platforms like Shopify or Squarespace, making it better suited for hobbyists or those just starting out—rather than for scaling a business.
Etsy’s Evolving Policies: Balancing Buyer Trust and Seller Support
Etsy has updated its approach to customer satisfaction by replacing the controversial Order Dissatisfaction Rate (ODR) with new tools like Star Seller and Etsy Purchase Protection. These programs aim to balance buyer trust with seller support, focusing on metrics like on-time shipping and responsive communication. While not perfect, these changes reflect Etsy’s commitment to improving buyer experiences while acknowledging the challenges sellers face.
The Evolution of Etsy’s Search Algorithm
Etsy’s search engine has evolved significantly, using AI, machine learning, and personalization to connect buyers with relevant items while offering sellers better opportunities. While the platform has moved beyond simple keyword matching to incorporate advanced features like recommendation engines and visual search, this evolution creates new opportunities for sellers who understand how to leverage these changes strategically. Success now involves optimizing across multiple factors—from competitive pricing and quality reviews to efficient shipping and trend awareness—while maintaining the high-quality listings and customer service that buyers expect.
The good news? eRank is here to help! With tools to fine-tune your keywords, analyze your listings, and track your progress, eRank supports you every step of the way. We help you understand changes to Etsy search and how to adapt your SEO strategies accordingly. You’ve got this—and we’ve got your back!
Stats and Their Transformation Over Time
Etsy has long offered data tools to help sellers grow their businesses, with features that have evolved into today’s comprehensive Shop Manager dashboard. However, in 2024, Etsy discontinued key features such as Search Term Analytics and limited access to long-term data, leaving many sellers frustrated as they relied on these tools for SEO and performance tracking. While Etsy’s statistics functionality has diminished, platforms like eRank bridge the gap. With advanced features and Google Analytics integration, eRank continues to offer detailed, actionable insights that help sellers track performance and make data-driven decisions.
Championing Equality and Small Businesses: Women’s Rights, Minorities, and Advocacy
Etsy empowers underrepresented entrepreneurs by fostering economic opportunities and promoting diversity, equity, and inclusion. With 87% of sellers being women (as of 2017), the platform supports flexibility and financial security. Etsy also champions minority rights through initiatives like Craft Entrepreneurship and inclusive marketing. Additionally, it advocates for small businesses by championing policies that benefit independent sellers such as open internet access and reduced trade barriers.
Crucial Support During Crises: COVID-19, Postal Strikes, and Global Events
During times of crisis, Etsy has demonstrated a strong commitment to its seller community.
When the COVID-19 pandemic hit, Etsy quickly adapted, helping sellers pivot to meet demand—most notably with handmade masks—and supporting a surge of new shop owners. It supported sellers during postal delays by extending delivery estimates, pausing penalties, and deferring fees. In global crises, Etsy provided fee deferrals, emergency relief, and forgave $4 million in balances for Ukrainian sellers. These actions reflect Etsy’s commitment to its seller community.
Etsy’s Commitment to Environmental Protection
Etsy is committed to sustainable practices and aims to achieve net-zero emissions by 2040, with a 90% reduction by 2030. Since becoming carbon neutral in 2019, Etsy focuses on cutting emissions in shipping and packaging, while using renewable electricity in its operations. The platform promotes eco-friendly shopping through sustainability tags, local options, and greener packaging. Etsy also supports sellers with climate resilience resources and advocates for greener e-commerce policies to address environmental challenges in the brief history of Etsy.
Looking Ahead Etsy’s Vision for the Future
As Etsy celebrates this milestone anniversary, its mission to “Keep Commerce Human” remains front and center—connecting creative entrepreneurs with buyers and empowering communities through thoughtful technology. Under the leadership of Josh Silverman, Etsy continues to invest in innovation, including AI-driven improvements to search and personalization, expanded scalability, and growth in six key global markets. The recently launched Etsy Insider—an invite-only membership program—offers perks like free shipping, exclusive discounts, and special gifts, enhancing the buyer experience while supporting independent sellers. Sustainability, diversity, and global impact continue to shape Etsy’s strategic path forward.
Celebrating the Handmade Journey Together
Etsy’s 20-year evolution has been a testament to the power of creativity, connection, and resilience. From its modest Brooklyn origins to becoming a global online marketplace for handmade and vintage goods, Etsy’s story is a shared triumph with millions of sellers at its heart.
We’d love to hear your Etsy story! Whether you’re a buyer, seller, or fan, share your experience on social media and tag us to celebrate this milestone together. Head over to our Instagram post and join the conversation. And don’t forget to add the hashtag #EtsyAt20 to your post!
