Is promoting bestsellers more important than showcasing diverse, unique products on Etsy?

Introduction

The trade-off between promoting bestsellers and showcasing diverse, unique products on Etsy is a critical decision that impacts the platform's ecosystem, user experience, and business model. This scenario touches on the core of Etsy's value proposition as a marketplace for handmade, vintage, and unique goods. I'll analyze this trade-off by examining its implications for various stakeholders, proposing metrics to evaluate success, and designing an experiment to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• What are Etsy's current revenue streams, and how might this trade-off impact them?

• Why it matters: Understanding the revenue model helps prioritize business objectives.
• Hypothetical answer: Etsy primarily earns from listing fees, transaction fees, and advertising.
• Impact: If bestsellers drive more transactions, promoting them could increase short-term revenue.

• What percentage of Etsy's current homepage or search results feature bestsellers vs. diverse products?

• Why it matters: Establishes a baseline for the current product mix.
• Hypothetical answer: 60% bestsellers, 40% diverse products.
• Impact: Helps quantify the magnitude of any proposed changes.

• How do we define "diverse, unique products" in this context?

• Why it matters: Ensures clear criteria for product categorization.
• Hypothetical answer: Items from new sellers, niche categories, or limited quantities.
• Impact: Guides the selection process for products to showcase.

• What is the current customer retention rate, and how does it vary between buyers of bestsellers vs. unique products?

• Why it matters: Indicates long-term platform health and user engagement.
• Hypothetical answer: 70% overall retention, higher for unique product buyers.
• Impact: May influence the balance between short-term sales and long-term user loyalty.

• Are there any upcoming seasonal events or marketing campaigns that could affect this decision?

• Why it matters: Considers timing and external factors.
• Hypothetical answer: Holiday season approaching in 3 months.
• Impact: May suggest a phased approach or temporary adjustments to the product mix.