Coronavirus pandemic has impacted the health of people in many countries, but it has also severely impacted the business world. Some of the challenges that have grasped the business around the globe are: collapse in customer demand, regulatory modification, supply chain interruption, economic recession, increased uncertainty, and unemployment.
The Government of every country is working to improve the health and lifestyle of the people around, but a similar approach is needed to recover businesses. Not post the pandemic, but businesses need to gear up now.
Now let us see how businesses can work on recovery or even positioning themselves now to get fruitful results in the future. Right now, people are staying home and maintaining social distancing. Business leaders are in extreme pressure right now. They want to keep safe and stay home, but they also want to make progress for their business. Unfortunately, they are not able to make progress due to production shut down, and the sellers are refusing to take any new order.
Handmade craft businesses are those businesses who produce products from hand (as the name suggests) and are usually home based businesses. These businesses are facing huge losses as they are not able to sell their product in the local market. Some handmade craft businesses have braced the effects of pandemic on the business by going online and partnering with eCommerce multivendor marketplace websites.
To leverage profits from your business, entrepreneurs have to connect with vendors who primarily create handmade products. Setting up an online marketplace to replace the artisan market is a viable idea during the crisis. Seeking opportunities during the crisis is the direction that every entrepreneur should follow.
Etsy, a community for independent creators, has found profits for the business even during the crisis. They have a community of home-based curators who create the products at home. According to Etsy, every 2 seconds, there was a search for a face mask in March 2020. With countries making face masks mandatory, online marketplaces like Etsy have asked all sellers to create home masks.
Lead by example, Etsy like marketplaces have grown their sales and provided employment opportunities. Now is the time to think out of the box and start a business in the online world. As the supply chain is affected, most online businesses are also adversely affected by a coronavirus. Here’s a complete guide on how to build an online marketplace like etsy.
If you have made up your mind on the industry, you are planning to launch your eCommerce marketplace, and then the next step would be to decide if you want to launch an eCommerce marketplace for a specific niche or open to all niches. Now that you have decided that you are going to launch a handmade craft marketplace. Either you can launch a marketplace with a variety of niche like Etsy, or you can choose one niche and approach sellers to sell handmade craft items. Some of the niches a handmade craft marketplace can cater to are:
Connecting with artisans for selling their products on the marketplace. You need to understand what products will be accessible in the geographical area that you are selecting. Understanding the personality and behavioral aspect of the target audience is also an essential aspect of choosing the niche of your handmade craft marketplace.
To understand your value-market fit, you need to answer the following questions for better clarity:
Starting an Etsy-like marketplace is not a common type of online business; a handmade craft marketplace needs to devise its policies and business model according to the expectation of the vendor and buyer. Understanding the expectation is important because if you fulfill those with the help of policies and features, it will lead to better user experience on the website.
Detailed understanding of more comprehensive audience expectations will help you narrow and segment your audience later, and to adjust your value proposition.
Like any other marketplace, a handmade craft marketplace like Etsy also works on a similar business model. A marketplace is where sellers list their products on the website, and buyers buy the product. The marketplace owner may or may not sell self-produced products. In a marketplace like Etsy, artisans list themselves on the platform, and buyers buy the products. Here is a step by step working of a marketplace like Etsy:
The following image is the business model canvas that Etsy follows to keep the business up and to run. Take note of these parameters and mold it according to your business idea.