Join us for a quick dive into a little positive outlook from Etsy CEO Josh Silverman. It’s not all bad news out there, in fact, it’s far from it! With shops pivoting to making masks and people turning more and more to online shopping, there is a positive outlook for you to find Etsy shop success, even when it may feel like uncertain times.
A need for info
From the inception of our public awareness of Covid-19 as a major factor in our lives and businesses, there’s been a need for information that allows us a clearer picture about how we’ll be impacted both on personal and global levels. One of the areas of particular interest for Marmalead has been gathering information on how Etsy has responded. And what the platform looks like from an economic perspective as it faces this new set of challenges.
We came across an interview between Etsy CEO Josh Silverman and CSNBC’s Jim Cramer. We thought we’d share with you the gist of that interview in hopes that it will be a source of helpful information.
Supply chains and stock
One of the first things Silverman mentioned was that “a lot of people are worried about their supply chain” due to the Coronavirus outbreak. But he went on to say that “Etsy makers are already working from home” so while there is certainly a shift “we feel resilient.” Another important point was from Cramer who said that “Etsy is a stock that can outperform in this environment.” His point was made clear when Etsy’s stock rose 14% on a day when major stock averages dropped by around 4%.
In an effort to continue these positive trends, Silverman said that Etsy will “double down on television advertising in 2020” on top of the 5 million they’ve invested in off-site ad credits through the end of April.
Etsy vs. Brick-and-Mortar
Yes, we know that Etsy’s stock took a beating after an analyst downgrade that showed a serious market slow down as folks reacted to the arrival of Covid-19. But much of that analysis also points toward the optimism analysts are feeling about Etsy over the long term in comparison to brick-and-mortar businesses. At Marmalead, we’re confident that online sales will see a faster comeback and ultimately take less damage than their brick and mortar counterparts.