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Etsy and the long-tail: how microenterprises use hyper-differentiation in online handicraft marketplaces

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  • E. Mitchell Church

    (Coastal Carolina University)

  • Richelle L. Oakley

    (University of North Georgia)

Abstract

This research presents an analysis of online microenterprises who sell handmade crafts and individually customized products. Using extant literature in the areas of e-commerce and long-tail marketing, this study develops two theoretical models of microenterprise sales success—on the product-level and on the shop-level. The models posit that higher product sales prices or shop average sales prices are associated with hyper-differentiation marketing activities, while controlling for social media impacts. We examine the models and present an empirical analysis of a dataset consisting of the marketing and sales activities of 1490 microenterprises within Etsy, an online commerce platform. Our analysis and results show that microenterprises who leverage their core competencies around handmade and customized products command higher product sales prices, confirmed at the product and shop level. Our study offers insights for existing microenterprises and researchers interested in examining how online microenterprises in niche markets achieve sales success.

Suggested Citation

  • E. Mitchell Church & Richelle L. Oakley, 2018. "Etsy and the long-tail: how microenterprises use hyper-differentiation in online handicraft marketplaces," Electronic Commerce Research, Springer, vol. 18(4), pages 883-898, December.
    • Handle: RePEc:spr:elcore:v:18:y:2018:i:4:d:10.1007_s10660-018-9300-4
    DOI: 10.1007/s10660-018-9300-4
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    Cited by:

    1. Marcia Mkansi, 2022. "E-business adoption costs and strategies for retail micro businesses," Electronic Commerce Research, Springer, vol. 22(4), pages 1153-1193, December.
    2. Jasmin Droege, 2022. "The Handmade Effect: A Model of Conscious Shopping in an Industrialised Economy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(2), pages 263-292, March.
    3. Daniel A. Sanchez-Loor & Wei-Shiun Chang, 2023. "Experimental study of the effects of structural assurance, personal experiences, and product reviews on repurchase behavior in e-commerce platforms," Electronic Commerce Research, Springer, vol. 23(3), pages 1971-2010, September.
    4. Lola Redondo-Rodríguez & Diana C. Pérez-Bustamante Yábar & Eloísa Díaz-Garrido, 2023. "Impact of technological innovation on digital entrepreneurship and the effects on the economy," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1501-1526, September.
    5. Liu, Weihua & Liang, Yanjie & Tang, Ou & Shi, Victor & Liu, Xinyun, 2021. "Cooperate or not? Strategic analysis of platform interactions considering market power and precision marketing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).

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