Disclaimer

This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our ability to bring buyers back to Etsy.com, our market opportunity, our financial guidance and key drivers thereof, anticipated marketing spend and other planned investments and their anticipated impact on our future financial results, anticipated product launches and impact of experiments, including on conversion rates, anticipated growth in active buyers, and investments in and timing of our migration to the cloud and its anticipated impact on our future financial results. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “plans,” “will,” “intends,” or similar expressions and the negatives of those words.

Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include: (1) the fluctuation of our quarterly operating results; (2) our ability to implement our business strategy; (3) our ability to attract and retain an active and engaged community of Etsy sellers and Etsy buyers; (4) our history of operating losses;(5) macroeconomic events that are outside of our control; (6) our ability to recruit and retain employees; (7) the importance to our success of the trustworthiness of our marketplace and the connections within our community; (8) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of Etsy sellers and Etsy buyers; (9) the effectiveness of our marketing efforts; (10) the effectiveness of our mobile solutions for Etsy sellers and Etsy buyers; (11) our ability to expand our business in our core geographic markets; (12) regulation in the area of privacy and protection of user data; (13) our dependence on third-party payment providers; and (14) the potential misuse or disclosure of sensitive information about members of our community and the potential for cyber-attacks. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this presentation. We disclaim any obligation to update forward-looking statements.

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Etsy Unveils Plans to Make Free Shipping a Core Part of the Shopping Experience

July 09, 2019
- Etsy to provide sellers with tools and support to make it easy for them to guarantee free shipping on orders of $35 or more to US buyers
- Items that ship for free will get priority placement in US search results
- Initiative to build buyer trust and loyalty

BROOKLYN, N.Y., July 9, 2019 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), the global two-sided marketplace for unique and creative goods, today announced plans to make free shipping a core part of the Etsy shopping experience. Etsy is providing sellers with tools and support to help them guarantee free shipping to US buyers who spend at least $35 in their shop. By making it easy for sellers to offer free shipping, Etsy will empower them to better meet buyer expectations and more effectively win customers in today's changing retail landscape.

Josh Silverman, Etsy's Chief Executive Officer, commented, "Shoppers come to Etsy to discover over 60 million special and unique items that often cannot be found anywhere else. Yet we hear that high shipping prices often deter shoppers from completing their purchases. By making free shipping the norm on Etsy, rather than the exception, we'll connect more people with items that they love. Ultimately, we believe this will help increase marketplace conversion and order value, encourage repeat visits, and drive more sales for Etsy sellers."

Sellers around the world are able to participate in this initiative. Etsy will be providing sellers globally with tools and educational resources to help them adopt a free shipping guarantee for US buyers. In addition, beginning on July 30, 2019, Etsy will give priority placement in US search results to items that ship free and to shops that guarantee US buyers free shipping on orders of $35 or more. This means that shoppers in the US will primarily see items that ship free and shops that offer free shipping on orders of $35 or more in the top and most visible rows of search. Etsy will begin actively marketing this free shipping initiative to buyers starting in September, with the goal of driving more traffic to the Etsy marketplace and sellers' shops.

Kruti Patel Goyal, Senior Vice President, Product, added, "Buyer expectations continue to evolve, and we want to help sellers adapt and thrive in an increasingly competitive retail landscape. Free shipping is now table stakes when it comes to online shopping. We realize that offering free shipping may be a big step for some of our sellers, and we will be there to support them every step of the way. We are providing numerous tools, resources, and customer support touchpoints to make it easy for them to set up a guarantee and understand how free shipping can help them reach their business goals."

According to Etsy buyer data, buyers are significantly more likely to purchase an item in their cart with free shipping compared to an item that has added shipping costs. Etsy also ran a limited-time free shipping promotion in May 2019 that led to higher order values when participating buyers purchased items that shipped for free or were eligible for free shipping. 

Given the timing of the launch, this initiative is currently expected to have modest upside to Etsy's previously announced 2019 gross merchandise sales guidance. The projected impact of this initiative will be shared when Etsy reports its second quarter 2019 financial results.

About Etsy 
Etsy, Inc. is the global two-sided marketplace for unique and creative goods. Our mission is to "Keep Commerce Human," and we're committed to using the power of business and technology to strengthen communities and empower people around the world. We connect millions of buyers and sellers from nearly every country in the world. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs. 

Etsy was founded in 2005 and is headquartered in Brooklyn, New York. 

Media Relations Contact: 
Kelly Clausen, Director, Corporate Communications press@etsy.com

Investor Relations Contact: 
Deb Wasser, Vice President, Investor Relations ir@etsy.com 

Gabriel Ratcliff, Sr. Manager, Investor Relations ir@etsy.com

Cautionary Statement Regarding Forward-Looking Statements

This press release (including statements quoted in this press release) contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements related to our expectations regarding the impact of our free shipping initiatives on marketplace conversion, order value, increased sales, repeat visits, the businesses of our sellers, and GMS guidance, and the ability for our marketing initiatives to drive traffic to our marketplace and our sellers' shops.

Forward-looking statements include all statements that are not historical fact. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include the successful execution of our business strategy, the success of our free shipping initiative, our reputation and our business, the success of our marketing efforts, our active and engaged community of Etsy sellers and Etsy buyers, the growth and performance of our platform, and other risks and uncertainties that are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, and subsequent reports that we file with the Securities and Exchange Commission.

Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements, except as required by law.

 

Cision View original content:http://www.prnewswire.com/news-releases/etsy-unveils-plans-to-make-free-shipping-a-core-part-of-the-shopping-experience-300881110.html

SOURCE Etsy, Inc.

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