The online market is expanding globally, leading to purchasing and selling items directly from their homes and business outlets. Online e-commerce has made it easier for small business owners to expand their business globally and easily without investing a huge lump sum of money in product marketing. As most of the population of the world is on the internet, it has been a lot easier for business owners to communicate and sell.ย
Key Takeaways
- Gumroad is a platform for creators to sell digital products, while Etsy is a marketplace for handmade and vintage items.
- Gumroad offers more customization options and direct payment processing, while Etsy has a larger audience and a more established reputation.
- Gumroad is better suited for digital creators and niche markets, while Etsy is ideal for artists and makers with physical products.
Gumroad vs Etsyย
The difference between Gumroad and Etsy is that Gumroad directly deals with the customers and sells their products online. On the other hand, the company Etsy deals with vintage items, handmade items, and craft supplies. They buy, sell, and collect items, which include different home dรฉcor items, furniture, toys, jewellery, and many more.
Gumroad is a company founded by two leaders, Sahil Lavingia and Sachin Khanna. The purpose of the website they created was to directly sell the products and services to their customers as a social service. The company was based in San Francisco, United States, and was founded a decade ago from the present, that is, in 2011.
Etsy is an e-commerce platform that mainly focuses on the selling and buying of vintage, handmade, and craft supplies. The items have a wide variety, such as jewellery, toys, furniture, home dรฉcor products, etc. The firm was created and founded by Robert Kalin, Chris Maguire, Haim Schoppik, and Jared Tarbell. They founded it in the year 2005 and are based in Brooklyn, New York.
Comparison Table
| Parameters of Comparison | Gumroad | Etsy |
|---|---|---|
| Founded By | Sahil Lavingia and Sachin Khanna | Robert Kalin, Chris Maguire, Haim Schoppik, and later Jared Tarbell |
| Founded In | 2011 | 2005 |
| Headquarters | San Francisco, California, United States | Brooklyn, New York |
| Industry | Self-publishing, Digital distribution, E-commerce, music, and film platform | E-commerce |
| Category | Sells directly to their customers | Sells buys, and collect vintage and collectible items |
What is Gumroad?
Gumroad is a company or firm located in San Francisco, California, United States. The company was founded in late 2010 but came into existence in 2011. There were two founders of the company that is โ Sahil Lavingia and Sachin Khanna. The companyโs basic aim was to sell its goods and services directly to its customers.
The idea of building Gumroad came into Sahil Lavingia when he wanted to sell his photorealistic icon, which took him considerable time to sell. After this incident, he then built the first iteration of Gumroad in a week.
The Gumroad platform allows many creators, such as music artists, authors, comedians, and designers, to sell their services and goods directly to customers. Initially, the siteโs hosting fee was low compared to other platforms but was then changed and increased accordingly.
Many renowned music artists such as Eminem, David Banner, Wiz Khalifa, Bon Jovi, and Sam Hyde have used the platform to sell their products. Despite musicians, many authors and filmmakers have also used the platform to sell through it. For example โ Man on Wire, Jesus Camp, Page One: Inside the New York Times, Tim Ferriss, Chris Guillebeau, etc.
What is Etsy?
Etsy or Etsy Inc. is a company or firm whose headquarters is located in Brooklyn, New York, United States. The company or firm was founded by three individuals that is Robert Kalin, Chris Maguire, Haim Schoppik, and later Jared Tarbell came on board. The group launched or founded the company in the year 2005.
Etsy Inc is an American-based e-commerce platform that aims at selling and buying goods online to their customers like others, but the unique feature of the company is they mainly focus on handmade products, vintage items (which must be at least 20 years or older), and craft supplies. The subcategories for the items were quite vast- they deal in jewellery, furniture, handbags, men, women, kidsโ items and products, toys, art pieces, craft tools, and many more.
They offer the traditional craft open, fair system for their customers to buy products as well as give access to the owner to set a personal storefront at a fee of $0.20 on each item. The owners decide the payment methods for the items, which can be paid via credit cards, debit cards, PayPal, etc.
Main Differences Between Gumroad and Etsy
- The Gumroad firm was founded by two people, Sahil Lavingia and Sachin Khanna, while on the other hand, the Etsy Incorporation was founded by three people and later Jared Tarbell.ย
- The Gumroad company was eventually founded in 2010 but came into existence in 2011, while on the other hand, Etsy Inc. was founded back in 2005.ย
- Gumroadโs headquarters is in San Francisco, California, United States, while Etsy Inc. is also an American-based e-commerce company; thus, its headquarters is in Brooklyn, New York, United States.
- The Gumroad firm/company is a self-publishing, music, film, digital distribution, and e-commerce platform, while Etsy Inc. is simply an e-commerce website.
- Gumroad majorly deals with the direct selling of products and their services to their customers as social service, while comparatively on the other, Etsy Inc. deals with handmade, vintage, and craft supplies, which have vast sub-varieties to choose from, such as jewellery, furniture, toys, home dรฉcor, art, craft tools, and many more.ย
References
- https://journals.aom.org/doi/abs/10.5465/amp.2015.0111
- https://books.google.co.in/books?hl=en&lr=&id=3IdCCwAAQBAJ&oi=fnd&pg=PT2&dq=difference+between+gumroad+and+etsy&ots=Y4UZxrfCM6&sig=LkQvHImDNP8Za1hvpfE2YcgCZ-Y&redir_esc=y#v=onepage&q&f=false
- https://www.tandfonline.com/doi/abs/10.1080/08853134.2019.1659741
- https://www.theseus.fi/handle/10024/108645
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
