As of March, 2016, Etsy's top three competitors according to Hoovers Online are Amazon Handmade, Craigslist, and eBay. Etsy has been compared to "a crafty cross between Amazon and eBay", and to "your grandma's basement". Etsy also has a number of direct competitors. DaWanda [de], based in Germany, closed in August 2018, ezebee.com, based in Switzerland, is a global competitor, but also caters to freelancers and professionals Bonanza (formerly Bonanzle and 1000 Markets) is based in the United States and focuses on clothing and fashion, Zibbet and Made It which are based in Australia, iCraft is based in Canada, Artfire is based in the United States, and Hello Pretty is an online craft marketplace targeted at South Africans. Tindie is based in Portland, Oregon, and focuses on technology and electronics. ArtYah is based in California, United States undergoing speedy growth and has worldwide sellers and consumers of handmade items, vintage and some craft supplies.
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In Etsy's first year, it attracted attention for frequently adding new tools and functionality to the site to help sellers gain exposure and traffic, including Adobe Flash-based visualizations and a taxonomy of categories with tags. Etsy passed $1.7 million in sales in May 2007. On July 29, Etsy had its one-millionth sale and anticipated its two-millionth sale would occur mid-December 2007. In November 2007, buyers spent $4.3 million purchasing 300,000 items for sale on Etsy, an increase of 43 percent from October 2007. In June 2007, it expected to be profitable by the fall, but in December 2007 it was not a profitable company. In January 2008, Etsy received an additional $27 million in funding from Union Square Ventures, Hubert Burda Media, and Jim Breyer.
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