As of March, 2016, Etsy's top three competitors according to Hoovers Online are Amazon Handmade, Craigslist, and eBay.[91] Etsy has been compared to "a crafty cross between Amazon and eBay",[52] and to "your grandma's basement".[92] 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[93] Bonanza (formerly Bonanzle and 1000 Markets[94]) 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,[95] Artfire is based in the United States,[96] and Hello Pretty is an online craft marketplace targeted at South Africans.[97] Tindie is based in Portland, Oregon, and focuses on technology and electronics.[98] ArtYah is based in California, United States undergoing speedy growth and has worldwide sellers and consumers of handmade items, vintage and some craft supplies.[99] 

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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.[51] Etsy passed $1.7 million in sales in May 2007.[52] 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.[3] In June 2007, it expected to be profitable by the fall,[28] but in December 2007 it was not a profitable company.[53] In January 2008, Etsy received an additional $27 million in funding from Union Square Ventures, Hubert Burda Media, and Jim Breyer.[54]
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