Do you sell guitars, keyboards, or other musical instruments, parts, and accessories? Well, Etsy have just opened a new sales channel for you on their marketplace.
The eCommerce website acquired Reverb, an online marketplace for new, used, and vintage equipment for $275 million in cash, to add a new vertical to their platform which will like you to potential customers on a global scale.
Reverb are the go-to platform for buyers and sellers of rare and affordable musical gear instruments and gear since 2013. Their seller base spans many countries, with key markets that are same as Etsy’s, including the UK, U.S., Australia, Canada, France, and Germany.
Etsy can’t wait to start working with Reverb’s employees, though the company made clear that the latter will continue to operate as a standalone business after the deal has been finalized. Chief Executive Officer Josh Silverman said:
“Vibrant two-sided marketplaces are lightning in a bottle – there are only a handful of them operating at scale – and Reverb is one. This transaction is a great strategic fit that firmly aligns with our mission of keeping commerce human. Reverb is the ‘Etsy’ of musical instruments, with significant competitive advantages, and we see tremendous value and untapped potential in the business.”
Etsy fueled Reverb’s confidence to succeed
As a marketplace for handmade and vintage products, Etsy served as an inspiration to many creative entrepreneurs such as Reverb founder and CEO David Kalt. He drew confidence from the eCommerce site to create a platform that supports artists who want to make a living and further their passion for music at the same time.
According to Kalt :
“The company gave me the confidence to launch Reverb when I saw the need for a musician’s marketplace in 2013. We’re excited to align ourselves with a marketplace that has been supporting artists, makers, and creative entrepreneurs for nearly 15 years. Together, we’ll continue to create a destination online where the music industry connects over the perfect piece of gear.”
Etsy’s acquisition of Reverb reflects their strategic goal of finding great businesses at the right value. Aside from having similar growth levers as Reverb, Etsy said that both companies share the same mission and have business models which are almost identical.
The acquisition of Reverb is expected to close at the end of the third quarter or early fourth quarter of the year.
Are you a music aficionado who’s ready to explore Etsy’s new avenue for sales? We’d love to hear from you in the comments section below.
As always, to your continued success,
Dave & Matt