What is CRE8® Art Store?
CRE8® Art Store is an ecommerce marketplace that enables artists to sell handmade unique products to interested buyers around the world. The business model of CRE8® Art Store can be described as somewhat similar to Amazon or eBay, but with the difference that CRE8® Art Store provides an amazing value to both buyers and sellers. On one side CRE8® Art Store helps sellers sell their handmade crafts and earn a living while on the other side it helps buyers own one of a kind products. This fact has led to the massive growth of our competitor Etsy.
Etsy was the first of this kind and started as a simple website in year 2005 and
is now listed as a public company with over $360 Million of total funding.
Unlike Amazon and eBay which are based on the horizontal model selling almost everything on their platform, CRE8® Art Store just like Etsy will chose a vertical platform model by confining itself to selling only craft items in various categories narrowed down to 7 categories only.
Along with insights into CRE8® Art Store's business model and revenue generation strategies,
let’s also go through its customer segments, value propositions and some other interesting facts.
Salient Features of
CRE8® Art Store
CRE8® Art Store is similar to Etsy or Amazon and can be seen as a simple e-commerce website based on the marketplace model that sells goods and earns revenue from commission. Even after having a simple business model, CRE8® Art Store will have some cool features as mentioned below.
Will list unique products in the art & craft, handmade and vintage category.
Vintage products can only be listed if they are 20 years old.
Sellers can create a shop.
Will offer global shipping.
Each seller will have a feedback which helps buyers make the decision to buy.
Buyers have different options to pay money which are chosen by the seller.
Apparently Etsy is more popular among women. It has 67% women members.
CRE8® Art Store’s
The success of CRE8® Art Store will be credited to
the value the company will provide to its buyers as well as artists.
CRE8® Art Store enables artists to put their items on display for the world to see.
Sellers can create a shop on CRE8® Art Store and name it according to their wish.
They have the option to add as many items to their shop as they like.
Sellers can choose the selling price of their items according to what they think is right.
Sellers can add tags to their items which lets their products to be searched easily.
CRE8® Art Store will enable buyers to browse unique handmade products from artists across the globe.
Buyers can even buy vintage items.
Can get a product delivered to their country with international shipping options.
CRE8® Art Store’s
Sellers are individual artists who make handmade products.
Some sellers are small industries which manufacture handicrafts.
Artists who want to earn money by selling their products.
Artists who want an online shop.
Buyers for CRE8® Art Store are those who buy craft and vintage items.
People who want to own one of its kind unique products.
CRE8® Art Store
Business Model Canvas
All 9 segments have been analyzed as mentioned in the Business Model Canvas in regard to Etsy.
Here’s a detailed chart for CRE8® Art Store:
How CRE8® Art Store
will earn money
(CRE8® Art Store Revenue Model)
Here are two examples of Business Models we can draw from:
Let's look at Etsy:
Just as Etsy is known for listing unique items on its platform, it is also known for a unique revenue model.
The major revenue models of Etsy comprise the following:
1) Etsy CRE8® Art Store charges sellers to list items on its platform. However the fee to list something on Etsy is as low as $0.20, but it contributes a good amount to the overall,
money that Etsy makes.
The amount of $0.20 is valid for 4 months
2) Apart from the listing fee, Etsy also charges sellers a commission for every sale. The commission fee has been fixed at 3.5%. Sellers have the option to set their own sale price but Etsy cuts a commission of 3.5% from the sale price before paying the money to the seller.
3) Etsy has given some special features to sellers which they can avail by paying an extra cost. These are basically advertising options like making a product as featured product etc. Sellers can showcase their shops and hence have more sales.
Let's look at Amazon:
Amazon is the largest marketplace on earth selling almost everything imaginable. Even though the United States represented the primary source of income for Amazon. It is expanding globally. Indeed, net sales have increased since 2014. In 2016 products represented almost 70% of total sales.
Services sales have been growing at a fast pace.
This is their Business Model:
For how much we love to believe that things can be easily classified,
however since CRE8® Art Store is a brand new concept we will have to figure out a hybrid business model between these two in order to gain sellers interest and customers trust .
Thus, rather than rely on a single type of model, we will dependent on the mixture of those models. The way those models will interact will be quite subtle, yet that is what really creates, unlocks and generates value in the long-term.
4 step model about How
CRE8® Art Store Works
1. Sellers can sign up on the platform and can list items for sale.
Listing items on CRE8® Art Store is not free. CRE8® Art Store charges a fee to list each items which is valid for 4 months.
2. Buyers can browse these items and place order for the ones they like.
Buyers can use the advanced filters of CRE8® Art Store to search for products. Buyers have to option to ask the seller a question or can simply add the item to their cart.
3. Buyers make a transaction on the platform.
All transactions are made through CRE8® Art Store.
CRE8® Art Store charges a commission of 3.5% from every successful sale and transfers the rest amount to the seller’s bank account.
4. Buyers have the option to rate and review the items.
These reviews are helpful for other buyer who are interested in that product. The rating system helps other buyers to know if the product is good or not.
How and why CRE8® Art Store
will be so successful?
The success of CRE8® Art Store goes to its unique business model. Unlike eBay or Amazon,
CRE8® Art Store will follow in Etsy's footsteps and chose a narrow domain of art, craft, handicraft and handmade items. No doubt in the fact that Etsy came out as a winner in this segment. But let’s see what will make CRE8® Art Store successful.
If you give a broad look to eBay, Amazon and CRE8® Art Store, you’ll find that eBay and Amazon
also list out such items on their platform but it was the value provided by Etsy
which attracted buyers and sellers on its platform.
Word of Mouth Advertising:
Etsy was the only site back at that time which catered to handmade products. Etsy revealed that 67% of its total users are women. The major part of Etsy’s growth came from word of mouth in women circles.
CRE8® Art Store has its own API which lets developers tap into the CRE8® Art Store community and build their own CRE8® Art Store -powered applications for the web, desktop and mobile devices. Many small businesses have used this approach to sell their products.
Offline Help and Support to artists
Etsy has been there on the ground. The company ran workshops for local crafters and stood there to provide support services including business advice. In some cases, Etsy even gave small loans to artists. CRE8®'s whole business model is structured in such a way that will
profit Artists so they can flourish.