The number of buyers and sellers on Etsy has grown by leaps and bounds, much like all the other statistics that Etsy's Storque blog provides.
I was very happy to see that the marketplace has not been diluted by this influx of visitors. Goods sold (in dollars) and the number of new registered buyers per month have a very high correlation (r =0.97) between March and November 2008. What does this mean? Correlations measure the strength and direction of a linear relationship between two random variables, described by the range of -1.0 to +1.0.
In this case, my two variables are goods sold and # of new registered buyers per month. Since a correlation of 1.0 means that the two variables follow the exact same, increasing trajectory, a correlation of .97 means that the two variables have a very strong positive relationship. In other words, the new members registering as buyers are actually buying--and at a steady rate.
Despite the downturn in the economy, Etsy broke the $10M in sold goods mark in November. That is a pretty amazing feat; congrats Etsy on another great month!
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