Unpacking Etsy’s S1: No CAC reduction in sight

That’s just one nugget from this Etsy S1 analysis:

Even with its strong network effects, I fundamentally do not believe its CAC can be reduced significantly, if at all. That leaves two options: 1) Improve gross margin to enhance revenue/buyer or 2) Stop investing as heavily in growth to realize the benefits of its highly profitable, power users.

via Unpacking Etsy’s S1 | TechCrunch.