Suggestions
Morgan Blake
@ShearlingCap, Ex-Etsy Payments & Corp Dev
Morgan Blake is the Director at Shearling Cap, a company based in the United Kingdom.23 His full name is Morgan Charles Deming Blake, and he was born in April 1982.34 Morgan currently holds the position of Chief Executive at Shearling Cap Ltd.45
Morgan Blake has previous experience working at oneshot.earth and Etsy.2 He is also listed as a Person with Significant Control (PSC) in the company.5 His correspondence address is listed as 46 Stokenchurch Street, London, England, SW6 3TR.4
According to his LinkedIn profile, Morgan Blake is involved in building a home for marketplaces and communities at Shearling Cap, and he previously held a position as Head of Payments.1 He also writes articles on making marketing services work effectively.1
It's worth noting that Morgan Blake is an American citizen who currently lives in England.5
Highlights
How can marketplaces turn IP takedown requests from a cost center to a profit center? Etsy removed 1.2M listings in 2023 due to IP infringement takedown requests, but back in 2015 it was a small but burgeoning issue. Enter the “licensing in” program:
The issue: Removing blatant infringing and non-special items is a no brainer. But what to do with the myriad of genuinely creative and unique creations that sellers came up with and want to sell, but are close enough to existing IP that they are taken down?
The thesis: Create a program for brands to easily license IP to sellers, which would empower sellers, boosts recognizable inventory, and ultimately drive GMV. Then pay a portion to the brand (which the seller funded), and everyone wins. Easy! OK, not so easy.
The test: We partnered with Lionsgate to officially license items inspired by The Divergent Series: Insurgent. We signed up some sellers, got their merchandise approved by Lionsgate, and launched a landing page. The test required no engineering, but lots of manual work on the back-end to make it work, which is fine for a pilot.
What happened? We launched, and we sold some items, but just not nearly enough to convincingly show that there was a major opportunity. In reality, this was a failure because of a couple major structural issues…
(1) brands are very strict about what can be licensed, not just to protect IP, but to protect the mega deals they already have in place for t-shirts, hats, etc. So they approved a small number of items. In an Etsy world where everything was handmade and typically low-volume, this was tough.
(2) Third-party brands weren’t part of the Etsy vision. Yes, creative renditions of various aspects of pop culture are actually quite prevalent on Etsy. But will Etsy ever be a place that openly advertises a third-party brand as a part of its product offering? Not really, because it’s actually a place for consumers to find new, independent brands and makers, rather than engage with existing ones.
So it didn’t work at Etsy, but I suspect this type of program could still work for someone! Read more about the Lionsgate partnership with the original press release:
How can a marketplace with a 10-20% take-rate compete with advertising spend of a retailer boasting 50%+ gross margin? This was the challenge I aimed to tackle at Etsy when I first proposed Offsite Ads back in 2012. Fast forward to 2023, and the impact has been huge, with Offsite Ads driving over $150M in marketing spend and over $1B of GMS for Etsy.
The original concept aimed at tapping into the marketing budgets of sellers and passing straight through to platforms like Google and Facebook. This would enable Etsy to advertise as if it had higher margins, and allow sellers to drive additional sales with little/no effort and at the efficiency/effectiveness of a big brand like Etsy.
The journey from idea to implementation, however, was no easy feat. Product spent 4 years iterating before finding the optimal solution. The first iteration launched in 2016 as an optional “Google Ads” tool for sellers to set a budget for off-site Google Shopping ads (then Google Product Listing Ads).
Complications would inevitably arise from a product like this: How do you run seller campaigns in parallel with marketplace-funded campaigns? What happens if a seller offsite ad campaign ends with the buyer purchasing someone else’s product? How do you get adoption to reach a scale that has material impact?
In 2019 Offsite Ads was re-launched as a combined tool with onsite “Promoted Listing” ads with a single interface called “Etsy Ads”. This brought it more to the forefront. But the pivotal moment came in 2020 when Offsite Ads transitioned into a standalone feature with automatic enablement, thus revolutionizing its impact. Despite some seller reluctance, it solved many of the challenges previously faced by switching to a % fee (rather than a fixed budget), by only charging sellers if the buyer purchased THEIR product, and by opting sellers into the program by default.
The results speak for themselves, even if I’m sure the team will continue to iterate and improve: $1B-$1.3B of GMS from >$150M of performance marketing spend in 2023 alone.
