TIME Shopify

This is the Latest $1 Billion Tech Company to IPO

Traders work on the floor of the New York Stock Exchange.
Andrew Burton—Getty Images Traders work on the floor of the New York Stock Exchange.

E-commerce company Shopify will begin trading on the NYSE and Toronto Stock exchange on Thursday

Shopify, the Canadian e-commerce software company, priced its initial public offering at $17 per share late Wednesday, giving the company a valuation of $1.27 billion.

It sold its 7.7 million shares, raising a total of $131 million. It had proposed a range of $14 to 16, up from $12 to 14 earlier.

Founded almost a decade ago in 2006, Shopify provides software tools for online retailers including storefronts, payment processing and apps for checkout. It competes with Bigcommerce and Magento, among others, and previously raised a total of $122 million in private funding.

Shopify filed to go public in mid-April following at the heels of another hotly watched e-commerce IPO, New York-based Etsy [fortune-stock symbol=”ETSY”]. The filing also revealed that Shopify had, at the time, more than 162,000 merchant customers in 150 countries, yielding $105 million in revenue for the company last year.

But despite that, Shopify been losing an increasing amount of money for the last three years. It posted a loss of $4.5 million for the first three months of 2015, and total deficit of $33.6 million amassed over the years. Losses are likely to continue, according to the document.

Shopify also acknowledged several of its risks, including its heavy reliance on resellers to build its business, and that it outsources the processing of its payments to another company, Stripe.

Shares will begin trading Thursday on the New York Stock Exchange under the symbol “SHOP” and the Toronto Stock Exchange under “SH.”

The IPO’s underwriters included Morgan Stanley, Credit Suisse, and RBC Capital Markets, Pacific Crest Securities, Raymond James, and Canaccord Genuity.

MONEY online shopping

Walmart to Launch a Half-Price Version of Amazon Prime

Walmart will test a subscription shipping service to compete with Amazon Prime — at half the price.

TIME India

Flipkart, India’s Amazon, Plans to Shut Down Its Website Within a Year

General Images of Flipkart As India's Largest Online Retailer Said To Buy Competitor Myntra
Brent Lewin—Bloomberg/Getty Images The websites for Flipkart, bottom, and Myntra.com are displayed on an Apple Inc. iPad and iPhone 5c respectively in an arranged photograph in Hong Kong, China, on Wednesday, May 21, 2014.

The firm's mobile traffic has apparently increased tenfold in less than 18 months

Flipkart, India’s biggest e-commerce company, said on Monday that it plans to shut down its website within a year and transition completely to a mobile app.

“Last year, we had more on the app but still did our web and desktop. In the next year or so, we’re going to be only mobile,” Michael Adnani, Flipkart’s vice president, retail and head of brand alliances, told the Times of India.

The decision is a reaction to the rapid growth of smartphone users in India, which is the third largest Internet market after China and the U.S. The Boston Consulting Group projects that the South Asian nation will have more than 550 million Internet users in 2018, of which almost 80% will be on mobile devices.

“A year ago, 6% of our traffic was coming from mobile. In less than 18 months, that traffic is 10-fold,” Adnani said. “That shows the significance of what a mobile phone is doing for the consumers and consequently doing for us.”

Two-thirds of Flipkart’s 8 million monthly shipments come from cities and small towns, where most people don’t have access to desktop computers and broadband Internet.

Fashion e-retailer Myntra, which Flipkart acquired last year, is also set to abandon its website in favor of an app on May 1.

TIME India

The Guy Who Brings Your Lunch in Mumbai Now Also Brings You Anything From a New Phone to a Fresh Shirt

148507994
Lou Jones—Getty Images/Lonely Planet Images Dabbawalas sorting tiffin lunch boxes before delivery in front of Churchgate railway station in Mumbai

This is service

Delivering over 200,000 home-cooked meals a day across one of the world’s largest and most-crowded cities (and also picking up and returning the empty containers) is no mean feat. But that’s exactly what the dabbawalas — or “tiffin carriers” — of Mumbai do with clockwork precision and an organizational system that many large companies would do anything to possess.

They’ve even been awarded the Six Sigma seal of approval, earned for making just one error in every 6 million deliveries.

So it’s no surprise that India’s equivalent of Amazon, Flipkart, is now looking to take advantage of that astounding precision to deliver packages to its customers and get an edge over rivals, like, well, Amazon itself.

Flipkart has teamed up with the Mumbai dabbawalas, Reuters reports, enlisting their services to enable quicker and better “last mile” distribution.

The deliverymen will deliver parcels assigned from Flipkart hubs across the city, along with their usual pickup and drop-off of lunch boxes. They will initially only be assigned prepaid deliveries and are currently using a paper system for logistics, but the goal is reportedly to transition to apps and wearable technology down the line.

“The dabbawalas of Mumbai are one of the most reliable and trusted brands in the city. Their unique delivery system has been smooth, reliable and has survived the test of time — even under extreme conditions,” stated Neeraj Aggarwal, Flipkart’s senior director.

If you’re not familiar with the consummate organization of the dabbawalas, check out the video below. Even Amazon could have a hard time matching that.

MONEY online shopping

7 Things You Probably Had No Idea Amazon Sold

repairman arriving at front door
Peter Dazeley—Getty Images

What do autographed vintage Air Jordans, environmentally friendly baby wipes, cheap wine, and plumber recommendations have in common? You can find them all at Amazon.com.

On Monday, Amazon announced the official launch of Amazon Home Services, a marketplace and recommendation tool to help people find, schedule, and pay for services like home cleaning, lawn care, and handyman jobs. The new service is obviously competing in the same space as user review tools like Angie’s List, Yelp, and Porch, and customers with verified purchases made through Amazon will be able to review services as well. Amazon also says all of its professionals are handpicked and fully insured, and if anything goes wrong with a job it promises to “work with customers and the pro to ensure the job gets done right or provide a refund.”

Amazon’s entrance into the sphere of contractors and professional home services may seem a little out of left field. But the move makes total sense in light of the company’s overarching mission—to become the destination for anyone wanting to find and purchase pretty much anything.

Here are a few other seemingly odd retail categories that Amazon has ventured into recently. They haven’t all been successful. In fact, some have basically been flops. But when you’re trying to take control of the marketplace for selling everything under the sun, a few misfires and false starts should be expected.

Fine Art
Amazon Art launched in the summer of 2013 as a marketplace selling tens of thousands of paintings, sculptures, photographs, and other works—including some originals from masters like Monet and Norman Rockwell, with list prices into the millions of dollars. Perhaps unsurprisingly, some in the highbrow art world have been skeptical about the idea of one-click ordering, say, a Rembrandt.

Renowned economist Tyler Cowen pointed out the absurdity of being asked to pay $4.99 for shipping for a “mediocre Mary Cassatt lithograph” listed at $185,000, and wrote that he hoped Amazon Art was “a doomed venture.” The New Yorker noted that actually selling and profiting from high-end art may not be the point for Amazon: “Regardless of whether Amazon Art revolutionizes the art world, it will contribute to the perception that Amazon is working to create: whatever it is you’re looking for, you only need to remember one U.R.L.”

Fresh Flowers
About the same time Amazon was getting into fine art, it quietly launched The Amazon Curated Flowers Collection, in which the e-retail giant would be selling and shipping flowers directly to customers. Apparently, the venture didn’t work out. Recode reported that the Collection was kaput within a few months, and now the only flower bouquets that can be ordered through the site come from third-party vendors.

Diapers & Baby Wipes
Another venture that seems to have not worked out as well as Amazon wished was its recent entrance into the diaper business. Last December, the company began selling Amazon Elements, its own brand of high-end, environmentally friendly diapers and wipes. Less than two months later, bad feedback from customers pushed Amazon to discontinue the diapers and take them off the market, at least until design improvements could be made. Amazon Elements Baby Wipes, meanwhile, are still listed for sale at the site, where they get a 4.5-star rating.

Collectible Coins
Amazon’s Collectible Coins marketplace hit the site last May, allowing shoppers to search, browse, and buy thousands of rare and historical authenticated coins from dozens of dealers. Like Amazon Art, the coins purchased via Amazon can be priced into the millions, and Amazon gets a cut of every sale—reportedly 5% to 20%.

Sports Memorabilia
Among the wide selection of autographed sports collectibles currently up for sale on Amazon is a pair of 1985 Air Jordan sneakers ($48,788 + $4.49 shipping) and a baseball featuring Lou Gehrig’s signature ($71,264.99, with free shipping!). Amazon got into sports memorabilia in 2012, and it has a section for entertainment collectibles as well.

Wine
The Amazon Wine marketplace was introduced in 2012 in about a dozen states, with shipping on up to six bottles priced at a flat $9.99. The service has since expanded for delivery to more than a dozen other states, and the site—no stranger to price wars—has been competing aggressively on wine promotions, notably with 1¢ shipping on many orders.

TIME eBay

The Rise and Fall (and Rise and Fall) of eBay

Ebay Reports Quarterly Earnings
Justin Sullivan—Getty Images

The online auctions site is being carved up to keep investors happy. What will be left won't be pretty

Remember when people seriously talked about their eBay addictions? You might not, because you’d have to go back a dozen years or more. And anyway, it was really more of a compulsion, the way mobile games or chat apps have more recently become. Still, if you look you can still find multiple confessions of self-described eBay addicts.

“Hard to believe it’s only been six months since I met my great love,” began one addict’s confession in the heady days of 1999. “I refer, of course, to eBay.” Of course. The site’s manic youthfulness was captured back then in a TV ad where a pudgy Bezos-ish man danced and sang how “I did it eBay!”. Quirky, yes, but eBayers got it. eBay was the “it” company, the rare dot-com that saw its stock surge after the tech bust, fueled in large part by the compulsions of its buyers.

No fad lasts, though, and eBay had to weather a rough transition as our online addictions moved to MySpace, then to Facebook, then to Angry Birds and beyond. Its stock peaked at $59.21 a share in late 2004 before entering into a tailspin after it became clear the broad enthusiasm for online auctions was fading. Within five years, the share price had fallen below $10 a share.

In the rare turnaround for an Internet company, eBay came back–reaching as high as $59.70 a year ago–because of two key factors. The first was PayPal, which eBay bought for $1.5 billion in 2002. The second was CEO John Donahoe, who realigned the company at great effort to not only keep PayPal ascendant but also to revive eBay’s original marketplace.

Today, the stock is still performing well, trading around $55 a share. But don’t read too much optimism into that. Shareholders aren’t bailing because the company has worked so hard to please them. Stock buybacks trimmed eBay’s share count by 5% in 2014–enough, its CFO reckons, to add 8 cents a share to the bottom line this year. And eBay is ready with another $3 billion to spend on repurchasing more shares if necessary. Meanwhile, 2,400 workers are being laid off this week.

Beneath such investor-pleasing maneuvers, there remains a renewed and growing conviction that the decline of eBay’s core operations is starting all over again. It’s not at all uncommon for Internet companies to see a meteoric rise and fall (it’s practically become the rule), but eBay seems to be charting a different narrative: The rise and fall. And rise. And fall.

eBay’s decline this time is happening differently. The company is literally splintering apart in the form of corporate spinoffs. Last September, under pressure from boardroom bully Carl Icahn, eBay unveiled a plan to break off PayPal into a separate company later this year. Last week, after the company reported earnings, eBay announced another surprise spinoff: its Enterprise business, which will either launch an IPO or be partially sold to another company.

eBay Enterprise is a modestly growing division that is less visible to consumers using PayPal and the e-commerce site. As part of Donahoe’s turnaround, eBay began helping traditional retailers manage their online sites. Chains like Toys’R’Us, Ace Hardware and Dick’s Sporting Goods have signed up, bringing eBay $1.2 billion in revenue last year. Last quarter Enterprise revenue rose 9%, against a 1% decline in the year-ago quarter.

PayPal is also thriving, growing steadily at around 19% for the past couple of years. And so the weak part of the post-spinoff trio will clearly be eBay itself, the lean marketplace rump that will be left once the choicer meat is sliced away. Its revenue grew by 6% in all of 2014 and only 1% in the fourth quarter–the big quarter for retailers because it includes the holiday shopping season.

Excluding volatile foreign exchange rates, eBay’s marketplace rose 5% last quarter, but even that is disappointing considering the performance of other online retailers. ChannelAdvisor, which has long tracked sales on e-commerce sites, estimated that eBay’s sales during the holiday season–basically, November and December–rose 7.3%, well below the mean growth of 16% for all sites it tracks. Amazon’s grew 27% in the period. But what ChannelAdvisor calls “third party” retailers, everything from BestBuy to NewEgg to Tesco to Rakuten, rose 34%.

Parsing e-commerce sales is still a matter of guessing at a fragmented market, but here’s the bottom line for eBay: It’s not just that auctions aren’t popular now, it’s more that eBay’s transition to regular e-commerce has hit a wall. Its Web site redesign is already dated. It’s struggling to stay high in Google searches. Many of its most trusted sellers can also be found on other sites, like Amazon. eBay is just one of many shingles they hang out these days.

Which is too bad for online shoppers because often the prices and shipping charges on eBay make for cheaper than Amazon and elsewhere. But shoppers are often too harried to compare prices these days. Sites like Etsy and Alibaba seem to have more momentum, while Pinterest and Zulilly are where many go to impulse buy online. Meanwhile, Best Buy and others are doing better at reaching out to their customers online.

The result is that there’s little momentum left for eBay, once the champion of e-commerce momentum. No one dances around and sings “I did it eBay!” anymore. Even Donahoe & Co. are throwing in the towel to a certain extent. The site remains a very nice place to buy—rather useful if you bother to figure it out—but at the end of the day just one of many online marketplaces. The addiction that made eBay a star has left eBay behind.

So, it seems, have PayPal as well as the Enterprise business that Donahoe built. That’s okay with shareholders because they now have a chance to invest in PayPal and the non-consumer ecommerce business, while selling their shares in the good old eBay that once ruled our online shopping impulses. The legendary auction site will soon become the auctioned goods, only with fewer and fewer bids as the clock ticks away.

TIME Amazon

Amazon’s Plan to Buy Old RadioShacks Is a Brilliant Master Stroke—If It Happens

US Postal Service Experiences Busiest Day Of The Year As Holidays Approach
Aaron P. Bernstein—Getty Images Amazon.com packages await shipment at the Indianapolis Mail Processing Annex Dec.15, 2014 in Indianapolis.

It seems counter-intuitive that Amazon is in talks to acquire physical stores, but it could make a lot of sense

Amazon has dominated online commerce, muscled into media streaming, and inched into the smart home market. Now, the online retail giant has possibly set its sights on a surprising target: brick-and-mortar stores.

According to a Bloomberg report, Amazon is in talks to acquire some stores currently owned by RadioShack, which could soon file for bankruptcy. For a company whose entire business model has for two decades focused on upending the traditional retail model, ruthlessly cutting costs for itself and consumers along the way, Amazon’s reported interest in buying physical stores seems counterintuitive.

But having a physical retail presence could actually help CEO Jeff Bezos grow his e-commerce business. Much like oversized banks, having a physical presence serves as a kind of interactive advertising billboard that could spur overall business. The stores could also have kiosks that would allow customers to purchase goods online, and encourage Prime membership. Amazon Prime plays an outsized role in the company’s profitability, with one outside study estimating that its 40 million members spend $1,500 per year, compared with $625 for non-members. The stores could also serve as a place for customers allergic to packaging to return products to Amazon, without having to package and address boxes themselves.

MORE Amazon Prime Membership Should Come With a Warning

Amazon has already made some forays in this area. The company leased space last year in an office across the street from the Empire State Building and has installed lockers, where customers can pick up deliveries, in Staples locations before. But with more than 4,000 RadioShack stores likely for sale, and Amazon reportedly joining Sprint and the investment group behind Brookstone in a bid for the locations, the stakes could be much higher this time around.

The real game changer will come if Amazon begins selling merchandise out of RadioShack locations. “If they actually started stocking inventory, that would represent something that would be fundamentally new to the brand,” says Craig Johnson, an analyst at Customer Growth Partners. Selling chairs or barbecue grills out of a store may be impractical, though the locations could be delivery points for customers, particularly those who order from Amazon Fresh, the company’s new grocery service.

The Apple Store, which has come to define the Cupertino-based company, was an invention that only came toward the middle of the company’s revitalization under Steve Jobs. But don’t expect Amazon to take a page out of Apple’s playbook. The latter’s outlets, which have the highest average dollar-per-square foot sales in global retail, are finely milled temples to high design. Amazon’s customers are a much more frugal bunch, and under Bezos, the company’s dominant genetic feature has been no-muss efficiency. A few thousand outlets to make doing business with Amazon even easier could only bolster that.

Read next: Staples to Buy Rival Office Depot for $6.3 billion

Listen to the most important stories of the day.

TIME E-Commerce

EBay Plans to Cut 2,400 Jobs and Unload Enterprise Business

The shake up comes as the e-commerce giant makes peace with investor activist Carl Icahn in prelude to a planned spin off of PayPal later this year

EBay plans to cut 2,400 jobs and unload its business unit that helps retailers manage their online shopping operations. The news came as eBay made peace with investor activist Carl Icahn by naming one of his allies as a board member. Here are the key points about the shakeup Wednesday and the company’s fourth-quarter earnings.

What you need to know: EBay confirmed reports from last month that it would eliminate thousands of jobs by saying it would slash its workforce by 2,400 positions, or 7%. The restructuring comes ahead of the company’s pending spin-off of online payments service PayPal into a separate, publicly-traded company.

Additionally, eBay said it may also part ways with its Enterprise unit, which works with online and brick-and-mortar retailers. The company said it may sell the business or hold an initial public offering after determining that it does little to lift sales in its core online marketplace. The decision is a major u-turn for eBay, which had previously invested heavily in enterprise, most notably by paying $2.7 billion four years ago for GSI Commerce, which fulfills orders for retail partners.

Meanwhile, eBay also patched things up with Icahn, the company’s largest shareholder and a thorn in its side by giving his ally, Jonathan Christodoro, a board seat. The two sides have reached “a standstill agreement” that also calls for PayPal to adopt certain corporate governance provisions post spin-off.

The big number: News of the job cuts, potential sale of the Enterprise unit s and strong quarterly financial numbers sent eBay’s shares up about 2.5% in after-hours trading.

EBay posted fourth-quarter revenue of $4.9 billion, up from $4.5 billion during the same period last year. Fourth-quarter profits were also up, rising 10% to $936 million, or 75 cents per share, from $850 million during 2013’s fourth quarter. Full-year revenue rose 12%, from $16.1 billion in 2013 to $17.9 billion this past year. For the full year, eBay posted a loss of $41 million after seeing $2.9 billion in profits in 2013.

What you might have missed: EBay’s payments unit — which is mostly PayPal — continued to show the most growth of any of the company’s segments. The payments unit generated $2.2 billion in revenue in the fourth quarter, representing an 18% gain year-over-year, while full-year revenue increased 19%, to $7.9 billion.

The Marketplaces segment still generated the largest revenue stream, though, bringing in $2.3 billion in the fourth quarter — up an anemic 1% year-over-year. That unit saw revenue increase 6% on the year, to $8.8 billion. The Enterprise segment, which is now in limbo, generated $443 million in the fourth quarter and $1.2 billion across 2014.

CEO John Donahoe, who is due a big payday when he leaves the company after the planned spin-off, called 2014 “a year of unexpected events and distractions” in a statement. He also bragged about PayPal’s results while promising better things for both that unit and what will remain of eBay. “EBay, while facing challenges, continues to be a great business and is focused on stabilizing performance and engaging its core customers,” he said.

This article originally appeared on Fortune.com

MONEY online shopping

Why Amazon Is Losing Market Share to Big Box Chains

Boxes sit stacked before being loaded on a truck at the Amazon.com Inc. fulfillment center in Phoenix, Arizona, U.S..
Paul Morris—Bloomberg via Getty Images

As big box chains have improved their e-commerce platforms, they have found some surprising advantages.

Amazon.com AMAZON.COM INC. AMZN -0.93% has grown to a value of over $130 billion with barely any profit, largely due to its dominance of online retail. With a 23% market share of online retail sales, the company does more e-commerce business than its next 12 largest competitors, which includes the likes of Staples and Wal-Mart WAL-MART STORES INC. WMT -0.21% .

Without profits to underpin its share price, Amazon’s tremendous market value has been predicated on its dominance of retail’s biggest growth category as e-commerce sales increased 16% in the third quarter of 2014. According to conventional wisdom, Amazon’s lack of physical stores gives at an advantage over the big box chains like Wal-Mart and Best Buy. Because Amazon does not have the expense of brick-and-mortar stores, the thinking goes, it can offer shoppers lower prices and therefore a better value proposition.

But what if that wasn’t true?

The revenge of the big boxes

A recent report by the think tank L2 Inc. looked at 64 big-box chains, and uncovered some surprises in the industry.

Despite Amazon’s mammoth growth over the last decade, conventional retailers are now stealing e-commerce market share from the leader. In the first quarter of last year, Home Depot saw online sales jump 54%. Costco’s increased 48%, and Macy’s and Wal-Mart saw a 31% and 30% increase in the category, respectively. Meanwhile, Amazon’s retail sales grew just 20%.

Amazon’s dominance of the space owes more to the relatively small size of e-commerce rather than traditional retailers’ ineptitude. Despite its growth, e-commerce only makes up 6.6% of all retail sales, and volume sales are still growing four times slower than in physical stores. In the most recent quarter for which data’s available, e-commerce sales totaled $78 billion, while total retail sales in the U.S. were $1.18 trillion.

The reason why the big boxes ignored e-commerce for so long was simply because it wasn’t worth it. The vast majority of sales still take place at physical stores, but e-commerce has reached a tipping point where retailers have realized it’s beneficial to invest and grow sales in the space. As they’ve improved their e-commerce platforms, the big boxes have found some surprising advantages.

Amazon spent $6.6 billion on shipping costs last year, while it collected just $3.1 billion in shipping fees. Brick-and-mortar retailers can offer in-store pickup thanks to their physical locations, an option 19% of Internet shoppers have used.

Similarly, “showrooming,” the practicing of browsing in a store, and buying online was supposed to seal the fate of the big boxes. Now, it seems that “webrooming,” or browsing online but buying in the store, has become popular as an Accenture survey said that 78% of respondents they had “webroomed,” while just 72% had showroomed.

As the competition has intensified, many big boxes have lowered prices to match or beat Amazon, and several sources have reported that Amazon is no longer the default champ of rock-bottom online prices.

Where this is battle is going

Amazon has spent the last several years building out dozens of distribution centers near metropolitan areas to help it achieve its goal of same-day deliveries. But the big boxes already have a huge foothold in cities and suburbs, with thousands of stores that should present a potentially huge advantage over Amazon. Though, it may require a change in systems, it shouldn’t be very difficult for retailers to ship from stores as long as the economics justify it. Google Express has also taken on Amazon in the delivery race, and has partnered with retailers to offer same-day delivery to customers in some cities. A strategy like this one may be the easiest way for big boxes to undercut Amazon’s delivery proposition.

Traditional retailers still have a lot of improvements to make in the e-commerce space, but expect them to increasingly leverage their physical real estate in the battle against Amazon. While Amazon may offer a better online shopping experience, it’s not about to open a network of hundreds of stores to match the presence of its competitors. Therefore, companies like Wal-Mart can continue to use propositions like in-store pickup, ship-from-store, and others, as a selling point over Amazon and a way to keep shipping costs down.

In the coming years, the most successful retailers will have to become masters of the omnichannel. They will have to offer shoppers an equally rewarding experience both in-store and online, and be able to combine those capabilities for optimal delivery of the purchase, whether that’s in store or to the home.

Amazon will continue to grow as the e-commerce channel expands, but this surprisingly strong competition from brick and mortar names should continue to claw back market share. If that happens, questions about Amazon’s lack of profits will only loom larger, and the stock could take a major hit.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.

Related Links

TIME Retail

Online Marketplace Etsy Is Going Public

Etsy signage at the Brooklyn Beta conference in Brooklyn, N.Y. on Oct. 12, 2012.
Bloomberg—Getty Images Etsy signage at the Brooklyn Beta conference in Brooklyn, N.Y. on Oct. 12, 2012.

Etsy could bring a little bit of Brooklyn hipster to the public market this year

Etsy, the online seller of handmade crafts and vintage goods, is planning to go public as soon as this quarter with plans to raise $300 million, sources told Bloomberg News.

If the Brooklyn-based site rakes in that amount of cash, it would be the biggest New York tech IPO since 1999. The last time a New York-based tech company garnered that kind of a valuation was the dot-com boom when high valuations benefited listings from TD Waterhouse Group and Barnesandnoble.com, the e-commerce spinoff of the bookstore chain.

Etsy was started by painter and carpenter Rob Kalin in 2005. The multi-talented artist was looking for a way to sell his hand-built goods and started the online exchange. The company now has nearly 26 million items listed on its site–anything from vintage champagne coups to handmade dog collars.

Etsy, which has been valued at more than $1 billion, brings in its profits by charging sellers 20 cents to list products and then takes another 3.5% commission from each item sold. It also generates revenue from advertising and payment procession. In 2013, the site reported $1.35 billion in gross merchandise sales, according to its website.

Goldman Sachs and Morgan Stanley are working with Etsy on its IPO, and the company is likely to file a prospectus this month with more financial details, sources told Bloomberg.

An Etsy spokeswoman declined to comment.

This article originally appeared on Fortune.com.

Read next: We Just Learned a Little More About the Apple Watch

Listen to the most important stories of the day.

Your browser is out of date. Please update your browser at http://update.microsoft.com