Co-opetition in Online Seller Networks: Evidence from Etsy

Online peer-to-peer marketplaces enable sellers to interact not only with buyers but also with each other. This is particularly popular in marketplaces for unique and artisanal products, where sellers often connect with and promote other sellers. In these marketplaces, sellers face the dual pressures of competition and cooperation, strategically balancing their sales goals with the opportunities for helping and promoting other sellers. This research proposes to study how a seller's network position within a network of connected sellers in an online e-commerce platform affects their sales performance. Using the theoretical lens of co-opetition (cooperative competition) and social network analysis, we examine seller strategies for maximizing their sales while cooperating with their competitors. By examining these dynamics, the study aims to provide valuable insights for sellers to optimize their strategies in a cooperative yet competitive marketplace.