Podcast Summary
Etsy's identity crisis: Longtime sellers worry about losing community and social reciprocity as Etsy focuses on growth and competition from mass-produced items, raising questions about its future as a community-driven marketplace or a large commerce platform
While Etsy has been a successful platform for handmade and specialized goods for nearly 20 years, some sellers feel that the company's focus on growth and increased competition from mass-produced items is leading to a loss of community and social reciprocity. With the removal of classic handmade and vintage labels and the introduction of a new loyalty program, the question of what Etsy represents today - a community of crafters or a large commerce platform - becomes increasingly relevant. Longtime sellers express concerns about feeling extracted from the platform and a sense that the company may not prioritize their long-term success. The future of Etsy and its identity as a community-driven marketplace or a growth-focused commerce platform is a topic of ongoing debate.
Community Building, Early Health Intervention: Identifying and addressing health issues early and building a supportive community around a shared passion can lead to significant positive outcomes.
Even when life doesn't come with a remote control, there are opportunities to make a difference, such as identifying and addressing health issues early or building a community around a shared passion. For instance, Etsy started as a small platform for artists to sell their handmade crafts, but its founders' idealistic ethos and commitment to building a community contributed to its growth into a successful business. Similarly, taking a one-minute risk test to determine if you have pre-diabetes can help you make lifestyle changes and potentially prevent serious health complications. Both Etsy and the pre-diabetes awareness campaign demonstrate the power of taking action and being part of a supportive community.
Etsy's shift towards mass-produced items: Etsy's decision to allow third-party manufacturing and drop shipping led to an influx of mass-produced items and questionable business practices, causing concerns among some sellers about the platform's authenticity and departure from its original mission.
Etsy's internal struggles led to significant changes in the platform's direction, causing concerns among some sellers. The company's decision to allow third-party manufacturing and drop shipping in 2013 led to an influx of mass-produced items and questionable business practices. This shift towards revenue and growth over the original mission of selling handmade, unique items made by real people, left some sellers feeling that Etsy was losing its authenticity and becoming more like other mass marketplaces. Despite Etsy's efforts to moderate these practices, they remain a concern for some sellers. Regina Santucci, a 61-year-old vintage enthusiast from Syracuse, New York, is one such seller who values the unique and authentic items that Etsy once represented.
Etsy marketplace: The influx of mass-produced items and increasing fees on Etsy negatively impact sellers of unique, one-of-a-kind items and create an unpleasant shopping experience for buyers.
The influx of mass-produced items on Etsy, along with increasing fees for sellers, has negatively impacted the shopping experience for those seeking unique, one-of-a-kind items. Gina, a vintage clothing seller on Etsy, expressed her concerns about the cluttered marketplace filled with imported, mass-produced vintage-inspired items. This competition makes it harder for her to sell true vintage items and discourages potential buyers. Christy Cassidy, a seller since 2006, also shared her experience of declining sales due to the oversaturation of mass-produced goods and the unpleasant shopping experience for unique item seekers. The increasing fees, such as the 6.5% cut on each sale and additional fees for ads and free shipping, also pose a challenge for sellers, especially those offering free shipping at higher price points to maintain their profitability. The combination of these factors has led to a shift in perception for some customers, who no longer view Etsy as the unique marketplace it once was.
Etsy Sellers Strike: In 2022, Etsy sellers organized a week-long strike due to increased transaction fees and poor moderation, criticizing the company for relying on AI bots and allowing resellers to flood the site, resulting in slowed sales and ongoing discontent.
In 2022, Etsy sellers organized a strike due to increased transaction fees and poor moderation of illegitimate sellers on the platform. Thousands of sellers closed their shops for a week to raise awareness of the situation and protect the promise of a human-centered commerce experience. Etsy, which had experienced significant growth and an all-time high stock price that year, was criticized for letting resellers flood the site and relying on AI bots for management. The sellers represented a vocal but small minority, and the strike came at a time when Etsy was seeking to increase growth without losing its identity. Since then, sales have slowed, and discontent among sellers continues. Etsy's CEO, Josh Silverman, is working to find a solution that will help the company grow while maintaining its unique selling proposition.
Etsy's Revitalization: New leadership led to execution of strategic changes, resulting in office decor symbolizing commitment to sellers and growth in handmade goods market
When Josh Silverman became CEO of Etsy in 2017, the company was at a crossroads. With gross merchandise sales stagnating at around $3 billion and growth approaching zero, many believed that Etsy had reached its maximum potential in the market for handmade goods. However, Silverman, who had previously been a board member and CEO of Skype and Shopping.com, saw potential for growth. He streamlined the business by laying off 140 employees and introduced new fees. The office decor, which was entirely made by Etsy sellers, served as a testament to the company's commitment to its sellers and the unique, handmade items they produce. Silverman's focus on execution and strategy helped revitalize Etsy and demonstrate that there was still significant potential for growth in the market for handmade goods.
Etsy's growth during pandemic: Etsy experienced significant growth during the pandemic, reaching over $10 billion in gross merchandise sales in 2020, driven by online shopping needs and the sale of masks, but also highlighting the need for stricter enforcement of rules against drop shipping and mass-produced items.
Under Josh Silverman's leadership, Etsy experienced remarkable growth during the pandemic, with over $10 billion in gross merchandise sales in 2020, more than triple the amount when he started. This surge was due in part to the pandemic forcing people to shop online for necessities, with Etsy becoming a go-to source for items like masks. However, the growth also highlighted long-standing issues for Etsy sellers, particularly the prevalence of drop shipping and mass-produced products on the site. Etsy prides itself on offering something different, and ensuring sellers follow the rules is a top priority for the company. Since its inception, sellers have complained about non-compliant items, with opinions varying from handmade items made from raw materials to those made from store-bought materials. Enforcing these rules is crucial for maintaining Etsy's unique marketplace.
Etsy's focus: Etsy invests in platform policing to maintain unique marketplace identity, introduces new features for enhanced user experience, and aims to be go-to destination for authentic, handmade items, fostering a global community built on shared values.
Etsy continues to invest heavily in policing its platform to maintain its unique marketplace identity, despite challenges such as sluggish growth and job cuts. The company's vision remains focused on providing an alternative to mass-produced items and supporting independent makers. To enhance the user experience, Etsy has introduced new features like clear product categorization, gift mode, and a loyalty program. Amidst a commoditized world where fast fashion and disposable goods are prevalent, Etsy aims to be the go-to destination for those seeking authentic, handmade, and unique items. By connecting buyers with passionate makers from around the world, Etsy fosters a community built on shared values of creativity, beauty, and self-expression.
Etsy's commitment to mission: Etsy remains dedicated to promoting handmade goods and invests in technology and enforcement to ensure authenticity, serving its mission better than ever.
Etsy, despite its growth and evolution, remains committed to its mission of promoting handmade and unique goods. The company has invested significantly in technology and enforcement to ensure the authenticity of its marketplace and better serve buyers and sellers. While the early days of Etsy may evoke nostalgia, the platform's ability to adapt and grow is essential for its continued success. Some sellers may choose to leave for alternative platforms or set up their own websites, but Etsy's resources and reach allow it to serve its mission better than ever. Ultimately, the platform's commitment to its mission and its ability to adapt to changing market conditions make it an enduring and valuable resource for both buyers and sellers.
Etsy's benefits for small sellers: Etsy effectively supports small sellers with significant traffic and community, making it a valuable resource for unique, handmade, or vintage items.
While Etsy may not fully deliver on its mission of keeping commerce human for everyone, it remains an effective platform for many sellers, including Gina Santucci, a vintage seller who remains optimistic about the platform. Despite its imperfections, Etsy offers benefits that other platforms don't, such as significant traffic and support for small sellers like Gina. While Etsy isn't perfect, it is better than most companies at balancing the needs of sellers and buyers, and for sellers like Gina, it remains the best fit for their business. Overall, Etsy's ability to support small sellers and maintain a sense of community sets it apart from other e-commerce platforms, making it a valuable resource for those looking to sell unique, handmade, or vintage items.