With handmade items trending in today’s society, it seems like everyone has had their fair share of DIY disasters. Sites like Pinterest have a variety of jewelry, style and decorating ideas that can be hard to resist, but when projects turn out looking nothing like the original, it’s probably best to leave it to the pros. For the past 10 years, Etsy has been the go-to site for these unique items, where creatives can open their own shop to take orders and sell products. Last week, online shopping mogul Amazon launched a new element to their online platform, Handmade At Amazon, which is in direct competition with Etsy.
In a recent SF Gate article, the challenges that will face Etsy because of Handmade At Amazon are contemplated.
Handmade At Amazon currently consists of 80,000 products from 5,000 artisans. In order to sell on the site, artisans, which are determined by having 20 or fewer people working for the shop, have to fill out a questionnaire and be approved by Amazon. Etsy currently has 22 million active users and 1.5 million active sellers and allows for specific products to be made with the help of approved manufacturers.
Amazon also announced that users who have Amazon Prime can utilize the free shipping on the site’s new element as well. This gives Amazon an edge over Etsy. When an Etsy shop owner sells one of their products, they either need to then charge their customer for shipping or pay for it out of their own pocket.
Though Amazon does not allow for outsourced manufacturing for Handmade At Amazon products, Etsy feels that this allows for their marketplace to grow. Etsy CEO Chad Dickerson says that they only allow these manufacturers to be those who align with their values. The site has grown so much, that in order for more growth at Etsy to happen, these outside sources may be necessary to continue at their current rapid rate of growth.
So how can Etsy hold its own against an e-commerce giant? If Etsy sticks to their values and continues to sell unique, well-made products, the company can keep their customer’s allegiance. Individuals who shop on the site value the customer service experience and relationship between buyers and sellers.
Competition is always a great way to see how a company can do under pressure. Since its launch 10 years ago, Etsy has been the leader when it comes to purchasing and selling handmade goods online. It will be interesting to see how and if they change their marketing tactics or business strategy to compete with Handmade At Amazon.
For more on Etsy or Handmade At Amazon, visit their sites, or read this article from SF Gate here: http://www.sfgate.com/business/technology/article/Amazon-challenges-Etsy-with-Amazon-Handmade-6557787.php