Successful Etsy Retailers Consider “Handmade”
Etsy is an online crafts store; a digital craft fair for handmade goods and unique factory-made items (which have to meet its standards). Etsy served nearly 20 million active buyers last year and, although it didn’t turn a profit, it earned almost $200 million in revenue. Amazon thinks there’s promise in that market, which is why they’ve contacted Etsy sellers to ask if they would be interested in a new platform. Handmade is Amazon.com’s Etsy competitor. Although we don’t know much about it yet, we know that at least one Etsy seller is interested in it.
Grace and Lace is a husband and wife clothing retail team that got its start on Shark Tank, the popular venture capitalist TV show. The company sold $5.9 million of goods last year, mostly on Etsy. CNBC says Grace and Lace would be interested in selling with Amazon if it gets more eyes on their products, even if they have to pay more than they pay Etsy. Amazon hasn’t announced a pricing strategy yet, but even its lowest commission paid by its current sellers (it’s a variable rate based on the type of goods sold) is nearly twice Etsy’s flat rate of 3.5%
The most attractive thing about Handmade is the potential for craftsmen to expand their customer base. There are loads of Amazon users who have never seen an Etsy webpage. Amazon has a bit more marketing leverage than Etsy, too. All of this is probably worrying Etsy’s founders. For now, though, Etsy’s still the place for craftspeople to get their start online. Only time will tell if its revenue streams will end up flowing into Amazon.