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Etsy Remains Immune From Amazon Disruption

Launched three years ago in October 2015, Amazon Handmade was hailed as the "Etsy killer". And yet while it continues to grow it hasn't measurably impacted Etsy. Only 1.3% of Etsy sellers sell on Amazon Handmade.

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Etsy's First Year with Josh

One year ago Etsy appointed Josh Silverman as new CEO. At the time the company reported lowest ever Gross Merchandise Volume (GMV) growth. The company has crafted a turnaround since.

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Is One Billion Sellers Enough

This is the reality of an e-commerce marketplace - millions of sellers on the platform, a million more ready to join, and a short list of top sellers generating most sales. The chance of one of those new million sellers becoming one? Statistically very small.

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13,547 Sellers on Amazon Handmade vs. 1,003,822 on Etsy

Amazon Handmade was launched in October 2015, exactly two years ago. The products on Amazon Handmade are listed by 13,547 sellers based on our research. Compared to 1,003,822 sellers with products listed on Etsy. If all Amazon Handmade sellers were one seller, the number of seller feedback reviews received by it would make that seller the number one seller on marketplace.

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Etsy Is Still Kicking

For the first time since 2016 Q1, and only for the second time ever, Etsy has reported a profit in the second quarter. The marketplace for handmade, vintage, and supplies is cutting costs and reorganizing its priorities.

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Etsy Has Already Added 500,000 Sellers in 2017

Based on our research since the start of the year Etsy has had half a million new sellers join the marketplace. 494,123 to be exact. This amounts to over 70,000 new shops every month, making 2017 the fastest growing year so far.

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Over a Million Sellers Suspended To Implement Etsy Payments

Etsy has recently implemented Etsy Payments, an improved and rebranded Direct Checkout, requiring all sellers to use it. This has caused a big uproar among sellers, some of which felt like they were being forced to use a lesser option. Starting June 1st any shop without Etsy Payments enabled was suspended.

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Etsy Is Backing Itself into a Corner

The fundamental value Etsy marketplace brought to sellers when it launched in 2005 was discoverability. At the time, being an artisan meant having very limited reach to the sea of customers. Today though Etsy found itself in a tough position - it has clearly already maximized opportunities in the handmade and vintage market. Etsy set expectations for sales growth it is now struggling to meet.

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Of Course Etsy Launched Etsy Studio

On April 25th Etsy officially launched the previously announced Etsy Studio, a marketplace dedicated to craft supplies. Craft supplies is a big category, they already have sellers for it, and thus Etsy Studio will go from a new idea to a multi-million marketplace in a matter of weeks. We think it is a very smart move.

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