E-Commerce · Commerce

Does Amazon Handmade threaten Etsy?

Anonymous

October 19th, 2015

Amazon recently launched a new sector of their e-commerce online shopping site called handmade, which is for hand-crafted, high quality, and unique pieces. How will this new extension of Amazon directly threaten Etsy, should they be concerned ?



Damien Filiatrault Software Architect and Strategy Consultant

October 19th, 2015

Obviously, yes.

Shobhit Verma

October 19th, 2015

Creating a marketplace is hard. However with Amazon's brand name, this could actually work, specially if they handle international logistics which is a pain that Etsy cannot resolve.

Stephen Salaka Product Development Manager at Tsunami Tsolutions LLC.

October 19th, 2015

Etsy was first to market and has a pretty large user base and shop owners. Migration to Amazon, if it does happen, is going to take some serious time. If the owners don't want to move to Amazon, then there is no real benefit for them to move, and as such most, I think, will choose to stay on Etsy - with new shop owners migrating once the culture of the shops becomes more readily apparent. I might think that many of the owners would eventually set up markets in both areas to give them the largest coverage.

Anton Yakovlev Founder of four successful businesses on two continents who can help you do the same

October 19th, 2015

I believe the sellers can easily stay with both. The question is if AMZN can effectively convert its customers into hand-crafted goods buyers. Not sure. But still it's going to be a tough time for Etsy.

Andi Graham CMO & Managing Partner at Big Sea

October 19th, 2015

Amazon has the efficiency and trust factor and - most importantly IMO - the requirement that items actually be handmade to be in their marketplace there.  Etsy is a tough place to sell, with high barriers to entry, and is being flooded with cheap "Made in China" items that confuse buyers.

Amazon will certainly give Etsy a run, especially as the holidays near.

Michael Brill Technology startup exec focused on AI-driven products

October 19th, 2015

This is definitely Etsy's to lose. Amazon has a sweet spot for ecommerce, but there are a ton of ways that Etsy can differentiate the experience for sellers and for buyers in a way that Amazon simply can't follow because of restrictions imposed by their reliance on core Amazon systems.

We see this in wine... www.amazon.com/wine ... it's largely a non-factor in the US $40B wine industry because the way wine is sold is simply different from how vacuum cleaners are sold.

Anonymous

October 19th, 2015

Amazon can be a vicious competitor. They offer to buy a company at a low price. If the company doesn't sell, Amazon undermines its market with super-low prices and drives them out of business. There are several examples of this. 

So if Amazon is going after Etsy's market, Etsy is in for a challenge for survival.

Karen Leventhal

October 19th, 2015

What's interesting is that amazon has an entirely different model then Etsy. Etsy is a double sided marketplace that focus specifically on artisanal products and relationship building between buyers and sellers.  I don't exactly understand how Amazon's massive logistics infrastructure will work with small volume, handmade items, but I guess it depends on whether buyers want the artisanal, less corporate feel of Etsy or they want the more corporate, perhaps more efficient process of Amazon. Do you want to buy your handmade items in the way you would at a boutique or stall in a mercado? With it's localness, messiness and organic-ness? Or do you want to buy it the way you would at a grocery store? Quicker, faster, less personal.  Time will tell... The bigger question is can a giant like Amazon do everything well by using the same process across multiple verticals and niches?  Or is there a place for more niche markets that understand the culture/processes of a certain verticals in a deeper way? 

Michael Brill Technology startup exec focused on AI-driven products

October 19th, 2015

Karen, Amazon has long supported a relatively open marketplace model where even tiny sellers can compete. Amazon provides the marketplace and transactions while the seller fulfills. Amazon will not be fulfilling these items.

IMHO, this is easy game for Etsy. Amazon's user base doesn't mean anything if they have a worse shopping experience and no pricing leverage - both which are likely to be true.