Amazon Launches 'Handmade' to Compete with Etsy

Etsy, the home to crocheters, knitters, painters, and so many other personally made products now has a new competitor, Amazon.  Amazon, known for its wide variety of online shopping as well as its fast shipping has now launched a new section on its site called 'Handmade'.



Amazon will verify that everything listed on that portion of the site is made by Hand and offer such categories as jewelry, home decor, artwork, party supplies, kitchen and dining, stationery, and furniture.

Although Etsy has been in this industry for 10 years already, this is greatly appealing to some crafty sellers as it gives them a much larger market to sell in, with Amazon having approximately 10 times as many active buyers as Etsy.  Listings made in 'Handmade' will both appear in the designated 'Handmade' section as well as appear in regular searches not made directly in that portion of the site.  Amazon also gives buyers the appealing prime option for 2 day shipping on prime purchases, which most members use.

However, there are a few things that may turn away sellers.  With a larger market comes a larger selling price which is reflected by Amazon charging a whopping 12% seller fee, the same amount what Ebay charges, but almost 4 times the 3.5% that Etsy charges.  Another thing that may turn away sellers is the fact when someone makes an ordinary search (not in the 'handmade section) their results will in fact show up, but more than likely will appear next to the much more inexpensive mass-produced goods.

Some sellers on Etsy already plan to sell on 'Handmade' but will also stick to selling on Etsy to see which marketplace offers them the best selling platform.

With the success Amazon has had so far in many of their ventures, it will be interesting to see how 'Handmade' performs in the upcoming months and years.  Will it be able to surpass the long established front-runner Etsy?

http://blogs.wsj.com/digits/2015/10/08/amazon-launches-etsy-competitor-homemade/?mod=ST1