Etsy vs. Amazon: The Battle Begins

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Have you heard about Amazon Handmade marketplace? If you're not a seller on Etsy you may not have. But earlier this week, Etsy sellers received invitations to apply to be sellers on the new online retailer's direct challenge to Etsy. "Handmade at Amazon is a new store on Amazon.com for invited artisans to sell their unique, handcrafted goods to our hundreds of millions of customers worldwide. While we finish setting up shop, we invite artisans like you to browse some of our new features and apply to be a part of our launch." The discussion boards at Etsy were filled with sellers saying they had filled out the application and were "keeping their fingers crossed". So it appears there are a lot of artisans eager for alternatives to the diluted marketplace that Etsy has become since they opened their doors to mass manufactured goods. This is a link to an article in Barrons: Click I found this paragraph particularly of interest: We see Amazon’s value proposition to sellers as clearly superior, with competitive take rates, access to Amazon Prime, and most importantly -- a commitment to purely handmade items. Not only does Amazon offer handmade sellers access to 250 million buyers (compared to 20 million for Etsy), its 12% take rate includes payment, marketing and shipping, which means it would be lower for many Etsy sellers. In spite of partial penetration of those same services at Etsy, its overall take rate was 11% in the first quarter, implying many sellers paid more. Amazon will also be offering sellers the ability to include non-customized items in Amazon Prime for free shipping, while creating 30-day flexibility for customized items. I'm excited to see how this falls out (and of course, if I'll be selected!). What do you think?


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