Amazon has been in the news quite often lately with their big ideas of drones and many other ways to make your everyday lives easier, and make them your number one source for online shopping. Just when you thought they had come out with everything, they’ve taken a bite out of someone else’s idea and made it their own.
Etsy is a well-known online shopping outlet where you can purchase handmade original items from crafters and artist from all over. This site has given many people the ability to make money from home doing what they love while expressing their creativity. For almost 10 years Etsy sold only handcrafted products, though the site has been allowing manufactured items as of 2013 when Etsy gave in to seller’s request. This allowed more products to go out, but in many cases lowered the quality of what customers received.
This change is where Amazon saw their opportunity, and so Handmade by Amazon was born. This new part of Amazon’s services is specifically for handmade goods, offering six different categories for customer’s to shop from including Home, Jewelry, Artwork, Stationary and Party Supplies, Kitchen and Dining, and Baby. With these categories and over 80,000 items already available for purchase the competition is getting intense for Etsy.
Amazon is carefully selecting sellers via their applications before they are allowed to place their products on the site though. The applications are very detailed, with information like the creators process of production and even the tools used to make the product. Amazon isn’t settling for less with their new selection, and we understand why. After spending a large amount of their bottom line setting up their Fulfillment Centers closer to city areas, it’s now time to cash in on their work and sacrifice.
Etsy sellers may be tempted to add Homemade by Amazon as a venue to sell their products due to the massive amount of consumers using Amazon on a daily basis. This decision will come at a cost though, at least in the beginning. Sellers won’t have a listing fee, but they will have to let go of 12% of their sales, whereas on Etsy they are only losing 3.5% and paying 20 cents per item listed. So artist/crafters will have to decide on whether a broader market will help or hurt their bottom line. So the question remains, who will do it better, Etsy or Amazon?