What Happened To Etsy?

The online handmade goods marketplace, Etsy, is at a crossroads. After booming during the pandemic, the company's gross merchandise sales have been flat in 2022 and 2023. Etsy's stock is down more than 70% from its all-time high in 2021, and its first-quarter 2024 earnings report revealed another disappointing earnings miss. Some of its sellers say the company's laser-sharp focus on growth has pushed Etsy away from its core mission — to keep commerce human — and instead allows for an increasing number of drop shippers to join the platform.

Chapters:
0:00 Intro
1:46 Chapter 1. A revolutionary idea
5:39 Chapter 2. At a crossroads
9:30 Chapter 3. The future

Correction (May 21, 2024): At 4.27 we misstated that Josh Silverman laid off 22% of the staff. The correct number is 15%. The other 8% coincided with his appointment.

Produced, Shot and edited by: Natalie Rice
Animation by: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Editorial Support: Jeniece Pettitt
Footage: Getty Images, AP Photos, Etsy, Nicole Aline Legault, Chiarra Lohr
Additional sourcing: FactSet, Oppenheimer & Co., Wayback Machine

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What Happened To Etsy?

[UnburdenedLady]

Etsy search results are flooded with cheap mass produced drop ship garbage instead of the handcrafted and well thought creations that made the site popular. Change it back!

[ItsMeHammie]

Going public was the nail in the coffin for Etsy. As soon as you become slaves to the shareholders it's all about making soul sucking decisions to increase profits.

[claudiaimmerzeel]

Etsy was supposed to be a marketplace for homemade goods, but now it's just an Amazon alternative. There's no room for home crafters anymore.

[CherryBlawesome]

GREED ruined Etsy. I’ve been on Etsy since 2010. My sales continue to drop recently since they started mucking around with it and raising their prices. Etsy continues to turn a blind eye to copyright infringement and drop shippers. They blindly ban shops for no reason because their AI is incorrect. There should be a class action lawsuit against Etsy for shutting down shops without reason and holding their money hostage. Now would be a good time for a rival platform to be created that was like the old Etsy everyone knew and loved.

[freedomthroughspirit]

The fact that they consider themselves a competitor with Amazon is a huge red flag... they weren't originally, they were totally different markets. Trust is gone. Sad to see this same old story repeat yet again; corporate profits over all else that ultimately ruins the unique gem that it was.

[chapelknight]

The fall of Etsy's dedication to locally made, hand-made goods is tragic. The old Etsy was great for gifts and custom crafts.

[youngaries]

I remember the days when Etsy removed my listings for not being handmade enough and now they allow every piece of mass produced junk on there.

[GalacticTradingPost]

People don't value human labor anymore. Contractors are charging $150 per hour to unclog toilets but when the craftsman or craftsgirl wants $15 per hour to make handmade goods, people turn up their noses and demand a discount.

[amandacrowder]

a company like Etsy should never go public. Period. The idea that a company must have limitless growth is non sustainable for the majority of companies. If it is profitable, it should be seen as successful, but a company like Etsy who's main demographic was bespoke, handmade items cannot possible sustain growth in perpetuity. Going public and having public investors was the nail in the coffin. It will never go back to the way it was.

[PlastiBots]

As an ETSY seller, I’m drowning in their ridiculous fees. They try to dilute it by separating them out. For any one sale, there are 7-9 different fees.

[starvingbymidnight]

ETSY IS NOT AMAZON! THEY SHOULD NOT BE ASPIRE TO BE AMAZON! THEY NEED TO BE THE BEACON OF INDEPENDENT SELLERS! THEY NEED TO BECOME A PRIVATE COMPANY AND STOP PRIORITISING SHAREHOLDERS!

[drnicolestewart]

I had an Etsy shop and they randomly closed it without warning and no explanation. When I tried to inquire, I got a clearly automated message with no real explanation. I’ve heard this happen to MANY others!

[mcflyfarm]

I am an Etsy seller. I moved a year ago and deactivated my account temporarily. I have not been motivated to reactivate it. It's too much of a hassle. I'd rather spend the time and capital building my own brand and funneling people towards an independent website than to shovel out the endless fees to continue with Etsy.

[runa]

I’m a current Etsy seller, but Etsy treats sellers like garbage! So many copyright infringement happening, Etsy never cares. Etsy just cares about money.

[kajsagauza]

Why compete with Amazon? Why the obsession with the constant growth? Going public kills most of the companies 🤷‍♀️

[mansrits]

I had a successfull Etsy shop around 2014-2017 and recently wanted to reopen my shop. I was truly SHOCKED about the increase in the fees and how many of them are there now!! Etsy has definitely changed for the worse. It used to be a beautiful place for sellers and buyers who love crafts. Bring it back!

[njay]

Etsy needs to be investigated for shutting down loyal seller accounts with no notification and then holding onto their money for 180+ days.

[johannaverplank]

I used to sell my handmade silver jewelry on Etsy, but I stopped due to the deluge of fake and counterfeit products being sold. I can’t compete with people selling cheap, mass produced items. They’ve pushed true artisans off the site.

[gulfcoastgirl]

Im a handmade seller on Etsy and I can’t sell anything because I’m competing against clipartists, drop shippers, aI art, POD and digital sellers who don’t follow licensing rules. True handmade sellers can’t make a living on Etsy like we used to!!

[Custom-Art-Nook]

As an Etsy seller I can say the worst part is not being able to contact a HUMAN support, bots are not able to help in so many cases.
And second worst is the absence of truly HANDMADE category of products. Comparing with POD and drop shipping is bad.