From The Wall Street Journal:
Having vanquished scores of brick-and-mortar retailers, Amazon.com Inc. has a new target: Etsy Inc.
The Seattle Web retailer is prepping a marketplace for artisan goods it is calling Handmade. Etsy sellers received invites reviewed by The Wall Street Journal over the past few days to sign up for the new section of the Amazon site.
“We’re offering artisans like you a first peek at Handmade, a new marketplace for handcrafted goods,” the Amazon email states. The invite doesn’t provide additional specifics such as when it will be rolled out or fee details.
. . . .
Amazon’s new site could present a new challenge for Etsy, whose stock has fallen about 43% since the close of its first day of trading last month. Unlike Amazon, Etsy doesn’t have its own Prime loyalty program, nor does it oversee a shipping network to expedite deliveries.
Still, Etsy’s 3.5% commission and 20-cent listing fee are potentially much less expensive than Amazon’s cut. Today, Amazon’s commission varies depending on the product sold, but for many categories it charges sellers a 15% fee on the price of each sale.
. . . .
The number of Etsy’s active buyers—those who have made at least one purchase in the past 12 months—rose to 20.8 million from 15.3 million a year earlier. But that pales in comparison with Amazon’s 278 million active accounts.
Dar Garfield, who sells handmade jewelry on Etsy through her SheekyDoodle site, said she was surprised to get an invite from Amazon, since she didn’t have a seller account with the Seattle retailer.
“Amazon has such huge traffic numbers on their website already, it’s pretty appealing,” said Ms. Garfield. “I am probably going to do it.”
. . . .
“It’s a good idea not to put all your eggs in one basket, and joining another handmade marketplace would make me feel like I’m not so dependent on Etsy for income.”
Link to the rest at The Wall Street Journal (Link may expire) and thanks to Jan for the tip.