Is Etsy escaping the ‘race to the bottom’ and returning to its artisanal roots? Find out what the CEO of Etsy has to say!

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Does Etsy, the platform well known for its artisanal side, seem to be rediscovering its authentic essence? An exclusive interview with the CEO of Etsy sheds some light on the question.

Is Etsy escaping the “race to the bottom” and returning to its artisanal roots? Find out what the CEO of Etsy has to say!’;
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Return to artisanal essence

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Josh Silverman, CEO of Etsy, recently declared the desire of platform to refocus on its origins. Etsy, created to provide a showcase for artisans, has seen a flood of generic products in recent years. This trend now affects its mission to “keep commerce human.”

Policy changes

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To combat this drift, Etsy is launching a major overhaul of its policies. These changes include the introduction of new labels on its site and app, to better inform buyers about where products come from. This renewal aims to distinguish the handicraft items mass products.

The creators’ response

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The platform’s creators, like Ashley Smith, criticize the influx of generic products. In response, Etsy now requires that every item include a “human touch.”

Fierce competition

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The market for e-commerce, dominated by giants like Amazon and newcomers like Temu And Shein, puts enormous pressure on Etsy. However, Silverman is clear on one point: Etsy will not play the low price and ultra-fast delivery card.

Initiatives for the future

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Etsy’s new TV spot shows ceramicists and designers, followed by a destroyed robotic arm, symbolizing its commitment to promoting authentic creations. Product categories have been revised to include: handmade, seller designed, seller selected, or seller sourced.

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Economic impact

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In 2024, Etsy’s gross sales decreased by 3.7%, representing a total of 3 billion dollars. Furthermore, the stock price has fallen more than 80% since its peak in 2021.

Investor pressure

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In addition to internal challenges, Etsy faces pressure from Elliott Management which holds 13% of the company’s shares.

Comparative table

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Element Before After
Authorized products Handmade, vintage, craft supplies Mandatory human touch
Labels No specificity New labels for the origin of products
Rules for AI Not defined Details on AI-generated art
Use of production partners Encouraged That if it remains compliant with the standards
Marketing Traditional Focus on the human side, true creators.

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List of advantages and disadvantages

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  • Benefits
    • Strengthening artisanal identity
    • Better transparency for buyers
    • Orientation towards unique products

  • Strengthening artisanal identity
  • Better transparency for buyers
  • Orientation towards unique products
  • Disadvantages
    • Reduction in the number of mass sellers
    • Possible losses of market share against Amazon and Shein
    • Possible additional costs for sellers

  • Reduction in the number of mass sellers
  • Possible losses of market share against Amazon and Shein
  • Possible additional costs for sellers
  • Strengthening artisanal identity
  • Better transparency for buyers
  • Orientation towards unique products
  • Reduction in the number of mass sellers
  • Possible losses of market share against Amazon and Shein
  • Possible additional costs for sellers

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FAQs

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Q: Why is Etsy changing its policies?

A: To refocus on its mission of promoting artisanal products and combating mass products.

Q: What do the new labels on Etsy mean?

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A: They help identify the provenance of products, whether handmade, designed, selected or sourced by a seller.

Q: What are the goals of Etsy’s marketing campaign?

A: Highlight authentic creators and their artisanal work to attract an audience looking for unique products.

Q: How does Etsy plan to differentiate itself from the competition?

A: By not racing for low prices and ultra-fast deliveries but by promoting the uniqueness of the products sold on the platform.

Q: How do the new rules impact sellers?

A: Sellers will need to ensure their products incorporate a human touch, according to the new policies.

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