Etsy, the place to "buy and sell handmade," announced some major policy changes. Starting now, sellers are allowed to have their items manufactured by outside companies. They have to be clear about this in their shops, and they have to be the ones creating the initial design, but at the end of the day, it's okay to go find yourself a factory to produce your items. In fact, they also announced that drop-shipping can be part of the equation, so the finished items can go directly from said factory to the customer. The shop owner might not touch them at all.
Does that sound like a handmade item to you?
I certainly don't think so.
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The powers that be at Etsy are claiming that as long as a shop owner creates the original design before sending it to the manufacturer, it's still a handmade product. Um, what? Everything at the mall is there because a person, or a team of people, designed it. If those items aren't handmade, neither is anything manufactured on behalf of an Etsy seller. The leaders claim (among other things) that the new policy is to keep bigger sellers from leaving the site when they grow too large to handle business on their own. It's great that people can use Etsy as a springboard, but when you have to start manufacturing to keep up with orders, then I think you're ready to strike out on your own. Leave the handmade items to the handmade site.
A lot of people, including me, shop on Etsy because we want to support an actual person. We want the unique items that are made with real hands. We've gotten to know each other, and that makes the appreciation for everyone's items that much deeper. That's not to say that manufactured products are inherently bad--we all buy stuff made in factories--but it's a problem when you try to involve mass-production in the handmade system. It doesn't compute.
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There's also the looming issue of prices. Handmade goods are more expensive by nature because there aren't any short cuts. How are we supposed to compete with Bob Factory and his $7 necklaces? By allowing large-scale manufacturing, Etsy is hurting the people who make everything by hand; the very people who got their site to where it is today.
If I weren't already transitioning into a different career, I would be thinking long and hard about whether Etsy is worth my time going forward.
This is so, so disappointing.
How do you feel? (I can probably guess, but I thought I'd ask anyway.) Who needs a virtual hug?
If you want to read more, here's the announcement and here's a thread on the forums were admin are answering questions. One of mine got a reply, but it was just a canned response. Sigh.


I was pretty shocked when I got their email. For my greeting card and art print shop, this is incredibly frustrating, especially with the holidays approaching, knowing how long it takes me to individually print, cut, score, and fold each card. For my clothing line, I did work with a local manufacturer (it would have been impossible to sew each piece myself and still supply stores) - but that is the whole reason I never set up an Etsy shop for it. I'm sure opening Etsy up to companies who mass produce in factories will be much more financially lucrative to Etsy, but there's no doubt that many smaller artists will suffer because of it. Bummer.
ReplyDeleteI'm glad you brought up your clothing line. That distinction is so important.
DeleteI agree whole heartedly! I am discouraged by the news as well. I believe the changes at Etsy have led to a long decline in sales and support for the rest of us who produce original, handmade work. I also agree that folks who have enjoyed so much success that they need to outsource need to go someplace besides Etsy. Or, they could create a sister site for them. Etsy is always telling sellers to stay true to themselves. Why isn't it following its own advice?
ReplyDeleteThere go all those OOAK pieces that make buying handmade special *sigh*. Or let me put it this way, from now on it will be a lot harder to find such gems among the whole faction of factory-made stuff. Etsy still doesn't condone sellers who buy cheap junk (usually custom jewelry) wholesale and then re-sell as supposedly handmade ... if you ask me, they are sorta taking the first steps into that very direction.
ReplyDeleteTo be fair though, some things may need to go through more than the hands of the crafty person behind the shop before hitting the Etsy shelf. Think about art prints! The artist creates the design, be it a painting or photo, but who has a whole photo laboratory or print shop at home? In that case it does makes sense to have the art prints printed through professional printing services, this doesn't quite take the "hand" out of the "handmade".
P.S.: I dashed over to Etsy just to be sure and yes, digital prints and posters can be sold without "review" through Etsy, so the whole outside manufacturing thing apparently does not apply to those.
This is such a slap in the face! And it's deceiving to the buyers on Etsy. Now we have to go check their about page to make sure we're actually buying handmade and not from "WalMart".
ReplyDeleteEtsy better rethink their slogan...not very fitting anymore!
I think you probably know I agree with you 100%. A lot of people have been telling me for a while that they get frustrated having to comb through pages of manufactured crap on Etsy every time they want to search for handmade to actually get to handmade items. Etsy has been losing those customers for a while now. That makes me really sad. For real though, this has been going on for so long now and Etsy was "officially" turning a blind eye, so it's about time that they came out and said "that's what we're about now." It's what everyone already knew. That doesn't mean I will stop supporting Etsy sellers, shopping on Etsy, blogging about sellers. If anything, I will probably try to shop from handmade sellers more than ever now as my personal stand to say that these are the sellers I want on MY Etsy. I have nothing against local collectives or whatever, but you're right that when you get large enough, it's time to branch out on your own website. It makes me sad that Etsy chose profit over the people that made it the thriving company it is today.
ReplyDeleteI was very surprised (in a negative way) when I read the new policies and how much they're going to affect the small sellers. I don't get it. Why being called a place to sell handmade, when it's going to be anything but that? It goes totally against the small handmade sellers, because with policies like that even big companies like H&M can start selling there, considering that they're a manufacturing plant that works on their items. I just don't get it.
ReplyDeleteIt's sad how they did that to open to new markets and gather more money that way. It's unfair. And I don't even have an Etsy shop anymore. But as an Etsy buyer I liked to go there and buy special handmade things, that were unique for it, but now it's just not going to be the same. Considering the new policies, for me is better going to the mall, where I'll also find manufactured products, but without having to pay shipping costs for it.
I'm not a maker, but I'm a dedicated Etsy shopper, and I am so sad to read this! One of the best parts about Etsy has been the ease of searching for a type of item and not having to sift through manufactured crap to find a diamond in the rough - there have been a slew of beautiful diamonds to choose from without having to dig! I'd like to think the makers will be responsible in what they have produced for consumers, but it allows for so many more quality-control issues and so much less personality going into the products and the transaction - especially with drop shipping as an option. :( I don't want to see Etsy search results turn into a replica of eBay or other big shopping sites where you never know what you're going to get. I have to think Etsy's been quite successful and financially sound to date, and I hate that this change in policy totally defeats the site's original handmade purpose.
ReplyDeleteI agree wholeheartedly with you, Paige -- and shoppers like Emily (above this comment).
ReplyDeleteBetween this change and those "tastemaker pages" I think Etsy is just out to line their pockets....
This is a very well written post Paige! I see it both ways, but I couldn't agree more that if your little maker business has grown so much that you are now outsourcing your work, then you probably should move along to a bigger platform anyways.
ReplyDeleteI personally have no intentions of ever 'making it big' - I just want to make my own living. And it's sad to know that we little makers, are going to get drown out by outsourced producers. It totally doesn't compute, again, so very well said!!
It was such a shock to receive that email earlier. I am really disappointed as well. I had received an email from Zibbet last month (I have an account there, but I rarely use it), and it stated that there was a huge influx of new Zibbet sellers, making the switch from Etsy to Zibbet. Etsy has been such a great marketplace, and it's really sad to see it start to go streamlined. =0(
ReplyDeleteI want to say I'm shocked but I'm not. I feel that Etsy has been slowly but surely making changes that was leading to this. Etsy was a a great idea. It provided an opportunity of individuals to make off of handmade items. I don't think Etsy cares about the handmade movement. All they care about is making $$$ off the gimmick of the handmade movement. As a seller I take this as my opportunity to make money elsewhere. I think most sellers are seeing this as their warning sign and it's probably a good idea to jump ship.
ReplyDeleteI agree with you, Paige. My slow burning anger has been building over the past year because of the changes Etsy is making. Let's be completely honest, any and all changes Etsy has made is to their advantage not the sellers who happen to be artisans and not mass producers. This, for me, is the last straw. I'm going to start liquidating my inventory next week and then I'm shutting down my business. I've simply had enough...time for a change!
ReplyDeleteI totally agree with you! IMHO Etsy has sold its soul to increase its bottom line. How can any of us compete with sweatshop laborers?? My only hope is that some buyers will read the fine print hidden on the About page and insist on buying only GENUINE handmade items. They could have allowed for "cottage industries" (say 5 or 6 helpers) for Sellers who were outgrowing Etsy's original limits-- but factories in other countries????? Give me a break!! So where do we jump? I'm open to suggestions for alternative HANDMADE marketplaces.
ReplyDeletewell said Paige...
ReplyDelete:(
The sad truth is that big corporations, including Etsy, aim for higher and higher profit margins each year, with no consideration for true makers.
ReplyDeleteLittle shops don't stand a chance.
You are very right! I hope that the (original) buyers on Etsy still value handmade and will stay away from mass produced items.
ReplyDeleteIt's a bummer, that's for sure, but they've been moving this way for a while. There is no way for a person making truly handmade items to compete with something outsourced. Absolutly not. They're a business, though, and they're trying to see a way to make more money. I guess I just hope, like others, that some buyers still take the effort to check in to what they're buying. (Sorry, btw, for any misspellings or typos - commenting on a mobile device is tricky but I really wanted to chime in!)
ReplyDeleteOh wow, that's terrible! I had no idea.
ReplyDeleteIt is very disheartening to read all this, but I think your response to it is fabulous. Etsy is going to lose a lot of real makers because of this. If they want to be Amazon, then they should build a site to compete and leave handmade Etsy alone. As far as the overall fairness and price points go, it's true- the little guy just can't compete. And if you are big enough to warrant help, maybe it's time for your own site. I'm going to check out Goodsmiths and Zibbet and see how they are. Storenvy is ok- my shop isn't currently open there- but I'm not sure I like their overall format. Le sigh.
ReplyDeleteUgh, it was so sad to her that news. Handmade is what it should be all about, not outsourcing and drop shipping...if you can do all that, why not sell on your own website like Kristen said? It's ridiculous.
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