4 ms·

Etsy makes money on transactions. More transactions = more money. Most users of etsy do not care about source or authenticity. They just want what they see for

Etsy makes money on transactions. More transactions = more money. Most users of etsy do not care about source or authenticity. They just want what they see for the price listed. Losing the handmade trinket shops is meaningless compared to the full scale China operation doing 100x more business. Customers by and large cannot tell the difference nor do they actually care too much.

after_care 5y ago
I disagree. Having a reputable online handmade trinket shop was very valuable because it was the largest and had the best brand recognition. Being a Chinese factory retail outlet is less valuable because _everyone_ is a Chinese factory retail outlet.
- Workaccount2 5y ago
  We just have to solve which market has a larger space to grow in: Market for cheap Chinese goods. Market for handmade trinkets. I have a pretty good feeling that I know which one is more profitable. I'm sure investors know too.
  - TheOtherHobbes 5y ago
    Small businesses have absolutely no obligation to work for "investors."
    - ehvatum 5y ago
      That really depends on how the small business is funded.
    - Cederfjard 5y ago
      Is Etsy, a public company with a valuation in the tens of billions, still a ”small business”?
    - JAlexoid 5y ago
      Every business has an obligation to work for the investor.
  - after_care 5y ago
    Sure, the market for cheap imported goods is much larger. It's also more competitive. Do you really think Etsy is going to stand against Walmart, Amazon, etc?
    - Aunche 5y ago
      Etsy is occupying a niche of semi-customized trinkets, a minority of which are hand-made. This isn't a space that Walmart and Amazon seem particularly interested in.
  - Nextgrid 5y ago
    The problem is that "cheap Chinese goods" is already monopolized by eBay, Aliexpress, Banggood and Amazon. I don't see how they're ever going to break into it.
  - naravara 5y ago
    I don't think it's that simple. The real problem is that people want nice, handmade trinkets at cheap Chinese goods prices. Which is why the cheap Chinese good manufacturers spam their generic AliExpress-tier wares into places like Etsy to fool people as to what they're getting. The websites that function as clearinghouses (Amazon, Etsy, etc.) could figure out ways to prevent it but they have incentives to play along with obfuscation as to which market the consumer is shopping in.
BobbyJo 5y ago
I think the glaring issue with that line of thought is that the position of 'rent seeking middleman providing a web storefront' is pretty commoditized, and is likely not viable long term. In their niche, they had a smaller addressable market, but they had a moat from their brand within said niche. Outside of the niche, that moat doesn't exist, and they are competing against Amazon, Ebay, and many others.
ProjectArcturis 5y ago
The only reason to go to Etsy is to (try to) find unique stuff. If that stuff is diluted 100-1 by Chinese knockoffs, there's no reason to go there anymore. I might as well go to eBay or Amazon, which probably have even lower prices.

after_care 5y ago

I disagree. Having a reputable online handmade trinket shop was very valuable because it was the largest and had the best brand recognition. Being a Chinese factory retail outlet is less valuable because _everyone_ is a Chinese factory retail outlet.

Workaccount2 5y ago
We just have to solve which market has a larger space to grow in: Market for cheap Chinese goods. Market for handmade trinkets. I have a pretty good feeling that I know which one is more profitable. I'm sure investors know too.
- TheOtherHobbes 5y ago
  Small businesses have absolutely no obligation to work for "investors."
  - ehvatum 5y ago
    That really depends on how the small business is funded.
  - Cederfjard 5y ago
    Is Etsy, a public company with a valuation in the tens of billions, still a ”small business”?
  - JAlexoid 5y ago
    Every business has an obligation to work for the investor.
- after_care 5y ago
  Sure, the market for cheap imported goods is much larger. It's also more competitive. Do you really think Etsy is going to stand against Walmart, Amazon, etc?
  - Aunche 5y ago
    Etsy is occupying a niche of semi-customized trinkets, a minority of which are hand-made. This isn't a space that Walmart and Amazon seem particularly interested in.
- Nextgrid 5y ago
  The problem is that "cheap Chinese goods" is already monopolized by eBay, Aliexpress, Banggood and Amazon. I don't see how they're ever going to break into it.
- naravara 5y ago
  I don't think it's that simple. The real problem is that people want nice, handmade trinkets at cheap Chinese goods prices. Which is why the cheap Chinese good manufacturers spam their generic AliExpress-tier wares into places like Etsy to fool people as to what they're getting. The websites that function as clearinghouses (Amazon, Etsy, etc.) could figure out ways to prevent it but they have incentives to play along with obfuscation as to which market the consumer is shopping in.

BobbyJo 5y ago

I think the glaring issue with that line of thought is that the position of 'rent seeking middleman providing a web storefront' is pretty commoditized, and is likely not viable long term. In their niche, they had a smaller addressable market, but they had a moat from their brand within said niche. Outside of the niche, that moat doesn't exist, and they are competing against Amazon, Ebay, and many others.

ProjectArcturis 5y ago

The only reason to go to Etsy is to (try to) find unique stuff. If that stuff is diluted 100-1 by Chinese knockoffs, there's no reason to go there anymore. I might as well go to eBay or Amazon, which probably have even lower prices.