3 ms·

Everyone's in that situation. If you're selling online, your host can shut you down. Your payment processor can shut you down. Your supplier can shut you down.

Everyone's in that situation. If you're selling online, your host can shut you down. Your payment processor can shut you down. Your supplier can shut you down. If you sell offline, your landlord can shut you down. Your bank can shut you down. You can set up a table in front of your house and try to sell from there with cash only, and your city/township can come shut you down. Until some of that happens, it probably makes sense to avail yourself of the most profitable venue and marketing channels available to you; if Etsy brings you exposure you wouldn't have operating elsewhere, use it until you have a problem. Most people probably aren't capable of replicating the entire commercial ecosystem just to avoid being reliant on any of it, and even when they are, focusing on that instead of getting their product/service in front of customers probably isn't the most profitable path. It's better to have contingency plans for unlikely events than to act like they've already happened.

mistercow 14y ago
The key is to be able to swap out as much as your set up as possible with something roughly interchangeable. You have to ask yourself, every time you rely on somebody else, "If these people drop the hammer on me, what will I do?" For example, if you develop an iOS app and Apple decides (for whatever reason) not to accept it, you will have a bunch of useless Objective-C code, which can basically be ported to another language and platform, or thrown in the trash. Conversely, if you develop a web app on a cloud PaaS, and the provider treats you wrong or isn't reliable, you can swap out with another service, or host it yourself. You may have to do some work to get everything situated in the new environment (how much work that is depends on the service, from what I understand), but you do have a backup plan in case things go south.
greenyoda 14y ago
Hosting providers' terms of service are usually pretty straightforward: unless you engage in illegal activities or interfere with their operations, they won't shut you down. In any case, it's easy to find another hosting provider if you need one. Landlords can't easily throw you out before your lease expires. They usually have to give you notice in advance that they won't be renewing your lease. Commercial leases are frequently long-term, since no company wants to have to deal with relocating every year. A lease is a contract enforceable in court. Dealing with Etsy's somewhat arbitrary rules seems quite a bit more precarious. I don't think that anyone who invested a significant amount of capital in their business would want to put up with that kind of uncertainty.
gwern 14y ago
> Everyone's in that situation. If you're selling online, your host can shut you down. Your payment processor can shut you down. Your supplier can shut you down. If you sell offline, your landlord can shut you down. Your bank can shut you down. You can set up a table in front of your house and try to sell from there with cash only, and your city/township can come shut you down. True, but in each of the situations, there's generally a lot of doable options. Hosting is a completely commoditized business with thousands of plausible options. For payment processing, there are many possible processors just for credit cards, 'show online pharmacies stay up, and many options to credit cards (including up-and-coming things like Bitcoin). 'Your supplier' is too generic to address, so maybe not there. There are many houses or buildings on the market to try out if you're able to make the rent in the first place, so that's not a huge issue. Countless banks to choose from, both online banks and mortar banks. And you may well be switching city/township in the first place when you're leaving your current landlord, so as long as you don't have to leave the country (which could be a big issue) you're not terribly badly off unless you're a local business which needs to be in a specific place. In contrast, how many successful marketplaces for handmade goods are there besides Etsy?

mistercow 14y ago

The key is to be able to swap out as much as your set up as possible with something roughly interchangeable. You have to ask yourself, every time you rely on somebody else, "If these people drop the hammer on me, what will I do?" For example, if you develop an iOS app and Apple decides (for whatever reason) not to accept it, you will have a bunch of useless Objective-C code, which can basically be ported to another language and platform, or thrown in the trash. Conversely, if you develop a web app on a cloud PaaS, and the provider treats you wrong or isn't reliable, you can swap out with another service, or host it yourself. You may have to do some work to get everything situated in the new environment (how much work that is depends on the service, from what I understand), but you do have a backup plan in case things go south.

greenyoda 14y ago

Hosting providers' terms of service are usually pretty straightforward: unless you engage in illegal activities or interfere with their operations, they won't shut you down. In any case, it's easy to find another hosting provider if you need one. Landlords can't easily throw you out before your lease expires. They usually have to give you notice in advance that they won't be renewing your lease. Commercial leases are frequently long-term, since no company wants to have to deal with relocating every year. A lease is a contract enforceable in court. Dealing with Etsy's somewhat arbitrary rules seems quite a bit more precarious. I don't think that anyone who invested a significant amount of capital in their business would want to put up with that kind of uncertainty.

gwern 14y ago

> Everyone's in that situation. If you're selling online, your host can shut you down. Your payment processor can shut you down. Your supplier can shut you down. If you sell offline, your landlord can shut you down. Your bank can shut you down. You can set up a table in front of your house and try to sell from there with cash only, and your city/township can come shut you down. True, but in each of the situations, there's generally a lot of doable options. Hosting is a completely commoditized business with thousands of plausible options. For payment processing, there are many possible processors just for credit cards, 'show online pharmacies stay up, and many options to credit cards (including up-and-coming things like Bitcoin). 'Your supplier' is too generic to address, so maybe not there. There are many houses or buildings on the market to try out if you're able to make the rent in the first place, so that's not a huge issue. Countless banks to choose from, both online banks and mortar banks. And you may well be switching city/township in the first place when you're leaving your current landlord, so as long as you don't have to leave the country (which could be a big issue) you're not terribly badly off unless you're a local business which needs to be in a specific place. In contrast, how many successful marketplaces for handmade goods are there besides Etsy?