However according to a report from The Wall Street Journal, Amazon might be thinking of taking Etsy on with a new platform called Amazon Handmade. Apparently this is according to emails that Etsy sellers have been receiving from Amazon, inviting them to test out Amazon’s upcoming Handmade marketplace.
According to the email, “We’re offering artisans like you a first peek at Handmade, a new marketplace for handcrafted goods.” Unfortunately apart from the invite, not much else is known about the company’s upcoming marketplace. That being said with Amazon’s size and reputation, it does seem possible that they could take Etsy on.
However pricing/fees could be an issue. At the moment Etsy charges a 3.5% commission and a 20-cent listing fee. This is compared to Amazon who charges sellers a 15% fee on the price of each sale, although this will vary depending on the product. There are also concerns held by Etsy sellers who are worried about not being able to meet Amazon’s demands.
For example there are many Etsy sellers who offer up customized products which could take a while to make, so it is unclear how Amazon’s Prime shipping guarantees will factor into this, or maybe Amazon will have a different set of rules for Handmade sellers.