Until recently, Etsy, a website where people can sell handcrafted goods, has dominated the handmade ecommerce market.
Through Etsy, artisans can sell everything from knitted scarves to paintings to handmade jewelry.
The company has blossomed into a $2 billion a year company, and it’s seemed as though no competitor could cut into Etsy’s profits … until Amazon decided to get in the ring.
Amazon’s “Handmade” May Be a Game Changer
Amazon, easily one of the biggest online retailers on the planet, has introduced a new service called “Handmade”.
This service functions much like Amazon’s current store options, but now, instead of having to sell retail goods, an individual can sell things that they made.
Think of it as Amazon meets eBay.
There are not currently any plans to hold auction-style sales, but where eBay allows individuals to sell both retail goods and personal items, Handmade is set to do the same for artisans.
Whether you run a company or you’re just a hobbyist, Handmade will allow you to get your wares in front of a new audience and with the backing of Amazon’s extensive coffers, this competition could get ugly fast.
How Handmade May Effect Ecommerce
Aside from creating a challenge for Etsy, Handmade may also bring large changes to ecommerce.
In the past, online sales were dominated by larger players, such as Walmart and Sears. With sites like Etsy and eBay, suddenly, anyone could compete.
Walmart won’t carry your line of handcrafted shoes? Fine … sell them on Etsy. You’re not able to get your local art gallery to host your work? Sell it on eBay for whatever price you’d like.
The difference here is that Amazon has a very powerful reach, and as mentioned, its pockets are incredibly deep.
In fact, according to the article, “What Does Amazon Handmade Mean for Ecommerce?” the online giant brings in nearly $75 billion annually.
This means that it can afford to market Handmade and take chances that competitors may not be able to afford.
If you’re planning to give Handmade a try, it’s also worth looking into Etsy and similar sites.
While it’s true that Amazon can afford to take chances, the company is still going to have to prove itself to artisans and consumers.
In fact, smaller sites that allow artisans to sell handcrafted goods may actually do better in the long run as many people who sell their own work may find Amazon a big too corporate to work with.
About the Author: Andrew Rusnak is an author who writes on topics that include digital marketing and tech trends.