Etsy has come to dominate the handcrafted and vintage goods market by focusing on a niche market, leveraging network effects, prioritizing technological investments to win on ease of use. But after over 10 years of growth, how sustainable is the business model today? And as they continue to pursue growth, what costs are they willing to take?
In late 2015, experts declared Etsy dead as Amazon launched Handmade, it’s peer-to-peer marketplace for handmade products. And yet with all the factors in place to favor explosive growth, Handmade’s performance has been underwhelming at best. Where did Amazon miss the target?