Rahul Saraswat’s Post

Etsy announce #EtsyInsider, a new buyer membership programme which will launch to invited buyers in September this year – just in time for the busy Christmas period. This will be interesting... a bit like Amazon #Prime but without the same breadth of product. But great for the #gifting market. This #loyalty programme could attract increased sales from top Etsy buyers #marketplaces #loyaltyprogramme #loyaltyprogram #ecommerce #retail

“Despite Etsy ramping up spending over the past quarters on promotions and advertising, it struggled to keep up with larger retailers in attracting bargain-hungry customers.” “It is also facing increasing competition from low-cost e-commerce platforms such as Temu.” “Persistent inflationary pressures have put off customers from spending on big-ticket non-essentials product categories including vintage handicrafts, jewelry and home decor.” “"Our first quarter performance ...was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth," said CEO Josh Silverman.” "”While considerably larger than it was pre-pandemic, Etsy is struggling to find ways to expand beyond its niche and attract buyers as Amazon and Walmart eat up a larger share of ecommerce spending," Eachel Wolff, analyst with eMarketer said.” - Anuja Mistry

What happened in the world of eCommerce recently? 1. Etsy is all set to play a different label game - Etsy's new label policy clarifies the origin of products listed on the platform. There are four classifications: “made by,” “designed by,” “handpicked by” and “sourced by and the seller has to provide all the information. Etsy and their priority for one-of-a-kind items is inspiring. 2. Apple Vision Pro is now available in Canada - Yep, you can now order them in Canada, Australia, France, Germany and the UK. They are now available in a total of 10 countries. 3. Cozey's new pop-up store in Vancouver - Cozey, the furniture brand has opened a new pop-up in Vancouver. From digital to retail, they are growing very successfully! 4. Why is Blume experimenting with Direct Mail? - Some brands are reconsidering direct mail and Blume is one of them. They are sending booklets to buyers and prospects via direct mail. Great idea or a waste of time, what do you think? 5. Costco raises membership fees, first time in seven years - From Sept 1, Costco's basic Gold Star membership will go from $60 to $65 per year and the premium Executive membership from $120 to $130. Inflation, much? #ecommercenews #ecommerce #tldr

Did you know? Etsy is making strides to improve their shopping experience by refining search results and highlighting top-quality items from reliable sellers. The platform has begun factoring in listing details, photo quality, and customer service track records to ensure top listings appear first, leading to more 4- and 5-star reviews site-wide and fewer refund requests from buyers. Plus, they're optimizing search results to showcase a broader array of products from more sellers. A new feature, the Etsy Search Visibility Page, will provide sellers with actionable insights to help them improve their position in search, among other things. Stay tuned for more industry insights! Full report here: https://lnkd.in/eEeWtMTS #Etsy #EtsyMarketplace #Ecommerce #SellerSupport #CustomerExperience #IndustryUpdates

Etsy is set to launch its first-ever loyalty program, named "Etsy Insider," in September as part of an effort to boost sales and engage more frequent shoppers. Announced by Raina Moskowitz, Etsy’s chief operating and marketing officer, the program will include benefits such as free U.S. shipping and special discounts. Select buyers will be invited to join the initiative, with costs expected to be around the price of a latte. The move is part of Etsy’s strategy to reverse declining sales, which have been hampered by inflationary pressures and increased competition from platforms like Temu. Etsy’s marketplace sales dropped by 5.3% in the first quarter of the year compared to the same period last year, leading to an overall sales decline of 3.7%. Additionally, the company's stock has fallen nearly 78% since late 2021, prompting a workforce reduction of 225 employees, or roughly 11%, in December. Etsy experienced significant growth during the COVID-19 pandemic but has struggled to maintain that momentum in the current economic climate. Critics, including Neil Saunders from GlobalData Retail, argue that part of Etsy’s difficulties stem from its perceived "junkification," whereby the platform has become cluttered with less relevant items. In response to these challenges, Etsy is aiming to refocus on its core identity as an artisan marketplace, leveraging the loyalty program to enhance its unique position in the e-commerce landscape. The company will evaluate the success of the "Etsy Insider" program through consumer response before considering a broader rollout. Source: https://lnkd.in/eQ-YZzFy

#Etsy sellers are feeling the impact of the platform's shift towards more commercial practices, which some are calling the 'Amazon-ification' of Etsy. As Etsy's marketplace has grown, attracting more buyers and sellers, many long-time sellers are finding it increasingly difficult to compete due to a rise in mass-produced and dropshipped items that undermine the platform's handmade ethos. 💰 Fees have also increased, adding to sellers' challenges. In response, some are considering or have moved to other platforms that better align with their values and needs for lower fees and less commercial competition. Etsy has tried to address some issues, but the dissatisfaction continues. For a more in-depth analysis, check Julia Waldow's detailed article in Modern Retail. https://lnkd.in/djqsuwXs #amazon #retail #ecommerce #marketplace #walmart #sellers

A recent investigation has uncovered that Etsy, a well-known marketplace for handmade and vintage items, is employing misleading tactics to boost sales. The platform has been found to use fake countdown timers to instill a sense of urgency among buyers, misleading them into believing that a deal is about to end. This practice is designed to hasten purchasing decisions, depriving consumers of the opportunity to conduct thorough research or comparisons. The investigation focused on 20 bestselling or Etsy-curated products featuring countdown timers. Shockingly, 80% of these countdowns simply reset after reaching zero without any change in pricing. In some instances, prices even dropped after the expiration of the countdown. This technique was observed across 10 different product categories, demonstrating its widespread adoption by sellers utilizing Etsy's automated timer feature. To further exacerbate the issue, sellers use layered sales, allowing a new sale with a fresh countdown timer to commence as soon as another ends. This tactic creates an illusion of exclusivity and scarcity, encouraging consumers to act impulsively. Accompanying strategies, such as scarce stock alerts or inflated demand indicators, further pressurize buyers into decisions they may later regret. In response to these practices, consumers are advised to remain vigilant and skeptical of digital pressure tactics. Awareness of these manipulative strategies can empower shoppers to make informed and deliberate purchasing choices. Additionally, concerned individuals are encouraged to communicate their objections to Etsy, advocating for the cessation of such deceptive marketing methods. By staying informed and cautious, consumers can safeguard themselves against unnecessary and hasty purchases, ensuring that their shopping experiences remain genuine and fulfilling.

The Modern Retail article missed a major point: 🔸 "According to Etsy’s soon-to-be-released 2023 Transparency Report, Etsy removed four times as many listings and suspended two times as many sellers for violating its handmade policy in 2023 than it did in 2022." - but in 2022, around 95% of the items removed were eventually reinstated, i.e., they were not actually violations, and Etsy's software harmed innocent sellers by removing their items, sometimes for weeks at a time. I covered that here: https://lnkd.in/geBrcp7Z Interesting to see the discussion of Etsy fees when Etsy surveyed sellers on fee increases recently: https://lnkd.in/gtX6kwyb #EtsySellerNews

Early Etsy Was a Great Example of Specialty Ecommerce. It Is Strongly Differentiated on the Seller Side. And To a Lesser Degree in the Buyer Experience. #Etsy Has a Strong Competitive Advantage in a Circumscribed Market It Has Significant Operational Cash Flow. Their overall take rate is about 20-24%. This has fueled their geographic expansion into Brazil and other places. And their recent expansion into other #marketplaces. But this is changing. #ecommerce https://lnkd.in/gF_Ji7MU

New Etsy policies set standards for what sellers can offer Etsy Unveils New Policies to Enhance Seller Standards As online marketplaces grow and new global players like Temu and Shein challenge established platforms, Etsy has introduced new policies aimed at refining the quality of products sold o... https://lnkd.in/dMbp_E-E