Etsy CEO says company is escaping 'race to the bottom' and getting back to its artisan roots

- Etsy is changing its policies to focus on original goods and real people, returning to its artisan roots - CEO Josh Silverman believes the company can differentiate itself from competitors like Amazon, Temu, and Shein by emphasizing unique, handmade products - New rules will require items to incorporate a "human touch" and fall into specific categories like made by a seller, designed by a seller, handpicked by a seller, or sourced by a seller - Etsy has struggled in the changing market dynamics, with sales slumping and stock value decreasing - The company is facing pressure from activist investors like Elliott Management and has had to lay off employees to streamline costs - Etsy's challenge is balancing between selling unique, handcrafted goods and competing with larger rivals - Despite these challenges, Etsy is focusing on competing on its own terms and avoiding a "race to the bottom" in pricing and commoditization of goods.

🚨 Reddit sentiment: negative - The majority of comments express dissatisfaction with Etsy's current state, voicing concerns over quality decline, dominance of cheap goods, and skepticism about its ability to recover its artisan focus or compete against larger e-commerce platforms. Summarized comments: - Etsy originally focused on niche artisan items but now faces competition from Chinese companies - The flood of cheap 'made in China' goods has negatively impacted original craft sellers on Etsy - Some users believe Etsy is turning into a 'quirky' Amazon with a lot of knockoff junk from China - Etsy's move to attract artisans back may decrease sales velocity but could improve item quality - Despite some modernization efforts, Etsy is filled with scams and cheap junk, leading to declining seller trust - Many believe that Etsy's market of handmade artisan goods is too small to support significant growth - The sentiment is negative with many users indicating they would not invest in Etsy - Some users feel Etsy's focus on growth led to the decline in quality and niche market - The idea of Etsy returning to its roots by reducing seller count is seen as unlikely and difficult - There is skepticism around Etsy's ability to compete with giants like Amazon and Temu - Y/y comparisons might improve for Etsy due to easier comps in the future but opinions remain overall negative - Users noted the lack of legitimate competitors to Etsy for individual artists Stock tickers discussed: $ETSY