Amazon is preparing to launch Handmade, a marketplace for handcrafted goods that takes direct aim at the current market leader in the field. As a matter of fact, Etsy sellers have received invites offering a sneak peek at Handmade, and directing them to a questionnaire regarding which products they offer.
Amazon’s huge customer base and fulfillment infrastructure could quickly make it a thorn in Etsy’s side. At the same time, Etsy’s cult following and large network effect of craft/vintage goods buyers and sellers arguably make it tough to dislodge.
Also, Etsy’s 3.5% cut and $0.20 listing fee might make it cheaper than Handmade – Amazon currently takes up to a 15% cut on marketplace sales.
