Key insights

• 📈 Etsy reported record annual revenue of $2.7 billion in 2023
• 📉 Decline in gross merchandise sales for two consecutive years
• 👎 Blaming the CEO for focusing on profits and allowing counterfeits
• ❓ Uncertain future due to drop in discretionary spending and poor execution by the CEO
• 🎨 Original vision focused on empowering artisans and influencing society
• 💼 Challenges with leadership changes and financial pressures as Etsy grew
• 🏢 Culture clash at Etsy after going public
• 👥 Facing backlash from sellers and criticism for prioritizing corporate interests
• 🤲 Struggles with the definition of 'handmade' amidst mass-produced items and AI-generated designs
• 💰 Domination in the market leading to potential changes for boosting profits and innovation

Q&A

• How has Etsy's dominance in the market affected sellers?

  Etsy's dominance in the market has left many sellers feeling trapped, leading to potential investor intervention and changes aimed at boosting profits and innovation to address seller concerns.

• What is Etsy's struggle with defining 'handmade'?

  Etsy grapples with defining 'handmade' amidst mass-produced items and AI-generated designs, facing potential conflicts with its mission and sellers' perspectives. Financial incentives of mass-produced items may overshadow concerns.

• Why is Etsy facing criticism from individual sellers?

  Etsy is criticized for prioritizing buyer transactions and corporate interests over individual sellers' concerns, as seen in changes like increasing transaction fees and implementing controversial seller programs.

• How did the pandemic impact Etsy?

  Etsy experienced success during the pandemic, with increased sales and stock performance. However, it is currently facing challenges and seller dissatisfaction.

• What challenges did Etsy face as it grew?

  As Etsy grew, it faced challenges such as changes in leadership, financial pressures, and dissatisfaction among vendors.

• Why did Etsy experience a decline in gross merchandise sales?

  Etsy experienced a decline in gross merchandise sales for two consecutive years, which some attribute to the CEO's focus on profits, allowance of counterfeits, and deviation from the company's original vision.

• What is the annual revenue reported by Etsy?

  Etsy reported a record annual revenue of $2.7 billion in 2023.

• 00:03 Etsy reported record annual revenue but experienced a decline in gross merchandise sales for two consecutive years. Longtime sellers blame the CEO for focusing on profits, allowing counterfeits, and pushing the company away from its original vision. The future of Etsy seems uncertain with a drop in discretionary spending and a miss in merchandise sales and profits.
• 02:15 Etsy provided a platform for small businesses and local artists to reach global buyers, but faced challenges as it grew, including changes in leadership, financial pressures, and vendor dissatisfaction.
• 04:08 Etsy faced internal culture clash after going public, underwent leadership changes, experienced success during the pandemic, but is currently facing challenges and backlash from sellers.
• 06:02 Etsy is facing criticism for prioritizing buyer transactions and corporate interests over individual sellers' concerns. The platform's changes, including transaction fee increases and seller programs, have led to frustration among creators and a deteriorating reputation.
• 07:58 Etsy grapples with the challenge of defining 'handmade' amidst mass-produced items and AI-generated designs, facing policy clarifications and potential conflicts with its mission and sellers. However, the financial incentives of mass-produced items may overshadow these concerns.
• 09:54 Etsy's dominance in the market has left many sellers feeling trapped, leading to investor intervention and potential changes to boost profits and innovation.