Etsy Introduces New Product Classifications to Uphold Handmade Authenticity and Tackle Market Challenges

Etsy's New Product Classifications

In a move aiming to broaden its product classification, Etsy, a platform famously known for selling handmade and vintage items, has announced the introduction of four new categories for items listed on the platform. The new categories have been created under the labels "made by," "designed by," "handpicked by," and "sourced by". To be eligible for listing, all products should fall under one of these categories. The vintage items, forming a significant part of Etsy’s offerings, will now fall under the "handpicked by" category. Craft supplies such as beads and clay will be grouped under the "sourced by" category. 'Made by' would feature products like a vase handmade by a ceramics artist, while a digital artwork will be classified as 'Designed by' the respective seller. The company reassures its community that the newly introduced classifications will be used for better visibility on Etsy product listings and will not affect existing policies that restrict the reselling of items made by another.

Preserving Etsy's Unique Identity

As told by Josh Silverman, Etsy's CEO, through a video message, the common thread amongst all items on Etsy will continue to be the infusion of a human touch. Through the years, Etsy has drifted away from other e-commerce platforms like Amazon or Temu by positioning itself as a niche market for uniquely handcrafted items created by artisans or carefully selected by curators. Over time, issues have emerged concerning what truly constitutes 'handmade'. Initially, Etsy only permitted individually handmade items, but this policy was altered in 2013 to allow sellers to use third-party production help, resulting in a wider range of creators showcasing their products on the platform.

Addressing the Challenges

Unfortunately, this expansion has been a double-edged sword. With more diversity in offerings, instances of scams and drop shipping - sellers offering low-cost mass-produced items as handmade on Etsy - have also dramatically increased. The surge in non-authentic handmade items was a serious concern voiced by sellers during the 2022 Etsy seller strike, accusing the company of neglecting to police shops misusing the handmade policy. Furthermore, Etsy is constantly on guard against the emergence of discounted online retail giants like Temu. The company is undertaking specific initiatives like enhancing site features and broadcasting a glossy Super Bowl ad, attempting to protect its market share. The platform, like many others in the digital world, has seen an unsettling intrusion of synthetic AI-generated content posing as handmade items. To combat this, Etsy's new product categorizations aim to provide assurance to its customers; reinforcing its reputation as a market for authentic human-created or curated items. It is a step forward in the company’s bid to alleviate the concerns of craftspeople feeling ousted by drop shippers and automation.