Earlier this week on Tuesday, 2 May 2017, Chad Dickerson, the Chief Executive of Etsy, quit his job following unexpectedly poor results for the first quarter of 2017. Etsy made an unpredicted loss of $421,000 (£325,000) during the period. The business is now under investor pressure to restructure – mmm, I wonder how many of those investors are crafters too?
Chad Dickerson applauds as Etsy listed on the Nasdaq in 2015.
I admired the original premise of the Etsy founders and the platform has certainly been extremely successful for over a decade. Dickerson once commented “Etsy is very much a community-based business. What we’re really trying to do is build an ‘Etsy economy’ that’s about connecting people.”
And from . . .
A handcrafted beginning (from the Etsy homepage)
Etsy was founded in June 2005 in an apartment in Brooklyn, New York to fill a need for an online community where crafters, artists and makers could sell their handmade and vintage goods and craft supplies. In the spirit of handmade, founder Rob Kalin and two friends designed the first site, wrote the code, assembled the servers and spliced the cables to get Etsy up and running. In 2008, Chad Dickerson joined Etsy as its first CTO, and created the company’s foundational engineering culture, treating “Code as Craft”. Chad became CEO in 2011 and began championing the “reimagination of commerce,” a transformation of every aspect of how goods are made, bought and sold. Under Chad’s leadership, the website that began in an apartment in Brooklyn has evolved into a sophisticated technology platform that connects Etsy sellers and buyers across borders, languages and devices, a company that spans the globe and a business that is committed to creating lasting change in the world.
Etsy has burgeoned into an enormous global ‘marketplace’. The successful original idea has grown and grown.
However, back in 2013 significant changes that broadened what was accepted as handmade work were introduced much to the concern of many Etsy crafters. These changes permitted the hiring of help to make your work and the opportunity for wholesaling your work.
I must admit at that time I was a newbie to Etsy and was more perplexed about ‘wholesaling my work’ than annoyed about it. I simply couldn’t imagine how I could create and physically paint enough silk myself and then offer it wholesale to be resold (mark up of at least 100%) at a price to even cover my costs let alone make a small profit. For me the wholesale idea didn’t fit with my craft. And, this is the rub – truly handmade, craftwork is neither cheap nor high volume. As you may remember just about a year ago I decided to close my Etsy shop as my one-off, handmade work was difficult to find, swamped amongst the thousands of laser printed or amateur silk pieces offered for sale.
The Etsy craft platform business model appears to have a hit a bump in the road as those 2013 policy changes have eventually resulted in less one-off original pieces and many more ‘me too’ products. And, if you are fine with the ‘me too’ world why not simply go elsewhere to buy/sell on Amazon Handmade or eBay. Etsy has ridden the crafting wave successfully, but nothing grows for ever and if, in the world of handmade, you water down your standards to achieve volume, quality will inevitably suffer.
Handmade – work in progress hooking a textile wall hanging. There’s nothing immediate and speedy about making this type of artisan piece.
I used to think that Etsy helped promote craft, but now I’ve realised that the resurgence of interest in craft and the ‘so-called’ boom was well underway at the grass roots before Etsy came into being. (If you are interested fellow crafter and early member of the Etsy craft community, Grace Dobush, has written a superb article about craft and the Internet.)
And, finally back to Chad Dickerson. During the 947 days that I had my Etsy shop, I watched several Etsy ‘live chats’ with Chad Dickerson and his Etsy staff. He came over as an interesting, thoughtful guy. He certainly appeared to believe in his quoted wish to champion ‘the re-imagination of commerce”. However, perhaps, at this point in time, we’re re-discovering that authentic craft has more local than global appeal.