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Mon Nov 20 2023 15:04:48

What Etsy Did When Temu Listings Infiltrated Its Site

By: Ina Steiner

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Etsy sellers have complained for years about having to compete with commodity goods that purport to be handmade or vintage. It turns out Etsy felt the need to create a filter to remove listings that also appeared on Temu, a shopping app offering cheap goods from China.

Etsy CEO Josh Silverman disclosed the incident during a presentation at the 3rd Annual Needham Consumer Tech/E-Commerce Virtual Conference on November 20, 2023.

When Needham analyst Anna Andreeva asked Silverman about "fast fashion" players like Temu and Shein and what Etsy was doing to respond to those entrants, he explained, "We were able to launch a filter on Etsy that identified and pulled off any item that's on Etsy that's also on Temu. We created and launched that filter within a matter of days.

"We've very focused on suppressing visibility on items that are not handmade because the Etsy brand is about things that are made just for you, made by the maker, and we think being even more Etsy is the right answer for the commoditized commerce."

However, sellers have reported that Temu sellers have "stolen" their Etsy listings - it's unclear if or how Etsy may have taken that into account when deleting Etsy listings. 

An Etsy discussion board thread started by a seller who said they found one of their keyrings listed on Temu ("my design and even my photos") reveals that sellers allege their photos are being "stolen" not only by sellers on Temu, but other sites as well.

One seller said Etsy removed a colleague's handmade item that had been copied and appeared for sale on Temu. During Monday's call, Silverman didn't get into whether Etsy tried to differentiate between legitimate listings and those copy-catted by commodity sellers.

Etsy apparently also has to deal with sellers who relist items they purchased on sites like Temu. On Reddit, a buyer said they had purchased sandals for their son on Etsy and ended up with Temu shoes still in the Temu packaging. "She didn't even bother to cover it up. Anyways, I spent $30 with shipping on a product that was less than $5. If Etsy doesn't start vetting their shops, I'm done with them."

Silverman said players such as Temu and Shein are growing very quickly and taking share broadly across lots of ecommerce players, including Etsy - but not disproportionately Etsy. Where it impacts Etsy is that those shopping apps are advertising though Google PLAs and Meta (making ads more expensive), so Etsy is spending less on performance marketing as a result.

But Silverman said the more people get very disposable products, the more they crave an alternative.

Etsy Chief Financial Officer Rachel Glaser was also on the call and revealed that Etsy had frozen all of its hiring, while subsidiaries Reverb and Depop had sone some "cost optimization" that included reductions in workforce.



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by: Lisa This user has validated their user name.

Mon Nov 20 17:13:09 2023

this is too little too late. the buyers threat of leaving if etsy doesn't do... has come and gone. they have left.

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by: racheltreasures This user has validated their user name.

Mon Nov 20 18:53:39 2023

this is yet another of the many many reasons why I left Etsy 15 months ago.

Any time I need help from Shopify, I NEVER have to give them any personal information!

Get a grip Etsy and handmade sellers, run and run fast from Etsy!

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by: Lisa This user has validated their user name.

Mon Nov 20 19:45:12 2023

why leave completely? etsy is a great source of easy marketing. I mean, you still  get traffic, it's just not as much. But etsy shouldn't kid themselves, they  have ruined their brand.  

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This user has validated their user name. by: Rexford

Mon Nov 20 19:50:54 2023

Did he really say "We've very focused on suppressing visibility on items that are not handmade because the Etsy brand is about things that are made just for you, made by the maker, and we think being even more Etsy is the right answer for the commoditized commerce."

Seriously?  Does he ever look at the site?  Suppressing?  Since when?

Everything that I see from Shein looks like it would fall apart in the wash.

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by: LDWCallsOut This user has validated their user name.

Tue Nov 21 00:46:35 2023

It is concerning to see Etsy Handmade defined by Silverman as items "made just for you".  This sounds like another push for "personalized" mass made items, rather than legit items designed and crafted by the shop owner that are often not custom made-to-order or personalized in any way. 

Chinese manufacturers have been stealing photo images from Etsy shops for like 15 years now.  It many cases, it's not hard to distinguish a reseller listing selling Chinese product from a legit seller who has been ripped off.  Etsy's tech staff has to know what they are looking for before they can program bots to find only -- well, mostly anyway -- reseller listings.

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by: Stone Cutter This user has validated their user name.

Tue Nov 21 11:05:40 2023

*** Less money made, per sale ***

Years ago, around 2018, a bunch of canvas Fine Artists showed up on the Etsy forum with complaints that their sales had completely stopped. These artists sold paintings priced at $600-$1000, with over 5000 sales, each.

Instead, Etsys algorithm gave “search” results to digital prints priced at $19.95, which is pretty much no money for Etsy.

I have no doubt that Etsy has lost commissions, per sale, as Etsy thought that selling “volume” would be Etsys golden ticket. By allowing cheap mass production to take over its site, it puts pressure on better quality artists while Etsy makes very little money per sale.

Todays data remains clear, the top 20% of U.S. wage earners continue to spend well while propping up overall retail sales. Recently, CEO Silverman was quoted as saying that “these are difficult times”. But difficult for who? These are only difficult times for the cheap Buyer that Etsy has attracted — the Buyer who looks for that cheaply made designer import for $19.95.

Cheap Temu products will do nothing but drill down on Etsys “bottom line” by taking away profits from higher selling products.

There is no money selling to people with no money. And Etsy is now feeling the financial pain as they turned their backs on quality products.  

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by: Queen of the Jungle This user has validated their user name.

Tue Nov 21 11:26:02 2023

JS is not kidding anyone.  His attitude is strictly "show me the money."

The people who run the show have zero regard for the sellers who are working for less than minimum wage in most cases.   They pretend to want to "make commerce human" yet it's impossible to speak to a human with all the robots that have replaced them.

I have no hope that Etsy will change for the better any time soon.   I have other places online and off where I sell my items in addition to my Etsy shops.   Business has been bad for quite some time but I still make at least a few sales here and there.  

Everyone who's a long time seller knows exactly what happened.   One of the first things JS and his band of merry men did was to remove Vintage and Handmade as marquee categories on the first page.   It's been downhill since then.

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by: MLo This user has validated their user name.

Tue Nov 21 11:32:40 2023

Apparently Temu is a PAIN POINT for Etsy!  

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by: me22 This user has validated their user name.

Tue Nov 21 14:19:57 2023

Silverman andEtsy are pathetic. They are "suppressing" listings that aren't handmade? Really?

I can barely shop on Etsy anymore because most of the items for sale is NOT handmade. It is awful.

You can find Amazon mystery boxes for sale on Etsy! You can find soda and candy being resold as is among all the jewelry resellers.

I ha great success on Etsy but no more. Search is so cluttered up with crap, I can't sell or barely buy anything there now because it takes too much effort trying to figure out if what I am buying is truly handmade or not.

As a seller I am disgusted and as I STOCK OWNER, I am angry and feel like I have been defrauded. I would never have bought so many stocks if I had known Etsy allowed so many resellers and that they lie in their slogans.  

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This user has validated their user name. by: Bidonmine

Thu Nov 23 06:19:11 2023

I stopped using Etsy a few years ago because of all the factory made items that littered my search... and because people could not find my handmade items due to all the ''noise''.  

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by: mountaingirl This user has validated their user name.

Thu Nov 23 07:18:02 2023

@stonecutter - ''There is no money selling to people with no money''. You nailed it! Etsy has filled up the site with mass-produced garbage that can be found for less practically everywhere else online. The true, quality, handmade has now become buried among so much garbage.

I sell on Etsy, but sadly, I hardly ever shop there anymore. I don't want to waste hours of my time wading through garbage and having to reverse image search every ''handmade'' item I run across. Silverman has ruined the site for buyers who actually are interested in spending higher amounts of money on quality items.

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by: LDWCallsOut This user has validated their user name.

Thu Nov 23 09:35:43 2023

Not excusing the poor management decisions by Etsy under Silverman...but Etsy started allowing resellers of mass-made ''handmade'' and ''vintage can be any age'' retail boutiques during the Summer of 2015.  Silverman wasn't appointed CEO until 2016.  

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by: cvsharkey This user has validated their user name.

Thu Nov 23 11:02:22 2023

Hiring freezes & "cost reduction," ie layoffs?

So, I guess increased revenues from their sellers and touted as "growth," when actual sales have declined are finally coming home to roost.

If you're holding their stock--you best keep a close eye on it. It's been sinking this year.

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by: Snapped This user has validated their user name.

Thu Nov 23 14:04:30 2023

“ Instead, Etsys algorithm gave “search” results to digital prints priced at $19.95, which is pretty much no money for Etsy.”

Essentially the same myopic plagiarism of process that eBay and in some ways, other venues which don’t own their wares have done too.  That’s because ‘success’ for those responsible is measured by ‘growth’.  Quality, legacy, and too often, reality rarely make it past the receptionist by that standard.  

The fact it encompasses any one ‘competitor’ or another for the ‘inventory’ the venue makes (these days ‘chooses’) available is not the focus though.  The ‘inventory’ itself is the issue, specifically quality vs quantity.

Etsy started with a legacy niche.  But the ‘inventory’ for that is unpredictable, and any ‘growth’ envisioned would fall way short of boardroom ‘goals’.  Being of ‘sound’ education and unimaginative mind, those responsible thought only to look at the other guy’s paper who seemed to have this ‘growth’ question nailed, and try to copy their answers to this quarter’s quiz.

Not a one of them lazy management pros able to see that if they wanted to ‘expand’, and if the only way they could see was to ‘disrupt’ their niche, perhaps if they could do it AND still nourish their niche by fire-walling it from the pablum for the masses - then THAT would truly BE innovative.

Meantime, that those counterfeiters and cookie cutters out there would ‘borrow’ another seller’s intellectual property for their own purpose isn’t really the venue’s issue either, they say - though it should be if the venue keeps insisting on controlling the inventory, especially so hypocritically, AND the transaction.  Until the unlikely event that the venue does take some responsibility though, sellers need to do what they can to protect and prosecute violations of their title rights on their own.

And that’s another test of tolerance to endure.



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