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.