This isn't new. The Regretsy blog extensively complained about dropshippers in 2010. The problem is that operating a two sided marketplace connecting small makers to customers just really sucks as a business. Tons of churn, intractable problems with quality and fulfillment, having to pay for a lot of customer service agents who fundamentally can't solve any problems, since they don't actually work for the person who…
The Fall of the House of Etsy
71–80 of 107 posts
Re: The Fall of the House of Etsy
#72Earlier quoted context omitted.
> intractable problems with quality and fulfillment • Re: fulfillment — why not ask Etsy sellers to pre-stock everything that's not made-to-order into fulfillment centers like Amazon's? And, in fact, to send anything that is made-to-order to a fulfillment center first , where it'll be inspected, re-wrapped and re-shipped by the fulfillment center — with the buyer's card only having a hold, not a charge, on it until t…
>• Re: fulfillment — why not ask Etsy sellers to pre-stock everything that's not made-to-order into fulfillment centers like Amazon's? And, in fact, to send anything that is made-to-order to a fulfillment center first, where it'll be inspected, re-wrapped and re-shipped by the fulfillment center — with the buyer's card only having a hold, not a charge, on it until the seller's goods are inspected by the fulfillment c…
Also customer tend to game that to get free products which makers hate.
Re: The Fall of the House of Etsy
#731. Etsy far as I can tell charge a 20% mark-up on sale price direct from the merchant's own web-site. This is too high - this is Apple tax money. 2. Etsy also look to be charging 4% for currency conversion (which occurs if you view the Etsy site in a currency different to the currency the store issues its prices in). Esty I think are deliberately hiding this charge; it is listed _nowhere_ in the invoice or in billing…
Re: The Fall of the House of Etsy
#74Earlier quoted context omitted.
Fun thing about a two sided marketplace. It needs two sides. If you make life hard for sellers then they won't join and then you, by definition, don't have a marketplace.
The point of the article was that Etsy has already established both sides of the marketplace. And that both sides of the marketplace are not equal, as competitors/disruptors are discovering. To be successful, they need a large consumer base, and a small seller base, who sell high quality goods (which is subjective, but mass drop shipping is certainly not what those consumers are expecting). Of those, the hardest to a…
The only way a small seller base can support a large consumer base is if it's some form of mass manufacture. That more or less leads to drop shipping as the logical conclusion and optimization.
Re: The Fall of the House of Etsy
#75This isn't new. The Regretsy blog extensively complained about dropshippers in 2010. The problem is that operating a two sided marketplace connecting small makers to customers just really sucks as a business. Tons of churn, intractable problems with quality and fulfillment, having to pay for a lot of customer service agents who fundamentally can't solve any problems, since they don't actually work for the person who…
Etsy should charge the sellers fees per sale, and make them post an expensive bond. Then Etsy can ban drop shipping, give instant refunds, pay return postage, and generally hold the creators to high standards. Etsy should also mandate the inclusion of a scan code in the package, which the customer can use to show they received the shipment but it wasn't as advertised. This would catch people lying about the contents,…
Re: The Fall of the House of Etsy
#76Earlier quoted context omitted.
> not an exponential growth machine This is increasingly impossible under capitalism for fundamental reasons, which are illustrated most clearly in modern financialized capitalism by shareholder interests. Your desires (and mine) will require a reorganization of society as we know it. https://en.m.wikipedia.org/wiki/Tendency_of_the_rate_of_prof... https://en.m.wikipedia.org/wiki/Capital_accumulation
Nonsense. The majority of my capitalist friends who own businesses work their asses off to build a company that reliably generates a 15-20% operating margin and then spend the rest of their career making sure nothing and nobody breaks their cash generating machine. The only people I know chasing returns far beyond the rate of inflation are VC-backed and private equity-owned businesses, where the parent firm is compet…
Re: The Fall of the House of Etsy
#77When I saw "spy.com," I was hoping that Spy Magazine[0] had risen from the ashes.
No such luck. :'(
[0] https://en.wikipedia.org/wiki/Spy_(magazine) (It was the only dead-tree magazine that I have ever personally subscribed to).
Re: The Fall of the House of Etsy
#78Earlier quoted context omitted.
Etsy should charge the sellers fees per sale, and make them post an expensive bond. Then Etsy can ban drop shipping, give instant refunds, pay return postage, and generally hold the creators to high standards. Etsy should also mandate the inclusion of a scan code in the package, which the customer can use to show they received the shipment but it wasn't as advertised. This would catch people lying about the contents,…
the /actual/ etsy creators can't afford an expensive bond. etsy should vet their sellers, simple as
Re: The Fall of the House of Etsy
#79Earlier quoted context omitted.
>• Re: fulfillment — why not ask Etsy sellers to pre-stock everything that's not made-to-order into fulfillment centers like Amazon's? And, in fact, to send anything that is made-to-order to a fulfillment center first, where it'll be inspected, re-wrapped and re-shipped by the fulfillment center — with the buyer's card only having a hold, not a charge, on it until the seller's goods are inspected by the fulfillment c…
The thing with handmade and unique items is that the definition of “as advertised “ differs quite a lot. Your definition is not the same as mine. Also customer tend to game that to get free products which makers hate.
A fair point, although photos provided on the site, as well as seller reputation can (and mostly the latter on darknet sites, but both are useful) address that issue. What's more, an escrow system that requires the buyer to confirm receipt and quality for the seller to receive payment could have an even stronger impact on such issues.
>Also customer tend to game that to get free products which makers hate.
Which is why darknet sites have dispute resolution policies and processes, as well as ratings of sellers and buyers. Those buyers who try to take advantage are shunned pretty quickly as bad actors and unprofitable to boot.
You can't game a system that won't play with you.
I suggest you check out some darknet markets[0] -- not to purchase anything that might raise the hackles of your local government, but rather to see how a marketplace which doesn't have the sanction of law/government/the courts tries to ensure fairness and minimize rip offs and bad actors.
If you do, I think you'll find that many of the tools used in those environments would improve user satisfaction (on both sides) and create a much better marketplace. Even a "legitimate" marketplace like Etsy.
Edit: fixed grammar, added references.
[0] https://darknetmarketlist.com/darknet-market-list/ [1]
[1] Some of the listed markets have been seized/exit scammed/otherwise offline. As the old saw goes, 'caveat emptor'.
Re: The Fall of the House of Etsy
#80Earlier quoted context omitted.
Etsy fits Cory's original definition to a tee though.
Maybe, I'm not too familiar with their story. Who were the business users on Etsy?
- Businesses come in to exploit the users by flipping AliExpress crap at 10x margins, Etsy does nothing to stop this because $$$
- Etsy realizes they could make even more money off businesses by eg forcing them to buy ads from Etsy once their income exceeds $10k
- Now both users and businesses are pissed off and Etsy has entered a death spiral