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Homemade Competition Gets Fierce
By: Cindy Wendland
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Amazon is launching a new store called Handmade by Amazon for artisans to sell their unique, homemade items. For people who have homemade items to sell, being included on this platform will allow them to get marketing and exposure from a marketing giant. Amazon says people were asking for this addition to their online stores. Etsy is currently the market leader for handmade goods and will face a tough competitor.

They say that you don’t know your true strengths and abilities until you are put to the test. Etsy is about to be tested by marketing giant Amazon. Etsy has been a go-to website for people looking to buy unique handcrafted items from artisans all over the world. When we were looking for a unique hat for the Kentucky Derby, we ended up on Etsy and found some great items. Now Etsy will need to step it up with their marketing and promotion to help their online sellers reach customers.

There are some differences between Handmade by Amazon and Etsy. First off, Etsy offers homemade and vintage items. Products that will be offered on Handmade at Amazon must be made entirely by hand, hand-altered, or hand assembled, and will only be from invited artisans who make Jewelry, Home Products (Art, Baby Bedding, Bath, Bedding, Furniture, Home Décor, Kitchen & Dining, Lighting, Patio, Lawn & Garden, Storage & Organization), Party Supplies, and Stationery. Etsy offers more categories, but Handmade says they will be expanding their category list over time. One of the categories we really like on Etsy is Unique Gift Items. (Not everything fits nicely into a category.)

Amazon and Etsy offer different transaction fees. Etsy offers 3.5%, while on Handmade by Amazon, the fee will be 12%. Amazon is betting their search engine, marketing ability, and existing customer base will more than offset the higher transaction fee. Etsy will need to sharpen its brand and marketing focus to compete. Competition is healthy, but when the competitor is Amazon, it can be a little scary.

   

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About the Author
Cindy Wendland has a background in marketing and finance. She is the creative director for an online men's health magazine, BrainBrawnBody.com, and she gets to write their leisure/travel blog. She is also a web designer helping her clients with online community engagement, websitesbywendland.com. Prior to her web years, she worked in pharmacy consulting.
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