New York—A new campaign by Etsy centers individual creators as it tries to rehabilitate its image as a platform for handmade goods amid a changing marketplace. The company has been facing challenges from competitors like Amazon and emerging e-commerce players, leading to a need for policy changes to maintain its unique identity.
Morgan Stanley analyst Nathan Feather lowered the firm's price target on Etsy (ETSY) to $49 from $52 and keeps an Underweight rating on the stock. This move comes as Etsy is making policy changes to address the influx of generic 'junk' and AI-generated products on its platform, aiming to refocus on products that are truly handmade or designed by individuals.
Following a new marketplace trend, Etsy's Depop platform is eliminating selling fees and shifting them to buyers, who will pay up to 5% of the transaction cost. This shift reflects a broader industry move towards more transparent pricing structures and aligns with Etsy's efforts to support independent creators.
Etsy has long been a place for handmade and vintage items. Now, products must fall into one of four categories: “made by,” “designed by,” “curated by,” or “vintage.” This categorization system aims to clarify the origin of products on the platform and ensure that customers are getting what they expect when shopping on Etsy.
Etsy has revealed its new sales policy on A.I. artwork, and the company will continue to allow it to be sold, with some interesting caveats. Sellers will need to disclose the use of AI tools in creating the artwork, providing transparency to buyers and ensuring that they understand the origin of the products they are purchasing.
Etsy is making policy changes as it faces pressure to compete with Amazon and emerging e-commerce players Temu and Shein. By focusing on promoting unique products created by real humans, Etsy aims to differentiate itself in the marketplace and appeal to customers looking for one-of-a-kind items.
Brooklyn-based Etsy is doubling down on customers wanting unique products created by real humans. It just announced new policies to curb the proliferation of generic 'junk' and AI-generated products on its platform, reinforcing its commitment to supporting independent creators and handmade goods.
Etsy has been grappling with an influx of generic 'junk' and AI-generated products on its platform. The service revised its seller policy on the sale of these products, requiring sellers to disclose any use of AI tools in creating their artwork or products. This move aims to maintain the integrity of the platform and ensure that customers are getting authentic handmade or designed items.
Etsy will allow the sale of artwork derived from the seller's own original prompts or AI tools, as long as the artist discloses their use of such tools. This policy change reflects Etsy's efforts to strike a balance between embracing technology and innovation while maintaining the authenticity and uniqueness of products on its platform.
