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Tue May 2 2017 22:11:08

What Happened to Etsy in February?

By: Ina Steiner

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Etsy said on Tuesday it had a challenging February that contributed to lower than anticipated first quarter results. (It also announced a management shakeup and layoffs, see the previous blog post.) Etsy executives said they were still analyzing what happened, and discussed macro and political issues among other things.

We listened to eBay and Amazon's conference call and didn't hear any mention of a poor February, though it's possible there were some behaviors that occurred that didn't impact their marketplaces enough to warrant a mention, as was the case with Etsy.

We went looking for issues that may have played a role. Here's a look at some of the changes Etsy made in the first quarter - let us know if you think any of them could have had an impact on its performance in February.

1) January: Etsy announces multi-seller checkout - lots of buyers had problems - link.

2) January: Etsy removed credit card icons in checkout for shops with standalone PayPal - link.

3) February: Removed bulk-editing of variations in February. (Etsy made improvements to its variation feature within listings, but it took away a feature that is crucial to many of its sellers: no more bulk-editing of variations across multiple listings.) - link.

Did you notice a decline in traffic and sales in February? If so, have sales rebounded? To what do you attribute Etsy's poor February performance?




Comments (36) | Permalink

Readers Comments

What Happened to Etsy in February?   What Happened to Etsy in February?

This user has validated their user name. by: Ina

Tue May 2 22:46:49 2017

Does anyone remember Amazon running any special campaigns to highlight its Amazon Handmade marketplace in February?

If Amazon did undertake such marketing, do you think it could have an impact on Etsy sales?

What Happened to Etsy in February?   What Happened to Etsy in February?

by: pfft!! This user has validated their user name.

Wed May 3 01:33:21 2017

I seriously doubt they were impacted much by Amazon handmade.  I'm in a BUNCH of facebook groups and online sellers discussion boards and you NEVER hear ANYONE mention Amazon handmade (either as buyers OR sellers).

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Sierra This user has validated their user name.

Wed May 3 01:34:44 2017

I've been on Amazon Handmade since it launched. I don't think I've seen any advertising campaigns for Handmade yet!

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Sierra This user has validated their user name.

Wed May 3 01:37:11 2017

Of course I've never seen any advertising campaigns for Etsy either (I have sold on Etsy since 2006).

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Duster This user has validated their user name.

Wed May 3 02:28:06 2017

My February sales were okay.
If you check the financial pages on Etsy stock, you'll see that for the 4th quarter of 2016 the projected revenues were up and the mark they hit was way, way down. This was the Christmas Holiday sales period!  
The graphs also show that Etsy raked in 355 million dollars for 2016 and went into debt another 25 million dollars.
They don't even produce or sell any physical product, much less invest in it.  How can they misspend so much money?
I think money mismanagement is the REAL problem.
I've sold on Etsy since 2008. I buy stock in the stock market.  Would I ever buy Etsy stock?
Not in this lifetime.  Nor would anyone with a brain who peeked at those stock charts!

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Duster This user has validated their user name.

Wed May 3 02:58:43 2017

Article excerpts from the financial page;

Etsy, which has faced a slowdown in the number of new sellers and buyers added to its platform and the amount of transactions flowing through its marketplace, said in the statement it plans to eliminate 80 jobs.

The company expects to incur severance charges and other costs of $4.5 million to $6 million related to the job cuts, which will be recognized through the end of 2017. Since the fourth quarter of 2015, Etsy’s workforce had swelled by 30 percent, ending March at 1,062.

Etsy is a certified B Corporation. To gain and hold that certification, Etsy adheres to standards, including that it benefit the community, environment, employees, consumers, and suppliers.

For Etsy, that has meant paying workers more than 40 percent above the local living wage and covering most of employees’ health insurance premiums.

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Duster This user has validated their user name.

Wed May 3 03:01:10 2017

Oh wait, they have a two new office buildings they moved into in 2016;

http://www.businessinsider.com/inside-etsys-new-perk-fill
ed-office-2016-6/#etsy-recently-moved-from-a-106000-square-foot-space-to-its-new-headquarters-in-dumbo-the-new-space-is-a-two-building-setup-thats-nearly-twice-as-big-at-around-200000-square-feet-1

Etsy
recently moved from a 106,000-square-foot space to its new headquarters in Dumbo. The new space is a two-building setup that's nearly twice as big, at around 200,000 square feet.

Etsy signed a 10-year lease on the nine-story building.

Before the big move, the company sent surveys to its employees, asking them to name their preferences and needs for the future office. Quiet spaces, such as this one, were big on the list of requests.

Outdoor courtyards are available for employees to enjoy the sunshine while getting some work done.

You'll find kitchens and communal eating spaces packed with snacks on each floor.

But in the official dining hall on the second floor, Etsy employees can chow down on locally catered meals twice a week. They've coined the program "Eatsy.”

Employees are encouraged to attend daily meditation sessions and weekly yoga classes in the "breathing room.”

Monthly craft nights are a major event at the Etsy offices. Teachers are invited to host workshops on everything from sewing to weaving and printmaking.

Inside the "digital lab," employees can play around with a 3-D printer.

There's also a printmaking studio.

A large bike storage room encourages employees to take a carbon-neutral commute into work. There are also showers on-site.

Solar panels on the roof power about 1% of the building; however, the remaining 99% is also powered by local, renewable solar power sourced from a remote location.

Etsy also provides a gorgeous view of Manhattan.
~~~~~~~~~~~~~~~~~~~~~
Gee, I wonder who is paying for that millennial heaven workspace?
~~~~~~~~~~~~~~~~~~~~~

Seller Services, the category that includes such products as shipping labels, promoted listings on the marketplace and a payments processor, now makes up more than 55 percent of total revenue.

Excuse me, I need to go puke.

What Happened to Etsy in February?   What Happened to Etsy in February?

by: LeeLoo This user has validated their user name.

Wed May 3 03:44:06 2017

Been keeping an eye on the numbers for since June of last year. Definitely confirm (on my trusty spreadsheet) a big drop flowing from January and hitting bottom in February. There was an ever so slight recovery in March. Waiting impatiently for this months to see what effect the latest 'schemes' have done.  

What Happened to Etsy in February?   What Happened to Etsy in February?

by: glasspackaging This user has validated their user name.

Wed May 3 07:07:51 2017

Just wait ..it will get worse as they force their payment system ... we already left them in March over that... but as to Feb... we had slower sales ...

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Flying Childers This user has validated their user name.

Wed May 3 08:21:32 2017

This is indeed a major blow out.  

If the trustees on the BOD had taken some time to read and heed the 1000s of comments from Etsy sellers on this forum and others, they could have saved themselves a lot of trouble.

The Etsy sellers have documented this fiasco for the last 3 years.  Check out the 10000+ comments on "Long time sellers losing 80% of their Sales."

What killed Etsy for many is the arrogance and greed of the people that run it.  They have contempt for the sellers that actually provide the merchandise.

ETSY & EBAY DO NOT OWN THE MERCHANDISE THEY SELL.  Yet they have little regard for the people that provide the goods.

Etsy can't get much worse for many of us.  Maybe there will be some improvement.

What Happened to Etsy in February?   What Happened to Etsy in February?

by: RibbonDr This user has validated their user name.

Wed May 3 09:04:45 2017

They took a shopping cart that their buyers were using to holding up to 99 items that they wanted to buy at different times & changed it overnight with no warning. The buyers were used to buying from 1 specific shop while holding the rest of the items in their cart. Now they had to purchase everything in their cart at one time. What company makes buying a challenge? They had thousands of complaints in the forums from both buyers & sellers. I personally spoke to 4 reps at Etsy & told them they were losing thousands of buyers with this decision. They claimed that they had done extensive research & tests & found that buyers wanted the multi-shop check out.... they must have tested lab rats or something. They were warned, and I don't know that they'll recover very quickly from this one, especially since they haven't changed it back.

One thing that Etsy needs to learn... the golden rule ''If it ain't broke, don't fix it'' until it's a proven fact that the change will have a positive impact on everyone's bottom line.  

What Happened to Etsy in February?   What Happened to Etsy in February?

by: JohnGermaine This user has validated their user name.

Wed May 3 09:31:14 2017

Whatever the nerds did to their site tanked me in February, no sales since and then when they decide they were going to control my money I have been moving my stuff out.  Done with them, they can go sink themselves for all I care.

What Happened to Etsy in February?   What Happened to Etsy in February?

by: cayenna This user has validated their user name.

Wed May 3 09:38:52 2017

I had customers email me with complaints on how to checkout, including not seeing their paypal checkout option. There were many cart issues. I also had customers incl myself have issues with checking out with etsy's new combined orders checkout. Where the problem was, was if you only want to pay one seller at a time you could not. I managed to pay one seller at a time by saving all the other different shops items in save for later first; then I could pay only one seller. I had to explain this to a few customers so they could do the same. I imagine some were so fed up they did not end up making a purchase. I noticed a drop in my sales. Re their new manager, etsy asked for sellers to take a survey and I was one of them. I hate it and told them I didn't want it and why. It takes up even more time...Yet again I found myself forced to use it when etsy switched one of my shops over; until I switched it back over to the old format again yesterday. I hope they do not make it permanent. I hope they continue to allow us to switch back to the old way. I hope they stop making these unnecessary changes and just let us do our job.

What Happened to Etsy in February?   What Happened to Etsy in February?

This user has validated their user name. by: iheartjacksparrow

Wed May 3 10:35:07 2017

It's going to be interesting to see what happens on May 18th when Etsy has threatened to suspend anyone who doesn't switch to their new payment system.  

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Crafteme This user has validated their user name.
Web Site

Wed May 3 10:36:26 2017

I had a shop on Handmade on Amazon and closed it down due to such an insignificant # of sales that it wasn't worth the effort.  Anytime I mentioned Handmade at Amazon to anyone,no one had a clue as to what I was talking about!

As for my Etsy, February I had a growth rate of 248.3% over Feb 2016. However I was down 12.4% from January 2017.  March is the beginning of my busy season so not really a fair comparison but Feb was down 41.7%.  I like to run my numbers regularly as its too easy to get wrapped up in media hype.  As long as my numbers tell me otherwise I will not fret.  If they start declining I'll work on adjusting accordingly.  

Etsy has been treating me well and if the company wants to reap the benefits of their profits by treating their employees well then that is their prerogative. We all live in America for a reason -- FREEDOM to choose!  

What Happened to Etsy in February?   What Happened to Etsy in February?

by: cayenna This user has validated their user name.

Wed May 3 10:43:12 2017

Hello, Please tell me where I can read how they have threatened to suspend anyone that doesn't switch to their payment system? I need to read that as that is not fair... I have been sticking with using both paypal and their Direct Checkout but not just their Direct. For some strange reason I have not seen that announcement. Thank you!

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Sierra This user has validated their user name.

Wed May 3 11:45:08 2017

@cayenna, it's not a threat; it's what they're going to do. The announcement is in the Announcements forum and was posted in mid-April. Here's a link:

https://www.etsy.com/teams/7716/announcements/discuss/183
25841/

If
you have stand-alone PayPal, you can keep it. Since you've been using DC, you don't need to do anything. Etsy Payments is simply the new name for DC.

Etsy does seem to have relaxed their stance a bit for sellers who have moved from one country to another. Since Etsy hasn't been allowing these sellers to change the country of their bank account, most have been accepting PayPal exclusively in their new country. I've read that Etsy will grant these sellers an indefinite exemption from having to sign up for EP and have promised to give a 30-day notice if this ever changes. These sellers *should* contact Etsy though, and not assume they're covered automatically.

What Happened to Etsy in February?   What Happened to Etsy in February?

by: Duster This user has validated their user name.

Wed May 3 11:54:03 2017

cayenna;
Check your junk mail box with the email associated with your shop.
They sent two letters out to all shops not in compliance, even the closed shops.
The latest one was sent out May 1.

What Happened to Etsy in February?   What Happened to Etsy in February?

by: cayenna This user has validated their user name.

Wed May 3 11:57:54 2017

Thank you Sierra, I had read they were threatening so that's why I said it that way. Thank you for clarifying and for the detailed info and link I appreciate it! Good to know I won't have to worry about it! Thank you!

What Happened to Etsy in February?   What Happened to Etsy in February?

by: cayenna This user has validated their user name.

Wed May 3 11:58:48 2017

Thank you Duster this is good to know as well!

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