Etsy Falls After Amazon Debuts Rival Marketplace for Artisansby
Amazon is taking on smaller Etsy with `Handmade' website
Handmade will start with 80,000 items from 60 countries
Etsy Inc. shares slid after Internet giant Amazon.com Inc. announced plans to start a rival marketplace for artisan goods.
Etsy, which sold shares in an initial public offering in April, fell 5.3 percent to $13.43 at 10:17 a.m. New York time. Through Wednesday, the stock had slumped 11 percent since the IPO.
Amazon is taking on smaller Etsy with an online store called Handmade, offering customers more than 80,000 items from 60 countries. Just like Etsy, Amazon’s Handmade will feature items crafted and sold directly from artisans, including jewelry, home décor and artwork.
Amazon started offering invitations in May to join Handmade, giving sellers access to Amazon’s 285 million shoppers, according to the AP.
At the end of last quarter, Etsy had almost 1.5 million sellers and 21.7 million buyers.