Amazon launched a new gift shop that offers handcrafted products in different categories like for baby, for him, for the couple, for her, for kids and many others. This comes not just in time for the holidays but also as a potent threat to Etsy, the e-commerce website that’s dedicated to offer handmade or vintage items. Etsy has been struggling for some time and this push by Amazon will only add to its woes.
In Monday trading, Etsy’s shares, which went public in 2015, were down more than 3 percent, an indication of the uphill task of matching Amazon’s infrastructure to be able to serve the same kind of sellers.
Amazon’s Handmade shopping portal, which was launched in 2015, has more than 90,000 items on offer in a variety of categories. The gift shop will therefore bring the focus on holiday gift giving and shift fascination to handcrafted items tailored for specific occasions. For example, last Monday the portal steered visitors subtly by highlighting Halloween gifts and décor. There are numerous items on the site including tie clips, clocks, jewelry, cutting boards and many others.
Etsy, which is struggling with low sales and dwindling marketing spend, has changed CEOs several times and reduced jobs by almost 22 percent.
In a statement, Amazon said that every product on Amazon Handmade has a story behind it and that it was exciting for the company to venture into gift shopping and provide thousands of handcrafted items as gifts with the convenience of Amazon.