Martha Stewart Ditches eBay for Amazon's New Handmade Marketplace
Amazon's (AMZN) - Get Report new marketplace Handmade has been deemed an Etsy-killer, but it looks like Etsy (ETSY) - Get Report may not be the only company that could be left in Amazon's path.
On Wednesday, Martha Stewart announced that she has moved her American Made store from eBay (EBAY) - Get Report to Handmade at Amazon. American Made, which features local food, crafts, and health and beauty products selected by Stewart, was launched on eBay in 2013.
Stewart told The New York Times that Amazon's scale convinced her to make the move.
eBay's vice president for merchandising for soft goods, Jill Ramsey, told The Times that the sellers who were featured on American Made on eBay will continue to sell on eBay regardless of Stewart's move. She added that eBay sells more than a half-billion dollars of handmade products and craft supplies every year.
Nonetheless, Stewart's move signals a growing threat to eBay from Amazon.
Since launching Handmade last month, Amazon has grown its selection to 200,000 products (from its initial 80,000 at launch) offered by more than 10,000 artisans (double the number at launch). Artisans who are selected for American Made are identified in their artisan profile page with a special badge. At launch, hundreds of items are featured in the store.
When Handmade at Amazon was first launched, Etsy (ETSY) - Get Report seemed like an obvious victim.
"The introduction of Amazon Handmade is a very significant setback for Etsy and may even signal the beginning of the end for its growth," Wedbush analyst Gil Luria said earlier this year. "Amazon has vanquished far more formidable foes and has all the resources to dominate this niche market as well."
But apparently Etsy's not the only one that should be worried.