NEW YORK (TheStreet) -- Etsy(ETSY) - Get Report stock is sliding by 4.51% to $13.54 in mid-morning trading on Thursday, after e-commerce giant Amazon.com (AMZN) launched its rival site 'Handmade' today.
Handmade, which describes itself as "a new store on Amazon.com for invited artisans to sell their unique, handcrafted goods to our hundreds of millions of customers worldwide," is viewed as a direct competitor to Etsy, which describes itself as "a marketplace where people around the world connect, both online and offline, to make, sell and buy unique goods."
Although Etsy has been selling handcrafted goods for 10 years now, Amazon has more than 10 times Etsy's roughly 22 million active buyers, the Wall Street Journal reports.
Etsy sellers reportedly received notes from Amazon last spring asking them to sign up for Handmade, the Seattle Times reports.
"Other sites are really about price and convenience," Etsy CEO Chad Dickerson told the Journal. "We don't put our stuff next to mass-produced items."
Etsy went public in April, and closed its first day of trading at $30, 88% above its initial public offering price of $16, MarketWatch reports. On Wednesday, the stock closed 11% lower than its IPO price, at $14.18.