Amazon is reportedly rolling out a new handcrafted-goods marketplace called Handmade, according to The Wall Street Journal. The Journal obtained invites sent in the past few days from Amazon to Etsy sellers inviting them to sign up for Handmade. Though there were no specifics in the invite email in terms of timing or fees, it's clear Amazon is headed towards Etsy territory.
Etsy and Amazon both declined to comment.
One Etsy seller, Dar Garfield, told the Journal she was surprised to get the Handmade invite since she doesn't even have an account with Amazon, but she is "probably going to do it. "Amazon has such huge traffic numbers on their website already, it's pretty appealing," Garfield said.
Assuming Garfield isn't the only Etsy seller intrigued by the offer, Etsy could find itself in a tough spot.
"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. "Amazon has vanquished far more formidable foes and has all the resources to dominate this niche market as well."
Etsy has already been struggling since its buzzy initial public offering in April, with a disappointing first quarter and a steady drop in share price from an opening day close of $30 to $17.17 as of May 22.