Amazon takes on Etsy with ‘Handmade at Amazon’ store

The online giant based in Seattle will launch on Thursday a new part of its site known as Handmade, which pointed directly at Etsy.

To prepare for the launch of Handmade at Amazon, the firm has sent out thousands of invitations to artists and artisans (including Etsy sellers), asking if they would like to be considered to sell on Handmade. Amazon is strict about the non-factory production requirement – it says that artisans only get approval if the products are made by hand. “We are bringing artisan produced products directly to customers”, said April Lane, category leader of Handmade at Amazon.

Rival Etsy claims 1.5 million active sellers pushing 32 million items that cater to close to 22 million active buyers. Using the new marketplace, customers can discover artisans from around the world, as well as shop local from those based in their community, all while retaining the Amazon format that customers have grown accustomed to.

It’s not a foregone conclusion that Amazon will outright win this market.

Amazon said it will launch the new site with 5,000 sellers offering 80,000 items. Amazon recruited possible sellers to Handmade from Etsy. “All of these products have to be handmade and hand-manufactured”.

Handmade allows the company to pursue yet another piece of the bigger e-commerce puzzle, a step on the way to its ultimate goal of owning all retail.

Gil Luria, an analyst with Wedbush Securities in Los Angeles, tells USA Today: “This is going to be a very challenging time for Etsy”. “Each application is reviewed by a member of our team to ensure that the artisan and their items meet our definition of handmade”. But a few sellers have said over the forums that they were sticking with Etsy, stating reasons such as the effort involved in managing another store presence and the fees that come with Amazon Inc.’s services.

But Etsy CEO Chad Dickerson defended his company’s turf, citing 10 years of experience and the support Etsy provides to its artisan partners.

The move throws down the gauntlet to craft-selling site Etsy.