The end of the old Etsy is (also) our fault

Back in 2005, Robert Kalin was trying to sell some handmade artisanal products online. Surprised to find no specific marketplace for such items, he decided to create one himself. With the help of Chris Maguire and Hai Schoppik, Etsy was born—a short and memorable name that quickly gained popularity. Its success lay in its authenticity and how it helped small artisans reach a potentially international audience with relatively little mediation between the buyer and the original seller, who could communicate through the platform. Etsy offered a marketplace for original creations, obscure film t-shirts, and more. It became a haven for fandoms and subcultures, offering alternative merchandise or the only available merchandise for niche interests. Buyers could also connect with sellers for custom commissions. For years, social networks, especially Tumblr and Twitter, and Etsy went hand in hand, with the latter meeting the needs of the former. When someone couldn't find something on Amazon or eBay, they were often directed to try Etsy—a multi-brand emporium of wonders. In 2015, Etsy went public on NASDAQ, and in 2021, it acquired Depop, further solidifying its success.

Etsy Today

In recent years, however, the landscape of online shopping has changed significantly, and Etsy has felt the impact. People are not only buying and selling on Amazon or eBay anymore. Firstly, its role as a marketplace has been challenged by the integration of shops on other social networks, used for both vintage and original creations. Facebook Marketplace led the way, followed by Instagram's shop tab and TikTok shop, not to mention apps like Vinted. Then came Shein, Temu, and Aliexpress, selling not only at extremely low prices but also shamelessly copying the creations of artists and designers. They flood the market quickly, compromising quality, sustainability, and worker treatment, but satisfying our thirst for objects, purchases, and increasingly lower prices, essentially discouraging investment in higher-quality products. Paradoxically, during the Covid-19 pandemic, there was a growing attachment to what are called small creators or small businesses—artisans or young creatives designing and creating items, accessories, and clothing without the backing of a strong structure for ideation, production, sales, and marketing like major brands. Everyone wants to support them, but few are willing to make the investment, absurdly expecting to buy high-quality items at extremely low prices from individuals handling every production phase themselves or with a very small team.

Dropshipping and Junkification Effect

Big giants, low prices, misleading the concept of being a small business, and bad habits of buyers. It was inevitable that this significant change in how we buy and how things are sold to us would impact Etsy, born in the spirit of craftsmanship. How is the 18-year-old buying and selling platform doing today? Not great. Currently, it seems its biggest problem is the increasingly widespread phenomenon of dropshipping. What is it? In this case, it involves fake artisans and creators who buy products on sites like Shein and then resell them on Etsy, falsely claiming to have invented or designed them personally and making a significant profit. Some TikTok accounts are dedicated solely to exposing them, but it's not enough. To describe this process and its consequences, Danielle Vermeer, founder of Teleport App and an advocate and expert in vintage clothing sales, coined the term junkification effect. In her words: "The junkification effect is what happens when a platform is inundated with low-quality products. A phenomenon that occurs when the platform itself is under pressure and needs to increase profits." According to her, Etsy is not the only marketplace experiencing this. Poshmark and Amazon are also affected. The blame, of course, is not solely on consumers. To allow this new wave of low-quality merchandise to arrive, the site's control mechanisms must also be loosened. All to stay afloat.

Where to Buy Handmade and Used Items?

As buyers, we can turn to other sources to find genuine creations from real small businesses. We can scout on TikTok or Instagram, ensuring that designs are original and refining our eye for dropshipping items. If possible, it would also be a good practice to invest in vintage items in person, in carefully curated stores that are increasingly popping up in our cities, including Milan. However, the truth is that we should reconsider our relationship with purchases, shopping, and objects, favoring a less consumeristic lifestyle.