This e-commerce site is changing its product labels to take on Amazon, Flipkart

Etsy, known for offering handmade and vintage goods, is expanding its product categories. Previously, the online marketplace had a more restrictive approach and focused mainly on handmade and vintage items. Later the platform opened doors for resellers of mass-produced goods.
This new update will allow the company to offer its customers a wider variety of products while maintaining a focus on unique and creative goods.Etsy also said that this approach will help it to compete better against e-commerce majors like Amazon and Flipkart.
In a video message, the company’s CEO Josh Silverman said: “The consistent theme here is that items are infused with a human touch, because that’s what makes Etsy, well, Etsy.”
Watch the video here (Cue 3: 09)

The company also explained that the goal for the new categories is to provide more details to shoppers about how an item is made and how a seller is involved in the process.

New product categories coming to Etsy

Etsy said that it’s adding labels to its new listings will better explain where products come from. The latest change comes with a new policy update that creates four classifications for sellers. These categories will be visible on Etsy’s product listings:
Made By: This label applies to products crafted or assembled by the seller.
Designed By: This covers digital downloads or items that buyers can personalise based on a seller’s design.
Handpicked By: This is for “vintage” items that the seller has curated and found.
Sourced By: This includes craft supplies, party decorations, and similar items that the seller has obtained to sell.
Etsy emphasised that these changes won’t affect their existing policies. However, sellers on this platform still won’t be allowed to resell mass-produced items to ensure that their customers are getting unique and creative products.

How this change will help Etsy to compete against other platforms

Unlike other online popular e-commerce platforms like Amazon and Flipkart, Etsy offers unique, artisan-made items or curated vintage finds. However, over time, Etsy loosened its restrictions on what qualified as “handmade.”
This change brought more creative sellers to the platform, but it also opened the door for resellers of mass-produced goods. Many Etsy shop owners voiced frustration, calling these sellers “scammers” and “drop shippers” who flooded the marketplace with cheap, factory-made items disguised as handmade.
These sellers felt Etsy wasn’t doing enough to enforce its original focus on handcrafted goods. This is a critical issue as Etsy tries to maintain its distinct identity against ultra-low-cost online retailers like Meesho which often sell mass-produced items.