This e-commerce site is changing the labels of its products to compete with Amazon and Flipkart

Etsy, known for offering handmade and vintage goods, is expanding its product categories. Previously, the online marketplace had a more restrictive approach, focusing mainly on handmade and vintage items. The platform has since opened its doors to sellers of mass-produced goods.

The new update will allow the company to offer customers a wider range of products while focusing on unique and creative goods. Etsy also said the approach will help it better compete with e-commerce giants like Amazon and Flipkart.

In a video message, the company’s CEO Josh Silverman said, “The common theme is that the items are infused with a human element, because that’s what makes Etsy, simply, Etsy.”

Watch the video here (Cue 3:09)


The company also explained that the goal of the new categories is to provide buyers with more information about the product manufacturing process and the seller’s involvement in that process.


New Product Categories on Etsy

Etsy said adding labels to new listings will help 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 product listings:

Made by: This label applies to products manufactured or assembled by the seller.

Designed by: This includes digital downloads or items that buyers can personalize based on the seller’s design.

Selected by: This applies to “vintage” items, selected and found by the seller.

Source: This includes craft supplies, party decorations and similar items that the seller has purchased for the purpose of selling.

Etsy emphasized that these changes will not affect their current policies. However, sellers on the platform will still not be able to resell mass-produced items in order to provide their customers with unique and creative products.


How this change will help Etsy compete with other platforms

Unlike other popular e-commerce platforms like Amazon and Flipkart, Etsy offers unique, handmade items or carefully selected vintage finds. However, over time, Etsy has relaxed its restrictions on what qualifies as “handmade.”

While this shift has brought more creative sellers to the platform, it has also opened the door to resellers of mass-produced goods. Many Etsy shop owners have expressed frustration, calling these sellers “scams” ​​and “drop shippers” who flood the market with cheap, factory-made items that pass themselves off as handmade.

These sellers felt that Etsy wasn’t doing enough to enforce its original focus on handmade products. This is a key concern as Etsy tries to maintain a distinct identity compared to ultra-low-cost online retailers like Meesho, which often sell mass-produced products.