- Amazon (NASDAQ:AMZN) is prepping Handmade, a marketplace for handcrafted goods that takes direct aim at market leader ETSY. The WSJ reports Etsy sellers have received invites offering a sneak peek at Handmade, and directing them to a questionnaire regarding which products they offer.
- Amazon's huge customer base and fulfillment infrastructure could quickly make it a thorn in Etsy's side. At the same time, Etsy's cult following and large network effect of craft/vintage goods buyers and sellers arguably make it tough to dislodge. Also (as noted by the WSJ), Etsy's 3.5% cut and $0.20 listing fee might make it cheaper than Handmade - Amazon currently takes up to a 15% cut on marketplace sales.
- Amazon is two months removed from launching a home services site that competes against Angie's List. The company has also recently launched a restaurant takeout/delivery service that competes against GrubHub.
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ETSY -1.2% AH to $16.96. Shares plunged on Wednesday thanks to the company's Q1 numbers, briefly dipping below April's $16 IPO price.