Showing posts with label profit. Show all posts
Showing posts with label profit. Show all posts

Tuesday, March 8, 2011

Still more on Etsy circles

More admin factoids and opinions about the continuing Etsy circle experiment:



"The number of circles someone is in some ways an indicator of their influence [sic]."

First of all, this sentence is missing a verb. Secondly, an indicator of their influence over whom or what, exactly? And again, how does one build the number of circles they are in? If this metric is going to serve as a yardstick against which Etsy measures a member's influence, how does a member improve this number, without resorting to spam? So far, the answer seems to be that you circle every single Etsy name you can find. Also, does "influence" equal "sales"? If not, who cares how influential you are?



"Many members are in hundreds of circles, and their favoriting and circling activity can end up having far-reaching impact."

Impact on whom or what, exactly? Honestly, who has time to look at all of this clutter in an activity feed, process the clutter, and then. . . shocker. . . buy something? I have never bought a listing I saw in my activity feed. Have you?



"It's a number that can be increased by sharing and be generous."

There's no doubt the number can be increased. Generosity has nothing to do with it. People are now madly circling anything in a blind act to be influential and impactful. It no longer has anything to do with personal taste, much less generosity. It's now become a desperate attempt to unlock the Etsy Success Code in the new social commerce experiment.



"Circles are about people, and people are behind shops."

I have to call bullshit here. Circles are about clicks, possibly about marketing the site and not the seller, maybe oh so slightly about actual sales. Circles are not at all about people, in this incarnation.



"Soon people will be able to have multiple shops on Etsy."

I'm sure that's news to many peoople who already have multiple shops on Etsy. If the intention here is to be able to run multiple shops without having to sign out and sign back in, that is one change that would be useful to many sellers.



"I've heard folks here [in the forums] refer to it as a popularity contest, but it's a much more democratic one than anything that has come before it here."

I want to diagram this sentence. People have refered to the Circlization as a popularity contest, yes. So, this sentence says it's a "more democratic" popularity contest? Like voting on Homecoming King and Queen? Also, this is the first time I've ever seen an admin admit that Etsy has not been democratic in the past.

sean11 is starting to crack.

I would like to summarize this from my point of view. I'm in a lot of circles. I'm signed in to Etsy for hours a day. I don't look at my Activity Feed, except to clear the number. I have never bought anything from my Activity Feed.

My perception is that it all comes down to clicks over commerce. The site looks more popular without actually selling more. It is a commerce site, after all.

Have we seen the February Weather Report yet?

Wednesday, February 9, 2011

Analyzing "An insider speaks on the cult of Etsy"

On February 2, this online article was published, An insider speaks on the cult of Etsy, an interview with Matt Stinchcomb, Etsy's European director and one of its first employees. He says several interesting things here.

"Rob [Kalin, founder of Etsy] was coming at it from the lens of someone who is a maker. He wasn't coming at it from the point of view 'what's the best business model?'"

This explains both the warm roots of Etsy as a welcoming community for artists, as well as how Etsy has outgrown itself, with no initial idea of a business plan that allowed for this growth. It started as a handmade site for handmade items. It outgrew its skeleton, so to speak, and had to adapt. The problem now is in the nature of its adapting, while maintaining its integrity and original vision.

Handmade was the heart of Etsy--creators selling handmade items to buyers, often developing relationships along the way. Is handmade the focus in the long term, new business plan?

"Rob hired me to do the marketing, and I have no experience in marketing."

I understand this statement better than I should, maybe. I don't have a marketing degree, yet I market my shop all the time. I'm not in charge of marketing for what has become a million dollar website, however.

"We think there is a more sustainable model which focuses on micro-enterprise and micro-economies."

I'm going to be honest with you. I have no idea what this means. Micro-enterprise would seem to mean small business, right? Isn't that what Etsy already is? A crowd of small business owners collected under one online store front awning?

As for the micro-economies. . .

"What gets really interesting locally is the idea of local currencies. I would love to see an Etsy currency evolve. We could create a whole new economy of micro-economies."

I'm not sure what to make of this either. Etsy currency? Moustaches traded for owls? An Etsy sort of Euro printed on orange paper with a cowl on it under "In Rob We Trust"? If the point is to sell locally, I can already do that at festivals and shows. If the point is to become a sort of swap meet/trading venue, that is not going to pay my internet bill so I can keep a shop.

I like selling my products to people on other contintents. That's part of the thrill of selling online, reaching customers you would never reach otherwise. I also like selling my products for money, and not trading them for sheep. Sheep are cute, but I don't have much use for one.

There is also a paragraph that basically states that more women use Etsy because the profit margin is too low for men to bother with. Sure.

More women use Etsy because more women make stuff. It's that simple. Some of them are stay at home moms. Some of them work outside the home, and love to make stuff. We make stuff, and we'd like to sell that stuff. We'd like to make a profit. Just because we don't have penises does not mean that we settle for less. Usually we do more, in fact, because we love what we do.

And Matt's closing quote: "Always be honest and do what you think is right, not what will make you the most money."

An honorable statement, to be sure. In light of the recent changes on Etsy, I would also say it's dripping with hipster irony.

Be honest, Etsy, and explain your grand plan to us. We're all adults. We can handle it.

The right thing to do is to stand by the artists who built your site when you didn't even have a business plan. Don't silence them, destroy their community, and dismiss their concerns.

I have to believe Etsy's eye at the moment is on what will make them the most money, and let the handmade heavens fall.

Tuesday, February 8, 2011

Addressing the negativity charge

Greetings and salutations, and thanks for coming. I'd like to talk now to those who say that online negativity will kill Etsy, and to those who say if you don't like Etsy then you should shut your mouth and leave.

Here's why I'm feeling not so positive, and here's why "just leave" is not an intelligent response.

Yes, Etsy is a privately held (for now) corporation, and as so can do as it sees fit with its company, including its website. But how does Etsy make the majority of its money? From listing fees. Who pays listing fees? Sellers. How does Etsy make the rest of its money? From percentages of sales dollars. Does Etsy proper actually sell anything, beyond the "Quit Your Day Job" dream? No. Then who sells the items that Etsy collects a percentage of? Sellers.

Let's break it down even more. How many sellers also shop on Etsy and buy there? Lots. Etsy is full of amazing handmade items, beautiful supplies and drool-worthy vintage. We are paying Etsy on both ends, so to speak.

What is Etsy's main method of advertising? The advertising done primarily by its sellers, whether word-of-mouth, seller blogs, seller business cards, sellers tweeting, or sellers paying to advertise their shops.

Sellers support the site. Sellers get the site seen. Sellers are Etsy's customer base.

From what I have heard of late, the majority of sellers, Etsy's customers, are unhappy with recent changes. I am one of these sellers. There are many who have been on the site longer than I have, and basically built Etsy from the ground up. I salute you long timers. These sellers are trying to make their views heard, and are being silenced and ignored and shut down.

That makes me negative. I started this blog to figure out why I'm negative, if my negativity is justified, and if there's a way to remedy it.

Why don't I leave? Because I've built a business with a customer base at Etsy. Because I've put hundreds of hours of work into my shop there. And because I refuse to give up until I'm sure that the benefits of closing shop outweigh the benefits of staying open.

I'm a business person at heart. This means I understand the soul and passion that sellers have put into creating their Etsy shops, and I understand their fierce loyalty to those shops. I also understand those who feel they will do better elsewhere, and move on. I even understand those who hate negativity. We have all loved Etsy. Some of us are just having a more difficult time doing that at this time.

If you can't intelligently question the wisdom of decisions that impact your business with other business owners, how are you supposed to learn anything?

And, if you treated your customers the way Etsy has treated its sellers, how long would your shop have stayed open? If you ignored direct pleas for clear information, suggestions on how to improve the buyer-seller relationship, convos asking for satisfaction with problem transactions, how would your feedback look?

Consider this blog my feedback for Etsy. They have my twenty cents for each and every listing. I want delivery on the product I was promised. I still have hope that it might get better. Until then, color me negative.