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Etsy Partners With . . . Macy's?


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Well it sounds like it's a one location deal.   That might work for artisans.  Quantities for a single location would most likely be manageable.   But if expanded to multiple locations,  it would be risky for small operations.  Can't imagine Macy's not having a sales contract and if you see the words "charge backs" .... RUN.   I dealt with department stores a couple of times with jewelry and scarves and thankfully had someone advise me on charge backs but it is a stressful experience.   And not as profitable as it looked to be.   I wonder if Etsy will do all of the negotiating?   Seems like Etsy will be functioning as a rep.

 

http://fashion-incubator.com/freight_and_warehouse_chargebacks/

http://www.apparelsearch.com/terms/c/chargeback_fashion_industry_chargebacks.htm

 

This is fashion but all departments in department stores have charge backs.    I know a gift importer that actually owed a department store money after all the charge backs were subtracted.

 

I'm not sure this will generate significant revenue in a one location deal.  I've seen lots of department store orders and the dollars come from the order total X 60 (or more) locations.    Personally I would not be interested in selling to department stores.    I don't have enough control over my pottery.  If a kiln broke down and you missed a deadline, it would cost you.   IF I did, I would do it through a LLC owned by a holding LLC in Nevada (or one of those other states that allows series LLC's).

 

Macy's wouldn't work for me .... maybe it would work for some of you.  And who knows, maybe they won't press a sales contract on the Etsy artisan sellers.  But I somewhat doubt it.

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Interesting development. Also, I did not know that Etsy was doing so poorly in terms of stock value.

 

My experience with wholesaling is that small craft galleries are aware of the production and time limits for hand makers, and try very hard to respect those boundaries. There are some potters (and makers in other mediums) who can produce high volumes, and some who can't, and craft galleries understand this.

 

The one time I worked with a major retailer, one who carries some handmade and some mass-produced, the experience was very different. The buyer seemed to be intentionally ignoring my boundaries. i.e. I would say "I need six weeks to produce this order" so they would send a purchase order with a 5 week turnaround, then send another purchase order for the same quantity two weeks later. When I tried to explain why that doesn't work, they seemed to think I was a diva.

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Interesting development. Also, I did not know that Etsy was doing so poorly in terms of stock value.

Well, that happens too often when ventures go public . . . you become beholden to the shareholders and lose the ability to be as altruistic as you were when starting out. It's all about dividends.

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This story sounds like one of greed.

Mark

 

I think they had good intentions when they started, and then slowly got away from their core values which happens. Then it got even worse when they went public.

 

Right now its a crucial time for their business, and I think they are going further and further away from what its sellers want. I thought amazon marketplace was going to hurt them, but its not done very well at all. Interesting time to be Etsy, and an investor. It would be a beautiful stock to buy if you believed in them recovering back to their previous glory.

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Esty is not losing buyers or sellers.  22% increase this year.   They have been losing money for several years.    They state the loss is from employee and marketing costs.  And something about establishing aninternational market place.  Look at some of their numbers.

 

http://www.statista.com/statistics/219412/etsys-total-merchandise-sales-per-year/

 

http://www.marketwatch.com/story/etsy-shares-fall-after-third-quarter-earnings-report-2015-11-03

 

So ..... more sellers, more buyers ... losing money.   I'm sure some of us would like to think disgruntled artisans are leaving but if they are they are being replaced.  I would point to management as the problem.    This deal with Macy's .... expanding to bricks and mortar when online is the growth market.    I don't see a clear direction.  They are growing sales at a more than acceptable rate but losing money.    After reading I'm not impressed with Etsy's strategy and their stock reflects these problems.

 

Thanks for posting this.   It would have passed me by and I enjoy this type of reading.

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