test purchase
sales tracking
marketplace monitoring
enforcement
image monitoring
etsy

The winner of COVID: Etsy

 

The year 2020 was not kind to most of us. The coronavirus pandemic that hit the world in the spring of last year left people and businesses stunned. Many tried adapting to the new circumstances; some with success, others, not so much.

Online marketplaces, however, can definitely be counted toward the winners of the new situation. With people forced to stay at home, online shopping and E-Commerce rose to new heights. The global E-Commerce market is currently worth $3.53 trillion.

Big marketplaces like Amazon, Target, Otto, Aliexpress, Zalando, Allegro, and Walmart were able to multiply their revenue.

Just on Cyber Monday alone (which is typically the last day of the fall sales around the end of November), Target’s turnover grew by 43%, Walmart’s by 36%, and Amazon’s by 19%.

However, the biggest winner of Cyber Monday is a smaller, less well-known marketplace: Etsy. The platform specializes in hand-crafted and vintage goods, in line with its motto: “Keep commerce human.” This Cyber Monday, Etsy managed to grow its turnover by 73% compared to last year.

This was not an isolated event: in 2020, Etsy’s stock tripled its worth on the stock market.

And the secret behind this success is a new accessory that quickly became a must-have around the world: face masks.

In the second and third quarter of 2020, Etsy made over $600 million on hand-crafted face masks. Although masks greatly contributed to Etsy’s sudden success, we still can’t say the marketplace is a one-hit-wonder.

Despite the declining sale of masks in recent months (they only constituted 11% of all sales in the third quarter), Etsy continues to go strong.

What is Etsy

Founded in 2005 and based in the US, Etsy is a global online marketplace that provides a platform to artisans, antique sellers, and artists.

Individual sellers can create their own virtual storefront within Etsy and deal with buyers directly. Etsy provides the framework and infrastructure, like payment processing and shipping labels, for a fee.

The most popular articles available on the platform are hand-crafted jewellery, home decor, furniture, art, craft supplies, and in 2020, obviously, face masks.

But most Etsy sellers are not hobby artists who sell their handmade jewellery for a small price. In fact, 61% of Etsy sellers are multi-channel retailers, also active on other platforms like Amazon or eBay. With over 2.5 million sellers in 234 countries (including Germany where the platform took over its local counterpart DaWanda in 2018), Etsy is a global E-Commerce giant.

How is Etsy different

The main difference between Etsy and other, well-known E-Commerce platforms like Amazon, Wish, or Aliexpress is the fact that Etsy mainly aggregates individual sellers. While Etsy aids its sellers in the process of shop building and selling, it doesn’t sell the products on their behalf like Amazon.

In this regard, Etsy is similar to Shopify. The Canadian E-Commerce marketplace also provides an opportunity for individual sellers to build storefronts and connect with customers. However, Shopify sellers are not specialized toward hand-crafted or vintage items, which means they offer a much wider range of products.

Brand protection on Etsy

While Etsy is not considered a trashy marketplace, brand owners are definitely facing challenges on the platform. This mainly arises out of the fact that Etsy shops are typically operated by private sellers and not merchants authorized by brands.

This can cause many problems for brands, including grey markets, counterfeit products, trade- and copyright infringements.

For example, this listing on Etsy is offering face masks with the well-known Nike logo.

However, this seller is not an associate of Nike’s but a private individual offering their own creations. This is a clear case of copyright infringement that harms Nike’s reputation.

Listings like these can pop up fast and easily. Brands have no way of checking every single seller on marketplaces like Etsy to look for listings that may harm them.

This is where online brand protection experts like globaleyez can help brands protect their intellectual property, reputation, revenue, and much more.

globaleyez on Etsy

globaleyez’s clients have faced several issues on Etsy. Copyright infringement is one of them. As the above case with the Nike masks shows, it’s very hard for brands to check if someone is using their imagery without their consent.

However, online brand protection experts with the right tools can detect and eliminate threats to your brand’s copyright on Etsy right away. Look what the seller of an infringing listing sent us after we asked Etsy to remove it:

No, we don’t have anything better to do than protect brands from various threats. And if that leads to “complaining to Etsy about intellectual property” (which actually means demanding that Etsy remove the copyright infringing listing), then so be it.

Actually, the majority of Etsy sellers we catch in the act of copyright infringement are very apologetic and vow to never ever do it again. This is a fine example of how brand protection can make the world safer for all of us, one step at a time.

Or rather, several hundred steps. In December alone, we had to ask Etsy to remove hundreds of copyright infringing products on behalf of our clients. Luckily, we have excellent cooperation with the platform and the infringing listings always disappear within 24 hours.

Another typical issue our clients are facing on Etsy is grey marketers. A grey market is when an authentic brand product is offered via a wrong distribution channel. This is not fraud and in many countries not even illegal; however, it’s still quite damaging to brands.

If you don’t authorize a seller to offer your products, you don’t have any legal relationship with them. You don’t have any control over their selling price, customer service, presentation of the products, and much more. Practically, these grey market sellers represent your brand without you having any say in the process.

On top of this, grey marketers distort the market, putting brands’ price and volume stability in danger. As it creates uncontrollable competition, it erodes the trust and margins in the authorized distribution channel.

It’s easy to see why grey marketing can cause immense damage to brands. But, like copyright infringement, grey marketers are very hard for a brand to detect. For globaleyez, on the other hand, tracking down grey marketers who sell your products without your consent is part of the job.

Our comprehensive services are geared toward detecting grey marketers, counterfeiters, copyright infringers, and any other threats your brand may face.

Marketplace monitoring

If you want to know who’s selling your products or stealing your copyright on Etsy, our marketplace monitoring service is your best chance. Our very own software tool, traxster crawls through the marketplace and tracks down sellers who offer your products (real or counterfeited), with or without your knowledge. We deliver our report and advise you on how to proceed.

Image monitoring

Sometimes, counterfeiters and grey marketers use pictures as well as text. Brand imagery is often stolen to help grey marketers or counterfeiters lure customers to them. This is why we developed our image monitoring service and infrimage, our software tool that monitors and detects your brand imagery online and lets you know who is using your copyrighted images, with or without your consent.

Test purchase

Based on our search results, we conduct test purchases. This means that we order the product from the unauthorized sellers as regular customers to discover their processes and to learn whether they offer the original products.

Marketplace sales tracking

Armed with our findings from marketplace and image monitoring as well as our test purchase, we flag unauthorized sellers and track their sales for a period of time.

This way we can find out how much turnover the seller is making in the particular marketplace and how much loss your brand is incurring as a result. It helps us to find out who the "big fish" are and who is worth taking action against.

As a welcome “side effect” to our sales tracking service, your brand may see which markets would be worthwhile to enter. For example, there may be an unauthorised distributor of branded products in the US (a market that a brand itself may not have tapped into yet) with considerable success and turnover.

This indicates that the market could be a suitable sales outlet for the brand. Talk about killing two birds with one stone.

Enforcement

Knowing who steals your copyright, sells your products (real or counterfeited) without your consent is nice, but nowhere near enough. This is why globaleyez offers enforcement services. If you require us to do so, we can enforce your rights and assist with the takedown of fraudulent listings from any marketplace, social network, or even a standalone website.

If you’re unsure whether sellers on Etsy (or any other marketplace) are offering your products without your consent or stealing your brand’s imagery and infringing your copyright, get in touch with us. We’ll be happy to explain our work and help you choose the services that best fit your brand’s needs.

picture of author

Related news

Bye 2020! - The year of globaleyez in …

Discover how globaleyez combatted counterfeiters and coronavirus in 2020. The p…

discover more
Physical retail on the brink of extinc…

E-Commerce brings new dangers to brands. Find out how brand protection can help…

discover more
globaleyez at GOSINTCON 2020

Discover how open source intelligence tools can help your brand protection need…

discover more