
A few months ago, the CEO of Etsy made a controversial statement at an investor conference, claiming there was no significant market for handmade goods. This declaration stirred considerable unrest within the handmade community, particularly among artisans who depend on Etsy for their livelihood. I've given this comment a lot of thought over the past few weeks, and here's how I interpret the term "handmade" in relation to my own businesses.
There is definitely a market for handmade...and there also is not
As someone who has been crafting and selling handmade goods since 2010, I can confidently affirm that there is indeed a market for such items. However, I contend that the mere label of "handmade" does not singularly drive sales. More specifically, consumers purchase items to meet a particular need, which in the context of my business, is often for a meaningful, high-quality gift. Generally, I do not believe that "handmade" is the primary criterion for my customers when fulfilling this need. I have substantial data to back this assertion, which I will discuss in further detail later.
Handmade is a loaded word.
The term "handmade" evokes a wide array of interpretations and images for different individuals. For some, it conjures visions of cozy, crocheted pot holders made by grandma; for others, it recalls the charming, albeit simplistic, crafts from grade school. Some see "handmade" as a necessity born from financial constraints, where individuals craft items out of necessity rather than choice. Conversely, for many, "handmade" is associated with the artisan markets of Etsy or the vibrant atmosphere of craft fairs. The emotional response to "handmade" can be equally diverse: a handmade gift might be cherished as a thoughtful gesture, or it might be dismissed as a sign of frugality. "Handmade" can denote the exclusivity and luxury of artisan craftsmanship, like a finely stitched silk baptismal gown for a newborn, or it could represent the humble transformation of everyday items, such as a candle holder fashioned from a Pringles can.
Thus, the challenge becomes evident: "handmade" is a term laden with varied connotations. This ambiguity is precisely why I tend to steer clear of using "handmade" when describing my own work.
The hard facts
In the realm of e-commerce, a considerable amount of time is devoted to crafting descriptions that make products discoverable by potential buyers through search engines, a process known as Search Engine Optimization (SEO). As I delve into this data over time, I gain a clear understanding of what my customers are truly seeking. I can pinpoint the exact words and phrases that lead customers to my listings, and intriguingly, "handmade" does not rank as a significant keyword for either of my shops, despite all items being genuinely handmade.
Moreover, broader data from Etsy corroborates the notion that "handmade" might not be the market driver one might assume. For instance, monthly searches on Etsy for "handmade gifts" hover around just over 25,000, while "personalized gifts" garner over 89,000 monthly searches, with a peak of more than 340,000 in December 2024 alone.
The terms that successfully attract customers to my products are descriptive words like unique, meaningful, personalized, and thoughtful, coupled with specific details about the items and their intended recipients. Thus, as a seller of handmade goods, I market my work not with an emphasis on "handmade" but as the solution to finding a thoughtful, unique gift for specific demographics like readers, teachers, or book lovers.
In a somewhat ironic twist, towards the end of December, I encountered a new Etsy advertisement branding the site as "the destination for all things handmade." This was quite amusing given the earlier controversy sparked by the CEO's remarks regarding the market for handmade goods. I'm curious about the feedback Etsys received that influenced the renewed emphasis of handmade in marketing strategy.
Wishing everyone a safe and prosperous 2025.
On the journey,
Nancy