Etsy Fires 225 Workers Right Before Christmas! What this means for you

12/22/23 • 16 min

Etsy's Year in Review & Workforce Changes: What Sellers Need to Know

As we reflect on Etsy's journey through 2023, two major stories stand out: the release of Etsy's comprehensive year in review for sellers and the recent news of Etsy reducing its workforce by 11%. Let's unpack what these developments mean for Etsy sellers moving forward.

Etsy’s Annual Performance Review: A Seller’s Perspective

Etsy has rolled out its year in review, offering sellers a personalized look at their performance alongside a broader review of the platform's new features and initiatives in 2023. This annual recap is more than just a reflection; it's a tool to help sellers understand their growth and areas for improvement, considering the platform's evolving landscape.

Workforce Reduction: A Tough Call

The announcement of Etsy laying off 225 workers, around 11% of its workforce, right before Christmas, has sparked a mix of reactions. While it’s a tough pill to swallow, especially during the festive season, it's important to understand the context and implications for sellers.

Etsy's Growth and Staffing Dynamics

It's noteworthy that Etsy's workforce doubled since 2019, fueled significantly by the COVID-19 pandemic. However, general merchandise sales have plateaued since 2021, leading to this workforce adjustment. Similar actions were observed at other e-commerce giants like eBay and Amazon earlier this year, signaling a broader industry trend.

Etsy's Financial Health and Seller Impact

Despite the workforce reduction, Etsy remains a robust, profitable entity, consistently surpassing many of its quarterly financial expectations. These changes appear to be strategic moves to conserve costs amidst inflated staffing levels following the pandemic-induced growth spurt.

Should Sellers Be Concerned?

For Etsy sellers, the immediate concern may revolve around whether such changes signal instability or reduced support. However, considering Etsy's profitability and strategic planning, the impact on sellers might be minimal. Large organizations typically have systems to manage such transitions smoothly, although only time will reveal the full impact.

Continued Investment in Seller Initiatives

Encouragingly, Etsy is not stepping back from investing in seller success. With a $50 million investment in seller initiatives in 2022 and a growing buyer base – reaching about 95 million in 2022 – Etsy is showing a commitment to fostering a dynamic, seller-friendly environment.

Looking Ahead: Adaptability and Resilience

As Etsy continues to evolve, sellers need to remain adaptable and resilient. Understanding market trends, leveraging Etsy's seller tools, and staying informed about platform changes are more crucial than ever.

Conclusion

The recent workforce reduction at Etsy, though significant, is part of a broader business strategy common in the e-commerce industry. For Etsy sellers, the focus should remain on leveraging the platform’s resources, adapting to market trends, and continuing to grow their businesses in this dynamic marketplace.

Remember, Etsy's investments and growing buyer base are positive indicators for sellers worldwide. Here's to a resilient and prosperous journey ahead for all Etsy entrepreneurs!

Etsy's Year in Review & Workforce Changes: What Sellers Need to Know

Etsy’s Annual Performance Review: A Seller’s Perspective

Workforce Reduction: A Tough Call

Etsy's Growth and Staffing Dynamics

Etsy's Financial Health and Seller Impact

Should Sellers Be Concerned?

Continued Investment in Seller Initiatives

Looking Ahead: Adaptability and Resilience

Conclusion

Remember, Etsy's investments and growing buyer base are positive indicators for sellers worldwide. Here's to a resilient and prosperous journey ahead for all Etsy entrepreneurs!

Previous Episode

Etsy 2024 Trends - Get More Sales!

Stay Ahead in 2024: Unpacking Etsy's Trend Report for More Sales

Are you gearing up to take your Etsy shop to new heights in 2024? In my latest video, I delve deep into the 2024 Etsy Trend Report, a treasure trove of insights that can set your shop up for success in the coming year.

Understanding emerging trends is crucial for any Etsy seller looking to stay ahead of the curve. This report isn't just a list of popular items; it's a roadmap to what buyers are seeking, giving you the opportunity to align your offerings accordingly.

Don’t Forget To My Free Guide “Get Your First 100 Sales & Beyond!

Learn what to do to reach 100 sales with some motivation mixed in! Free Download.

https://www.handmadeandbeyond.com/100sales

Next Episode

Hit Your Etsy Goals in 2024 - Use These 5 Strategies

Achieve Your Goals In 3 Steps: Etsy Goal Framework (free download)

Get the exact process to follow that will help you set and crush your goals in your handmade business this year! Includes walkthrough steps, worksheets, and examples.

https://www.handmadeandbeyond.com/goals

Achieve Your Etsy Goals in 2024: 5 Strategic Tips for Success

As we step into 2024, setting clear, achievable goals for your Etsy shop is more important than ever. To help you not only set these goals but also reach them, I've compiled a list of five strategic tips that will guide you through this journey.

1. Reflect on Last Year's Positives Before diving into the new year, take a moment to reflect on what worked well for you last year. Identify 3-5 positive aspects of your Etsy business. It's easy to focus on what didn't work, but understanding and building upon your successes can provide a solid foundation for future growth.

2. Identify Areas for Improvement Now, think about 3-5 things you could improve in 2024. This isn't about dwelling on failures, but rather recognizing areas where you have the opportunity to grow and enhance your Etsy shop.

3. Set a Singular, Attainable Goal What is your primary goal for the end of 2024? Choose just one. This focus will help you channel your energies effectively. Ensure your goal is realistic and within reach - setting unattainable goals can lead to frustration and demotivation.

4. Get Specific with Your Goal Vague goals are hard to achieve. Make your goal as specific as possible. For instance, instead of saying, "I want to increase sales," quantify it: "I aim to increase sales by 20% by the end of 2024." This specificity will make your goal more tangible and measurable.

5. Weekly Actions for Goal Achievement Finally, break down your goal into smaller, manageable tasks. What are 1-2 actions you can commit to every week that will lead you toward your goal? This could include optimizing your listings for SEO, creating new products, or enhancing your marketing strategies.

Implementing Your Strategy

Consistency is Key Remember, the consistency of your actions is crucial. Regularly working towards your goal, even through small weekly tasks, can lead to significant progress over time.

Track and Adjust Regularly track your progress. If you find that certain actions aren't bringing you closer to your goal, don't be afraid to adjust your strategy. Flexibility can be just as important as persistence.

Stay Motivated Keep your goal visible, whether that's a note on your desk or a reminder on your phone. Staying mindful of what you're working towards can help maintain your motivation throughout the year.

Conclusion

Setting and achieving goals for your Etsy shop doesn't have to be a daunting task. By reflecting on the past, setting a clear and attainable goal, making it specific, and committing to consistent actions, you can make 2024 your most successful year yet. Here’s to reaching new heights in your Etsy journey!