How Etsy Bet on New York Against Fast Fashion and Won

In the age of cheap, soulless fast fashion and dropshipping, Brooklyn-based Etsy is banking on the idea that customers want unique, custom products created by real humans.

Earlier this week, the company announced new rules aimed at increasing transparency around where items come from, keeping waste off the platform, and ensuring that everything on it is made by real humans.

It's a bold move as e-commerce giants like Walmart and Amazon compete to cut prices and offer faster shipping, while Chinese companies like Temu and Shein are booming.

“We're really looking to differentiate ourselves more than we are…compete,” said Raina Moskowitz, Etsy's chief marketing officer and chief operating officer.

Savvy shoppers increasingly see the value in Etsy's distinct offerings, even if they have to wait three to seven business days to receive them in the mail.

In 2023, some 92 million shoppers spent $13.2 billion on the platform, bringing the company's annual revenue to a record $2.7 billion.

“The more people experience these mass-produced, commoditized shopping experiences, the more people will want something different,” Moskowitz told The Post from the company’s Dumbo headquarters. sitting on a walnut wood chair by Macedonian designer Katerina Trpkovska who was decorated with a pillow adorned with the phrase “Please leave by 9 o’clock” by New Hampshire-based Shawna Moore.

Etsy was started by three friends Rob Kalin, Chris Maguire, and Haim Schoppik in a Brooklyn apartment in 2005. Their goal was to create a website where crafters like themselves could sell their unique products.

By 2007, the company had sold a million products. When it went public in 2015, it was valued at $1.8 billion, the largest venture-backed IPO ever in New York.

In 2016, it moved into its current headquarters, a 200,000-square-foot space filled with light, plants, reclaimed wood and furniture from Etsy sellers.

Today, it has a market cap of $6.7 billion and 2,500 employees, making it the largest tech company in Brooklyn.

While Etsy has sellers and buyers from 234 countries around the world, Moskowitz said the Big Apple is at the core of its identity.

“New York is our headquarters and we’re very proud to be part of the local creative scene and think it really contributes to what makes Etsy so successful,” she said. “So many people want to live and work in New York that we’ve been able to attract top talent to relocate here.”

The Brooklyn ethos believes that the key is the creation of talented young artisans who make high quality, trendy and tasteful items.

“It’s a really important part of our culture,” Moskowitz said.

As a publicly traded company, it must balance this philosophy with shareholders' thirst for profit. Smart marketing and smart partnerships have been essential.

In February, Drew Barrymore was hired as director of gifting, with the actress-turned-talk show host curating her favorite products on the site.

And Beyoncé got some organic promotion last year when she wore a $215 mirrored plaid cowboy hat from seller Abby Mishbin in an ad campaign promoting her Renaissance tour.

Misbin, 25, based in Philadelphia, had to temporarily close her Etsy shop after being inundated with orders. Overnight, she went from getting five or six orders a week to more than 60 in a single day.

While some sellers are seeing their products explode in popularity, others complain that Etsy is flooded with cheaper, mass-produced products that are favored by searches.

To address these concerns, the company now requires all sellers to clearly state how an item was created, including whether it was found at a flea market or was handmade.

Moskowitz told the Post that the new rules, along with a new marketing campaign unveiled earlier this week, are reinvigorating the platform.

The marketing campaign, which features New York vendors on billboards throughout the city, is a way to showcase locally made products and show shoppers that their contributions are valued.

This article is part of NYNext, a new editorial series that highlights New York City innovation across industries, and the people leading the way.

Instead of Jennifer Lopez, you have Juliana, Moskowitz said of the decision to spotlight local vendors such as Brooklyn-based Juliana Pachewho makes clay earrings. Etsy also places these designers at the top of the website to make it easier to find and purchase the designers they advertise.

“We want to make it really easy and transparent to find these sellers,” she said.

As the F train vibrated beneath Etsy's headquarters, Moskowitz pulled over.

“We're pretty used to in the middle of a meeting just waiting for the horn. [to finish] “Or the subway to get there,” she jokes. “But we love this place.”