The online handmade goods marketplace, Etsy, is at a crossroads. After booming during the pandemic, the company's gross merchandise sales have been flat in 2022 and 2023. Etsy's stock is down more than 70% from its alltime high in 2021, and its firstquarter 2024 earnings report revealed another disappointing earnings miss. Some of its sellers say the company's lasersharp focus on growth has pushed Etsy away from its core mission — to keep commerce human — and instead allows for an increasing number of drop shippers to join the platform.

Chapters:
0:00 Intro
1:46 Chapter 1. A revolutionary idea
5:39 Chapter 2. At a crossroads
9:30 Chapter 3. The future

Correction (May 21, 2024): At 4.27 we misstated that Josh Silverman laid off 22% of the staff. The correct number is 15%. The other 8% coincided with his appointment.

Produced, Shot and edited by: Natalie Rice
Animation by: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Editorial Support: Jeniece Pettitt
Footage: Getty Images, AP Photos, Etsy, Nicole Aline Legault, Chiarra Lohr
Additional sourcing: FactSet, Oppenheimer & Co., Wayback Machine

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What Happened To Etsy?