For decades, handmade items were confined to markets, craft fairs and the occasional boutique shelf. Sellers who created handcrafted and tailored items depended on factors like geography, foot traffic and individual word of mouth.
But in 2005, Etsy changed the game.
Its founding mission was simple yet revolutionary: to create a platform where people could buy and sell handmade and vintage goods to each other — no middlemen retailers required. Etsy empowered artisans and small-scale craftspeople to connect directly with customers all over the world. The audience that once took years to build through trade shows and local networking could now be achieved with an internet connection and a compelling product page.
Last year, more than 8 million sellers and 95 million buyers were active on Etsy’s marketplace, with gross merchandise sales volume of $12.6 billion.
Etsy didn’t just create a marketplace; it democratized entrepreneurship for artisans, makers and crafters. It redefined how consumers discover and buy unique, personalized goods. And in doing so, it laid the foundation for a broader movement – one that is still reshaping retail today.
What Makes the Handmade Economy So Powerful?
As Etsy notes, “In a time of increasing automation, it’s our mission to keep human connection at the heart of commerce.” Today, everything from fast fashion to furniture is available at the click of a button, but many consumers crave something different – items that stand apart from many mass-produced goods of modern retail. This also includes ethical and sustainable products, and products that are personal and customizable.
The U.S. market for handmade items is estimated to be worth over $268 billion, and is expected to grow by nearly 10% each year for the next five years. More than half of consumers in North America say they want a more personalized, curated shopping experience – like the kind that marketplaces such as Etsy, eBay, Amazon Handmade, Made Market, Facebook Marketplace, iCraft and more offer.
In our era of abundant retail options, the heart of the handmade movement’s success is the fact that customers today desire a personal connection to brands, goods and services. More than half of consumers are more likely to consider purchasing something if they connect with a company’s story.
Handmade items also trigger a scarcity mindset: when fewer items are available, people feel more compelled to purchase a product. Etsy’s emergence onto the retail scene allowed people to purchase one-of-a-kind items that were made with intention and personality – from monogrammed cutting boards to custom wedding veils. Each listing feels like a window into someone’s unique story.
New Tools and Opportunities for Creatives
Etsy quickly became a haven for independent creators looking to reach a wider audience without losing the soul of their brand, thanks in part to features that had previously been out of reach for small businesses, including:
- A global customer base
- Payment processing and customer service support
- Search functionality and discovery tools
- A supportive community of fellow sellers and shoppers
Etsy opened a space where entrepreneurs could create full-time businesses or part-time side hustles out of their passions and hobbies. And by the mid-2010s, other online platforms also recognized the power of the handmade economy and began to help creators scale their businesses.
In 2015, Amazon launched Amazon Handmade, its own artisan-focused marketplace. Amazon Handmade allows creators to keep the soul of a small business, while accessing the ease of Amazon’s logistics services and the reach of its customer base. This includes sellers like Jenny Wong-Stanley, who turned her love for wood bending – which helped her heal from personal challenges – into a business selling one-of-a-kind sculptures and vases.
Within the first five years after Amazon Handmade launched in 2015, more than 100 sellers surpassed $1 million in annual sales. Today, Handmade sellers receive support ranging from Seller University guidance and brand analytics, to lending and advertising opportunities. They also get to waive the monthly fee on a professional selling plan, saving $480 per year. More than 60% of Amazon’s sellers are small and mid-sized businesses, many of which sell handmade products.
Meanwhile, social platforms like Instagram, Facebook and TikTok have introduced shopping features that allow artisans to sell directly to their followers. Independent creatives can now build brands, cultivate audiences and drive sales all from their phones. Platforms like Society6 and Big Cartel have also joined the mix, offering even more specialized services for entrepreneurs and artists.
The Future of Handmade
Consumers increasingly want alternatives to factory-produced items, noting they are willing to pay more for handmade products. They also perceive locally made, artisan products to be more transparent. For example, 90% of Gen X consumers said they would be willing to spend an extra 10% or more for sustainable products.
In the coming years, AI will help the handmade retail industry grow in interesting ways. Creators are exploring how AI tools can assist in ideation, design or marketing—without losing the handmade essence. For example, many already use AI tools for pattern generation, idea brainstorming and virtual product mockups.
Finally, pop-up shops offer new avenues for creatives to showcase their products without committing to a full-time physical storefront. Retail pop-up shops are now a $80 billion industry, and they’re particularly appealing to small business owners because 44% of pop-up shops cost less than $5,000 to open.
Etsy didn’t just open a new marketplace 20 years ago; it ignited a global movement that celebrates creativity and individuality in commerce. The burgeoning handmade economy, fueled by a desire for authentic and sustainable goods, continues to redefine retail, empowering artisans and offering consumers unique products with a story. As new technologies emerge, the future of handmade promises even more innovative avenues for connection and commerce, ensuring that human dignity remains at the heart of what we buy.
Image via Unsplash.