Why Etsy Pattern Might Not Improve The Company's Share Price

A few weeks ago, Etsy Inc ETSY launched a new seller service called Pattern; a paid tool that allows sellers to port their listings into standalone e-commerce sites. This helps customers manage inventory, and process orders and shipping more easily, for only $15 a month.

Related Link: Roth Still Selling Etsy Despite Pattern Launch

A PR lead at Zibbet, a website builder and marketplace for handmade products reached out to Benzinga after the article “Roth Still Selling Etsy Despite Pattern Launch” was published. The company wished to share “some additional insight about this product launch that could affect its users negatively” with Benzinga’s readers:

First off, they noted, Etsy does not only charge $15 per month, but also a 3.5 percent commission fee, well above most website builders available. In addition, the PR lead continued, “Etsy’s standalone website offering isn’t truly standalone - Etsy branding is embedded in the website copy, checkout process and beyond. Shoppers also have to sign up with Etsy in order to make a purchase from a seller's website.”

“By trying to capture more Etsy sellers that want an ecommerce website, Etsy can promote the company's brand and make money from monthly plan fee and commission fees,” the PR lead added. Nonetheless, the need to embed the brand throughout the website, the requirement for shoppers to sign up to Etsy in order to acquire a seller's product and the above-average fees may detract sellers from using Etsy's website builder all together. “People generally want a website to have autonomy over their own brand,” the PR lead concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.