Skip to Content

Is Etsy Over Saturated? Exploring the Current Marketplace Trends

Is Etsy Over Saturated? Exploring the Current Marketplace Trends

Etsy is one of the most popular online marketplaces for handmade and vintage items. It has grown significantly over the years, with millions of active buyers and sellers. However, as the platform has grown, so has the competition. Many people wonder if Etsy is too oversaturated, making it difficult for new sellers to succeed.

While it is true that there are a lot of sellers on Etsy, that doesn’t necessarily mean that the platform is oversaturated. It’s important to remember that Etsy is a global marketplace, and there will always be competition. However, with the right strategies and approach, it is still possible to succeed on Etsy. In this article, we will explore whether or not Etsy is oversaturated, and provide tips for standing out in a crowded marketplace.

The Current State of Etsy

Etsy’s Growth

Etsy has seen tremendous growth since its inception in 2005. As of 2020, there are more than 2.5 million active Etsy sellers, with over 60 million products for sale. This growth has been fueled by the increasing popularity of handmade and vintage items, as well as the ease of starting an online business on Etsy’s platform.

Despite this growth, Etsy’s revenue has been declining in recent years. In Q1 of 2023, Etsy’s revenue increased by only 10.6% over the previous year, which is a significant drop from the double-digit growth rates of previous years. This decline in growth can be attributed to increased competition from other online marketplaces, as well as saturation within the Etsy marketplace itself.

Etsy’s Competition

Etsy faces stiff competition from other online marketplaces such as Amazon Handmade, eBay, and Shopify. These platforms offer similar services to Etsy, but with larger customer bases and more resources to invest in marketing and advertising.

Furthermore, Etsy’s marketplace has become increasingly saturated in recent years, with more and more sellers joining the platform and offering similar products. This saturation has made it more difficult for new sellers to gain visibility and attract customers, leading to increased competition among sellers.

Despite these challenges, Etsy remains a popular platform for buyers and sellers alike. Its focus on handmade and vintage items sets it apart from other online marketplaces, and its user-friendly platform makes it easy for sellers to start and grow their businesses. However, in order to remain competitive, Etsy will need to continue to innovate and adapt to the changing needs of its customers and sellers.

Factors Contributing to Etsy’s Saturation

Increase in Sellers

One of the main factors contributing to Etsy’s saturation is the increase in the number of sellers on the platform. As more and more people have discovered the potential for making money on Etsy, the number of sellers has grown exponentially. While this growth has been great for Etsy’s revenue, it has also led to increased competition among sellers.

Increase in Products

Another factor contributing to Etsy’s saturation is the increase in the number of products being sold on the platform. With more sellers comes more products, and Etsy now has an incredibly vast array of items available for purchase. While this is great for consumers who are looking for unique and handmade items, it can make it difficult for sellers to stand out from the crowd.

Increase in Advertising Costs

As Etsy has become more popular, the cost of advertising on the platform has also increased. This has made it more difficult for smaller sellers to compete with larger sellers who have more money to spend on advertising. While Etsy does offer some free advertising options, such as social media and email marketing, these can be time-consuming and may not be as effective as paid advertising.

In conclusion, the increase in sellers and products, as well as the increase in advertising costs, have all contributed to Etsy’s saturation. While it is still possible to make a living on the platform, sellers will need to find ways to differentiate themselves and stand out from the crowd in order to be successful.

Impact of Etsy’s Saturation on Sellers

Difficulty Standing Out

With so many sellers on Etsy, it can be difficult for new sellers to stand out from the crowd. Many sellers struggle to differentiate themselves and create a unique brand that resonates with customers. This can lead to a lack of sales and difficulty growing a business.

Increased Competition and Pricing Pressure

The high number of sellers on Etsy has led to increased competition in many markets. This can lead to pricing pressure as sellers try to undercut each other to win sales. As a result, many sellers find it difficult to maintain their profit margins and may struggle to make a living on the platform.

Limited Growth Potential

For some sellers, the saturation of the Etsy market may limit their growth potential. In highly saturated markets, it can be difficult to gain traction and grow a business beyond a certain point. This can be frustrating for sellers who are looking to expand their business and reach new customers.

To overcome these challenges, sellers need to focus on creating a unique brand and offering high-quality products that stand out from the competition. They may also need to consider expanding their sales channels beyond Etsy to reach a wider audience. By taking these steps, sellers can succeed in the highly competitive world of Etsy and build a thriving business.

Strategies for Sellers to Succeed on Etsy

Niche Marketing

One way to stand out in a saturated market is to focus on a niche. Instead of trying to appeal to everyone, sellers should identify a specific target audience and tailor their products and marketing efforts accordingly. This can help establish a unique brand identity and attract loyal customers who are passionate about the niche.

Quality over Quantity

In a crowded marketplace, quality is key. Sellers should prioritize creating high-quality products that stand out from the competition. This can involve investing in premium materials, refining production processes, and paying attention to details like packaging and presentation. Quality products can help build a strong reputation and generate positive reviews, which in turn can boost sales.

Building a Strong Brand

To succeed on Etsy, sellers need to build a strong brand that resonates with customers. This involves developing a clear brand identity, including a unique logo, color scheme, and tone of voice. Sellers should also focus on creating a consistent brand experience across all touchpoints, including their Etsy shop, social media channels, and packaging. By building a strong brand, sellers can establish a loyal customer base and differentiate themselves from competitors.

Overall, succeeding on Etsy requires a combination of strategic marketing, high-quality products, and a strong brand identity. By focusing on these key areas, sellers can stand out in a crowded marketplace and attract loyal customers who are passionate about their products.


The increasing number of sellers on Etsy has made the marketplace more competitive than ever. With over 2.5 million active Etsy sellers and over 60 million products for sale, the competition for buyers’ attention has become intense. However, this does not mean that Etsy is oversaturated.

Overall, while Etsy may be more competitive than ever, there are still opportunities for new sellers to succeed. By doing proper market research, finding ways to differentiate your product, and providing exceptional customer service, you can set yourself apart from the competition and thrive on Etsy.