The Future of Commerce

techupdatesfeat___ At FOWA yes­terday, one of the most inter­esting present­a­tions came from the founder of etsy — a mar­ket­place for hand­crafted items — Robert Kalin.

Kalin is like a Web 2.0 version of Holden Caulfield — he starts his talk:

…dropped out of high school at 15. ran away to live in boston with my uncle, who was like the purple sheep of the family. even­tu­ally found my way to new york. had about 15 jobs. i was a car­penter for a while. that stuff is brutal. started to want to get an edu­ca­tion but couldn’t pay. so i attended classes at about 8 dif­ferent colleges using stolen IDs. doing it this way meant i really took own­er­ship of my education…

And so on. He hasn’t got any slides: he’s typing addresses into his web browser to bring up pictures he’s posted to his blog. He’s chewing gum while he speaks, which is amp­li­fied by his micro­phone. Some of his demos aren’t working.

It’s pretty weird, but also abso­lutely mes­mer­ising. Etsy is an arts and crafts mar­ket­place, but it’s also, as it turns out, a chal­lenge to the state of commerce on the web.

Regular commerce has become less and less about people and the inherent value of objects. This is reflected by the history of money. Money used to be made out of gold — coins had an inherent value. Then came bank­notes, which were symbols of value rather than pos­sessing a real value them­selves. Now it’s about credit cards — money has become 1s and 0s flying across the Internet. At the same time, cor­por­a­tions own all the means of pro­duc­tion and dis­tri­bu­tion. Commerce has become utterly dehu­man­ised and psychotic.

Etsy began with the idea of a mar­ket­place. But a return to what a mar­ket­place used to mean before the twen­tieth century. Marketplaces used to be com­munities, places where people exchanged stories and news as well as money and goods. Because etsy is just for hand­crafted, bespoke items, it brings the humanity back into trade. Every item is its own story and has a human face attached to it. This means that etsy attracts and retains audi­ences. People talk about what they’re buying and selling, because the items are inter­esting and unique of them­selves. Buyers develop rela­tion­ships with sellers and maybe ask for a per­son­al­ised version of items they’re inter­ested in. The software is sup­posedly finding ways to increase the face-​​to-​​face contact between members, to add a bit of a virtual world element, but it isn’t working today.

But the broader premise of the site is working. Etsy has 100,000 sellers listing 10,000 items a day.

Really inter­esting stuff — the more virtual many aspects of our lives are becoming, the greater the value being put on personal and per­son­al­ised rela­tion­ships, services and items, like we’re uncon­sciously reaching for balance.

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2 comments to The Future of Commerce

  • “Because etsy is just for hand­crafted, bespoke items, it brings the humanity back into trade.”

    The myth they’re still trying to build up around Etsy is the only mes­mer­izing thing, IMVHO.

    This site is seeing an increase in non-​​handmade items, both in the allowed cat­egories (i.e. “Vintage” and “Supplies”) as well as in the handmade categories.

    If you have a look at what really sells well on Etsy, you’ll find that it’s supplies for crafters, and if you look very closely at who the top sellers are, you’ll find that more than 50% of them are supplies resellers. None of the top sellers are artists who sell just piece-​​by-​​piece made items, or “slow produce”, but series of original works (unlim­ited or limited), items that can easily be produced in large quant­ities and there­fore offered rather cheaply. Does this remind us of something?

    The praised humanity is merely present in Etsy not fol­lowing up to the high stand­ards they set for themselves.

  • That’s really inter­esting inform­a­tion, Talulah, and rightly ques­tions my uncrit­ical account here.

    I am assuming you are an etsy trader, so:

    (a) If etsy needs that to keep up its service, does that matter? They only have 6 employees at the moment, and a massive oper­a­tion to run?

    (b) For not being e-​​bay, the other altern­ative for makers, would that be worth it?

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