True, but I think when creating marketplaces, you want a little bit more friction on the sell side. Sellers undertake risk + labor to bring products to market. In exchange, they are rewarded via profit. Buyers take no risk + labor in exchange for paying that profit. The market exists to match sellers and buyers and provide a forum for price discovery.
Make it too easy to sell but not have equal reduction in price penalty is how you get Etsy's current problem. Removing the dropshipped items will (hopefully) remove race-to-bottom conditions that in turn allow for small time creators to charge higher prices + profits and buyers to regain confidence that they are getting more perceived value despite the non-commodity prices. But so long as the dropshippers exist, that balance gets destroyed.
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True, but I think when creating marketplaces, you want a little bit more friction on the sell side. Sellers undertake risk + labor to bring products to market. In exchange, they are rewarded via profit. Buyers take no risk + labor in exchange for paying that profit. The market exists to match sellers and buyers and provide a forum for price discovery.
Make it too easy to sell but not have equal reduction in price penalty is how you get Etsy's current problem. Removing the dropshipped items will (hopefully) remove race-to-bottom conditions that in turn allow for small time creators to charge higher prices + profits and buyers to regain confidence that they are getting more perceived value despite the non-commodity prices. But so long as the dropshippers exist, that balance gets destroyed.