Etsy sellers bet local sourcing will help win holiday

This holiday season, Darin Mays isn’t staring down labor challenges or supply chain woes like some of his big-box competitors, and sales are strong.

The entrepreneur’s Minneapolis-based business, Urban Wing, makes wood pole tables that can be used around patio heaters, umbrellas and basement poles. He sells the tables, along with sauna products, online and through Etsy’s platform. 

Mays decided to pursue his dream of owning his own business after leaving a career in health-care technology last year. His wife is his only employee. 

“I source most of the product locally, which gives me an edge,” Mays said. “But also as an inventor, I can design and manipulate products on the fly, so it’s relatively easy to pivot.”

Having product available to sell has been an advantage. This month, sales are up some 900% compared with the same time last year, Mays said. He said he’s sold more than 500 of his tables on Etsy alone.

Most Etsy sellers are running their shops from home and are sourcing raw materials nearby. Even as larger retailers face down supply challenges, Etsy is well stocked in categories most impacted by these disruptions like toys and furniture. The website boasts more than 90 million items and 5 million sellers, up from 2 million pre-pandemic.

Etsy CEO Josh Silverman said the company is optimistic it will have another big holiday season this year. Many sellers began stocking up in August and September in preparation.

More than a third of respondents to CNBC/Momentive’s Small Business Survey for Small Business Saturday said they plan to patronize a local merchant on this Saturday. That’s an increase from 30% last year, but down from 39% in 2019.

In addition, 72% of the 2,700 adults surveyed said they’ve seen higher prices in the last three months, 62% have seen “low” or “out of stock” inventory in stores, and 51% have seen shipping delays. Nearly half said they are worried supply chain issues will hurt their ability to get what they want this holiday shopping season. The poll was taken Nov. 10-12.

Changing consumer preferences could boost sales on Etsy this year, Silverman said.

“Lots of people through the pandemic have reflected and say they want to support small businesses. Maybe they want to buy fewer things but have those things mean more, have those things come with a story, and that’s where we think Etsy sellers have really had a chance to shine,” he said.