Will This Bold Decision Backfire on Etsy?

Esty (NASDAQ: ETSY), an online marketplace, really irked its sellers a few weeks ago when it announced that it is increasing sellers' its fees by a whopping 30%. Investors also raised serious questions -- why would Etsy raise its fees in a time of such dire economic uncertainty, and jeopardize its growth prospects? Many investors may choose to stay away from Etsy over these concerns, but for long-term investors that can prove to be an ill-advised decision. Here's why.

Etsy has become a go-to place for over 90 million customers. The company operates a two-sided online marketplace that connects buyers and sellers around the globe. Etsy separates itself from the mass e-commerce retailers by focusing on unique and hand-crafted goods that customers just can't get anywhere else. The distinctive and superior-quality goods on Etsy's website attract more and more buyers, who in turn entice more sellers to the platform, creating a virtuous circle. Sellers -- the talented independent creators, artists, and entrepreneurs who feed the imaginations and aspirations of millions of buyers -- are central to Etsy's success.

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Source Fool.com