Because EBAY was already in that market! It's really no wonder Etsy has tanked as a community, sellers fleeing in droves, as the company works hard to destroy what it was, something unique, successful (even if it wasn't eating the world) and highly responsive to user's needs, into YET ANOTHER EBAY CLONE full of sweatshop manufactured crap.
Hooray for Capitalism! Race to the bottom!
And for all the good those excess benefits did in attracting top talent, why is Etsy's software so crappy?
> Sellers who developed successful products were prohibited by Etsy policy from hiring employees to help them expand
Isn't that cruel? Your XYZ craft is amazing and people love it, but you can hire someone to help you make more. Then, the demand is just absorbed by copycats.
Not at all, that's inherent to the whole idea of handmade. Your product probably won't be the same if you get someone helping you with it; certainly the handmadiness that people are paying you for won't be there any more. If your product is good enough to stand on its own merits then you can sell it conventionally.
> Then, the demand is just absorbed by copycats.
Any copycat presumably has to stand on their own and earn their own reputation. If you've got positive reviews for the product you handmade, that shouldn't transfer over to someone else making it, even if that someone else is employed by you.