ETSY is fast becoming the go-to online marketplace for handmade gifts. Here is a post from Fred Wilson's blog..
I am a big fan of web services that offer APIs to developers to build on top of and I am particularly interested in e-commerce services that leverage APIs. For those that don't know, Etsy is a marketplace for handmade goods like jewelry, ceramics, metalwork, etc. It's a very artistic community that is full of beautiful items for sale.A VC, Mar 2009
You should read the whole article.
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