Amazon only works because they're centralized and full of uniform, neatly packaged groups of fungible units. Imagine having a super high turnover warehouse full of unique one-off items of different shapes, different sizes (from the size of your fingernail to the size of a large appliance, different materials with most of them being fragile, nothing being uniform enough to be stackable, different risk levels for everything from flammability to pest control...
And even then, many people on Etsy sold antiques and vintage clothes. Maybe they even designed them and had them manufactured in small batches?