Handmade products are trending: Etsy enters the wholesale market

It must have been a bombshell for international art dealers and buyers of individual handcrafted items when Etsy, launched its wholesale program.

Since August 2014 – when Etsy expanded its business model to include a wholesale option – sellers have been able to offer and distribute their handmade items to retailers worldwide. These retailers, in turn, now have the opportunity to strengthen their position as retailers of handmade crafts .

To attract the attention of small as well as major retailers, Etsy Wholesale a member-based approach and is expected to charge a one-time joining fee of $100 for admission to the wholesale program.

From this point on, Etsy will charge a transaction fee of 3.5% for wholesale orders.

Vanessa Bertozzi, the Senior Program Manager at Etsy, is convinced that Etsy already has a determined group of sellers and merchants, which makes the introduction of the wholesale option for qualified buyers seem like a logical consequence:

Etsy has a long tradition of having a very close relationship with our seller community. It's very exciting for us to think about these wholesale buyers — independent boutiques, museum stores, specialty shops, gift stores — as a new type of member on Etsy. Through Etsy Wholesale, we offer a platform for buyers and sellers to build relationships while also providing tools and special opportunities for them, as well.”

(Vanesso Bertozzi, Source: “Etsy Officially Launches Wholesale Business” on Forbes.com)

The launch of the new feature was accompanied by massive marketing campaigns. But what exactly is Etsy? Time for a brief look into the world of this rapidly expanding company.

Etsy – The world's leading marketplace for handmade products

Etsy specializes in trading handmade and handcrafted products, connecting creative sellers with interested customers, retailers, and buyers on its platforms. According to the company, the startup currently has more than 30 million registered members and achieved a revenue of $1.35 billion in 2013.

Etsy launched in 2005 as a marketplace. From the beginning, its goal has been to bring people from all over the world together to buy and sell unique and one-of-a-kind products. Its mission is artisan to reshape art and commerce creating

The online giant in numbers

Website: www.etsy.com/de/

Advantages of the Etsy Wholesale program

Let us now briefly examine the advantages and opportunities of this new program for small retailers as well as established wholesalers.

Benefits for retailers and customers

For retailers, Etsy introduces a new way to acquire products not available through traditional trade shows, associations, or established channels. While the idea of ​​handmade or vintage products isn't new, Etsy Wholesale's approach is.

Merchants can expect easy access to a reliable platform for sourcing locally handcrafted works and items. At the same time, they are buying from an online provider that offers a high level of security during the purchase and transaction process.

It is easier and safer to buy products through Etsy than from individual and independent designers. This is due to the fact that all sellers on Etsy have already been vetted and approved by the operator.

Advantages for wholesalers and suppliers

For wholesalers and suppliers, the advantages of Etsy Wholesale lie in its simple setup, strong brand presence, and constant flow of web traffic to promote business growth. Furthermore, it can be argued that independent retailers and suppliers are efficiently networked and consolidated through this marketplace, enabling them to position themselves significantly better than small, independent businesses.

These strategic advantages are of particular importance for smaller market participants – especially in view of increasing international competition.

Source: “Etsy Officially Launches Wholesale Business” by Nicole Leinbach-Reyhle on Forbes.com

Criticism of the new business direction comes from creative professionals

It must have been around autumn 2013 when Etsy fundamentally changed its terms of service. At that time, CEO Chad Dickerson announced that sellers and vendors on the marketplace could now use third-party producers, factories, and manufacturers to bring their designs to life. In other words, this meant that items offered on Etsy no longer had to be handmade .

This represents a fundamental paradigm shift in the marketplace provider's business philosophy, which significantly erodes the previous core of its focus – namely on independent, small indie designers and their creative works.

From an economic and business policy perspective, this step may well have made sense in order to pursue the expansion course with vigor, but it has had a lasting impact on the many artists, small suppliers and indie designerswho had previously been active in the marketplace.

At the same time, the quality and the consistent focus on unique and lovingly crafted products and works were diluted. Since this realignment, searching for such handcrafted products often requires wading through dozens of pages of search results filled with interchangeable and impersonal mass-produced goods before finally finding what you're looking for.

For creators, it's now considerably more difficult to be found amidst this abundance of listed items. A quick browse through the web reveals that these changes have had dramatic economic consequences for many small, independent sellers on Etsy.

Many businesses likely felt completely overwhelmed by this change, with sales plummeting to a fraction of their usual levels, and have been fighting for their economic survival ever since. It's an unequal battle against the growing number of mass-produced factories from China and other countries.

Tips for sellers on Etsy

If you want to establish yourself as a seller and designer on Etsy and achieve increasing revenues, you are fortunately not powerless.

the founder of the US-based Factory45, lists a number of measures that will help generate more visitors and purchases through the marketplace.

• Create a small network of like-minded sellers. Etsy offers the "Team" feature for this purpose. But go a step further and find, for example, five other sellers with a similar target audience but whose products don't directly compete with yours. Collaborate in the future by promoting each other's shops – for example, through your social media channels or your networks outside of Etsy.
• Define your niche even further and specify very specific keywords/tags . "Printed T-shirts" won't get you very far. The competition at this level is simply too high. Instead, focus on more specific keywords that address your target market even more precisely.
• Write guest posts for the Etsy blog. The content there is geared towards and written for consumers and buyers. It's a complete platform where your potential customers spend time. Think about a few engaging and relevant topics that will resonate with your target audience. Then all you have to do is convince the Etsy editorial team of the quality and relevance of your articles.
• Shift your marketing efforts away from Etsy and towards Pinterest, Instagram, or a personal blog. Etsy ads are no longer as effective or targeted as they once were, so save your money. Instead, focus on creating compelling and engaging content to share across your social media channels. Host contests and competitions on Pinterest, offer small giveaways and incentives on Instagram, and give your potential customers personal, behind-the-scenes glimpses into your craft or business through your blog.

Source: “How Etsy Changed the Rules & What It Means for Indie Designers” on HuffingtonPost.com