Etsy, a very popular marketplace for handmade goods that hosts more than 800,000 sellers is now going help sellers scale up their sales.

In May 2012 Etsy acquired a website called Trunkt, an Etsy API app for wholesale transactions, they also hired Trunkt's founder  Dev Tandon to work on a Etsy's wholesale project. The main purpose behind launching their own wholesale marketplace is to bridge the gap between retailers who are looking for suitable sellers for quality wholesale products.

Vanessa, Etsy's Wholesale Program Lead shares that "For quite some time, we’ve observed wholesale happening in an ad hoc way on Etsy: maybe you’ve gotten a convo from a boutique owner or other retailer inquiring whether you do wholesale. There’s a whole lot of searching on the part of the buyer, and there’s no targeted way for you to market this part of your business."

Which is very true, quite often Etsy sellers are contacted by retailers or boutique owners for bulk supplies, but since Etsy's rules and regulations clearly state that sellers are not allowed to utilize third-party help for order fulfillment it was not possible for sellers to take wholesale orders at all. Therefore, a longer route had to be taken where a retailer had to first search a suitable seller and go through the process of inquiring if they are interested in wholesale and take things out of Etsy to make the business transaction work. However, the flaw here was the risk of credibility, from both sides.

Whereas in Etsy's wholesale marketplace, both vendors and buyers will have to undergo an application and approval process. Etsy explains the process in brief:

"Etsy Wholesale will be a private place where wholesale buyers can connect with vetted vendors, view their online line sheets, and submit orders. Wholesale buyers will need to enter their resale tax ID number and prove they’re a legitimate retailer. Vendors (to use Etsy-speak, the sellers) will have to apply to the wholesale marketplace and talk about their prior experience wholesaling, whether they have business insurance, and if they do samples, among other questions."

Currently Etsy is in the process of migrating lifetime members of Trunkt, in the meanwhile buyers and vendors interested in Etsy's wholesale marketplace can submit their application to their invitation-only beta.

I am sure that many would agree that when it comes to selling handmade products online, specially when you do it as a side business, there is no better place than Etsy. And when the same platform works on providing you the convenience and opportunity to test the waters of wholesale business, then I say, go ahead and try it.

There is no fee involved for buyers to find the wholesale sellers, although Etsy is in the process of contemplating the charges to be levied on vendors. Etsy assures that "the pricing will be appropriate for the costs of bringing this new marketplace into existence and the level of service it provides, and yet, not prohibitive for independent creative businesses."

I think it is brilliant that Etsy is working towards bringing new opportunities to its handmade sellers and an incredibly crafty community, but do you think it will be as successful as Etsy current direct-to-shopper setup of general marketplace? Share your views in the comment section below.

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