Etsy is taking the Internet retailing market by storm with over a million sellers of goods and generating $1.35 billion in sales just last year. Internet retailing is still a rapidly growing market even though about 90% of retail commerce still takes place in physical stores. Etsy now wants to grow their potential and make a place for themselves in person, except they don’t want to open up retail locations, they just want to put their goods in retail spaces.
Etsy is now encouraging their sellers to take wholesale orders, so that through them, Etsy can be in hundreds and thousands of stores without ever once paying for rent. After a year of testing, Etsy plans to make their role as a wholesaler official this coming summer.
The online market place announced that the program will launch in August, and they will be collecting a connection fee for placing these wholesale orders to larger stores and companies. Etsy will take a 3.5% transaction fee on their wholesale orders, the same fee they take on their retail orders, and a one time joining fee for Etsy Wholesale of $100.
Esty sees the wholesale initiative as a way to allow small businesses that have already succeeded and flourished with their platform continue to grow, and they will receive a hand from big name retailers like Nordstrom (NYSE: JWN) and West Elm (NYSE: WSM). A small business that is not business savvy will be able to thrive on Etsy Wholesale while reaching cities and audiences they never thought would be possible.