Sharing Economy

Etsy is about to bring designers and manufacturers together

For small-scale craftsmen wanting to sell their unique designs, Etsy is the ideal place to digitally promote their work. However, this process becomes unstuck when an independent seller cannot fulfil multiple orders.

The online craft site has unveiled "Etsy Manufacturing": a new service which hopes to connect Etsy designers with manufacturers more efficiently; encouraging creative, yet transparent relationships.

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Starting Monday, small manufacturers will be able to sign up to apply for Etsy's new marketplace, with the aim of putting them in touch with sellers who are in need of additional resources.

By setting up a profile on the marketplace, manufacturers will be able to showcase their skill sets, which sellers can then discover through searching the marketplace by filters including location, category and process.

Etsy Manufacturing will launch a beta trial of the marketplace later in 2015, however, only manufacturers based in the U.S. and Canada can get involved during the test, with the e-commerce giant hoping to expand further if the test is successful.

Industries applicable in the trial include machining and fabrication; textile and apparel; printing; jewelry and metalwork.

Chad Dickerson, CEO of Etsy
3. Etsy

If the service proves successful, it could potentially mean an increase in revenue for both Etsy and designers, as sellers will hopefully gain additional profits from selling more frequently, therefore Etsy will take a transaction fee (currently 3.5 percent) when the item sells.

Over the years, Etsy received comments from sellers that they needed support in scaling their business, in order to meet growing customer demand, Nikki Summer, an Etsy spokeswoman, told CNBC via email. Etsy Manufacturing is one of the latest schemes by the company, along with their Wholesale service which connects designers to retailers.

"Handmade remains the core of Etsy. We are committed to helping Etsy sellers who want to work with manufacturing partners to increase their production responsibly, if they so desire."

"Many manufacturers and Etsy designers share similar values, including craftsmanship and collaboration. Etsy Manufacturing allows manufacturers to easily build high-quality profiles to showcase their unique experiences and expertise."

Sellers find a home at Etsy: CEO
Sellers find a home at Etsy: CEO

"While, some people think manufacturing means using expensive, highly-mechanized technology, others think it refers to what happens in large factories. The reality is very different. On Etsy, an outside manufacturer is any separate business or establishment that helps a seller create their designs," Summer said.

The new service could help boost a designer's competitiveness, in terms of available services and delivery times. Etsy is also taking note from other e-commerce giants, by partnering with delivery startup, Postmates, to create "Etsy ASAP"; a trial service to provide on-the-day or next day delivery to its customers in areas of New York City, according to Re/code.

—By CNBC's Alexandra Gibbs, follow her on Twitter @AlexGibbsy.