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."