Etsy To Launch Marketplace Connecting Sellers With Manufacturers

Etsy Inc. announced plans on Monday to open a marketplace that will connect its global base of sellers and designers to U.S. and Canadian manufacturers. The company will charge fees for transactions on the marketplace, thus raking in revenue from the deal. However, it has not yet announced how much those fees will be. This marketplace comes two years after the company relaxed rules that enabled sellers to seek out manufacturing assistance from approved manufacturers. Monday's announcement sparked a wave of discussion among sellers on Etsy forums. "I know a lot of people are not happy about it and view the manufacturing assistance being allowed by Etsy as a huge detriment, but I don't," said seller Amber Morgan, who runs the Etsy shop AmberMorganDesigns. "It is crazy hard to find manufacturers." Shares of Etsy were inactive in premarket trade. They have fallen 14% over the last three months, compared with a 6.3% decline for the broader S&P 500.