Etsy, the craft and arts e-commerce website, has released a new set of guidelines about the definition of “handmade” goods. Now sellers will be able to hire more employees and work with outside manufacturers as long as they provide information about it on their “About” page.
Etsy CEO Chad Dickerson made the announcement about the changes at a meeting in front of a group of Etsy sellers. Many sellers were concerned about a single person being able to compete with businesses that work with factory manufacturing. Dickerson responded by saying that this would bring more buyers to the website, which would lead to success for more sellers.
Etsy currently has 1 million active sellers on their website. Etsy generates revenues by charging $0.20 to list a single item for 4 months and 3.5% of the value of the sale if an item is sold. Etsy sellers generated $895 million on goods last year, which is a 70% increase from 2011. Etsy has been profitable since 2009. Etsy raised $91.7 million in venture capital funding since they launched, but they are not being pressured to go public.
Dickerson also said that Etsy will be improving their call center. Currently Etsy has 450 employees, but they will be hiring more in the next few months.