How To Create A Marketplace To Sell Handmade Crafts And Artisan Goods

The handmade and artisan craft market is as vast as an ocean. In every corner of the world, there is a talent that has something unique and creative craft to offer. But with the lack of a right platform, it is hard to reach a vast audience. Luckily the eCommerce market is teeming with many online marketplaces, artisan communities, and directories.

Marketplaces like Etsy and Amazon Handmade have demonstrated the immense potential of this industry. Etsy, for instance, reported over 10 million lapsed buyers and acquired 8 million new buyers, all by providing a space where artisans and buyers connect.

Some regional players powered by Shopify and Shipturtle - Artisan Box, Bazaa, Blue Barrows, Local Markers, iTokri, Magikelf - are marking their space. Yet, with evolving consumer demands for sustainable, ethical, and unique products, there’s ample room for new entrants and innovation.

The journey starts with understanding who might want to create such a platform and why:

• Artisan Cooperatives and Guilds aiming to amplify the visibility of their community's craftsmanship.
• Social Enterprises Supporting Rural Artisans looking to provide sustainable income opportunities for underserved communities.
• Specialty Retailers Focused on Sustainable or Ethical Products who want to diversify their offerings with unique, handmade goods.
• Fair Trade Organizations committed to creating ethical marketplaces that prioritize artisan welfare and fair pricing.

Such online marketplaces can be C2C type or B2C type and work as a bridge between artists and buyers. This article will walk you through the step-by-step guide to creating an online marketplace for handmade crafts and artisan goods, and give you some key tips to success in the online handicraft business.

1. Which Marketplace Platform is Best for Handmade and Artisan Goods - Product, Used Goods, NFT, or Auction-Type Website?

When creating a marketplace for handicraft and artisan goods, there are four key types of platforms you can build: a product marketplace, a digital marketplace, a used goods marketplace, or an auction-type website. Each of these models caters to different buyer needs and seller strategies, and offers unique advantages in the handcrafted space.

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I. Product marketplace

Key Features:

• Primary Products: New, handmade goods

• Pricing Model: Fixed pricing

• Target Audience: Buyers looking for new artisan products

• Seller Advantages: Easy to manage, stable revenue

• Buyer Advantages: Predictable, straightforward shopping

• Revenue Model: Commission on sales, subscription fees, etc.

• Leading examples: Etsy or Amazon Handmade

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III. Used goods marketplace

Key Features:

• Primary Products: Pre-owned or vintage artisan items

• Pricing Model: Negotiable/variable pricing

• Target Audience: Buyers interested in affordable or vintage goods

• Seller Advantages: Opportunity to sell older stock, eco-friendly appeal

• Buyer Advantages: More affordable, sustainable option

• Revenue Model: Transaction fees, listing fees

• Leading examples: eBay or Facebook Marketplace

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III. Auction-type website

Key Features:

• Primary Products: Limited-edition or exclusive items

• Pricing Model: Bidding system (dynamic)

• Target Audience: Collectors and competitive buyers

• Seller Advantages: Potential for higher revenue, excitement factor

• Buyer Advantages: Exciting bidding process, rare finds

• Revenue Model: Auction fees, commission on final sale price

• Leading examples: Catawiki, or Auctionzip

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IV. NFT marketplace

Key Features:

• Primary Products: Digital art, virtual crafts, NFT-backed items

• Pricing Model: Bidding system or fixed price for NFTs

• Target Audience: Digital art collectors, crypto enthusiasts

• Seller Advantages: Global reach, recurring royalties, innovative sales

• Buyer Advantages: Ownership of unique digital art or hybrid digital-physical goods

• Revenue Model: Transaction fees, listing fees, cryptocurrency-based

• Leading examples: OpenSea, Rarible, SuperRare

2. Why Should You Build a Multivendor Website for Handmade Crafts?

The global market for Handmade Crafts & Artisan Goods is expected to grow at a CAGR of 13.1%, reaching USD 723.6 Billion by 2028. With this market shifting online, artisans and craftsmen can reach a larger customer. 

Building a marketplace website for handmade crafts offers distinct benefits for sellers, merchants, and buyers. Here’s why you should consider building a marketplace website for handmade crafts, broken down by each stakeholder:

3. How to Create a Marketplace for Handmade Craft and Artisan Goods?

Now comes the part where we will learn about how to create an online marketplace for you, whether you are an artisan or a merchant. True that all marketplaces have something similar and something unique to offer where they compete with each other. But the development process for the websites is pretty much the same for all. Let's learn that: 

Step 1: Define your niche and target audience

Step 2: Solve the puzzle of whom to attract first, buyer or seller

Step 3: Select a revenue model

Step 4. Include the necessary marketplace features

Step 5. Development of an Etsy-like marketplace

I. Define your niche and target audience 

Coming up with an idea to build a marketplace for Etsy is a great start but it is not enough to get on the development process. You need to have clarity over which niche you will be serving and who is going to be your audience. 

Typically, when it comes to handmade products in the marketplace, there are three main types of users to expect.

• The seller: creator of the product who wants to monetize their art;
• The buyer: people who look for handmade craft and artisan goods online;
• Small businesses: entrepreneurs wanting to promote their brands. 

If you target the buyers and sellers, it will help you conclude with the characteristics and expertise you want for your website. It is an open truth that the handicraft market is jam-packed. Thus, in such a scenario, if you target a specific niche to serve a specific audience, your success graph would be high.

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II. Solve the puzzle of whom to attract first, buyer or seller

Throughout this discussion, you must have understood that running a marketplace website, you will have to interact with sellers and buyers individually. But how will you attract a seller? A seller would come to your website if you have a buyer for them to sell their product. And when will a buyer visit your website?  When you provide the seller with their desired and one-of-its-kind products. So how to attract them both at the same time? This is the story of every new marketplace like Etsy. 

But don't worry. you can solve this issue with a well-thought-out marketing plan. To begin, a new platform can feature local and well-known artists. This approach allows these crafters to leverage their existing audience, addressing the issue of low customer numbers directly.

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III. Select a revenue model

Most e-commerce websites and online stores have a variety of ways to monetize themselves. The most commonly used options are:

• Commission: Charge around 6.5% of the final cost (product + shipping + wrapping, etc.)
• Subscription: Offer sellers a subscription costing $10 per month. 
• Advertisements: promote sellers’ items on and off the site and charge special fees. 
• Listing fee: Charge the seller a small listing fee ($0.20) per each item they put on the website.

Check out our previous blog where we have taken a detailed look into the 7 marketplace business models based on revenue generation.

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IV. Include the necessary marketplace features 

The goal of the online marketplace is to provide a platform for the seller to sell products. The primary and key feature of the platform should be the ability to showcase and sell products effectively. This includes features such as:

1. Product listing: The marketplace should give the seller the liberty to create a detailed list of their crafts and items. They should be able to upload high-quality images, descriptions, pricing, and other relevant information.
2. Product search and filtering: The buyer could easily navigate through the platform to find the product of their need and desire. The marketplace should include extensive filtering features that can help consumers find precisely what they are searching for.
3. Safe and sound transaction: An ideal platform that has a smooth and safe payment option makes the business easy for both the seller and buyer. This could include choices for different payment methods and connections to well-known payment providers.
4. Direct interaction and communication: The feature of direct messaging between buyer and seller will allow them to interact directly. They can resolve their queries related to order shipment or payment. Direct communication will help them negotiate, discuss customization,  
5. Seller profile and reviews: Each platform user should have a unique profile page where they can showcase their arts and crafts and details about their brand. It should also help the buyer give reviews and feedback on their purchased product. Such transparency will create trust between both stakeholders. 
6. Marketing and promotions: The website must have tools and features that allow the seller to promote and advertise their product to reach a wider audience. There should be options for featured listings, social media sharing, and marketing campaigns.
7. Shipping and logistics management: The platform should let sellers handle shipping and logistics easily. This could mean partnering with shipping companies, making shipping labels automatically, and giving buyers tracking info.
8. Effective customer support: Since the interaction is virtual, the customer support feature of the website should be resilient and efficient. It should be able to solve the customer concern effectively and quickly. This may include a dedicated support team, frequently asked questions, and a comprehensive knowledge base.

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V. Development of an Etsy-like marketplace

True enough that one needs a groundbreaking marketing strategy to develop a website. It is often suggested to start the platform from scratch for better flexibility and more control over the platform. To do that, you must need a reliable and efficient development team with you. 

Shipturtle can be a platform for you to rely on completely for the website development process. But why shipturtle? Because:

Shipturle offers you:

For merchants

• Automated vendors sync
• Inventory management
• Order fulfillment
• 4-level commissions & payouts

For seller

• Onboarding sellers
• Merchant to Vendor communication
• Custom shipping solution
• C2C functionality

For buyer

• Seller-to-customer messaging
• Single page checkout via split order

4. Leading Handmade Crafts & Artisan Goods Marketplaces to Get Inspired From

As an entrepreneur looking to build a marketplace for handmade crafts and artisan goods, studying successful platforms can provide valuable insights into best practices and unique features. Here are five leading handmade marketplaces and what sets them apart:

1. Etsy

• One of the most well-known global marketplaces for handmade, vintage, and craft supplies.
• Etsy allows sellers to offer customized and personalized products, giving each vendor the flexibility to create unique offerings.
• Etsy supports its sellers with marketing tools, analytics, and educational resources, empowering small business owners to succeed.
• A robust review and rating system builds trust among buyers and increases seller accountability.
  

2. iCraft

• A curated marketplace dedicated exclusively to handmade goods, with a focus on artisans and small businesses.
• iCraft strictly prohibits mass-produced items, ensuring an authentic experience for buyers seeking truly handmade goods.
• Sellers only pay a monthly subscription, rather than listing or commission fees, which can make the platform attractive to artisans with a large inventory.
• Though smaller than Etsy, iCraft still serves a global audience, giving sellers access to international customers.

3. Folksy

• The UK’s largest online marketplace for British handmade goods.‍
• Folksy is dedicated exclusively to UK-based creators, offering a hyper-localized marketplace experience that emphasizes British craftsmanship.
• The platform’s straightforward listing process and low fees make it appealing to smaller artisans who may not want to deal with complex seller requirements.
• A built-in blog and featured seller interviews give exposure to artisans, helping them reach a wider audience.

4. Handmade at Amazon

• A curated section within Amazon that offers handmade goods, leveraging Amazon’s global reach and fast shipping.‍
• Sellers can take advantage of Amazon’s global logistics network, giving them access to customers worldwide with fast and reliable shipping options.
• To maintain quality, Handmade at Amazon has an application process to ensure sellers meet specific handmade criteria, fostering a premium marketplace feel.
• Sellers benefit from Amazon’s customer service, reviews, and return processes, which are already trusted by millions of buyers worldwide.
• Amazon Handmade follows "glocal" branding approach. For example, in India, it is named as Amazon Karigar (which means handcrafted)