Etsy to adopt brick-and-mortar business model

Etsy will begin monetizing its sellers' presence in brick-and-mortar stores starting next week. After two years in beta, Etsy Wholesale will officially launch August 5.

Now independent designers who conduct business with Etsy will pay a $100 one-time joining fee to sell merchandise in stores and boutiques, as well as a 3.5 percent transaction fee on each purchase order, reported Forbes.

"In a world where 90 percent of retailing [still] happens offline, you have to have some kind of offline strategy," Chad Dickerson, CEO of Etsy, told Forbes.

Etsy's current wholesale partners are mostly local boutiques, but the retailer is also partnering with national chains such as Nordstrom (NYSE:JWN) and West Elm.

Designers and artists who participated in Etsy's beta test did not pay for the registration or transaction fee. In return, Etsy studied the transactions to tweak the program and make it smoother for both buyers and sellers. The 1,500 Etsy sellers currently featured in U.S. stores will not be subject to the fee moving forward.

Etsy is a $1.35 billion business and has more than 1 million active sellers and 40 million members.

Etsy is not the only e-retailer opting to try out a non-digital storefront. Just last week, Birchbox opened its first brick-and-mortar retail location in New York City in an effort to attract offline customers.

For more:
-See this Forbes article

Related stories:
Nordstrom in talks to buy Trunk Club
Fab CEO launching furniture-only brand
Bonobos raises $55 million to open new stores
Birchbox to open its first retail store in Manhattan
Bonobos CEO: It's a balancing act
 

 

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