Etsy has announced it will be closing its wholesale platform, with sellers no longer being able to accept new orders after the end of June.
The handmade and vintage e-commerce website dropped a bombshell in a blog post on Wednesday, telling sellers it will be closing the wholesale branch of its business due to low demand.
“While the original promise of Etsy Wholesale was exciting and some sellers have had great success on the platform, what we’ve learned over the past several years is that the demand for wholesale from buyers hasn’t been as strong as we hoped,” the post reads.
According to the business, wholesale only represents a small portion of its overall business, with very few sellers actually using the platform.
“Of our nearly two million sellers, only 5,000 of them are actively selling on Etsy Wholesale, and only a small fraction of those sellers sell more than $10,000 a year through the wholesale platform,” the business wrote.
Etsy says it will be supporting both buyers and sellers during its transition away from wholesale, and regrets that it will no longer be able to provide this service, citing high costs and little reward for its decision to close its wholesale marketplace.
Wholesale Etsy sellers will be able to accept new orders up until June 28 but once the calendar ticks into July, users will no longer be able to accept new orders via the online marketplace’s wholesale platform.
Etsy advises sellers that all open purchase orders or any communication with buyers via platform will need to be finalised by July 31, as Etsy.com/Wholesale will no longer be available after this date. A data file will be provided to buyers with their purchase history once the site is officially closed.
However, it’s not all bad news, as Etsy claims buyers will still be able to connect with wholesale sellers through the usual Etsy channels.
“You can send your existing Etsy Wholesale buyers a coupon code that contains a minimum order value to encourage them to continue purchasing your items through Etsy.com.”
Sellers can also create private listings through their normal Etsy page for wholesale clients or tag their products “wholesale” or “bulk order” to help new buyers discover any listings that can be sold in bulk.
This move comes after Josh Silverman took on the role of chief executive officer just over 12-months ago. Silverman is reportedly working towards cutting costs and increasing overall revenue on the site, both for the business itself and the profitability of its sellers. According to reports, Etsy stopped responding to users’ questions and updating its wholesale site late last year.