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That gray line of how much you can touch – that is impossible to enforce," said Sarah Abramson, manager of Etsy's marketplace integrity team, at the company's town hall meeting on Tuesday.
With the policy change, sellers who want to use manufacturers must fill out an application detailing the outsider's role in the creation process. To protect trade secrets, only the location of the manufacturer and a brief description of it must be public on a seller's shop site.
Smaller sellers, including many who don't want to expand beyond their one-person shops, are concerned about the new policies.
"I don't want 75 people to make my things, I want to make my things," said one seller in a question and answer session at the town hall. "I don't really want to compete with a factory."
Etsy chief executive Chad Dickerson said these policy changes are being made to bring more buyers to the site, which he believes will bring in more competition and, he thinks, success for sellers.
"We see one of our biggest jobs as bringing buyers into the marketplace," said Dickerson.