Etsy is an e-commerce retail site where artisans can set up their own boutiques to sell craft goods for a profit. While it is free to set up your own boutique shop on Etsy, the seller must pay $0.20 for each listed item, and Etsy receives 3.5% of the profits for each product sold.
I have a friend who has had an Etsy shop running for some time. At one point she was in touch with the customer through the Etsy message boards and realized that the customer wanted to purchase a large quantity of an item. She quickly realized that it would be much more profitable to bypass Etsy and sell privately to the buyer. By doing so, she circumvented the seller agreement with Etsy and simply used the site as a means of advertising and depriving Etsy of any profit.
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