Launching online marketplace a struggle for crafty entrepreneur

Phil Castle, The Business Times

Krystyn Hartman wore a jester’s hat crafted by a riend in Fruita when Hartman testified to a committee of the Colorado Legislature. She said the hat represented part of a global handicrafts market worth more than $800 billion. (Photo courtesy Krystyn Hartman)

Krystyn Hartman isn’t yet willing to give up on her idea of establishing an online marketplace to sell fine arts and crafts.

But the former Grand Junction magazine publisher said she’s frustrated by state legislation she said thwarted her efforts — and by state officials she accused of spreading disinformation to enact the legislation.

While artists and crafters might individually operate small businesses, the industry is collectively big business, Hartman said. By one estimate, the global handicrafts market is worth more than $800 billion.

A Grand Valley marketplace could keep more dollars local and serve as a model that could be replicated elsewhere to support economic development, she said.

Moreover, there’s the potential for those kinds of efforts to bring communities together not only to sell and buy goods, but also share news and address issues, she said. “One little online marketplace has the ability to build communities.”

Hartman said the idea for an online marketplace originated with her desire to find a place in which to sell her notebook covers, tote bags and other crafts. She said she realized she also could help other artists and at-home crafters sell their wares without the expense and hassle associated with big platforms.

But shortly before launching what Hartman branded as Handmade in the Grand Valley a year ago, she said she ran into the provisions of state legislation purportedly  enacted  to curtail  organized  retail  theft, but which made it too costly and onerous for her to go through with her endeavors.

Provisions of the law require companies that operate online marketplace platforms to identify online sellers, verify their information and provide seller disclosures to consumers. They must also include an easily identifiable reporting mechanism giving consumers a tool to flag and report suspicious activity.

Hartman said the quotes she received from law firms to draft the legal language she’d need to launch the online marketplace and comply with the law would have accounted for a third for the total costs for the first year of operation.

Hartman also said she wanted no part of provisions she said would have required her to share the sales information of high-volume sellers to the state or disclose to the public the physical addresses of artists and crafters, many of whom work out of their homes.

Hartman said the legislation was touted as a way to curtail an increase in retail theft and subsequent sale of stolen merchandise online.

But according to a report from the Council on Criminal Justice based on police reports in 24 cities in the United States, average monthly shoplifting rates actually decreased in 17 of those cities in the first half of 2023 compared to the first half of 2019, she said.

Hartman said she was further frustrated by another measure introduced in the latest legislative session that requires the Colorado attorney general to coordinate with the Colorado Department of Education in an effort to prevent the proliferation of factually inaccurate data by sharing resources to encourage respectful discourse.

The measure passed the Legislature and was sent to Gov. Jared Polis to sign.

Colorado Attorney General Phil Weiser was among the state officials who called for passage of the online marketplace legislation based on an increase in retail theft, she said.

Although she didn’t go through with the launch, Hartman said she still believes the Handmade Grand Valley online marketplace would work in offering a venue for artists and crafters to tell their wares.

Rather than charge the fees that range from 12 percent to 20 percent of gross sales, including shopping costs, assessed by major online platforms, Hartman said she planned to charge sellers a flat $25 monthly fee

In addition to operating Grand Valley Magazine, Hartman said she’s long been a top-rated online seller of handmade clothing and accessories for Barbie dolls.

Online marketplaces are at their core like shoppable magazines with images and copy that resonate with shoppers, she said. Marketplaces and sellers that understand that can build communities around their brands.

An online marketplace like Handmade Grand Valley could be replicated elsewhere to support economic development, she said.

Moreover, those types of platforms could build communities in other ways, she said. By sharing local news or offering a venue in which to address issues, for example.

Hartman said she’d like to meet with a group of entrepreneurs, business and communities leaders and others for a single presentation about launching Handmade Grand Valley. “I would love the opportunity to present it.”

She said she doesn’t want to own the marketplace herself, but would be willing to show others how to run it. Moreover, she’d insist on a collaborative and community based effort. “It has to be community based.”