[kbenson]

There are even more complications.

My SO makes a living selling hand made party supplies on Etsy, and has for years at this point. I assume she's fairly successful for an Etsy seller since she makes multiple thousands a month on hand made items (all made to order, a fair portion customized to specification). Even so, with all the work she puts in it's not significantly better than minimum wage after expenses and the time she puts into the shop. She has for a few years considered buying cheaper party supplies (plates, napkins, etc) in bulk and selling them in addition to her hand made crafts because customers generally need and so are going somewhere else to buy these items anyways. This is a case where allowing mass produces items would be a win-win, as the customers could get their custom and generic items in one order (they specifically ask if they are offered), and she could make some additional money from each order. Without the ability to resell mass produced items, you constrain this positive aspect of the system.