Like you pointed out, it's like a weird, decentralized, MLM. If they go to a craft store to get their molds then it's too obvious, so they go on Etsy instead and then they get something flipped from China like that naked-lady one:.
Same for the people who make lipgloss components, or clay, or whatever else. I'm not knocking small businesses, but it seems like most of the money flow ends at the people making these things, rather than an end-user thereof.
Just look how many of the following fall into either that category, or just straight-up dropshipping/flipping: