The domestic system or putting-out system was a popular system of cloth production in Europe. It existed as early as the 1400s but was most prominent in the seventeenth and eighteenth centuries. Workers would work from home, manufacturing individual articles from raw materials, then bring them to a central place of business, such as a marketplace or a larger town, to be assembled and sold.

Also known as Cottage Industry, this system was a direct reaction to the Agricultural Revolution. This was so because people were forced off their land but still wanted to remain in the rural setting.