The word "crafts" has two basic meanings. One's craft is a profession or specialized talent used to make money. Another use of "crafts" specifically refers to particular items or objects made by hand, such as a beaded necklace or a painting.
Electricians, plumbers, masons and welders are examples of the many skilled workers sometimes referred to as "craftsmen." Their crafts involve completing work using education and training accrued over time. Professional painters, sculptors and artists technically create crafts.
A common use of the word as it pertains to handmade items is in reference to "arts and crafts" time in early childhood programs.