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Etsy forcing sellers into debt

31 replies

lemmein · 15/07/2023 19:39

Has anyone heard about etsy reserves? Basically, etsy are withholding 75% of sellers funds putting a lot of sellers into debt/out of business as they struggle to pay for materials/postage upfront.

Worst still, they take the fees from the remaining 25% which means sellers aren't receiving anything at all - infact sometimes you end up owing them when you receive an order Hmm Etsy claims they're doing this to protect buyers, but they're doing it to shops that have been on etsy for years with zero issues. They refuse to tell individual shops why they've been put on reserve - the most frustrating company to deal with ever!

I've been selling on Etsy for 5 years, never had an issue - over 2000 5* reviews, now I'm in reserve. Etsy claims they release the money once an order has been shipped, however this isn't always the case. I'll try and upload a particularly frustrating conversation I've had with their reps this week 🤯

The whole mess is particularly galling because Etsy's whole ethos is championing small businesses.

Anyway, I just thought I'd share the story on here, if you could share on social media that would be fantastic.

https://news.sky.com/story/they-are-holding-15-000-i-basically-cant-afford-food-etsy-sellers-claim-platform-is-imposing-75-reserves-on-their-sales-12921271

OP posts:
Saverage · 16/07/2023 08:12

Thanks for the thread. I sold on Etsy years ago and was thinking of setting up a shop again. I will try Folksy instead.

inloveonholiday · 16/07/2023 09:00

Mine is in holiday mode too.

I love Etsy's platform, I love how professional it looks and that I can easily reach people around the globe. But the fees! The advertising costs. And now this. They really do grab every single penny from people.

I'm not using Etsy now and have defected to eBay. Sadly eBay hasn't the same international reach but it's sort of working for me for now.

Icecreamsundayz · 16/07/2023 20:01

Has anyone used shopify to make a website? Is this any good or will it cost me a fortune? I don’t really need Etsy for the market side of things anymore as most sales are coming via my Instagram page but I’m directing everyone to an Etsy link. It seems daft to be directing them there just for it to charge me huge fees and potentially keep my money indefinitely (or risk it going under) if I can set up a website instead. I’ve looked at doing it before but I didn’t have the time to make it all and had no idea what I was doing. Shopify seems to let you directly transfer over your Etsy listings though. Is it worth it?

Interested in this thread?

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lemmein · 17/07/2023 07:21

Icecreamsundayz · 16/07/2023 20:01

Has anyone used shopify to make a website? Is this any good or will it cost me a fortune? I don’t really need Etsy for the market side of things anymore as most sales are coming via my Instagram page but I’m directing everyone to an Etsy link. It seems daft to be directing them there just for it to charge me huge fees and potentially keep my money indefinitely (or risk it going under) if I can set up a website instead. I’ve looked at doing it before but I didn’t have the time to make it all and had no idea what I was doing. Shopify seems to let you directly transfer over your Etsy listings though. Is it worth it?

I've started a shopify site - they have an offer on for £1 a month for 3 months so it's worth a go. You need to download the CSV file from Etsy to transfer your items over but I found it quite easy tbh. There's loads of videos online showing you how to do it.

OP posts:
ResponsibleWalrus · 08/08/2023 15:27

Thanks for the thread. I'll start shopping on Folksy instead. I hadn't heard of it before.

I've bought loads of lovely things on Etsy over the years but I've noticed more and more cheap factory made items in the last couple of years. It's even worse to hear how they're treating sellers.

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