Etsy Sellers on Strike Over Rising Fees… It’s a Mess

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More than 18,000 Etsy sellers went on a week-long strike from April 11-18, 2022 following the company’s decision to increase transaction fees from 5% to 6.5%.

Kristi Cassidy, the organizer of the Etsy sellers strike, called out Etsy CEO Josh Silverman to cancel the fee increase, among other calls for resolution.

The petition has since gained more than 86,000 of the 100,000 signatures they aim for.

During the pandemic, Etsy recorded $12.2 billion of gross domestic, compared to $5 billion in 2019.

Meanwhile, sellers have boycotted the platform until Etsy resolves their demands.

User Demands

  • Transaction Fee Increase Cancellation

Etsy users expect transaction fees to double in four years.  Hence, they consider it a sort of “pandemic profiteering.”

  • Crack Down Resellers

Etsy sellers hold the company accountable for counterfeit products sold on the platform.  Etsy needs a comprehensive and transparent plan for shutting down resellers.

  • Provide “Golden Support” Tickets

Sellers are boycotting the AI system, which handles account recovery and salary. The company must create a new system to fast-track recovery and payment methods.

  • Cancel the “Star Seller” Program

Sellers believe the “Star Seller” feature is counterproductive to their marketing efforts. Hence, they would rather have complete freedom to reach customers.

  • Allow Sellers to Opt-Out of Offsite Ads

Sellers prefer to decide how much they spend on it, the listings to advertise, or not advertise at all.

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Related Article: Starting an Etsy Shop? Avoid These 10 Shop-Killing Mistakes

Etsy Response

The COO of Etsy, Raina Markowitz, made a series of statements highlighting their commitment to supporting small business owners after the Etsy sellers strike.

Markowitz stated Etsy increased its transaction fee to improve user experience.

She assured Etsy is improving its system to crack down on resellers by 2022.

Markowitz added they are fast-tracking requests to settle frozen and suspended accounts.

It also plans to improve its star rating policy but will remain firm with its success-based ads model.

The increased fees followed Etsy’s profitable turnout in the fourth quarter of 2021, largely due to the holiday season.

The transaction fee covers the percentage taken from the seller’s income whenever their products sell. Etsy earns from this percentage.

In their 2021 report, Silverman explained that the new fee will support Etsy’s investment in “key areas like marketing”, wishing to replicate their latest lucrative performance.

Cassidy and fellow petitioners reminded Silverman of Etsy’s primary purpose in “keeping commerce human.” The company provides a business platform for handmade items and small business products.

See our breakdown of the Etsy sellers strike in the video below.

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