Local Etsy sellers frustrated with fees and payment reserves consider looking elsewhere
CBC
Several Etsy sellers in Waterloo region say it's becoming increasingly less feasible to have a store on the online platform and some are even considering leaving Etsy all together.
The site has billed itself as a way for individual makers and crafters to reach a worldwide audience. But in recent months Etsy has faced criticism over some of its policies, fees and ads.
Sarah Dymond in Kitchener, Ont., said she's looking at potential alternatives after a payment reserve was put on her account in May.
Payment reserves are normally in place for 90 days. Reserves can be issued after making a first sale, if a seller has a sudden increase in sales or if a seller has received notice of counterfeit, notice of unauthorized reproduction, or a report of alleged intellectual property infringement.
Dymond said she did not received any of those notices and the payment reserve has left her with access to just 25 per cent of her sale revenue.
"The issue is that all the fees that you pay on Etsy, including ad fees, transaction fees, Etsy fees, are all taken from that 25 per cent," Dymond said, adding some of that also has to go to pay her manufacturers.
"At the end of the day, you're left with a 10 per cent profit to make and produce your orders, which can be fine if you have the supplies at hand and and you are capable to ship out orders, but eventually you're going to have to restock."
On its website, Etsy says a percentage of funds from each new sale is withheld under a payment reserve until the order is in transit with tracking. If tracking is not provided funds are withheld for 45 days.
Dymond said the company has not been able to give her clear answer as to why a reserve was placed on her account.
"If I had a policy violation, you'd think they could go to my account and say, this is what you violated or this is the reason for the reserve and they were not able to give me a reason," she said.
"There's been close to 50 emails sent back and forth between me and Etsy support and it's always the same copy and paste response," she said.
The entire experience has been hard on Dymond's finances and her mental health.
"My credit card is maxed, my savings are half gone. It has not been fun," she said, adding money she had put away for a vacation this fall is now being used to keep her afloat.
Kitchener's Jon Johnson shares a similar experience. He had a payment reserve placed on his account after two shipping complaints in December.