Etsy is facing growing calls for sellers to boycott the site for withholding their money.
The online marketplace has been facing heavy criticisms for implementing a reserve system meaning some sellers had 75% of their takings frozen for 45 days, leaving them struggling to trade.
It is not clear how many would join in any boycott while Etsy said it would continue to review its reserve system.
It added that it took seller feedback seriously and that payment reserves were used to “keep the marketplace safe” and cover any potential refunds.
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Speaking to the BBC, Small Business Commissioner Liz Barclay said her team were receiving a rising number of complaints about Etsy.
They had also noticed a growing number of people joining social media groups to discuss a strike or boycott.
On Facebook, the Etsy Reserve Strike group has over 800 members, with many sharing tips on moving to other online platforms to sell their products.
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3 Comments. Leave new
Withholding funds is theft
Withholding funds outside of escrow, is theft
Applying a reserve system across all sellers, at some token level (some platforms hold 3% or 5% to allow for disputes etc), and doing so with several months notice, might be excusable. But a whopping 75% retention(!), without notice, and without proper explanation, is appalling behaviour – the kind of desperate move a company makes when in trouble. ETSY invested heavily in buying a Brazilian company 2 years ago, with big promises of expanding throughout South America. That has failed and this week announced they were scrapping that plan after spending a fortune trying to make it work. They have not denied reports that they have written off a sum measured in $billions – but haven’t disclosed the total loss and are not obliged to do so until after completion later this year. ETSY’s next Quarterly Business Results are due to be published tomorrow, 2 August.