Etsy faces boycott threats after withholding sellers’ money

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.

An Etsy spokesperson previously said that the vast majority of sellers receive their funds when they make a sale. They added that the reserve system was used by many online sellers.

However, Amazon‘s level or reserve is much lower, at around 3% for established sellers until any disputes are resolved.

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