A great way to earn some extra money while decluttering your home is to sell your unwanted items. I previously listed different ways to sell you unwanted items either online, or locally. One of the places listed to sell your items is Etsy. However, after a firsthand experience with them, I strongly advise that no one sell their items on Etsy. They engage in unfair business practices, list highly unethical policies and steal money from their sellers.
I had previously been selling vintage items and recycled craft supplies on Etsy for over 9 years. At the time, Etsy had a classification for their “Star Sellers” and I had held that designation for several months. What caused my relationship with them to sour was when I posted a listing that went against their policy. This was an honest error as I had previously listed similar items with no issue. I was given a warning at that time that if I listed another prohibited item my account would be suspended. At that time, I contacted Etsy’s support and asked what made my item prohibited, yet I never received a response.
This Spring, I had listed several items on one day, and the next day my account had been permanently suspended. I had to inquire about what item I listed that caused this situation, as all I received from Etsy was a generic email letting me know that they suspended my account. All Etsy did was refer me to their general policy on prohibited items. Their policy on prohibited listings is very subjective, is even stated as such, and I simply made a mistake that anyone could have made. According to Etsy policy, they do have a right to suspend your account for any reason. Although shocked about this situation, I did understand that they had the right to do that.
What is concerning though is that they are holding the money that I had earned, and they refuse to release it to me. Etsy states that they will hold my money for six months. They are also refusing to pay me any interest on these funds while they are holding them. What is even more concerning is that I can’t even reach anyone to speak with about this. Other than a basic generic email, no one will discuss my specific issue with me.
Etsy’s policy states:
“If we believe that a seller’s actions may result in buyer disputes, chargebacks, or other claims, then we may, in our sole discretion, put (1) a hold, (2) a deposit delay, or (3) a reserve on the seller’s payment account balance. A hold may be put on funds associated with a particular transaction if there is a dispute or investigation related to the order, for the shorter of: (a) 180 days after the estimated delivery date; or (b) completion of any investigation regarding the seller’s actions.”
My account was permanently suspended based on a listing that was prohibited, my suspension had nothing to do with finances. Their policy on prohibited listings is very subjective, and is even stated as such. I simply made a mistake that anyone could make. Other than this simple mistake, I have had no other negative interactions that would give them any reason to hold my money. In the 9+ years that I have sold on Etsy, I have never had an issue with payments to Etsy, nor have I had any complaints or disputes from buyers. Etsy has refused to give me a reason for holding my funds, and the only response I can get from them is a generic email that simply refers to the above policy. Etsy has my credit card information on file if there were any issues, and this point in time, there are no issues that necessitate them keeping my money.
I also had listed several items that they charged me for. They refuse to refund my payment for these listings that I had paid for and they refused to honor. Once again, they simply refer to their policy that listings fees are non-refundable. I understand that these fees are non-refundable for any reason that I decide to no longer list an item, but Etsy is the only business that I know of that takes your money, refuses to provide the services paid for, and refuses to refund your money. I’m astonished that the practice of charging someone for a service and then refusing that person service and refusing to refund their money is even legal. If it is legal, is certainly is not ethical.
I did file a complaint with both the Better Business Bureau and the Attorney General, but neither of them has the ability to do anything about my situation. The only thing that I could do is hire a lawyer, which would cost much more than the funds that I am seeking. Etsy is aware of this, and continues to take advantage of the small business seller such as myself. Based on complaints that I have both read and heard about, Etsy thrives on harming the sellers that use their platform.
My negative experience with Etsy is just one of many. They have several unethical policies that harm their sellers. Following are just a few of the other complaints that I found about Etsy’s unethical business practices.
Etsy Takes Advantage of Small Businesses
Etsy Shuts Down Business Owner’s Shop, Refunds Every Customer
A simple Google search will bring up many more examples. Whatever you do, stay away from Etsy. You can always start your own website, or take advantage of another platform to sell your items. Etsy is nothing more than a thief, and no seller is safe from their amoral business practices.
Its’ great that you are getting this information out. What a lesson learned, right? Well, time to move on from them and on to your own website and or maybe another e-commerce platform. Great to know and thanks for the info!!
Thanks. I have started a WooCommerce store. It’s taking a bit more work to advertise, but I like being in control and being able to list whatever items I want to list. Plus, I no longer have to pay Etsy’s ever-increasing fees. It’s a win-win.🙂
How many items have you sold on Etsy?
I recall getting a listing removed once because I was selling Hilter’s personal car and they didn’t support Nazi propaganda. They removed it and told me I couldn’t sell it there. I then sold it on eBay.
I would jump on their live chat and try to get some answers out of them. Maybe you already tried that?
I had sold well over 1,000 items on Etsy before I was permanently banned. I don’t have access to live chat because I am banned. I’ve requested help on the issue several times with absolutely no response from them.
eBay is getting pickier about what they allow as well, but at least you can get ahold of someone there to help.
Hi Willow,
Thank you for sharing this very informative article.
I am going to share this with my friends and family as they might be getting rid of old stuff from their houses, and if they do then they need to know not to use Etsy.
I am sorry to hear about your experiences, but I am very pleased that you have shared them. You have shown true leadership and kindness here, so please keep it up.
Thank you and all the best,
Tom
Our local news just had a report about Etsy not paying their sellers. I used to think that Etsy had an honest reason for holding sellers payments, but after my experience and hearing about so many others, I can’t even imagine the money Etsy is raking in while holding other people’s money. I also wonder if they’re not paying out because they themselves are having financial difficulties. Either way you can’t warn enough people to stay away from this business.