Good for the business doesn’t always equal good for its users.
Independent artists are truly the unsung heroes of the internet world.
In addition to running what are mostly one-person businesses, their knack for embracing fandoms and creating beautiful, inspiring merchandise for their fans is second to none.
For instance, in late 2019, there wasn’t a shred of Baby Yoda merch to be seen, and the people watching “The Mandalorian” were clamoring for it. But if you paid a visit to Etsy, there was plenty for excited fans to buy, from t-shirts to plush dolls.
Naturally, using a platform to reach more potential customers is key for these artists, and Etsy is the best-known one out there.
But access to Etsy’s (ETSY) – Get Etsy, Inc. Report massive audience — 90 million active worldwide, according to the company — comes at a price. While it’s one that makers have been willing to pay in the past, a recent decision is on the verge of changing all that.
Etsy advertisements plastered across New York.
Shutterstock
Etsy’s New Seller Fees Take More Away From its Artists
Etsy announced Feb. 24 that it had experienced strong growth in 2021, and planned to keep growth on that trajectory by increasing its transaction fees to 6.5% as of April 11.
That’s a 30% increase from the 5% fee sellers have paid since 2018.
Etsy CEO Josh Silverman said the hike will boost plans to spend more on marketing, grow its support team and bolster safety protocols in 2022.
“We’ll also make significant investments in services and tools that will make it easier and smoother to grow your business,” the statement read.
“For instance, we’ll be launching a new seller app with enhanced features that make it easy for you to manage your orders, connect with buyers, and understand how your business is doing.”
Silverman also stressed a desire to “make Etsy more human” in its most recent earnings call.
“Etsy’s mission is to keep commerce human, and we believe that these past 2 years have shown that the needs we meet are both powerful and enduring,” he said.
Users Are Angry Enough To Abandon the Platform
Etsy’s users are not wooed by Silverman’s promises.
In fact, it has had the opposite effect. They are angry about them and how they were delivered, and an active discussion is spreading across social media sites about what to do next.
And rather than just air their grievances, they’re making plans to take action.
One user, Lightbringer Designs, has mobilized a strike. It is scheduled to begin on April 11, and an Instagram and a Reddit sub have been created to get word out to other makers.
Those wish to join are asked to put their stores in Vacation Mode for a week in hopes of catching Etsy’s attention.
Other artists created extensive threads detailing other sites for fellow makers to consider moving to if they want to leave Etsy, including Ecwid, Ko-Fi, Shopify (SHOP) – Get Shopify, Inc. Class A Report and Storenvy.
A shopper browses the Etsy boutique in a New York Macy’s.
Richard Levine/Corbis via Getty Images
This is Not The First Time
While the price hike is drumming up some big emotions for the artists that have built their businesses on Etsy for years, it likely also pours salt in a wound many have been nursing for some time.
In 2019 the platform encouraged its users to offer free shipping, going as far as to promise priority placement in U.S. search results to those who complied.
In a post on the Etsy forums, Silverman advised artists to include the shipping cost in their retail prices, which poses a major disadvantage for international sellers trying to stay competitive.
In February 2020, Etsy also offered to advertise sellers goods for them on major websites like Google and Facebook.
However, the fine print wasn’t quite as good as the headline sounded: Etsy would take a minimum fee of 12% off the full order total, including shipping, if a buyer made a purchase via said ads.
All sellers were automatically opted into the program, but those that made less than $10,000 in profit annually were allowed to opt out.
Amid all the controversy, Etsy did sellers one favor in terms of fees and, quite possibly, in hopes of making itself look a bit better amid all the complaints.
It announced on Feb. 28 it would cancel all outstanding balances owed to Etsy by Ukrainian sellers, as well as its sister sites Depop and Reverb, which it said represented “a contribution $4 million towards our community.”
