The Seller Reserve Program Explained
Etsy's 'Seller Reserve' program, positioned as a protective measure, is proving detrimental to the sellers it aims to safeguard. The program freezes up to 75% of a seller's earnings for 90 days, causing significant cash flow challenges. This delay disproportionately impacts small businesses relying on timely payments for operational needs. Etsy's lack of transparency regarding reserve imposition adds to seller frustration. The unforeseen withholding of funds threatens financial stability and erodes trust within the seller community. Etsy must address these concerns, enhance support accessibility, and foster an environment supporting creativity without unnecessary financial burdens.
Unfair Impact on Small Businesses
As a fine jewelry artisan on Etsy, the impact of the 'Seller Reserve' program deeply affects my craft. Crafting intricate pieces with extended turnaround times and substantial upfront material costs demands careful financial planning. My experience with Etsy's Seller Payment Reserve Policy became a nightmare when Etsy placed my shop on hold for months with a 75% reserve. Despite consistent customer service and thousands of 5-star reviews, Etsy held my funds without notice or explanation. The Help Center was largely unresponsive, offering unhelpful or contradictory responses, including a claim that my shop was scheduled for deletion! Only after filing a complaint with the Better Business Bureau and suggesting legal arbitration did I receive my funds, highlighting the challenges sellers face with Etsy's policies.
Negative Effects on Seller Trust
After over a decade on Etsy, I've had to reassess my relationship with the platform. With a heavy heart, I've made the decision to limit my Lichen & Lychee Etsy Shop to in-stock jewelry pieces exclusively. This shift is driven by the necessity to maintain low processing times and safeguard my cash flow. While my best sellers will remain on Etsy (etsy.com/shop/Lichenadlychee), I've adapted to challenges posed by the Seller Reserve program and Etsy's support limitations. For custom orders and personalized creations, I encourage you to explore my official website, shirleegrund.com, where I can best accommodate your ideas and special requests. The move aims to provide a smoother and more reliable experience for both myself and my valued customers.
Positive Changes Ahead
For custom orders and personalized creations, I encourage you to explore my official website, ShirleeGrund.com, where I can best accommodate your ideas and special requests. The move aims to provide a smoother and more reliable experience for both myself and my valued customers.
Explore my full collection of jewelry, including salt and pepper diamond rings, bespoke engagement rings, and made-to-order wedding bands at www.ShirleeGrund.com.
See What Others Are Saying
Etsy sellers say a fraud protection program is destabilizing their businesses - The Verge
Etsy to ‘substantially’ cut vendors’ funds held in reserve after UK boycott - The Guardian