Illustrator Alex Keatle puts his Etsy store on “vacation mode” as part of a week-long strike that has garnered the support of thousands of sellers.
Alex Keatle
In late February, Christie Cassidy joined Reddit and called for action against people who sell their goods on Etsy.
A day earlier, Etsy announced that it was increasing fees by 30%. For Cassidy, a seller of gothic wedding dresses on the e-commerce platform since 2006, the decision felt like an insult to small businesses that kept the site humming during the pandemic by selling their wares.
“I wonder what would happen if so many retailers put their stores on vacation on April 11 that Etsy launches [freaking out]”And then they have no choice but to negotiate with them.” us“
Cassidy’s post on Reddit kicked off a week-long strike by Etsy vendors that began on Monday. Thousands of Etsy sellers are putting their digital stores on “holiday mode” to protest the fee increase. An online petition outlining their demands had more than 77,000 signatures as of Thursday night.
Etsy has 5.3 million active vendors on its platform, according to the company’s website.
The fee increase comes after a huge period of growth for Etsy. The company was a big winner during the Covid pandemic as consumers reduced store trips and flocked to online retailers. Etsy retailers generate $ 12.2 billion in gross sales in 2021, compared to $ 5 billion in 2019.
Etsy, which is known for its handmade and customized goods, initially noticed an influx of buyers looking for face masks. Now Etsy is trying to get them back on the site while competing with other e-commerce players like Amazon and eBay.
Etsy told investors in February that the additional proceeds from the fee increase would be reinvested back into various initiatives at the company.
Raina Moskowitz, Etsy’s chief operating officer, said the company was “committed” to supporting vendors and helping them grow their businesses.
“We are always receptive to feedback from sellers, and in fact the new fee structure will allow us to increase our investment in the areas identified in the petition, including marketing, customer support and removing ads that do not meet our policies,” Moskowitz said. says in a statement.
Investors and analysts tracking the company applauded the fee increase and other recent changes. Guggenheim analyst Seth Sigman acknowledged that sellers are likely to bear the brunt of the higher costs, but that the changes should ultimately benefit “everyone on the platform” in the long run.
“We appreciate the worries of the sellers. This is their livelihood,” said Sigman, who recommends buying shares in Etsy. “But the compensation is that the company is using this as a lever to reinvest in the business. Our view is that this should ultimately lead to stronger market share gains.”
Rising fees and resellers
Cassidy and other Etsy sellers interviewed by CNBC said they remain skeptical whether the fee increase will lead to improvements to the platform. Last time, the company raised transaction fees in 2018 from 3.5% to 5%, and payouts are minimal, Cassidy said.
In addition to transaction fees, Etsy sellers also have to pay ad fees, payment processing fees, and shipping fees. As part of the company’s Offsite Ads program, Etsy sellers are also charged an additional fee of between 12% and 15% each time buyers make a purchase after clicking on an ad for their product.
“The latest increase in the transaction fee, together with [other fees]it makes it harder for smaller creators to make a profit and make their business sustainable, ”said Marie Hart, who sells needles, talismans and artwork at her Etsy store.
As part of a week-long strike, Etsy sellers are calling on the company to lift the fee increase, allow them to opt out of off-site advertising and end a recently launched program called Star Seller, which they say is putting undue pressure on sellers.
Soudabeh Rouhandeh, Etsy salesman ever since
Sudabe Ruhand
“As a small indie creator who designs and handcrafts my goods and clothing, I waste hours of work and money using Etsy,” said Sudabe Ruhand, who runs Sudibear’s art and clothing store.
Some veteran Etsy sellers are also urging the company to deal with resellers who they say have tarnished the market.
Since Alex Keatl became an Etsy salesman in 2010, she said she has noticed an influx of bulk goods and dropshipers. The change feels separate from Etsy’s origins as a platform for showcasing handmade, one-of-a-kind goods that are often made to order, she said.
“For the most part, I find it a fun and eclectic community, with both friendly sellers and buyers, and a great place to reach my type of customer (who is often a little nerdy or alternative in taste),” Keatle said. in email. “Over the last few years, it has expanded to include larger companies, dropshippers, distributors and even fraudulent stores.”
Etsy CEO Josh Silverman told resellers in February that the company expects to devote more resources this year to removing ads that violate its policies. In 2021, Etsy spent $ 40 million to expand teams and technologies focused on market safety, the company said.
Nicole Lewis, who has been selling handmade pastels to Etsy for 15 years, said she did not agree with the premise of the strike. Etsy linked CNBC to sellers who did not take part in the strike.
Lewis said he did not blame Etsy for the increase in transaction fees and that many of the recent changes are a necessary part of market growth.
“I think a lot of OG vendors who are upset about Etsy still see it as Etsy from 2004, 2005, 2006,” Lewis said. “It’s not like that anymore and it can’t be. Not in the world we live in today, when there are so many people who want to sell their jobs, and we’re competing with Amazon.”
Etsy Sellers Union
Cassidy said she did not expect the seller’s strike to develop in this way.
But after contacting the sellers through the strike and realizing that they shared many similar concerns, she and other Etsy sellers began to consider whether they should form an alliance.
“The crazy thing is that I didn’t even realize how many people there agreed with me,” Cassidy said. “It was a great, eye-opening experience, just to see how much all the other people on this platform who are trying to make a living with me agree and how much my clients support me.
Etsy sellers are not employees of the company, but they hope that by uniting, they can better advocate for changes in the online market. A number of Etsy vendors have joined a Discord server where they plan to draw up plans, Cassidy said.
Although Lewis did not take part in the strike, she said she supported the idea of a sellers’ union. “Honestly, I think it’s a smart idea because people just want to be heard and recognized,” she said.
Etsy representatives did not respond to a request for comment on the sellers’ plans to merge.
Cassidy said she was inspired to organize Etsy sellers after witnessing recent union victories among Starbucks baristas and an Amazon warehouse.
Workers’ activism has risen across the country since the beginning of the pandemic. The shrinking US labor market has further boosted union support, and workers have taken advantage of the moment to demand higher pay and better compensation from their employers.
Since the strike began, Cassidy said she had been contacted by working groups on the issue of organizing vendors. All the next steps will come down to what the reseller community wants, she added.
“We weren’t sure what to call it,” Cassidy said. Is it a union? Is this a handmade vintage solidarity? What do we call this thing? We don’t really know what it looks like, because I’m moving through unexplored territory. “