Business

Thousands of Etsy sellers strike over increased fees


Etsy sellers have joined thousands of others to support an online strike against unfair and costly changes.


Sellers began a one-week strike Monday. They chose to either close their online stores or go on strike for the next week. “vacation mode,”They are either hiding them or supporting the effort.


Tens of thousands have signed a petition requesting the cancellation of Monday’s 30-percent transaction fee increase.


Etsy announced that it would raise the transaction fee it charges sellers for orders exceeding $6.5 million in February.


Josh Silverman, Etsy’s CEO, stated at the time that active sellers saw a 23 percent increase in their sales in 2021 as compared to 2019.


Etsy raised its transaction fee from 3.5 to 5% in July 2018, and it was now 5%


Kristi Cassidy from Westerly (RI), who helped organize the protest, stated that almost 23,000 sellers who signed the petition agreed to take part in the strike in some way as of Tuesday morning.


“It is taking off like you wouldn’t believe,”Cassidy spoke to CTVNews.ca via WhatsApp on Tuesday.


FRUSTRATION OVER FEES AND CHANGES


Cassidy joined the platform as a 2006 member. She currently makes and sold Victorian steampunk Gothic wedding dresses. “wearable art for people who refuse to be ordinary.”


She says that Etsy has changed over time and she is now more focused on growth and profits, despite its initial praises.


Etsy was founded in 2005 and is an online marketplace that allows people to sell vintage and handmade items. It is based out of Brooklyn, N.Y. It currently has 7.5 millions sellers and almost 100 million active buyers around the world.


Silverman was addressed with the petition. The petition describes the market as resembling more a “dictatorial relationship between a faceless tech empire and millions of exploited, majority-women craftspeople.”


Supporters of the strike also have pointed to Etsy’s record gross marketplace sales last year, as well as the company’s recent acquisitions.


“As individual crafters, makers and small businesspeople, we may be easy for a giant corporation like Etsy to take advantage of,”The strike petition reads.


“But as an organized front of people, determined to use our diverse skills and boundless creativity to win ourselves a fairer deal, Etsy won’t have such an easy time shoving us around.”


Cassidy and other sellers expressed frustration with the increased transaction fees. They also complained about additional fees for offsite advertising and payment processing, the Star Seller program, auto reply messages, support tickets, and resellers selling mass-produced items that are not described as handmade.


“Any change that favours cheaper products over more expensive [ones] is going to hurt the people who are actually creating the handmade products that the platform claims to be about,”Cassidy stated.


Cassidy took to Reddit to discuss Etsy’s increase in transaction fees. This is where the strike started and the idea for an Etsy seller’s union was born.


Emma Kasper, a Montreal seller who has been selling on Etsy since 2017, makes and sells stickers and pins through her shop.


Kasper joined the strike for a week and put her store in vacation mode.


Although Etsy isn’t her main source for income, her frustrations include the number resellers on Etsy as well as the free shipping offer to American buyers for orders over US$35.


She said that the latter can be costly for vendors, while those who sign up for the program are promoted much more often.


She owns a small business and says she would love to see Etsy support sellers like her.


Kasper believes the company is moving towards an Amazon-type model because Etsy has more people supporting small businesses.


Etsy also laid off 15% of its workforce in 2017.


“I guess it doesn’t affect my livelihood very much, but I do find it quite frustrating, especially with their record profits,”She spoke.


NEW FEES TO INCREASE INVESTMENT, COMPANY SAYS


A spokesperson for Etsy stated in a statement that the success of sellers is a key factor. “top priority”For the company.


“We are always receptive to seller feedback and, in fact, the new fee structure will enable us to increase our investments in areas outlined in the petition, including marketing, customer support, and removing listings that don’t meet our policies,”According to the spokesperson.


“We are committed to providing great value for our 5.3 million sellers so they are able to grow their businesses while keeping Etsy a beloved, trusted, and thriving marketplace.”


Kasper states that, given the amount Etsy made during the pandemic, it doesn’t make sense to charge sellers more to improve the platform.


She says that it is now more difficult for sellers to talk to a customer service representative.


“They made customer service for sellers worse and then they want more of our money to make it better again, which I don’t really understand,”Kasper said.


Cassidy stated that the company’s statement does not really address the demands of the strikers.


It is evident that the support of so many people has been overwhelming. “huge”A majority of sellers agree with the way the platform treats them “outright wrong,”She spoke.


“They need to start really being that ‘Keep Commerce Human’ brand that they claim to be, and that means listening to us.”


With files from CNN 

Source: CTV

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