Etsy Sellers Strike Back Against Fee Increase
Dozens of Etsy sellers were protesting outside of the Etsy office in Brooklyn on Monday, voicing their concern over the recent fee increase that went into effect on August 3rd. The $0.20/listing fee increase has forced many Etsy sellers to rethink their business model and consider taking their handmade products elsewhere. Others are weighing whether they should continue to sell their products at all. I've only been selling on Etsy for a year, said Mary Anne DiNapoli, an Etsy seller based in Manhattan, but I'm planning to move my items to another site.
Etsy’s Stance
Etsy announced that it would be increasing its fees for sellers in an email sent out on Tuesday, May 23rd. The new fees, which will go into effect on July 16th, include a 3.5% transaction fee (up from 3%), a $0.20 per listing fee (up from $0.15), and a 5% payment processing fee (up from 4%). The company also plans to increase the cost of transactions over $3,000 by 3%. In response to these changes, many sellers have expressed anger and frustration with the sudden change in policies. In particular, some are concerned about the fact that Etsy is lowering the amount of time they can cancel a sale without penalty while raising their fees. One seller even claimed she is considering shutting down her shop altogether because she cannot afford to pay both her rent and these new costs at once. Some sellers believe that this move was made to make room for more large-scale stores on the site. Others speculate that this was done to encourage people to use Etsy’s new retail services, like Etsy Manufacturing, as an alternative way of handling orders. Regardless of what prompted these changes, there has been significant backlash against them.
The Protest
Etsy sellers are speaking out against a recent fee increase that they say is putting them at a disadvantage. The online marketplace announced that it would be raising its transaction fees from 3.5% to 5%, effective July 16th. This change comes as a surprise to many Etsy sellers, who are already struggling to make ends meet. In response to the fee increase, some Etsy sellers are planning to strike on July 15th, by refusing to sell any items on the site. There will also be demonstrations outside of company headquarters in New York City and Dublin, Ireland. This fee hike will directly impact our bottom line, said an Etsy seller named Alyson Clark. We're not just doing this for ourselves; we're doing this for our families.
Wholesale vs. Retail Pricing - The Difference Between Buying from the UK and US
When it comes to wholesale vs. retail pricing, there can be a big difference between buying from the UK and US. In the UK, wholesalers typically charge around 15-20% more than their US counterparts. This is because the UK market is much smaller, so businesses have to charge more to make a profit. However, this doesn't mean that you should always buy from US wholesalers. Sometimes, the quality of goods from UK wholesalers is better, so it's worth paying a little extra. And sometimes, when the dollar is strong against the pound (for example), buying from US wholesalers may actually work out cheaper in pounds sterling. Ultimately, prices will vary depending on many factors - like your supplier and where you live - so it's best to do your research before making any purchases.
Where Does All This Leave Independents?
For years, Etsy has been the go-to platform for creative entrepreneurs. But a recent fee increase has many sellers feeling squeezed. With the new changes, some are striking out on their own, while others are banding together to demand change. Where does this leave independents? Only time will tell. But one thing is for sure: the entrepreneurial spirit is alive and well. In fact, because of Etsy's fees and overhead, it's possible that this only increases the chances of success for independent designers! While there may be more hurdles (e.g., less availability to customer service), people crave independence in an ever-growing retail market dominated by big brands. In order to keep up with the shift in consumer behavior, more and more businesses are turning to innovative ideas like direct marketing through social media channels. As CEO of The Pop Shop Shannon White says, What I would say to small retailers is 'brace yourself for what’s coming,' which she predicts will be a lot more competition from online retailers.
Some Etsy sellers have even turned their backs on the site altogether in favor of going solo. untenable, according to Heather Holden Roberts, who had been running her shop for seven years before quitting.
Will Crafters Abandon Ship?
Since its inception in 2005, Etsy has been the go-to platform for crafters and handmade goods. But a recent fee increase has many sellers feeling the pinch, and some are even threatening to leave the site. In October 2017, an announcement was made about an upcoming fee increase for sellers using credit cards. In addition to listing fees of 3.5% on all items sold, there will be an additional charge of 1% per item sold that goes towards processing fees - bringing total fees up to 4%. The change went into effect on February 20th, 2018. According to Daily Dot, this means the cost of selling one $100 item would jump from $1.65 (3.5%) to $2.40 (4%). Some people are estimating that this could affect as much as 10% of Etsy's current users. Crafters and sellers have voiced their concerns over the changes via social media outlets such as Twitter and Facebook, with many expressing disappointment or confusion over how these new charges may affect their bottom line.
How do you feel about the increase in fees?
As an Etsy seller, I was shocked and dismayed when I found out about the recent fee increase. This hike will make it difficult for me to continue selling on the platform, and I know that I'm not the only one who feels this way. Many other sellers are considering striking or leaving Etsy altogether. The company has seen a decline in membership since these changes were announced, which doesn't bode well for their future as a social enterprise. If they want to retain their reputation as a community-driven site, they need to take heed of what we're saying. Otherwise, many of us will be forced to abandon ship and find another venue where our voices can be heard. There's strength in numbers, and together we'll get our message across loud and clear: if you don't help us right now, you'll lose your most valuable assets - your customers.
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