Illustrator Alex Kittle is putting her Etsy store on “holiday mode” as part of a week-long strike that has garnered the support of thousands of sellers.
Alex Kittle
At the end of February, Kristi Cassidy logged onto Reddit and issued a call to action against those selling their merchandise on Etsy.
The day before that, Etsy announced That’s a 30% hike in hiking fees. For Cassidy, a gothic wedding dress seller on the e-commerce platform since 2006, the decision comes as an insult to small businesses, who have been making websites go viral during the pandemic by selling their merchandise.
“I wonder, what if on April 11, so many sellers put their stores on holiday that Etsy started [freaking out]”Cassidy Written. “And then they had no choice but to negotiate with we. “
Cassidy’s Reddit post kicked off a weeklong Etsy seller strike that began Monday. Thousands of Etsy sellers are putting their digital stores on “holiday mode” to protest the fee hike. One online recommendations outlining their requests had more than 77,000 signatures as of Thursday night.
Etsy has 5.3 million active sellers on its platform, according to The company’s web site.
The fee increase comes after a period of great growth for Etsy. The company has enjoyed great success during the Covid pandemic, as consumers cut back on trips to stores and flocked to online retailers. etsy sellers generated total merchandise sales of $12.2 billion in 2021, compared with $5 billion in 2019.
Etsy, which is known for its handmade and personalized items, initially saw a large influx of shoppers searching for masks. Now, Etsy is trying to keep them coming back to the site, while also competing with other e-commerce players like Amazon and eBay.
Etsy told investors in February that additional revenue from the fee increase would be reinvested back into various initiatives at the company.
Raina Moskowitz, chief executive officer of Etsy, said the company is “committed” to supporting sellers and helping them grow their business.
“We are always open to seller feedback, and in fact, the new fee structure will allow us to increase our investment in the areas outlined in the petition, including marketing, customer support and remove listings that don’t meet our policies,” Moskowitz said in a statement.
Investors and analysts who follow the company have welcomed the fee hike and other recent changes. Guggenheim analyst Seth Sigman admits sellers are likely to bear a higher cost burden, but the changes will ultimately benefit “everyone on the platform.”
“We appreciate the interest of the sellers. This is their livelihood,” said Sigman, who recommends buying Etsy stock. “But the upside is that the company is using this as leverage to reinvest back into the business. Our view is that it should ultimately lead to stronger market share gains.”
Fees increase and resellers
Cassidy and other Etsy sellers interviewed by CNBC said they remain skeptical about whether the fee hike will translate to improvements on the platform. The company last increased transaction fees in 2018 from 3.5% to 5%, and the gains were minimal, Cassidy said.
In addition to transaction fees, Etsy sellers also pay listing fees, payment processing fees, and shipping fees. Be part of the company Offsite Advertising ProgramEtsy sellers also pay an additional fee of 12% to 15% any time a shopper makes a purchase after clicking on an ad for their product.
“The recent increase in transaction fees, along with [other fees]made it harder for smaller creators to make a profit and make their businesses sustainable,” said Marie Hart, who sells pins, charms and artwork. on her Etsy store.
As part of a week-long strike, Etsy sellers are urging the company to cancel the fee increase, allow them to opt out of Offline Advertising, and end a recently launched program, which was recently announced. Is called Star sellerwhich they say puts undue pressure on sellers.
Soudabeh Rouhandeh, an Etsy seller since
Soudabeh Rouhandeh
Soudabeh Rouhandeh, who runs the apparel and art boutique, said: “As a small indie creator who designs and crafts my merchandise and clothes, I am losing hours of labor and money. silver when using Etsy. Sudibear.
Some veteran Etsy sellers are also calling on the company to crack down on resellers, which they say has crippled the market.
Since Alex Kittle became an Etsy salesperson in 2010, she says she’s noticed a huge amount of merchandise on the market and dropshippers. The shift, she says, feels detached from Etsy’s roots as a platform for showcasing one-of-a-kind handcrafted, often made-to-order products.
“For the most part, I find this to be a fun and eclectic community, with both seller and buyer friendly, and a great place to reach my type of customer (who is usually a bit finicky). or change to their preferences),” Kittle said in an email. “Over the past few years, it’s expanded to include larger businesses, retail sellers, resellers, and even scam stores.”
Etsy CEO Josh Silverman tell the seller in february The company is expected to devote more resources this year to removing listings that violate its policies. In 2021, Etsy spent 40 million dollars about expanding safety-focused groups and technologies in the market, the company said.
Nicole Lewis, who was sell handmade crayons about Etsy for 15 years, saying that she disagreed with the premise of the strike. Etsy connected CNBC with sellers who did not participate in the strike.
Lewis said she doesn’t blame Etsy for the increased transaction fees, and many of the recent changes are a necessary part of growing the market.
“I think many OG sellers who are not happy with Etsy still consider it the Etsy of 2004, 2005, 2006,” Lewis said. “Not anymore and can’t be. Not the world we live in today, when so many people out there want to sell their work and we compete with Amazon.”
etsy seller union
Cassidy said she didn’t expect the seller’s strike to turn out like that.
But after connecting with sellers through the strike and realizing they had many of the same concerns, she and other Etsy sellers began to consider whether they should form a union.
“The crazy thing is, I didn’t even realize how many people out there would agree with me,” Cassidy said. “It’s been this eye-opening experience just to see all the other people on this platform trying to make a living with me agreeing and how much the customers support me.”
The etsy sellers are not employees of the company, but they hope that by coming together, they can better advocate for changes in the online marketplace. Some Etsy sellers have joined the Discord server where they plan to plot the organization, Cassidy said.
Although Lewis is not taking part in the strike, she says she supports the idea of a sellers union. “Honestly I think it’s a smart idea because people just want to be heard and acknowledged,” she said.
A representative from Etsy did not respond to a request for comment on the seller’s consolidation plans.
Cassidy said she was inspired to organize Etsy sellers after witnessing recent victories by the union between Starbucks baristas and at an Amazon warehouse.
Employee’s activities has increased nationwide since the beginning of the pandemic. The tightening labor market in the US provided further support for unionization, and workers seized the moment to demand higher wages and better benefits from their employers. .
Since the strike began, Cassidy said she has been contacted by labor groups, who have brought up the topic of organizing sellers. Any next step should achieve what the merchant community wants, she added.
“We weren’t sure what to call it,” Cassidy said. “Is it an alliance? Is it a handmade classic unity? What do we call this? What it looks like, we really don’t know, because we’re in the middle of it. navigate uncharted territory.”
