The Etsy Strike isn’t just about the platform increasing its fees for sellers, although that’s a wild move for the company to make after bringing in record profits for two years straight. Rather, it’s about how these fees are structured to hurt small businesses.
In essence, Etsy is forcing independent artists to operate according to the same business model and practices as Amazon. The most egregious instance of this is the platform’s insistence that we offer free tracked shipping.
Shipping costs rose steeply during the past two years. The pandemic also resulted in significant delays, and the new regulations regarding shipping packages to and from the UK haven’t helped. To ensure “customer satisfaction,” Etsy now penalizes sellers who don’t include tracking on every order, even if it’s just a single sticker. In addition, Etsy is aggressive about its policy of burying the listings of sellers who don’t offer free shipping.
What this means is that sellers are expected to absorb the rising costs of shipping. We are encouraged to purchase mailing labels through Etsy, which generally overcharges and also levies additional shipping fees on the seller. To give an example of what this looks like in practice, an artist would be expected to pay about $4 in order to mail a $3 vinyl sticker. This is exponentially worse when it comes to international shipping.
In other words, this protest isn’t about paying a few more dimes to Etsy for storefront rent. Rather, it’s about how Etsy is forcing small businesses to choose between losing money or raising their prices to levels that would substantially decrease sales. Artificially inflated prices also effectively shut out artists and crafters who don’t already have substantial online followings.
This is only one of many instances of how Etsy’s recent policies and fee structures hurt small businesses and independent artists. The situation is especially upsetting because it doesn’t have to be like this. Although Etsy was never without its flaws, the platform was relatively welcoming to part-time and amateur sellers, and this inclusive environment resulted in record-breaking profits for the company.
Unfortunately, this profit has led Etsy to consider licensing itself as a storefront for large international distributors such as AliExpress and Rakuten, who are already operating on the same scale as Amazon. This is especially unfortunate because Etsy forbids independent sellers from reselling professionally manufactured goods, thus creating a double standard that puts actual artists at a distinct disadvantage.
Etsy is a major platform for independent creators, especially as competition to table at in-person conventions is at an all-time high and platforms like Gumroad and Kickstarter are quickly losing their viability. Even if you doubt the efficacy of a grassroots strike against a giant multinational corporation, I think it’s still important to stand in solidarity with the artists, crafters, and other creators who are taking a stand against the entire online marketplace becoming like Amazon.
You can learn more about the strike here:
You can read and join the strike’s Reddit group here:
You can sign a petition to Etsy here:
ETA: I want to acknowledge that it is in fact possible to send tracked first-class letters through Pitney Bowes, which has partnered with Etsy to offer tracked shipping directly through the seller interface.
That being said, there are two problems with using the Pitney Bowes letter tracking offered by Etsy, both of which have been well documented, even on Etsy’s own forums. The first is that this option is difficult for many sellers to access, and Etsy Support doesn’t help with troubleshooting. The second is that letters mailed via Pitney Bowes aren’t directly trackable via USPS (or via the Pitney Bowes site) and seem to have a higher instance of becoming lost, thus resulting in sellers having to refund orders.
The Reddit group for Etsy is constantly filled with variations on this second issue. One of the more common of these variations is that tracking never updates beyond “pre-transit,” making it seem as though the order was never mailed. Another common variation is that first-class letters aren’t actually tracked, with the “tracking” being more of a delivery estimate. This means that letters and packages are frequently marked as “delivered” even though they haven’t been. Because sellers are penalized for not responding to complaints within 24 hours, the easiest course of action is to apologize, refund the order, and hope that the buyer doesn’t leave feedback saying that there was a problem.
In addition, the Pitney Bowes labels are larger than regular first-class envelopes. More “professional” sellers therefore use stiff cardboard mailers even for first-class shipping, which is an additional expense, as is a label printer. What I wanted to argue is that sellers shouldn’t be penalized for simply using a stamp and an envelope to mail small paper goods, and that we weren’t penalized for this until very recently.
I understand that this may look different from the perspective of a store with thousands of sales and a smooth workflow, but my sympathies lie with artists and other creators who aren’t operating on a large scale and don’t yet have the experience (or personal connections within the community) to be able to understand things that are easy for more established sellers.
There are a lot of nuances to this argument that I simplified in order to provide an accessible summary for why so many smaller storefronts went on strike. The point I want to emphasize is that there’s no need for Etsy to be so hostile to amateurs.