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Etsy Starts Unclogging Payout Jam That Impacted .05% of Active Sellers

Ina Steiner
Etsy
Etsy Starts Unclogging Payout Jam That Impacted .05% of Active Sellers

Etsy has begun processing payments through a different processor in the wake of the Silicon Valley Bank (SVB) collapse on Friday that resulted in delayed disbursements to .05 percent of Etsy’s active sellers. It’s also working to pay sellers impacted by the delays today.

An Etsy spokesperson provided EcommerceBytes with the following statement Monday morning:

“This issue has impacted a small group of sellers. Approximately 0.5% of our active seller base had their payments delayed on Friday. We are working to pay these sellers today and we’ve already started processing payments via another payment partner this morning.”

We reported on the disbursement delay on the AuctionBytes Blog post “Etsy Delays Seller Payouts due to Run on Silicon Valley Bank” on Friday. It was sparked by the SVB debacle, explained in “Run on Silicon Valley Bank Impacts Operations at Tech Firms” also published on Friday.

Etsy did not announce the problem on the Announcement board, but on Sunday, it published a post on the Etsy News blog. In an update to the post on the same day, it wrote:

“We expect we will be able to begin processing these payments as soon as tomorrow, March 13.

“We do not expect the payment delay to have a material impact on our quarter ending March 31, 2023.”

Some sellers said they were putting their Etsy shops into vacation mode until the crisis was over since it impacted their ability to pay their bills, including shipping costs.

The FDIC took over Silicon Valley Bank on Friday and on Sunday, the FDIC said depositors would have access to all of their money starting Monday. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer, it said in the announcement on the FDIC.gov website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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4 thoughts on “Etsy Starts Unclogging Payout Jam That Impacted .05% of Active Sellers”

    1. March 16 and no payout for us on 2 separate storefronts. Phone support numbers are not being answered for personal help. Just recordings stating they dont use number anymore. Bank states that no deposits are being attempted- Etsy keeps sending an email every day stating money is on the way but it never leaves our account and the next deposit date updates to tomorow. Email help responds with copy paste general information etc.

  2. I doubt major new services, like Bloomberg, Vice, and Timcast would cover a story about Etsy for .5% of effected customers.

  3. As an artisan jeweler on Etsy, I posted new pieces the past weekend and all of my pieces sold in just 3 hours. I had a bank deposit set for this past Monday and the deposit cleared my bank just fine.

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