Etsy is providing a one-month grace period to any seller who needs extra time paying their bills due to the COVID-19 outbreak. The news came in an email from Etsy CEO Josh Silverman on Friday, and the devil is in the details.
The company is also investing $5 million in Offsite Ads credits, so sellers won’t be charged for sales from the brand new program through at least the end of April.
A spokesperson told EcommerceBytes, “We’re committed to supporting our sellers during these challenging times, and one of the best ways we can help is by bringing them buyers so their businesses continue to thrive. We understand these are extraordinary circumstances, and we’ll continue to stand by our sellers as this situation evolves.”
The spokesperson referred us to this help article on Etsy.com for details for the actions Etsy is taking to help sellers.
Sellers should read it carefully, since Etsy will continue to deduct selling fees before disbursing funds to sellers. According to the article, “Fees will be deducted from your payment account as usual, but if you have an outstanding balance on April 1, we won’t suspend your shop for an overdue payment and you won’t need to make a manual payment until May 15.”
There are additional details in the article you should take the time to review.
Friday’s email letter from Etsy’s CEO follows:
To the Etsy community:
We are all going through very trying times. As Etsy’s CEO, I’m acutely aware of the important role we play in the lives of our entire community. In times of crisis, small businesses and the self-employed face enormous financial challenges. This is the community that Etsy is built to support, because behind every purchase, there’s a person, not a factory.
Etsy is here for you
At times like these, we long to surround ourselves and those dear to us with objects that provide comfort, joy, and relief – a cozy blanket, a kids crafting kit, some calming candles. From self-care to workspace organization to games and toys, Etsy has it. But unlike other retailers, when you buy those items here, you’re directly making a difference in people’s lives.
You can help small businesses
Small businesses need support now more than ever, but supporting them can seem hard when visiting the local shopping district is discouraged. Simply choose to shop on Etsy. We have well over 2 million sellers open for business, often working out of their homes to create something that you’ll use and cherish everyday.
Steps Etsy is taking
We are also taking significant steps to assist sellers in continuing to have a steady stream of sales and have more money on-hand to put towards their daily needs.
- Etsy will invest $5,000,000 over the next month to drive sustained business for sellers
- We will also provide a one month grace period to any seller who needs extra time paying their bills
We believe these programs will meaningfully help sellers during these challenging times.
We’re one community
History has shown us that during times of greatest difficulty, we see the best of humanity. Our choices have the potential to meaningfully help those who need it most.
Thank you for being a part of the Etsy community.
Josh Silverman, CEO Etsy
With all due respect-unless I’m reading this wrong this letter absolutely does NOT “defer” offsite ad fees for any length of time. The start date for Etsy to start charging for these ads was/is April 14th. Ad participation is MANDATORY for any shop that’s take more than $10,000 in the last 12 months and the commission is absolutely egregious. 12% of the total including shipping ON TOP OF the regular 5%!!!! So a soul crushing business ending 17% commission. All Josh is saying here is “Oh by the way-Etsy is investing $5,000,000 into these ads because we believe we’ll reap a handsome investment return on our outlay due to the fact you’re forced to participate.’ Color me unimpressed. I’d be more impressed if Etsy said “We’ve realized with the economy melting down that 17% might be a tad too greedy. We’ll lower that forced commission to a flat 10% ALL IN which would keep us in line with the biggest ecommerce platform Ebay”.
@quirkyantiques
In the Etsy Help Center: https://help.etsy.com/hc/en-us/articles/360044357034-How-to-Manage-Your-Shop-During-COVID-19?segment=selling#360044357034_5
is the following statement:
Etsy is investing now in your growth, so you won’t see any charges for Offsite Ads until at least May 1st.
Theoretically, we won’t be charged but, honestly, the language is a little too loose for me. Since I am closing my store the first time I am charged for Offsite Ads, it might give me an extra week or two on the off-chance that I should sell something since they buried my no-free-shipping listings.
So-a 2 week grace period. Big deal lol. The economy is crashing and a 17% commission will be the death blow to more than a few shops. 20% if your shop takes less than $10,000 a year. Etsy should rethink this whole mandatory ad thing if they’re serious about keeping their small business holders afloat right now.
Etsy could have done a lot more over the past year than to kill sellers sales. Now we’re in a crisis? Well I don’t have to worry because many of my items that should sell on Etsy dont because of their inane changes to visibility and marketing. They are going the way of eBay and they won’t be missed either.
I don’t care for the ads, won’t use them anyway. They are just a money-making scheme for etsy.
“Grace period” one month???? how about 3 months ?
I requested Etsy extend renewing listings for 6 months instead of 4, cannot be done apparently. I am disappointed as I am clocking up renewals and have had no sales to cover the cost. I wanted to pay direct and that was also a no. Regarding the ads. I never asked for them and never needed them as I was doing very well so that offer is meaning less to me.
No bill til May 15th? Oh, how generous!
Offsite ads has to be one of the worst ideas Etsy has ever had at east from the sellers point of view. Half of my sales this month are from Offsite Ads. Etsy targets your best selling items to advertise. These items would sell without ads. I did not ask for help or do I need it. I am going to be paying 23% selling fees for half of my sales. This sucks the profit from my shop. My items are labor intensive it’s not like I an just crank up production to increase my income.
Good thing Etsy has new sellers standing I line because they will be losing long time sellers and with them will go a lot of revnue.
Etsy has said that 20% of sellers generate 80% of the sales.
I am one of the 20% and I am looking to leave ASAP