Is the collapse of Silicon Valley Bank the last straw? A large number of sellers are fleeing Etsy

According to the latest report from Modern Retail, several Etsy sellers interviewed recently said that after the collapse of Silicon Valley Bank caused the platform to default on payments, their distrust of Etsy has once again deepened, and many sellers have expressed plans for store openings.

The report said that among the sellers interviewed, the earliest plan was to close the store at the end of March this year. The sellers responded that the store closure was due to the accumulation of multiple factors, including but not limited to the impact of Silicon Valley Bank. After the collapse of Silicon Valley Bank, many sellers have not received sales payments.

An Etsy spokesperson said after the incident that only 0.5% of its 5.4 million active sellers were affected by the collapse of Silicon Valley Bank, and their payments would be delayed by one business day. Etsy will process payments on a normal schedule starting March 13.

Etsy said it will also provide sellers with relevant updates about the Silicon Valley Bank situation starting March 17, including emails, notifications and posts on its seller forums.

But according to many sellers interviewed, they have not received payment yet. They only received emails from Etsy about the payment being processed, and the specific arrival date is still unclear, which has caused panic among some sellers.

In fact, the impact of Silicon Valley Bank is just one of the reasons why sellers are more distrustful of the platform. Due to the influx of a large number of non-handmade products, the living space of real handicraft sellers has been squeezed out, and they have to lower their prices to surpass their competitors.

Additionally, Etsy has been pressuring sellers to offer free shipping, which, along with other increasing fees, led some Etsy sellers to stage a strike last April, but this still did not effectively address sellers' concerns.

Renee Donohue, who has been selling beauty and health products on Etsy since 2014, said she is considering closing her Etsy shop by June this year. Although the seller's funds were not affected by the collapse of Silicon Valley Bank, she believes that Etsy lacks manual service and sellers' problems cannot be effectively solved.

Bella Stander, another Etsy seller, said the platform’s problem is an influx of mass-produced goods, including knockoffs of handbags and shoes from China.

But Etsy is still trying to retain sellers, and responded that it has quadrupled its investment in enhancing trust and security in its market and invested $50 million in these efforts in 2022. A platform spokesperson also said that it has introduced sophisticated tools dedicated to removing infringing listings.

Editor✎ Ashley/

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