Etsy listened to its international sellers on an issue involving fees and issued an apology. As we reported on Monday, sellers said that after Etsy changed its billing system, they believed Etsy began overcharging them, a problem that appeared to be related to currency.
Etsy published an announcement yesterday evening confirming the issue was related to currency conversions, and promised to look into its process for calculating the transaction fee going forward.
However, Etsy did not address the confusion international sellers described over VAT and GST tax calculations, also reported in Monday’s blog post.
Here’s Etsy’s announcement to sellers published November 28, 2018*:
We’ve been listening to the Etsy seller community and appreciate the time you’ve taken to share feedback on the newly redesigned payment account.
Some sellers, whose payment account currency is not in USD, have found that the recent transaction fees charged to the redesigned payment account may have been slightly higher than 5% of the sale amount (which includes the item price, shipping cost, and gift wrapping) in your payment account currency.
This is because Etsy calculates the transaction fee in USD and converts it to your payment account currency at the time the fee is incurred. Due to these currency conversions, the resulting transaction fee in your payment account currency may have been slightly higher than 5%.
We plan to credit your payment account in late December for any transaction fee charges greater than 5% of the sale amount in your payment account currency. The credits will cover all transaction fee overages since the release of the redesigned payment account. We’ll email impacted sellers in the next few days with more information.
We’re also looking into our process for calculating the transaction fee going forward. We’ll update you as we have more information.
We’re very sorry for the confusion this may have caused and thank you for your patience as we work to improve your redesigned payment account.
*Etsy moved its discussion boards to a new platform, here’s the new URL for the thread referenced above, which no longer works.