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Etsy Joins the BlackRock Emergency Savings Initiative

Etsy
Etsy joins the BlackRock Emergency Savings Initiative

Etsy announced it has joined a program called BlackRock’s Emergency Savings Initiative.

The online marketplace said it wants to better understand the specific financial challenges Etsy sellers face, and said it would pilot new solutions to help sellers address those challenges starting next year.

BlackRock Inc. is an investment management firm. You can also read more about its new initiative in this press release on its own website.

Press release follows:

There are a lot of amazing benefits to being a creative entrepreneur, from finding an outlet for your creative passions to being able to support yourself and your family doing the things you love. But there are some big challenges as well.

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As self-employed microbusinesses, Etsy sellers face considerable challenges managing the ups and downs that come with running a retail businesses. They may earn quite a bit over the holidays, for example, and then sell less in January. It can be difficult to predict future sales, and an unexpected emergency may create significant financial strain for our sellers and their families. We know, for example, that 40% of our full-time sellers lack sufficient emergency savings to cover their expenses for three months, and 35% of our sellers have not started saving for retirement.

And our sellers aren’t alone. Today, fully 56.7 million people work independently, often struggling to manage the income volatility that can accompany this type of work. According to the McKinsey Global Institute, temporary and contract work has accounted for all net employment growth in the United States since 2008. As more people work outside traditional employment, we need new strategies to ensure everyone can build financial security, regardless of how they earn income.

That’s why we’re joining BlackRock’s Emergency Savings Initiative. Through our partnership, we’re working to better understand the specific financial challenges Etsy sellers face, and starting in 2020, plan to pilot new solutions to help our sellers address them.

This partnership builds on our longstanding commitment to helping our sellers manage the challenges that come with self employment. For example, in our white paper, Economic Security for the Gig Economy, we laid out a policy agenda to build greater economic security for our creative entrepreneurs. With this pilot, we hope to turn some of these ideas into concrete actions, and share our findings with others working to solve these same difficult challenges.

Together, we believe we can find solutions that build economic security for everyone who works, regardless of how they work.

SOURCE: Etsy Press release (via Medium.com)

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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). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

4 thoughts on “Etsy Joins the BlackRock Emergency Savings Initiative”

  1. They’re kidding right ?
    ETSY is the greatest financial burden to Etsyers.
    For Pete’s sake……
    Etsy charges an even 15% now.
    That’s robbery.
    3% is plenty.
    Eliminate the CEO position. It’s practically a “No Show” job.
    NEW WHOLEY AMERICAN VENUE NOW.

  2. @TheEnd – Sorry, but you must be a bit out of the loop. Etsy’s fee is 5% + payment processing ($.25 + 3%). There’s also a $.20 listing fee for FOUR MONTHS duration. That totals 8% + $.45. How did you reach the 15% number?

    BTW, $.85 per gallon is plenty for gasoline. I will be paying $4.15 tomorrow morning!

  3. I kind of get what they are saying, but this is more than just a problem than what effects etsy sellers. When I married my husband I had a double whammy, he was strictly self-employed and I got sick and ended up on short term disability for 6 months and then nothing until several years later when SS kicked in for me. While self-employed, he didn’t make money on a monthly basis. He did big jobs that he got paid for sometimes only once a year. It was horrible to try and figure out how to handle finances especially when you had no clue when more would be coming in. It took me years to get into a system that worked. So I set money aside for taxes, retirement, etc.

    However, I have found other benefits that we could use such as FSA which the only reason that some are eligible is they work at a job and get paychecks. If you are self-employed you aren’t eligible. I have never figured out what is the big difference so that we can’t set money aside for medical bills, etc. Not the only thing that we are not eligible for. The government has to start acknowledging self-employed workers whether online sellers, or online graphic artists.

    At this point it is like two classes of people. Those that ‘follow the rules’ and go get a job and punch a time clock, and those who don’t and figure out ways to bring in an income on their own and with no help like paid workers get. At times it is like we are punished for going about life differently.

  4. @ Sierra,
    Outta the loop my a$$.
    15% of MY MONEY is GONE at the conclusion of the transaction.
    You’re not me, chances are you don’t do enough business to understand what’s going on.
    Please refrain……

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