Etsy is launching a paid membership program for buyers called Etsy Insiders, offering free shipping and other benefits. And while Etsy will obtain membership fees and will subsidize the free shipping, it will rely on sellers to offer exclusive discounts to members of the program.
A seller commenting on the AuctionBytes Blog pointed out that Etsy has pressured sellers to offer free shipping, meaning sellers are already subsidizing shipping costs. See this September 8, 2019 AuctionBytes Blog post, “Sellers Infuriated as Etsy Brings out the Big Stick.”
In its news coverage, CBS reported that Etsy did not disclose how much customers must pay for the new loyalty program, but said Etsy executive Raina Moskowitz indicated the monthly fee will cost “roughly as much as a latte.”
Etsy Insiders will run in beta testing with a limited number of buyers beginning in mid-September. Etsy provided a page for sellers to show their interest in participating in “Deals and Drops” where it provided the following information:
Etsy Insider Deals & Drops: Seller Interest Form
Thanks so much for your interest in participating in Deals and Drops for Etsy Insider! Below are more details about how it works.
Deals: Limited time seller-funded discount on one item from your shop targeted to Etsy Insiders. Discounts should be between 50%-75% from original retail price and we’ll work with you on a suggested available quantity.
Drops: First access for Etsy Insiders to a new item in your shop. We’ll work with you to create a new item, which can be a brand new creation, or a modification to existing designs in your shop. Modifications could include a new color, added details, different sizes, etc.
This is a great opportunity to showcase your amazing listings in a dedicated space on Etsy and in marketing emails to engaged buyers.
We’re looking to work with sellers who have a strong track record of sales and positive reviews.
Interested in participating in Etsy Insider Deals and Drops? Please use this form to provide your information!
Etsy is also surveying sellers asking them for their overall impression and if they believed “Etsy Insiders” would provide positive value, both for Etsy buyers and for Etsy sellers. It also asked respondents if they felt the benefits of the program “feel unique to the Etsy brand” – and how interested they were in participating in the program in the future.
Etsy closed the survey by asking about seller respondents, including when they first started selling on Etsy and where they currently lived. It also asked survey respondents what they currently sold on Etsy, offering the following options: Digital items; Clothing; Jewelry; Art: Toys: Home & Living; Vintage items; Craft supplies; Furniture; and Other, with an option for “not currently selling on Etsy.”
You can find more information about the program and leave a comment on the AuctionBytes Blog post, “Etsy Offers Free Shipping via New Membership Plan.”
*** Sellers…watch your back ***
Today, the U.S. stock market “sold off” on fears that the U.S. economy could be slowing faster than once thought. As retail earnings are mixed, a site like Etsy will no doubt manipulate their site for Etsy’s advantage.
Sellers…watch your back! These marketing schemas could hurt Sellers for Etsy’s advantage. Etsy will “discount itself to death” while Sellers make no money.
It’s time for a new CEO.