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Tue June 11 2019 17:11:51

Should Etsy Consider a Return Guarantee?

By: Ina Steiner

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Etsy is considering offering buyers a return guarantee, Etsy CFO Rachel Glaser indicated during an investor presentation at the Stifel 2019 Cross Sector Insight Conference on Tuesday.

Glaser said Etsy reinvested in its customer care so it could offer 24/7 email, chat, and phone support for buyers and sellers beginning in the fourth quarter after it had raised transaction fees. Etsy can help remediate returns for buyers having difficulties, she said. "If we want to, we can actually just take care of it. The message that we want is, "we've got your back.""

"We don't promote that right now," she continued, "but the Etsy guarantee is something that we would consider moving towards so that people know that there is a way to get the item returned if they wanted to."

Interestingly she was not asked who would fund such a guarantee - Etsy itself, sellers, or a mix.

Glaser said Etsy is much more demand focused (buyers) than the previous management. Etsy doesn't necessarily try to do what sellers are asking for, but doing what's best for the seller, which is more GMS (Gross Merchandise Sales). 

"When a seller churns off the site, we rarely lose the GMS because there's so much supply that if we lose that particular seller, there's many other sellers selling that same product to satisfy the demand for it. With that said, we're less focused on the seller churn dynamic."

She referenced the 80/20 rule, saying a minority of sellers have the majority of GMS. "We're concerned with a healthy marketplace and helping all of them grow."

Asked about the threat posed by Amazon, which has a Handmade marketplace, Glaser said Etsy has what she called a competitive moat. "I think Amazon has a good amount of supply on their hands, handcrafted items, but nowhere near the 60 million items that we've created."

Glaser said Etsy has 12,000 seller teams where they help and support each other. "There's something about that community" that is also a differentiator for Etsy, she said.



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by: mcposty This user has validated their user name.

Tue Jun 11 17:20:06 2019

These venues always ignore seller churn until its too late. See Ebay.

You ignorant fools think its wise not to care if you lose sellers because you have more people selling that item..what does that say about " unique" etsy?

etsy is just another chinese scam site to dump products.

You want to be buyer focuses? Get rid of te chinese crap, take care of your sellers, who will in turn take care of the customers who in turn will return time after time.

With what etsy is becoming, there sno need to return after you buy some chinese dupe that is sold everywhere else too.

Do they go out of their way to hire idiots? Is it some type of, hire as many idiots as possible to kill the business so that it will get sold off or something? Because the hire an idiot tactic is pretty common



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by: mcposty This user has validated their user name.

Tue Jun 11 17:25:51 2019

You should give this article a sub title ( also, Etsy believes seller's are disposable )

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This user has validated their user name. by: iheartjacksparrow

Tue Jun 11 17:30:44 2019

Sounds like Etsy is heading toward eBay territory where the buyer gets whatever he/she wants, and the sellers can go pound sand if a return is requested. And what the heck is "seller churn dynamic"? She must have had JD's help in crafting that speech since he was the king of word salads.  

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by: thriftyone This user has validated their user name.

Tue Jun 11 18:08:21 2019

the only returns they should guarantee are returns to "posers" from China....absolutely no one else.....

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This user has validated their user name. by: Life During Wartime

Tue Jun 11 18:11:47 2019

Many reseller shops at the moment clearly state that they do NOT accept returns or do refunds.  Almost all the reseller shops I've featured in my blogs have 100% glowing reviews, with buyers raving about how paying 3 or 4 (or more) times the market price for cheapie Chinese products made them feel so special.  And the "no returns" resellers do get a lot of repeat buys from their customers.  Even when resellers I feature get bad reviews, the buyer says they didn't bother trying to return the item because getting your, say, $175 back for the same item you could have purchased for $30 on Amazon or eBay was too much hassle.

It would be awesome to see Etsy go after the authentic handmade and vintage sellers whose buyers are trying to scam them.  And force these legit, honest, sellers to bow down before the craziness. Let's accelerate that churn!

As for the 60 million handmade items on Etsy, that's the count for ALL listings on the site.  45.8 million are listed as "handmade" which means maybe 20 million of them are,  even by Etsy's loosely inclusive standards.  

Glaser doesn't know what the heck she is talking about.  And I love her for it.


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by: Freeeeeeeee This user has validated their user name.

Tue Jun 11 22:28:28 2019

Wow that's so cynical.  The difference in management style between administrations is obvious.  And the lack of sales as a consequence.

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by: Writings on the Wall This user has validated their user name.

Tue Jun 11 22:41:01 2019

WOW, JUST WOW!   I think someone just spilled the beans!  Such arrogance!

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This user has validated their user name. by: The End

Wed Jun 12 09:02:13 2019

"Should Etsy Consider a Return Guarantee?"

NO !
It encourages nitwit morons who don't understand : I'm MAKING MY PRODUCT SPECIFICALLY FOR YOU.
If I suffer any more returns by idiots thinking their ordering from the equivalent of K-Mart, I'll quit and go back to landscaping.
Everybody gets a kick out of an old person doing REAL work.

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This user has validated their user name. by: The End

Wed Jun 12 10:54:04 2019

It just occurred to me:
Etsy is no longer Classy enough to host my product.

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by: pace306 This user has validated their user name.

Wed Jun 12 12:33:49 2019

When sales slow down because you have no idea how to run a company - you go to the eBay playbook ... "all sellers suck, all sellers are thieves, all sellers are at fault always."

Gosh, oh gee whiz shes another NON ecommerce person (according to CNBC) "Rachel is Etsy's CFO, bringing more than 30 years of senior financial experience to Etsy. She's responsible for overseeing our global financial operations."

So another idiot who doesnt know how the business is run - is saying they will adopt a "sellers drop dead policy" (take returns OR ELSE) ... THATS LIKE SO INNOVATIVE! (not).

Further looking into her bio .... "Prior to joining Leaf, Rachel was CFO at Move, Inc. and helped lead a successful sale of the company to News Corporation. Rachel has also held roles as Senior Vice President, Operations Finance at Yahoo! and at The Walt Disney Company, where she spent nearly 20 years in leadership positions in finance, operations, and technology teams. Rachel Glaser was elected to the Board of Directors of The New York Times Company in 2018."

So yeh - go right ahead and adopt the same policies that are killing eBay - smart move! (not).

As an aside - there IS a place for returns if done correctly - this isnt the way.

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by: GracefulAntiquesVtg This user has validated their user name.
Web Site

Wed Jun 12 13:31:47 2019

"When a seller churns off the site, we rarely lose the GMS because there's so much supply that if we lose that particular seller, there's many other sellers selling that same product to satisfy the demand for it. With that said, we're less focused on the seller churn dynamic."
--------------------
Ain't this special.
Interpreted to be for mass produced new items.
Selling Vintage and Antiques I double dog dare folks to find some of the rare items I have gleaned over the years.
Seen some mighty fine rare items from the other Vintage and Antique sellers I have been privileged to of known since 2002 selling online in most every Vintage venue.
Keep pushing out the true Vintage sellers.
Then what happens to all the History and beautiful items?
I may be missing something but not exactly good for the GLOBE we all live on to keep cranking out new items.
I thought that was the main goal of Etsy once upon a time.
Environmentally conscious with homemade and one of a kind items. My foot!
I miss the old hippies. They really did love people and care for the planet.


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by: GracefulAntiquesVtg This user has validated their user name.

Wed Jun 12 13:36:30 2019

The End

Wed Jun 12 10:54:04 2019
It just occurred to me:
Etsy is no longer Classy enough to host my product.
---------------------
No kidding. So sad.
They will find me soon on Bonanza.
Know it is not the best move but at least I can load it up without getting ticked constantly.
Life is WAY too short. Believe me. I know.
God bless all sellers of Vintage and One of a Kind lovely true handmade items.  

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This user has validated their user name. by: The End

Wed Jun 12 16:15:09 2019

Hi GracefulAntiquesVtg ;
Tried Bonanza for years.
Nothing.
But Good Luck sincerely.....
Don't know where we're going as a middle class economy.....
Gotta get rid of the corporate contamination machine.

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This user has validated their user name. by: iheartjacksparrow

Wed Jun 12 20:32:59 2019

@GracefulAntiquesVtg - If you are looking for a new marketplace, please try eCrater. I've been selling there for 11 years, and it truly is just a venue; they don't micromanage your store, and you can set whatever return policies you want.

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by: getalife This user has validated their user name.

Thu Jun 13 00:43:14 2019

Although it doesn't come as any big surprise, I'm amazed that she so openly admitted that the Seller's opinion has no real merit with them. Of course they know what's best for the seller than the actual seller would. I'm starting to believe that Amazon has secretly bought up every one of these selling sites and we just haven't heard about it yet because they all seem to be humming the same tune lately. This is just the first time I've actually heard one of them vocalize it in public.

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by: Moonwishes This user has validated their user name.
Web Site

Thu Jun 13 00:46:35 2019

I agree with IheartJackSparrow - try eCRATER. The owner, Dimitar, is still living by what he promise when he opened the site years ago. He has no stockholders to appease, but he keeps most of his sellers very happy. While we may not sell as much, we also aren't losing everything we make to seller fees. We do refunds or we don't, it is each seller's decision. Why should I as a seller pay for a refund of return shipping, original shipping and the item, when someone is too lazy to read the description and title of what I am selling. How does Butterick Sewing Pattern equal a made garment? On the other sites, we are forced into giving refunds for buyers who don't bother reading even the description of what they are buying and then we have to fear negative feedback for not giving a full refund plus return shipping because of buyer error. I bend over backward for my own errors, but I am not going to pay for the buyer's error.

When will these sites remember their roots? At remember that they are truly just a venue, not the owner of each of the companies that sell on them. After the original owner, got past a certain point and they allowed others to run the companies and with stockholders to pacify, no more did they care about sellers. All they want is money and as far as they are concerned, that money should come out of the seller's pockets.

seller churn - that is the perfect definition for what the big companies are doing. They don't care if we sell on them or not. Someone who heard that selling online is a quick easy way to make money will always be along shortly to try and beat the house.

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by: Barbbie This user has validated their user name.

Thu Jun 13 00:56:17 2019

Wow, nice etsy.  Venue/marketplaces are plentiful as well as sellers, maybe you should be the venue churn.

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by: BargainzBabylon This user has validated their user name.

Thu Jun 13 02:49:00 2019

Glaser first says that they want to do what is best for sellers, then says that they don't care if a seller leaves (just say 'leaves', girl, 'seller churn' makes no sense - churning is when one flips fast and cheap - unless that's what you really think of Etsy sellers).

She further intimates that there's no reason to care if the policies drive off sellers, because 20% of the sellers clear 80% of merchandise - so are they forming policies for these 20% of sellers because that's who they want to grow?

She does realise this means a site filled with drop-shipped T shirts and coffee mugs from Printful, etc., Chinese gubbins and gag gifts like little cute boxes of cards?

Meanwhile Silverman is talking about 'cushions to couches''.  

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by: BargainzBabylon This user has validated their user name.

Thu Jun 13 02:55:00 2019

Hit the button too soon -  I have nothing against T shirts and mugs per se (though there are an awful lot of them) but as an Etsy seller, I actually am not sure where this site is going.

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by: Redlion This user has validated their user name.

Thu Jun 13 03:28:14 2019

Wait a sec.... Was that Rachel Glaser of Etsy who made that statement or was that JD of eBay?

Seller churn = Seller ''noise''

JD stated that for every seller who left the site, ten more would take their place.  Sellers flocked to Etsy to rid themselves of this draconian attitude.  eBay was forced to cannibalize themselves and squeeze every penny out of the remaining sellers to make up for the loss.

Etsy... You day's a coming  

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