Etsy announced a new buyer protection program today: "Starting August 1, buyers will receive a full refund for purchases on Etsy.com in the rare cases that they don't match the item description, arrive damaged, or never arrive."
In a press release on its Investor Relations website, Etsy stated in part: "The company plans to invest at least $25 million per year into the purchase protection program to cover refunds on behalf of sellers for qualifying orders up to $250, enabling them to keep their earnings from sales when things happen outside of their control."
Sellers are protected to some degree as a result of the new policy for items that don't arrive and for disputes about listing accuracy, assuming the listing was accurate.
However, the new program will not protect sellers for items that arrive damaged. It may cover a seller's first case related to a damaged item in each calendar year - though it requires sellers to go through their shipping-insurance program first.
Here's the key portion of the new program from the seller-protection point of view:
Etsy's Purchase Protection program for sellers applies to cases where the item does not arrive, and disputes about listing accuracy. In general, it will not apply to cases concerning damaged items, however Etsy may cover a seller’s first case related to a damaged item in each calendar year.
For cases where the item does not arrive, Etsy Purchase Protection protects sellers for orders that are shipped, but ultimately not received at their final destination. Sellers who meet the eligibility criteria outlined here may not be held financially responsible for such non-delivery cases that result in a buyer refund.
For disputes about listing accuracy, Etsy Purchase Protection protects sellers for orders that match the listing description and photos, where a buyer claims it does not. Etsy does not cover orders that differ from the listing description, so, we strongly recommend using accurate photos and descriptions when listing an item.
For cases where the item arrives damaged, Etsy Purchase Protection supports sellers with their first eligible case starting August 1, 2022 and once for each calendar year (January to December) thereafter. Otherwise, sellers are responsible for resolving cases where the buyer has reported that an item has arrived damaged. For this reason, we recommend packaging all items securely, and purchasing shipping insurance.
One seller
reacting on the company's discussion boards referenced the recent fee hike Etsy imposed in their reaction to the new buyer protection policy and its impact on sellers:
"Very few parcels from my shop get shipped without insurance, (domestic letterpost only).
"And on the rare time something is legitimately lost or arrives damaged, I refund & take it up with my insurer.
"What is the benefit to me?
"So our extra 1.5% is going to be used to subsidize the shops that don't ship with insurance? NO THANK YOU!"
There are lots of pages sellers should study to completely understand the new program.
The program takes effect on August 1, 2022. Is there anything else you found of interest? And how will the new policy impact you?
The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Will New Etsy Purchase Protection Program Help or Hurt Sellers?
by: epuise 
by: The End