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Wed Apr 26 2023 13:39:38

Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

By: Ina Steiner

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After 17 years of selling one-of-a-kind goods on Etsy, a prominent seller said the marketplace placed a hold on her account and won't tell her why or what she can do to resolve the issue.

The seller, who goes by the name Katwise, posted on Facebook on Sunday evening. Within 22 hours, it generated 600 responses, which climbed to over 900 responses in a matter of days.

A reader who forwarded us a link to the post said Katwise had been around Etsy for years making and selling recycled clothing, writing, "Her brand is really well known," and included a link to her Etsy shop. A quick look at her own website reveals Katwise (Kat O'Sullivan) is known for more than her Etsy shop, and a profile of the artisan last year in Insider gives a taste of her fame as an artist.

In her Facebook post, Katwise said Etsy's handling of the situation (she said it deemed her shop "high risk" and won't disburse her earnings, but won't tell her why or what to do about it) made her furious and said the experience was demeaning - and was a catalyst to explore other platforms.

She asked her Facebook connections for advice on which ecommerce platforms work best for sellers of unique goods that sell out right away. "My shop has some unique needs and I would love to see examples of how similar business have built their own shops."

It was clear she was experiencing the same trepidation other marketplace sellers face when contemplating running their own websites. "I have been hesitant to leave Etsy because I have such a history there," she wrote. "I am nervous about having to manage my own shop (particularly the moments of high volume sales that can get glitchy and upset people).  Oof. But I guess it is time to learn and grow!"

"To be clear," she added, "I am not closing my Etsy shop - I will still have my tutorials there. I am just hoping to move my sweater sales to my own site."

The hundreds of responses to the weekend Facebook post included advice from sellers who suggested platforms and social media sites, from Shopify to TikTok. They also pointed to sellers of unique goods who powered their own ecommerce shops.

One seller theorized it was Etsy's move to automation that might have mistakenly identified Katwise sales as suspicious, pointing to an announcement Etsy posted on April 20th.

Katwise's Etsy profile includes the following praise for the site she's been a part of since almost the beginning: "Etsy has been a blessing in making it easier for my free spirit not to ever have to sit behind a desk...The response to my work here on etsy has been so life affirming! Thank you all a million times over for your enthusiasm, which continues to inspire and overwhelm me!"

But the artist now seems determined to find a new home on which to sell her unique sweaters.



Comments (12) | Permalink

Readers Comments

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Dea This user has validated their user name.

Wed Apr 26 13:55:13 2023

Etsy when it places financial sanctions on shops should be required to have a 'real person' review.  Having a bot review financial transactions is total BS!  I was shocked when I saw etsy had done this.  If it can happen to Katwise, it can happen to any of us.  

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: pace306 This user has validated their user name.

Wed Apr 26 15:00:23 2023

This is what happens when ecommerce platforms have no regulation.

While (in general) I am a free market/less regulation person, it seems that the chaos that these platforms create by making their own rules, selectively enforcing rules, bullying people (like the OP) via some arbitrary line in a TOS crosses a line into "oversite needed territory".

All this coupled with almost no ability to get reasonable english speaking Amercians to help you when they are holding YOUR money - speaks volumes.

Hey Bernie (you old alta cocker - can you hear us NOW?)

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

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

Wed Apr 26 15:33:29 2023

Let this be the impetus for the new selling platforms.
We need at least 2.
It could be one heck of a New Beginning.  

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Fruitylovesyou This user has validated their user name.

Wed Apr 26 19:04:56 2023

You know more and more I am thinking their payment processor is processing everything instead of appropriate risk management checks. Checks that generally would occur during the processing

Kat is divine! Go to YouTube and tour her house. You will fall in love with her energy.

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Queen of the Jungle This user has validated their user name.

Thu Apr 27 09:31:23 2023

Was it really inevitable that Etsy would turn into a veritable criminal enterprise?   Sad to say I think so.

Which leads me to think that they should be prosecuted under the RICO laws.

The way that sellers are being treated is a literal crime.   Etsy is flagrantly violating the laws of NY other states and countries, yet for some reason they are immune from prosecution.

My guess is that they are protected by all the politicians who are on their donor list.    

No other large corporation could get away with what Etsy does to its customers unless they were connected to the right people in high places.

Every "mistake" that they make always works against the sellers.  

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: LDWCallsOut This user has validated their user name.

Thu Apr 27 11:07:25 2023

Katwise is one of the OG Etsy handmade shops.  The idea that this shop and seller are any kind of ''risk'' is nonsense.

Etsy needs to deal with the staff or consultants who created the code that is mistakenly targeting shops because these stoopids are putting the corporation at risk by mistreating customers (the sellers).  

On the other hand, shop owners have to be business-minded enough to ask themselves why they want to list on a site that hosts hundreds of counterfeit shops, MLM product resellers and psychics.  Etsy hasn't been anything like the OG site where Katwise appeared on the homepage for more than a decade now.

WAKE UP!

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Steverd This user has validated their user name.

Thu Apr 27 11:42:50 2023

It looks like her shop is back open, I can add item to my cart. I wonder what she found out?  

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Fruitylovesyou This user has validated their user name.

Thu Apr 27 19:08:30 2023

I'm sure they bent over backwards, damage control. Maybe even got a phone call from a high profile but its the activity of these companies that people won't forget. I do think sellers need to see this as an example of when you band together in a targeted way how you can make them pucker. Lol

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Sierra This user has validated their user name.

Fri Apr 28 20:43:24 2023

@Steverd - I don't think Etsy closed Katwise's shop, they just decided it was "high risk" which, as I understand it, means Etsy holds a large portion of the shop's sales for quite awhile in case they need to issue refunds (but in reality making a ton of interest off of them).  

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Snapped This user has validated their user name.

Sun Apr 30 05:47:12 2023

Seems that selling on Etsy is what’s “high risk”.

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: AnotherTime This user has validated their user name.

Thu Jun 15 09:45:32 2023

I have to agree with  Queen of the Jungle.  My gut keeps telling me that Etsy sellers with unexplained reserves should send a letter of complaint to our NY Attorney General.  Etsy may be multinational but they are based in NY.  Find it hard to believe it is "perfectly fine" for a corp to keep someone's money for such long periods of time with no explanation of why.  Banks don't even do that!

Perminate Link for Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'   Outcry after Etsy Deems Prominent Seller's Shop 'High Risk'

by: Another Etsy Seller This user has validated their user name.

Fri Jun 30 11:47:58 2023

There is absolutely something shady going on, and it baffles me that this hasn't yet been investigated, as it's the same story over and over from thousands of sellers.

I currently have 2 shops on Etsy, one for over 8 years, the other for about 3. Both placed in reserve last month (almost 2 months now). No infringements ever of any kind. Not a star seller but 100% rate on shipping on time with tracking in both shops, 5.0 score on reviews (100%) also in both shops, and messages replied to within 24 hours at 92% in one and 94% in the other. So far a little over $20,000 being held (approximately 140 orders now between both since payment reserve was placed).

I have already contacted Etsy over a dozen times, only to receive the same automated copy/paste replies, with no real reason and/or information as to why this is being done.

While Etsy holds over $20,000 of my money, all my bank accounts are now negative, resulting in almost 2 months behind on my rent and all my other bills, and honestly don't know how I will be putting food on the table this week. I'm a single mother and this is my only income.

I just shared my full story on Twitter under an anonymous account, as I’m pretty terrified of retaliation by Etsy, and don’t need them holding my money any longer than however long they already will, and I'm just truly hoping that someone will look into this on our behalf.

If anyone is interested in reading it, here is the link to the thread: https://twitter.com/EtsySeller84/status/1674431421845495811?s=20
R>I
have also emailed the same text to several national news channels the last few days. I honestly don’t know if they’ll even look (or care), but I can’t just sit here and do nothing…

You can also find hundreds of comments from other sellers sharing their story in this article (read all comments below):

https://www.valueaddedresource.net/etsy-responds-to-sel
ler-concerns-about-payment-reserves/



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