Etsy won't provide details on why it is pulling the popular listing-management tool BETSI from its API program - see details in today's
EcommerceBytes Newsflash.
But without explaining the move, it could scare away third-party developers who consider building tools for Etsy users, which could ultimately hurt Etsy by hampering innovation. Some of the best marketplace tools and features for sellers have been built by 3P developers.
There has been an outpouring from Etsy sellers who used BETSI, many of them saying they never could have grown their business without it, and who wonder how they will manage their listings going forward.
An Etsy spokesperson said she couldn't provide details about the decision "because this action involves an Etsy member's account," yet she indicated the developer of BETSI had violated Etsy Terms of Use. "Ensuring that members who build tools with Etsy's API adhere to our Terms of Use is a top priority."
Etsy's move shows the risk developers face in building a business on another company's platform - there's a long history of seller tools that have dealt with eBay's iron hand, for example. But it's nearly impossible to get third-party developers to go on the record about the challenges they face in dealing with the platforms on which they are entirely dependent.
eBay owes its success in part to tools developed by third parties that let sellers scale, and it frequently adopted features that third-party developers had innovated. A vibrant ecosystem is good for any platform, whether it's eBay, Etsy, or a platform such as Facebook.
The BETSI decision comes just as Etsy needs to scale as never before with its pending IPO, and it may find that it is shooting itself in the foot by scaring off developers instead of encouraging them.
If Etsy does not explain why it felt the need to pull access to its API, speculation will lead to fear, uncertainty and doubt among sellers and developers.