Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Aug 9 2016 23:22:19

Why Some Etsy Sellers See Some Residual Payment Delays

By: Ina Steiner

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Some Etsy sellers are worried that payment processing delays may be a sign that the marketplace is continuing to have problems related to the July meltdown it blamed on its vendor Worldpay. But Etsy says current reports from sellers are due to fraud-detection activities and acknowledged a backlog.

A seller based in Europe reached out to EcommerceBytes today (Tuesday) and said a payment that went through on Saturday was still processing. 

"They seem to be having problems again however the frustrating thing is that Etsy is denying it. Here is a link to a forum on Etsy.

"People are complaining because some payments are still processing after a week. If you look in the thread on the last few pages of this conversation Etsy is trying to say that these transactions are taking time because they are being reviewed for fraud. I don't believe it because this has never happened before. The frustrating thing with Etsy is that it is very difficult to talk someone."

An Etsy spokesperson told us today that the company posted a clarification about it yesterday in which it explained, "Looking into potential fraudulent characteristics is a common practice for ecommerce sites, and typically this process goes unnoticed. In most cases the process is completed within 48 hours, at which point the orders are processed."

However, the post continued, "Even with the resolution of the recent payment processing delays, we encountered a few residual issues - one of which resulted in a longer than usual queue of payments under review. Our team is working as quickly as possible to process all of the payments that are still under review. We work through the queue by order date received, so older orders are our priority. We sincerely apologize for any frustration or inconvenience this caused you and your business."

Sellers who responded to the post were looking for further details. One seller wrote, "There are at least a hundred, if not hundreds, of posts with orders pending 4-6 days. If you are working on orders by date, what date is currently being finished? From the posts, it looks like the orders from 8/2 are just now finalizing today."

This evening, one relieved seller updated her colleagues writing, "Just to let others know - my 9 orders which have been processing for 6 days ALL went through last night!! :) SO relieved!"




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This user has validated their user name. by: White Rabbit

Wed Aug 10 11:24:22 2016

Why would anyone believe anything Etsy Says? They are Liars and this has been proven over and over again. Lying is so common with them.. they do not even give it a second guess. If the SEC held them accountable for the Lies they would be in jail where they belong. I am guessing somewhere down the road the CEO, CFO, and a few of the BOD will be before the SEC trying to explain why it is OK to Lie. It is a federal offense to lie in some cases since they are a public company.

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by: pennyemporium This user has validated their user name.

Wed Aug 10 12:22:19 2016

https://www.etsy.com/teams/7720/bugs/discuss/17986718/page/1

as the sellers are not provided with much credible information about what is ''normal'' and what isn't, mass speculation abounds on the boards.  

there have been a number of ''work-arounds'' worried sellers have thought up; the biggest is turning off ''Direct Checkout'' and simply using ''other'' and sending a PayPal invoice.

(the situation must be pretty bad, indeed, if sellers are resorting to utilizing PayPal as a solution... lol)

sellers and buyers are comparing notes, and finding that with Direct Checkout the money is taken immediately from the buyer and given to the seller days later (and refunds are taken immediately from the seller and given MANY days later, if ever, to the buyer)... leads to posts questioning who is earning money from the float.  

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This user has validated their user name. by: Ming the Merciless

Wed Aug 10 12:43:36 2016

Most e commerce companies can't leave well enough alone.

Their constant "improvements" and fiddling with things that don't need fixing consistently cause so many serious glitches, and this nearly universal pattern of damaging glitches is driving both sellers and buyers back to the brick and mortar world.

I'm certainly not against REAL improvements, but there's NO excuse for not thoroughly beta testing ALL platform changes.

Venues know they can get away with such shoddy service because there are no immediate negative ramifications or penalties for not doing so.

In the long term, however, their contemptuous and condescending attitudes toward their customers permanently alienate customers.

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by: Let it Rain This user has validated their user name.

Wed Aug 10 14:46:48 2016

I can not believe heads have not rolled. This is a very serious issue involving interstate & international funds. Neither Etsy nor Worldpay is apparently feeling any ill effects according to their quarterly reports. Once again I am left scratching my head why Etsy & Worldpay are still holding hands - and the idiot sellers at Etsy who believe 6 day processing is "normal" ..my god..there aren't words for their special kind of stupid.

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by: Nuts2U This user has validated their user name.

Wed Aug 10 16:08:38 2016

I agree with Let it Rain. The stupid is ubiquitous at Etsy. The forums are useless because the preponderance of replies begins: ''I don't know the answer to your question, but I love your shop!'' Sheesh.

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by: mcposty This user has validated their user name.

Wed Aug 10 16:41:57 2016

It rarely had problems before they sold out to wall street..get couple suits in there and it goes to hell

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by: Nuts2U This user has validated their user name.

Wed Aug 10 16:46:55 2016

While we're on the subject of the ''special kind of stupid'' that is Etsy...

I was invited to join one of Etsy's seller ''teams,'' the purpose of which seemed to be to favorite each others' items. This was my reply:

---------

I've had 20 sales in the past 12 months. I have a second Etsy shop where I've sold nothing.

I don't need more people to favorite my items and not buy them. One of my favoriters has 50,000 favorites on her list. When do you think was the last time she looked at any of them?

I've got people favoriting one-shot things I sold years ago. I've got idiots asking me to break up lots so they can buy one thing for 25 cents (even though my policies state I won't). I've got tire kickers asking to come to my house to look at my listings before they buy (NO! NO! NO!). WTF?

Frankly, I've reached critical mass. I am thisclose to closing my shop. I really can't think of one compelling reason to join any Etsy team. Can you?

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This user has validated their user name. by: White Rabbit

Wed Aug 10 16:54:20 2016

I know a few of you are dependent on the income from Etsy but at the very least everyone should be looking elsewhere for another location. If you can afford it.. leave Etsy and yes CLOSE your shops totally there. Etsy uses your empty shops to redirect traffic to the chinese manufacturers on Etsy. They use the Goolgle traffic on your inventory even if it is not in your shop anymore.. don't just take my word.. go to google images and look. Even if you are not selling on Etsy your items are working for Etsy.

Closing your shop totally slows this down somewhat. most of my new website items are now moved to the top since i finally closed my Etsy Shops. This happened as soon as i closed the shops. This is a fact not an Etsy Lie.

It is time to start thinking of other options people.

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This user has validated their user name. by: White Rabbit

Wed Aug 10 17:00:55 2016

With closed shops you can still read the forums at Etsy. For those that have been permamuted for years there like I have... you lose nothing as you can't post anyways and if you can you have to post with extreme care so as to not offend the slimy boot licking cupcakes or the stupid idiotic loser moderators.

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by: Springtime This user has validated their user name.

Wed Aug 10 17:55:46 2016

http://securities.stanford.edu/filings-documents/1055/EI00_04/2016121_
r01c_15CV02785.pdf

This
is a link to a case filed in Federal Court in New York against Etsy, some Executives and some BOD, which alleges Securities Fraud.  It was filed Jan. 21, 2016.
*If the link doesn't work, simply copy and paste the site to search.
The suit is 85 pages in PDF format.

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This user has validated their user name. by: iheartjacksparrow

Wed Aug 10 20:05:30 2016

Since the processing delay has been going on since the latter part of June (it just got worse starting in July), it is amazing that Etsy can't, or won't permanently fix this issue. Because Worldpay says their problems are resolved, it appears that there is something on Etsy's end that needs addressing. With all the other "glitches" that have occurred on their site this year, Etsy is seriously looking unreliable.

I really feel bad for all the sellers who posted that they just got their first order, only to have said order processing for days.  

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This user has validated their user name. by: White Rabbit

Wed Aug 10 21:34:28 2016

thanks for the link springtime

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by: Springtime This user has validated their user name.

Wed Aug 10 22:12:19 2016

you're welcome. interesting info re Etsy

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by: Watching the Wheels This user has validated their user name.

Thu Aug 11 07:10:48 2016

Etsy gets away with "Their special brand of stupid". because the sellers put up with it.

I'm also guessing that the BOD is
'working' and getting favorable articles written by the powers that be within Wall Street.

Ever since the BAILOUTS FOR BONUS BUCKS WENT DOWN, the Market is about all there is, for people to try to earn a few dollars from their money.

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by: Flying Childers This user has validated their user name.

Thu Aug 11 08:19:50 2016

SPRINGTIME- great catch and thanks for sharing.  I had no idea this lawsuit had been filed.

Here's the sad part- most likely nothing will come of this because the Courts are 100% corrupt.

I have been working in the legal field (Southern Dist. of NY) for many years and have seen what happens with even the most compelling cases.

Here's an old Gypsy curse:  may you have a lawsuit in which you know you are right.

Perminate Link for Why Some Etsy Sellers See Some Residual Payment Delays   Why Some Etsy Sellers See Some Residual Payment Delays

by: Flying Childers This user has validated their user name.

Thu Aug 11 09:53:52 2016

I'm about halfway through the Complaint and it's really juicy.

Every Etsy seller needs to read this document to see just what these Social Justice Warriors are up to.

They have been lying to us about everything and getting away with it, for all the reasons set forth by Wheels and Rabbit.

It remains to be seen if anyone will be led out in handcuffs.

Thanks again Springtime!

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by: Flying Childers This user has validated their user name.

Thu Aug 11 10:43:46 2016

Folks- here are some of the allegations contained in the class action lawsuit.  If you are trying to sell on Etsy, you owe it to yourself to read:

(a) Etsy’s platform and community was heavily made up of large-scale counterfeiters and sellers infringing on intellectual property rights,both of which relied on Chinese factories to mass-produce improper goods for listing and sale on Etsy;

(b) a large portion of Etsy’s sellers utterly disregarded Etsy’s policies, including those regarding handmade goods and intellectual property, with Etsy’s knowledge and tacit consent; (b)
Etsy failed to properly staff any efforts to maintain the integrity of its marketplace, to identify
counterfeit and intellectual property infringing goods, and to remove such goods and their sellers, making it impossible for employees to adequately perform those duties;

(c) Etsy forced rights holders to engage in onerous processes to protect their intellectual property and, even then,
responded to the bare minimum extent possible;

(d) Etsy’s marketplace integrity employees were disincentivized from properly maintaining Etsy’s platform and nurturing its ecosystem, were instructed to permit high-volume counterfeiters and intellectual property infringing sellers to stay in operation on Etsy to ensure continued fees from such sellers and to maintain appearances, were
told to conceal weekly fraud reports from coworkers, and found that their complaints to superiors
either went ignored or prompted retaliation;

(e) as a result of the foregoing, millions of listed items on Etsy’s website, over 5% of all merchandise listed for sale, were counterfeits or infringed on
intellectual property rights;  

Perminate Link for Why Some Etsy Sellers See Some Residual Payment Delays   Why Some Etsy Sellers See Some Residual Payment Delays

by: Tiffee Jasso This user has validated their user name.

Thu Aug 11 11:47:22 2016

Sounds to me like someone has a shortage of cash flow and cannot cover all its debts.  

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This user has validated their user name. by: White Rabbit

Thu Aug 11 13:52:22 2016

My Prediction?

Etsy will open the site up to all merchandise within a year. Same product range as Ebay and Amazon.

Else all the faults they have created will catch up with their bottom line. This really will be their only hope as they march down the path of total incompetence :-)

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by: Flying Childers This user has validated their user name.

Thu Aug 11 15:01:58 2016

W. Rabbit- they've been telling us for quite awhile that's the way they're headed.  They can talk all they want about handmade and vintage but you & I know they are no longer interested.

The other question we have been discussing is whether or not Etsy can compete with the Big Boys in the wide open Chinese marketplace.

No matter how big Chad thinks his onions are, he is going to be hard pressed to even get in the race with Big China.  Look at the volume of sales for Amazon, Ebay, Walmart, Kohl's Target, etc.

Etsy is a tiny blip on the horizon.  There is absolutely no way Chad & Co. can compete.  What does Etsy have to offer to the average buyer who is looking for cheap, mass produced Chinese crap?

They can't even process the payments in a timely fashion let alone have the package delivered next day or sooner.  

In that market Etsy has no advantage whatsoever.  The only thing they have is the illusion that they sell genuine handmade and vintage.    

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