EcommerceBytes-NewsFlash, Number 3138 - August 26, 2013     5 of 5

What Does Etsy Have Against PayPal?

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Etsy has confirmed that it conducted a test in which it suppressed the option to pay with PayPal for sellers who had opted in to Direct Checkout. Sellers were upset that buyers might have abandoned their purchases upon finding they could not pay with PayPal, and some sellers opted out of Direct Checkout in protest.

After EcommerceBytes reported the story in Monday's newsletter, Etsy responded to our inquiry sent over the weekend.

"Although you wrote this article before we had time to comment, we still wanted to follow up to say we're always testing out different tools and features on Etsy, reviewing the data, and make refinements based on what we find out. This test has concluded, and we'll be looking into the results to see how we can better serve our buyers."

Etsy has always allowed sellers who opt in to Direct Checkout to offer other payment methods as well. For sellers who embraced Direct Checkout as a way to offer shoppers more options, sellers say they will be disappointed if Etsy actually gives shoppers fewer payment choices in the future.

When marketplaces like Etsy and eBay are at the point of testing, users have learned that it's usually a matter of when, not if, the marketplace will implement changes. In fact, sellers have reported in recent days that the marketplace has been testing a new feedback system, and today Etsy announced the new system was rolling out to the site in the coming weeks - stay tuned to EcommerceBytes Newsflash for more on this breaking story.

Could Etsy be moving to a Direct Checkout only system, the way Amazon processes all payments on behalf of its sellers? If so, expect a hue and cry from sellers, some of which still accept personal checks from Etsy shoppers.

One EcommerceBytes reader wrote, "Etsy responded quickly to the PayPal/payment situation. I think because of your article. Though admin Melinda has put the typical etsy obfuscation spin on it. I am noticing though that people are calling her out on that. Etsians might be feeling emboldened right now."

Let us know what you think - leave a comment on the EcommerceBytes Blog.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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