Some US businesses say Etsy is shutting them out from working with artisans in Turkey due to an exclusive shipping deal Etsy entered into with a single shipping company. Two companies told EcommerceBytes they feel the practice is anticompetitive and deeply troubling.
Etsy announced the exclusive deal with ShipEntegra on May 29, 2024. Speaking of sellers in Turkey, Etsy said: “Starting June 3, ShipEntegra will be the only shipping service option for any sellers not currently using another shipping service. Sellers who are using a different shipping service will still be able to use that legacy provider.”
However, a US seller who works closely with artisans in Turkey said the deal placed their business and others in jeopardy:
“Effective June 8, 2024, Etsy disabled integrations with all other shipping companies. This decision has significant repercussions for those of us who depend on a variety of shipping options to maintain competitive pricing and reliable service for our customers.”
They said American businesses that support Turkish craftspeople are adversely affected by this decision. “This not only limits our ability to provide diverse and affordable shipping options but also threatens our business viability. Etsy Inc.’s decision contravenes the principles of fair competition and poses a clear violation of U.S. antitrust laws.”
The seller said Etsy’s practice stifles competition and ultimately harms both consumers and small businesses, affecting the livelihoods of Turkish artisans and also “the American entrepreneurs who support and depend on them.”
Another US business owner who prints and ships clothing orders for Turkish-based Etsy sellers said Etsy is no longer including buyers’ shipping addresses through the sellers’ integration with his print-on-demand service. He reached out to ShipStation who suggested he ask Etsy why it wasn’t supplying the addresses.
“Upon reaching out to Etsy, I was shocked to find out Etsy is limiting sellers based in Turkey to one single app “ShipEntegra”, starting from June 3rd. Any other app, although approved by Etsy in any other way, will not be able to offer their services to sellers in Turkey because Etsy is not going to be sending address information of orders.
“Isn’t this the definition of unfair trade practices and against anti-trust regulations? At first glance, it seems like an issue overseas but it is not. We have tried integrating the Turkey based Etsy sellers with major U.S based integrations such as Shopify, Selbrite, Veeqo and SellerCloud and none of them worked. We were also affected because we used ShipStation to integrate with our Turkey based clients.”
The business owner said US consumers who shop on Etsy “are more than likely to pay more for goods due to this as a result of single company being able to offer shipping services and integrations.”
In addition, he said Etsy’s exclusive shipping partner “ShipEntegra” also owns his direct competitor in the print on demand sector. “Offering integration through ShipEntegra would put our trade secrets at risk. As a US based small business, we are horribly effected by this.”
Update 6/19/2024: An Etsy spokesperson provided the following statement:
“Prior to June 3, 2024, Etsy provided Open API access for Turkish sellers to integrate with any shipping partner on our platform. Now, new sellers located in Turkey and existing sellers located in Turkey who were not previously using another shipping provider via the Etsy API on Etsy will only be able to integrate with ShipEntegra via the Open API.
“Existing sellers who were using a different shipping provider via the Open API on or before June 3 can still use their legacy provider in that way. Additionally, all sellers in Turkey can continue to use the shipping partner of their choice outside of the Etsy ecosystem by manually entering the tracking number in Shop Manager.”
