Etsy, an online marketplace for handmade and vintage goods, has announced the launch of a purchase protection program to ensure that buyers can easily secure full refunds on purchases, while sellers benefit from a layer of earnings security.
With Etsy Purchase Protection, consumers will be able to receive full refunds on items that aren’t as described, arrive to them damaged, or never arrive at all. Etsy intends to invest at least $25 million per year into the program to cover refunds on behalf of sellers for qualifying order up to $250. By doing this, Etsy is enabling its sellers to keep a hold of their earnings from sales when things happen that are out of their control, such as an item being damaged in transmit, or being lost by a delivery company.
“Easy issue resolution is a critical part of the e-commerce shopping experience, and our new Etsy Purchase Protection program aims to help make shopping on Etsy even more worry free,””said Raina Moskowitz, Chief Operating Officer at Etsy. “This program will help buyers feel more confident when they shop from small businesses on Etsy, while we invest directly in our sellers to provide them an important layer of assurance.”
Etsy says it will continue to invest in product and customer service to ensure the refund resolution process is as seamless and efficient as possible for all buyers and sellers.
The Etsy Purchase Protection program will launch on 1 August 2022.
“This is just one of many steps we are taking to inspire trust and confidence in the Etsy brand,” said Moskowitz. “Etsy’s Purchase Protection program will complement our broad efforts to improve customer support, increase trust signals across the user experience, and maintain the integrity of our marketplace as a destination for unique and special items.”
In April, thousands of sellers launched a protest against Etsy in response to an increase in seller charges from 5% to 6.5%, as well as a number of other issues they have experienced with the platform. Etsy says that it increased transaction fees to support its “plans to make significant investments in marketing, seller tools, and creating a world-class customer experience”.