Etsy is Launching a Purchase Protection Program for Shoppers and Sellers

Etsy has announced a new purchase protection program for shoppers and sellers, set to begin on August 1st. The program will refund customers in the event that an item arrives damaged, is missing, or does not match the listing description.

The program covers purchases of $250 or less, including shipping and taxes, according to the updated seller handbook. The company says it will put $25 million per year into the program to cover refunds. There is no charge for sellers to participate in the program.

Etsy is Launching a Purchase Protection Program for Shoppers and Sellers

“Etsy’s new Purchase Protection program is designed to help make shopping on Etsy worry-free by providing easy issue resolution,” said Raina Moskowitz, Etsy’s Chief Operating Officer.

For sellers, the program will enable them to retain their earnings in the event that an item never arrives or is damaged upon arrival. In the case of damage, only the first instance of damage in a calendar year will be covered.

Under the current policy, sellers are not responsible for missing packages, as outlined in the handbook. However, the new program more clearly explains when Etsy will refund the buyer, making the refund process more uniform.

To be eligible for purchase protection, sellers must ship purchases with tracking information and/or use a shipping label purchased on Etsy, have an estimated delivery date, and ensure that their listing details are accurate, among other requirements.

Etsy’s purchase protection program is designed to improve customer support, increase trust signals across the user experience, and maintain the marketplace’s integrity as a destination for unique and special items.

Etsy’s goal of creating a more uniform approach to purchases and refunds between shops and buyers could help to professionalize the marketplace and make it more comparable to other online platforms such as eBay.

The program arrives a few months after Etsy merchants held a strike over various complaints, one of which was a recent hike in transaction fees. The company defended the fee increase by saying the extra money would allow Etsy to invest in things like customer support.

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