Sounds like it's probably some newly implemented "black box" (either AI or external vendor) solution that can't be probed or debugged. :(
But it seems here mor like Hanlon's Razor is a handy cover for the fact that interest rates are up, which makes it more enticing for Etsy management to steal their sellers' funds and rake off the interest yield under a flimsy and obscure excuse.
Sure, it's only £800 here and £7000 there, but do it a few 10,000 times, and it'll yield material-to-the-bottom-line cash, and nevermind that it hurts the victims more than it benefits them.
IOW, it is just corporate theft because they can get away with it.
Pity about the whole "destroys legit businesses" result that entails. :(
Because who needs customers right? /s
There are some pretty dramatic stories out there with people getting unusual amounts of orders forcing them to buy unusual amounts of materials and do unusual amounts of work which creates an unusually full agenda and may drain finances to the edge... and then they don't get their money or the orders are refunded after delivery and they don't get proper assistance resolving the issue. "We wont tell you what you've done wrong because of reasons" is really the stuff you want to hear at that moment.
Not sure what the solution should be but I wouldn't want a role in that movie.
What is the problem usually? We don't know? How do you fix an unknown problem? If it is that someone is selling an unusually large amount it seems doable to limit the number of widgets they may sell in stead of platforms taking more orders they know cant be resolved.
I sort of feel as if we're collectively deluding ourselves about the extent and number of monopolies in our current economy.
I.e.much more screwing possibility than say Shopify or PayPal.
Still, I keep thinking about it, because I am sure it can be done in a way that does not make me want to start a new online marketplace each time..
https://www.forbes.com/sites/dariosabaghi/2023/07/27/masterc...
Running your own storefront online is a huge undertaking, even more so if you want to accept international orders. Processing payments securely while also properly accounting for things like taxes, customs, and other laws is a huge undertaking.
This is just not something that would be realistic for most of the people on sites like Etsy to implement properly.
For example, I can walk to a Tesco, Lidl, Aldi, SuperValu, and Spar from where I live, there are a bunch of clothing shops relatively close, phone shops, off-licenses, computer shops, etc. etc. And all that in a town of ~25,000 people.
It's kind of unusual that for a lot of online stuff there's so little choice, especially from the seller's perspective: it's "Etsy or bust" (or "Amazon or bust", "YouTube or bust", "Android or bust", etc.)
Other people's risk tolerances are different, of course, but I really hope everyone that does business with these companies understands that they are taking risk in doing so.
I would say that our account is a good citizen. We have been on Etsy for two years fullfilling over 1200 orders and garnering a 5 star ratings from hundreds of reviews. In all the time we operated we had a single, unjustified case against us that was quickly withdrawn by the counterparty. Not a single Etsy order was lost during shipping, and we have managed to maintain a positive account balance without any issues related to fees or refunds. Our return rate is also below the industry average for our niche.
Now, we are not perfect. Often we run over the promised delivery date by a few days simply because we get swamped with orders. We also don't ship single items with tracking. Rather we send it as a German Post "Big Letter" which is quite reliable and has the benefit that people can receive it in their mailboxes and don't have to sign for it. This works quite well and is "the way" that we handmade / second hand people usually send around stuff.
This lack of tracking is, I think, the crux of this whole matter. Etsy really wants sellers to add tracking and it states in the "reserve" that you can get your money at once if you just add valid tracking.
To me this leaves a bad taste. I really resent being "nudged" by platforms like this especially if there isn't even a problem. The fact that they can simply change the rules out from under you is also disconcerting. The first time we noticed that this was even happening was when they already had withheld 2000€ (1). The worst thing about it is that we raised a support request for this, for which you have to jump through really stupid hoops, and have not even heard back from them in weeks. Not even a boilerplate response. This is really a scary prospect, to have your income be at the mercy of literally a faceless entity that'll happily take your fees but CBA to connect you with a real person when you run into trouble.
I also want to mention that I think a "reserve" is generally reasonable. But it's not really reasonable to hold 75% over 45 days. I think if it was 25% for 15 days from shipping then, generally, seller would be able to handle it financially.
(1) I am necessarily not blaming Etsy here, we are all just very busy and I just expect for this stuff to keep working like it did.
Right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.
It's the same as YouTube in this regard. Sure, you can set up "https://sleepytimetea.video" and start posting videos, but attracting an audience will be so much harder, and it was never easy in the first place. This kind of thing only really works for people who already have an audience.
Recently lost amazon due to hoop jumping lockout, sales down on a certain product 80% but that's better than losing 100%. My main complaint is amazon won't let you sell your product cheaper on your own website.
"The BBC understands that a representative of Etsy has met with UK government officials."
Adyen is a Dutch bank of some sort. PayPal, however, is definitely not a bank, and so the rules around their storage of funds are more obscure.
