Etsy is one of my favorite marketplace platforms both as a consumer, and a creator. It’s a great place to search for unique products and vintage items you can’t find anywhere else as a buyer.
Plus, if you’re a member of the creator economy, Etsy gives you a low-cost, convenient environment where you can connect with millions of customers, and sell a wide range of items.
However, like most ecommerce solutions, Etsy is constantly evolving. Not only does it regularly introduce new features, like the new “Etsy Gift Mode” for shoppers, but it changes its policies and conditions for sellers from time to time too.
Recently, Etsy announced several changes to its platform that will impact sellers in the POD market, and creators, particularly if you’re planning on opening a new shop this year.
Here’s what you need to know.
The Biggest Etsy Updates for Sellers
The latest updates to Etsy will have a direct impact on how easy it actually is to use the platform for POD sales, and marketplace selling in 2024.
In my opinion, Etsy has always had some downsides for sellers compared to using your own ecommerce website for sales. For instance, there’s a lot of competition on the platform, and it’s hard to make your brand stand out.
However, Etsy is still a good option for people in the print on demand landscape who want to run a company and sell custom items without the hassle and cost of managing an ecommerce store.
Unfortunately, the latest updates may make you think twice about relying on Etsy as your only sales channel in 2024.
Here are the changes you’ll need to be aware of.
Updated Identify Verification Requirements
Etsy’s low barrier to entry and easy sign-up process might have made it a great choice for beginners in the ecommerce world, but they created some problems too, particularly with security.
As fraud and cybercrime continues to skyrocket, Etsy has decided to fight back, with a new “verification process”.
Rather than just entering an email address, and verifying your bank details to start selling, you’ll need to share a valid photo ID with Etsy (such as a driver’s license or passport).
You’ll also have to upload a real-time selfie, so Etsy can compare the two. Etsy has partnered with a third-party company called “Persona” to validate identity checks.
Clearly, this update highlights Etsy’s commitment to keeping its site safe for both shoppers and sellers, which is a good thing.
The new measures might even help buyers to trust your storefront when they’re shopping online, increasing your chances of conversions. However, it means that setting up your Etsy shop will take a little longer.
New Shop Set-Up Fees
A lot of the creators I’ve worked with in the past have assumed they can create a store and sell on Etsy for free.
However, while you could always create an account with Etsy for free, there are still plenty of other fees sellers need to be aware of. Etsy charges:
- Listing and listing renewal fees
- Transaction fees
- Payment processing fees
- In-person selling fees
- Regulatory operating fees
- Currency conversion fees
- Advertising fees
- Delivery fees
Now, on top of all that, anyone who creates an Etsy store in 2024 will need to pay another $15 fee to set up their new store.
This will be a one-time fee which you’ll only have to pay if you’re creating a new Etsy account. If you already have an Etsy store, you can bypass this cost.
According to the marketplace giant, the upfront fee will be used to fund better security features and support systems for new sellers, and may help to deter less committed sellers from using the platform.
While the fee isn’t huge, it’s another cost you’ll need to take into account when budgeting for your Etsy store.
Changes to Etsy Payment Schedules
The final major policy change that will impact Etsy sellers involves payment schedule changes. Etsy says it is “exploring” changes to payment schedules for new shops, preventing them from accessing payouts straight away, until they have a “proven track record” of sales.
So, what does this mean for you? Well, if you’re an existing Etsy seller, there’s no problem, your payment schedules should continue as usual.
If you’re new Etsy seller, on the other hand, you might have to wait several weeks before you can withdraw the money you’ve earned.
Etsy suggests the reason for this change is to ensure that sellers are committing to fulfilling orders properly. It will also help the marketplace to provide customers with refunds, when necessary, without long waiting times.
However, if you’re looking for a way to make money fast with something like print on demand selling, this schedule change could be a serious issue.
After all, when a customer places an order for a POD product with your store, you’ll need to pay for the item (and delivery) immediately, even if you don’t get the funds from Etsy straight away.
What the Updates Mean for Etsy Sellers
All of these updates aren’t necessarily “negative”. They highlight Etsy’s focus on creating a more secure platform, and encouraging accountability among sellers, which isn’t a bad thing.
However, the changes could cause problems for sellers who want to set up a storefront quickly (and for free), and access their funds as quickly as possible.
Crucially, however, it’s worth noting these policies only apply to newly opened Etsy shops. If you have a shop already, you can continue with business as usual.
The only way existing Etsy store owners will be affected by the change is if they decide to open a new, additional account.
Prepare for the New Etsy Changes
In my opinion, the latest updates are likely to frustrate a number of new potential Etsy sellers, but they don’t mean the platform is no longer worth using.
Ultimately, Etsy just wants to make sure it’s platform is as trustworthy as possible. If Etsy earns more trust from customers, then sellers will benefit from a higher chance of conversions too.
Still, it’s worth making sure you’re ready to navigate the changes. I’d recommend:
- Rethinking your budget: If you’re planning to launch a new Etsy store in 2024, make sure you factor the initial setup fee into your startup costs. Don’t forget to think about the other fees you’ll incur when using Etsy too (such as listing fees). Remember, you might not be able to access your profits straight away, so have a cash float in place.
- Getting ready for the signup process: Make sure you have a valid form of photo ID available when you’re signing up for an Etsy account, and prepare to take a selfie straight away. This should save you some time on the new verification process.
- Considering other sales channels: Etsy is a great sales channels for beginners in the ecommerce space, particularly those in the POD world, or companies selling creative products. However, it does help to experiment with a few additional channels. For instance, you can create your own store with a platform like Shopify (and integrate it with Etsy), and sell on other marketplace platforms like Ebay and Amazon too.
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