TEE #049 Etsy Announces Major New Seller Policy Changes Coming in 2024

Read time: 3 minutes

Etsy, recently unveiled some significant changes that will be implemented for new shops opening on their platform starting in 2024. As an established Etsy shop owner myself, I wanted to break down what exactly these updates are and what they mean for the Etsy community.

Enhanced Identity Verification Required

First and likely most importantly, new Etsy shops will now be required to complete an enhanced identity verification process when first setting up their shop. This will include uploading a valid photo ID such as a driver’s license or passport, as well as taking a real-time selfie. Etsy has partnered with a third-party company called Persona to handle these verifications, which Persona states meet the highest industry standards for security and privacy.

Clearly, these extra verification steps aim to increase legitimacy and prevent fraud or abuse on Etsy’s platform. As the company said, “We’ll be introducing a new method of identity checks to the shop set-up process so we know that new shop owners are who they say they are.” For buyers, this should help improve trust and confidence when purchasing from new shops with no reviews or sales history yet.

New $15 New Shop Set-Up Fee

Additionally, Etsy will start charging some new shops a one-time $15 set-up fee that must be paid before opening up shop. Etsy claims this upfront cost will fund better security features and support systems for these new sellers just starting out. It may also deter sellers not fully committed to running a real Etsy shop from casually signing up on a whim.

According to Etsy, “This nonrefundable upfront investment will help to ensure new shops are committed to running a business on Etsy.” So sellers should view it as a small commitment fee to prove they are serious about selling.

Payment Schedule Changes

The final policy shift aims to improve buyer experiences when purchasing from unknown new sellers. Etsy stated that they are “exploring changes to payment schedules for new shops until they have a proven track record of sales.” This means new shops likely will have to wait longer before their earned funds are made available for withdrawal.

The goal here is to ensure sellers fulfill orders properly and can provide refunds if needed in those early stages. Having a sale held for a couple weeks until shipped may create more accountability.

What This Means for Established Sellers

First, it’s important to reiterate that these new policies are ONLY for newly opened shops on Etsy. Any seller who already has an existing Etsy shop will not be directly impacted. You can carry on with business as usual.

However, Etsy did note that if current shop owners decide to open a new, additional shop account, that new shop may be subject to these updated requirements. Even as an Etsy pro seller myself, if I opened a secondary shop, I could encounter the ID verification, set-up fee, and revised payment scheduling.

In my opinion, these changes reflect Etsy’s push to improve platform security and integrity after some past criticisms. Instilling buyer trust is crucial for any online marketplace. And as an established seller who has built my brand and reputation on Etsy already, these measures make me feel more confident sending my loyal customers to new up-and-coming creative businesses too.

The photo ID checks and set-up costs may be cumbersome, but should not deter sellers truly passionate about selling their artwork, crafts, or goods. New shop owners will just need to understand and prepare themselves for these extra steps before launch.

I’d love to hear your thoughts on these new seller policies in the comments below! Do you think they will achieve Etsy’s stated goals or create unnecessary barriers for new entrepreneurs instead? Let me know what you think as a creator.

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