- Some Etsy sellers are waiting for their payments from the online marketplace after SVB’s collapse.
- Also, some sellers aren’t sure when they’ll get the funds and haven’t received updates from Etsy.
- As a result, some sellers told Insider they were losing trust in Etsy.
In the wake of Silicon Valley Bank’s collapse, some Etsy sellers are having trouble getting their payouts from the online marketplace and are unsure as to when they’ll get their money.
Some sellers first learned that their deposits didn’t go through on Friday, when they received an email from Etsy explaining that payments were delayed because the company used Silicon Valley Bank to facilitate disbursement to some sellers.
On Monday, Etsy confirmed to Insider that approximately 0.5% of its active seller base had their payments delayed on Friday. In a statement, the company said: “We are working to pay these sellers today and we’ve already started processing payments via another payment partner this morning.”
However, some Etsy sellers on Reddit said they still haven’t received payment and others said they have been notified that their payments may not come for days or weeks.
For example, one user who uses the handle jennifer1911 said their deposits typically arrive weekly on Mondays but that their next deposit date was changed from March 13 to March 20. When the user selected the option “request it now,” the deposit date was updated to March 14, they wrote.
“Mine was just rescheduled for March 20 after failing to be deposited today,” wrote user jessgoldrush.
Other Etsy users posted that they received their deposit today.
Insider spoke with three Etsy sellers who said they had not yet received any communication from Etsy. Two of them were waiting to see if their automatic weekly deposits would go through and, in the meantime, set their storefronts to vacation mode to prevent receiving any orders from customers.
Confusion leads to mistrust from sellers
Yinan Wang, who sells minerals and gemstones on Etsy, said the company’s response to the ordeal has led him to distrust the platform.
“The lack of communication hasn’t exactly put much trust with Etsy because, over the entire weekend, they posted nothing on their Twitter about any of this,” Wang said. “No one’s sending any email being like, ‘don’t panic or we’re dealing with it.'”
Renee Donohue wasn’t panicked about the ordeal because Etsy only accounts for between 15% and 20% of her lavender business. However, the shortage of updates from Etsy added to her mounting grievances about the platform, she said.
“I haven’t been happy with Etsy for a couple of years because of their fees and the way they treat sellers,” she said. “They’re not seller friendly, they’re buyer friendly.”
Liv Rainey-Smith sells art prints on Etsy and put her store on vacation mode after Friday’s news. At first, her payment from the company was due March 20, she told Insider in a direct message. Then the status changed late Monday afternoon when she received an email from Etsy notifying her that the funds were on their way. She had not yet received confirmation of the transfer from her bank, as of 5 p.m. on Monday.
“I’m cautiously optimistic it’s actually happening,” Rainey-Smith said. “That said, I won’t re-open the shop until I see it pending in my bank account.”
If you are an Etsy seller affected by delayed payments and want to share your story, please reach out to this reporter at [email protected].