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Etsy Sellers Delivery Solutions: Overcoming Challenges and Maximizing Cash Flow

New Etsy algorithm causing seller chaos

Sellers say it’s “causing chaos by holding onto money they are owed for weeks and weeks”.

You and Yours, BBC consumer programme yesterday featured a segment on Etsy.

Real problems for Etsy sellers

Etsy holds a retention on the proceeds of sales until proof of delivery is shown. The problem in using postal and individual small courier companies to deliver is that this proof of delivery is not automatic. Therefore until this proof is substantiated sellers are not getting paid. And for many businesses this is extremely difficult as you can well imagine, driving them either away from Etsy as a platform or even worse driving them out of business.

The individual craft market

Etsy is an individual craft market where you can buy wonderful, individual items for artisan producers, jewellers and designers. The “Etsy reserve strike” has been instigated by 680 users of Etsy subject to this retention which can be up to 75% of the sale price can be withheld until proof of delivery is “proven”.

It’s basically about integration with the carriers and couriers. Proof of delivery needs to be clear and the need for delivery company integration to show that proof to ensure that Etsy sellers have delivered their goods to their end customer before they get paid. So whilst it is protecting the end user (and as a frequent purchaser from Etsy I can see the value in that) but the problem is that it is restricting the cash flow of small businesses.

Liz Barclay, Small Business Commissioner is intervening.

“Small business are struggling to sell afloat or leaving the platform but some of those platforms don’t have the same reach so its hard to find the market for their goods.”

She has contacted Etsy to discuss but they aren’t getting any answers.

Etsy sellers delivery solutions?

It’s quite simple. Get an integrated logistics partner. Diamond Logistics, via its one stop logistics technology, Despatchlab, integrates not only the major carriers but if you use a Diamond Logistics site to deliver then all our same day couriers are integrated too, which meets Etsy’s delivery transparency requirements.

It is driving businesses from marketing their goods on Etsy when it doesn’t have to – and as Etsy attracts about 95 million active buyers who recently bought goods through the platform. These figures include buyers and sellers associated with – but that’s a huge market sellers are depriving themselves of due to simple lack of integration.

With over 30 sites around the UK there is a Diamond site close to you. So if you still want to sell your goods on Etsy but need that vital transparency so that Etsy can see you have delivered and keep your cashflow, well, flowing then maybe Diamond is a good logistics partner to have. With postal (tracked), low cost carriers and same day couriers its unique in having ALL of these services integrated. Diamond can keep you selling, regardless of what medium of delivery you need and what marketplace you sell it on – without that difficult retention.

You can find more about it here:

You and Yours, BBC consumer programme yesterday featured a segment on Etsy.

And also highlighted on Sky News

Etsy Reserve Strike

Etsy Sellers Support Community



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A group of companies that work together to deliver a unique mix of people, technology and logistics that allows them to excel at delivery and fulfilment solutions for UK and international clients. Click on the logos below to visit the other websites.