Why I Closed My Etsy Store: The Hidden Pitfalls of Selling on Etsy

TLDRAfter 3 years and 166 sales, I made the difficult decision to close my Etsy store. Despite the initial success, I encountered serious issues with Etsy that made it unsustainable for my business. From fund holds to account suspensions and a lack of seller support, Etsy proved to be a risky platform to rely on. I share my experience to caution others and emphasize the importance of diversifying sales channels.

Key insights

💡Starting on Etsy can be a good way to gain initial sales, but it shouldn't be relied upon as the sole platform for your business.

🚫Etsy has the power to put holds on seller funds, causing financial strain and potential reputation damage if unable to fulfill orders.

🎯Driving your own sales through social media and marketing is essential to reduce reliance on Etsy and maintain control over your business.

🔍Etsy's lack of action against cheap Chinese-made products and copyright infringement undermines the original purpose of the platform for handmade goods.

⏰Etsy's restrictions on turnaround times and mandatory free shipping can hinder small businesses and limit their ability to provide quality handmade products.

Q&A

Should I start selling on Etsy?

—Starting on Etsy can be a good way to gain initial sales, but it is crucial to diversify your sales channels and not rely solely on Etsy.

Has Etsy ever put holds on seller funds?

—Yes, Etsy has the power to put holds on seller funds, which can cause financial strain and impact a seller's ability to fulfill orders.

Can I drive my own sales outside of Etsy?

—Yes, it is possible to drive your own sales through social media and marketing, reducing your reliance on Etsy and maintaining control over your business.

Why is Etsy allowing cheap Chinese-made products on their platform?

—Etsy's lack of action against cheap Chinese-made products and copyright infringement undermines the original purpose of the platform for handmade goods.

Why does Etsy have restrictions on turnaround times and free shipping?

—Etsy's restrictions on turnaround times and mandatory free shipping can hinder small businesses and limit their ability to provide quality handmade products.

Timestamped Summary

00:00After 3 years and 166 sales, I made the difficult decision to close my Etsy store.

00:19Starting on Etsy can be a good way to gain initial sales, but it shouldn't be relied upon as the sole platform for your business.

01:09Etsy has the power to put holds on seller funds, causing financial strain and potential reputation damage if unable to fulfill orders.

02:48Driving your own sales through social media and marketing is essential to reduce reliance on Etsy and maintain control over your business.

06:20Etsy's lack of action against cheap Chinese-made products and copyright infringement undermines the original purpose of the platform for handmade goods.

07:19Etsy's restrictions on turnaround times and mandatory free shipping can hinder small businesses and limit their ability to provide quality handmade products.

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