Etsy announced today that it will start prioritizing items and stores with free shipping, and sellers are not thrilled. As of July 30, Etsy will prioritize US search results for items that are free shipping and for stores that provide free shipping to US buyers for orders over $ 35. In an email that the company's CEO sends to sellers, they are advised to include shipping costs in their retail prices. This change is being challenged by many sellers on the platform, which focuses primarily on handcrafted goods from artists and small businesses.
Etsy justified the decision by saying that Etsy buyers are 20 percent more likely to buy free shipping items. However, the news triggered a passionate reaction from sellers and buyers on Twitter and questions and answers about the announcement in the Etsy forums, which are currently receiving over 1
Etsy was not meant to be a big-box retailer. The whole attraction is that it is a marketplace where individual artists can offer their craft. Something original, handmade, unique. It's sad that sellers have to follow what big corporations can afford. 2/5
– Kitty Crunchyroll Expo (@Kittygorian) July 9, 2019
The introduction of wholesale flat-rate shipping charges can be challenging for international sellers shipping worldwide. Cambridge-based artist Katie Fuller, who has been running her Etsy store since 2015, believes that including shipping costs in her products would penalize her. "If I am [raise my prices]I will not make my prices competitive with other customers. Most of my clients are in the UK and it would not make sense for me to do so, so I can say goodbye to my American sales."  Josh Silverman, CEO of Etsy, acknowledged that the change for some sellers in a business insider [difficult] interview with the words, "We know this will be a lot to absorb for sellers – it's a real change in the way they think about pricing. "" We will continue to invest in your success by stepping up our digital marketing efforts to bring more buyers from the UK to Etsy. " An Etsy spokesman told The Verge that the company is starting with the US, currently the largest and most mature market, and now Ve Buyers from outside the US provide guidance on international shipping strategies.
As a buyer, I find it annoying because I do not CARE abo ut free shipping. I use Etsy to find unique, handmade items … I do not want them giving priority to free mail order businesses! It will only make it harder for us to find quality products while many artists lose money:
– Samantha (@choppadowick) July 9, 2019
A good deal of offers on the first page of In Search Results the shipping already for free. Buyers can turn on Free Delivery to find items they do not need to pay extra for. The new policy will come into effect at the end of this month and will show most of the free shipping products in the most visible top rows of search results. Etsy also says it will prioritize these articles in its ads through email marketing, social media and television.
"Most of us are small businesses – we are not Amazon or eBay, we can not compete with the rest of e-commerce, and it makes no sense to include all of our shipping costs in the total price," says Fuller. "But Etsy will punish us for it."