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Etsy, the global online marketplace used by millions, is facing claims from sellers it has been withholding thousands of pounds from small businesses by imposing reserves on accounts that take 75% of sellers’ income for 45 days with no warning.
Sellers say the company is retaining their income with little care for how it will affect families in a cost of living crisis.
Pietra (her surname is not used for fear Etsy will shut her account), a Miami-based Etsy seller, told Sky News she has more than $20,000 (£15,463) held in two of her accounts in an enforced reserve that she is unable to access.
Since 2015 she has designed wedding favours to sell on the platform full-time, balancing work with being a single mum.
Her business was taking in more than $30,000 (£23,195) per month in orders. From that total, once production and shipping costs are removed, she is left with $8,000 (£6,185) profit.
But after a reserve was placed on her account on May 18, she saw her income drop to just $444 (£343) in June.
“It’s insane that in a two-month period my whole life went to hell because of this,” she said. “They’re holding $20,000 (£15,000) of mine, and I basically can’t buy food.
“I’ve just reached two months of my rent being late and I’ve maxed out two credit cards, one for $5,000 (£3,800) the other for $6,000 (£4,600). It’s been close to impossible to get out of bed.”
Dan says his business was going from strength to strength until a reserve was imposed on his account
‘We haven’t been able to pay bills’
Dan (his surname is not used for fear Etsy will shut his account), from Aylesbury in Buckinghamshire, runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any…
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