Unveiling Etsy's game-changing update for ultimate success in 2023

Unveiling Etsy's game-changing update for ultimate success in 2023

Table of Contents

  1. Introduction
  2. The Appeal of Etsy
  3. Issues with Etsy as a Selling Platform
    • Unpredictable Suspension
    • Lack of Transparency
    • Limited Appeal Process
    • Ownership by Institutional Shareholders
  4. Personal Experience with Etsy
  5. Tips for Safeguarding Your Etsy Business
  6. Alternatives to Etsy
    • Shopify
    • Amazon Handmade
  7. The Importance of Diversifying Selling Platforms
  8. Conclusion

The Pitfalls of Selling on Etsy: A Personal Experience


In recent years, Etsy has emerged as a popular platform for individuals looking to start a side hustle or expand their small businesses. Offering a wide range of products, from digital goods to physical items, Etsy seemed like the ideal place for many entrepreneurs to showcase their creativity and reach a larger audience. However, beneath the surface, there are significant issues that can negatively impact sellers. In this article, we will delve into the pitfalls of selling on Etsy, drawing from personal experiences and the experiences of others, while also exploring alternative platforms and offering tips to safeguard your business.

The Appeal of Etsy

Etsy's appeal as a selling platform is undeniable. It provides sellers with an established marketplace, a built-in customer base, and the potential for significant earnings. Many success stories have circulated online, showcasing individuals who have made Etsy their primary source of income. Its ease of use, low overhead costs for digital products, and the ability to operate as a passive income stream make it an enticing option for aspiring entrepreneurs.

Issues with Etsy as a Selling Platform

Despite the allure, there are several significant issues with Etsy that sellers should be aware of before diving in headfirst.

Unpredictable Suspension

One of the most unsettling aspects of selling on Etsy is the risk of sudden and permanent suspension. Sellers who have invested countless hours and resources into their businesses have found themselves waking up to a message, notifying them that they have been permanently suspended without any clear explanation. This abrupt termination has proven devastating for sellers who rely heavily on Etsy for their income.

Lack of Transparency

Etsy's lack of transparency when it comes to account suspension is deeply concerning. Sellers are often left in the dark, without any understanding of why their accounts were shut down. This lack of communication does not allow sellers the opportunity to rectify any unknowingly broken rules or prevent similar issues from occurring in the future. The absence of an explanation leaves sellers feeling frustrated and devalued.

Limited Appeal Process

Adding to the frustration is Etsy's limited appeal process. Once a seller's account has been suspended, there is no clear path for appeal or review. Sellers are left without an opportunity to present their case or seek clarification. This lack of recourse exacerbates the feeling of helplessness and can leave sellers stranded without 90% or more of their income.

Ownership by Institutional Shareholders

Etsy's acquisition by 93% institutional shareholders, which include banks, insurance companies, and credit card companies, has shifted the focus of the platform. As a result, Etsy is now primarily concerned with minimizing risk and maximizing profits, often to the detriment of its sellers. The platform's prioritization of corporate interests over the welfare and satisfaction of sellers is evident in its decision-making processes.

Personal Experience with Etsy

One particular instance will serve as an example of the challenges faced by Etsy sellers. A couple decided to pursue a clothing business focused on oversized t-shirts. After months of preparation, including creating designs, investing in advertising, and setting up their Etsy shop, they launched with enthusiasm. Positive feedback and initial sales seemed promising, driving them to invest further time and resources into marketing their products. However, within a few weeks, their account was permanently suspended without a clear reason provided. Attempts to appeal the decision were futile, with Etsy providing a vague response and refusing to engage further. The couple was left frustrated and disappointed, with no access to their funds held in the Etsy account.

Tips for Safeguarding Your Etsy Business

For those who choose to open an Etsy shop or already have one, it's essential to take precautions to safeguard your business against unexpected shutdowns. One key tip is to diversify your selling platforms. While Etsy may have its benefits, it is wise to simultaneously establish a presence on other platforms like Shopify or Amazon Handmade. By driving traffic to multiple platforms, you reduce the risk of being left stranded if your Etsy shop is suddenly closed.

In addition, be cautious when using a VPN to access your Etsy account, especially if you work remotely in different countries. Etsy has stringent policies regarding VPN usage, and it may flag your account, leading to potential suspension. Maintaining open communication with Etsy's customer support and promptly withdrawing funds from your account can also mitigate future issues.

Alternatives to Etsy

Considering the pitfalls and uncertainties associated with Etsy, exploring alternative platforms may be a wise decision for sellers. Two prominent alternatives are Shopify and Amazon Handmade.

Shopify offers a comprehensive e-commerce platform that allows sellers to create their online stores with more control and flexibility. With a range of customizable templates, marketing tools, and integration options, Shopify empowers sellers to build a unique and independent brand.

Amazon Handmade, as the name suggests, caters specifically to artisans and makers, providing a platform to showcase and sell handmade products. Backed by Amazon's vast customer base and robust infrastructure, Amazon Handmade offers increased visibility to sellers, allowing them to reach a wider audience.

The Importance of Diversifying Selling Platforms

The unfortunate reality of relying solely on Etsy is that you are placing your business at the mercy of a single platform that can unpredictably suspend accounts without clear explanations. By diversifying your selling platforms, you spread the risk and ensure that your business can continue even if one platform fails you. Building a brand presence across different platforms enables you to reach different audiences and insulates you from the potential adverse effects of an Etsy suspension.


While Etsy may seem like an appealing platform for sellers, it is imperative to be aware of its pitfalls and shortcomings. Unpredictable suspensions, lack of transparency, limited appeal processes, and ownership by institutional shareholders raise concerns about the platform's dedication to its sellers. By diversifying your selling platforms, utilizing alternative platforms like Shopify and Amazon Handmade, and implementing precautionary measures, you can safeguard your business against potential shutdowns and ensure long-term success. It is time to approach the world of e-commerce with eyes wide open and make informed decisions for your entrepreneurial journey.


  • Etsy's appeal as a selling platform for side hustles and small businesses.
  • The risk and unpredictability of sudden and permanent suspensions on Etsy.
  • Lack of transparency and limited appeal processes for suspended accounts.
  • Etsy's ownership by institutional shareholders, prioritizing profit over seller welfare.
  • Personal experience of a couple whose Etsy shop was permanently suspended without clear reasons.
  • Tips for safeguarding an Etsy business, including diversifying selling platforms like Shopify and Amazon Handmade.
  • The importance of being cautious when using a VPN and regularly withdrawing funds from an Etsy account.
  • Exploring alternatives to Etsy, such as Shopify and Amazon Handmade.
  • The significance of diversifying selling platforms to mitigate the impact of potential Etsy suspensions.
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