Etsy Scrambling To Avert a Widespread Sellers' Strike

An Etsy boycott initiated by UK-based sellers over its payment system has gotten the American company's attention. From a report: Etsy addressed criticism of its policy in a blog post on Aug. 1, and promised to "substantially" decrease the amount of funds held in reserve. Vendors have complained that the platform's policy, which can freeze up to 75% of earnings in reserve for as long as 45 to 90 days, is destroying businesses and placing sellers in dire financial straits. Etsy also takes fees out of the remaining 25% of funds, stripping shops of even more earnings. [...] Vendors have begun switching their shops into "holiday mode" in protest of the payments policy and are leaving for rival sites like Shopify. The UK's Office of the Small Business Commissioner (OSBC), which has been flooded with complaints, has already contacted Etsy about its reserves system, as has the UK's Minister for Enterprise, Markets and Small Businesses.

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