Upgraded Purchase Protection for Buyers and Sellers on Etsy

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We’ve probably all experienced it. Despite your best intentions and hard work, a sale doesn’t go well, and you need to refund the customer. Not only does this eat into your profits, but it also can be discouraging. On top of that you may be dealing with a not-so-nice customer. Fortunately, Etsy is rolling out a program on August 1st, 2022, that may help in certain situations.

Less Lost Profit when Things Go Wrong

Some of the costliest issues for sellers come from lost or damaged packages. There is not much worse than dealing with a customer who is disappointed because their package was lost or damaged. And a lot of times, if it’s even an option, carrier insurance claims can take forever. This can tie up your profit in a problem that you didn’t cause, not to mention the cost of replacing the item or refunding the customer.

Etsy has taken notice of these pain points and is offering some relief in the form of their seller protection. With seller protection, Etsy says it will refund the buyers of qualifying purchases up to $250 Dollars (Or your shop’s local equivalent) When a package is lost or damaged in transit. One caveat to mention is that Etsy will only do this for the first damaged package per calendar year. There is no mention of a limit for coverage on lost packages though.

Have you ever had an Etsy case opened against you? Check out these tips for navigating the process.

Am I Eligible For Purchase Protection?

As we mentioned before, Etsy is rolling this program out on August 1st of 2022. To make sure your orders are protected, there are a few criteria that Etsy requires.

First, your package must have a valid tracking number, Etsy says the best way to ensure this is to purchase shipping labels directly from them. Buying labels from Etsy will provide you with this coverage, but isn’t required.

Next, make sure your packages have an estimated delivery date and are shipped within your stated processing timeframe. You can typically see an estimated delivery date when purchasing your label, but this will depend on where you purchase your labels.

Want to check the shipping status of all your orders at once? Check out our Delivery Status Tool.

Lastly you will want to review your packaging process to be sure that your packages are packed securely and make sure that your items photos and descriptions accurately reflect the products being shipped.

A few additional criteria to keep in mind:

  • Keep your account in good standing with Etsy
  • Use Etsy’s payment platform
  • Have all your shop policy information available to customers
  • Only ship to the address associated with the order, if customers reach out with a different address, offer to cancel the order and start again.

What isn’t covered

When Etsy launches this program, Packages containing products valued over $250 dollars won’t be covered. For these products, Etsy strongly advises purchasing shipping insurance. Check with your carrier before shipping to see what insurance options are available. In the US, the USPS, UPS, and other carriers offer insurance options on many packages for an additional fee.

Etsy also mentions that packages that don’t match the description and photos of the listing the won’t be covered. Use this as an opportunity to review your listings.

Happy Selling!

When Etsy provides more resources to its sellers everyone wins. but remember that prevention can often prevent issues. Make it a habit to frequently review your listings for accuracy. This will not only help maintain realistic expectations for your buyers but also to make sure Etsy and you are on the same page regarding what’s being shipped. Also consider occasionally reviewing how you pack your items to make sure that your shipments arrive they way you intend them to.

For more information on Etsy’s Purchase Protection Program, head over to their website to read the whole story. The link can be found here.