Etsy Strike: Why Sellers Are Calling On Customers To Boycott The Shopping Site

Etsy (ETSY) sellers are calling for customers to boycott the shopping site as they go on strike this week, protesting the platform’s new fee increase. More than 47,500 Etsy sellers have signed a petition against the raising of the platform’s commission fee from 5% to 6.5%.

The commission increase went into effect on Monday and was the first increase by the New York-based company since 2018. Some shops on the site have even temporarily closed in protest of the fee increase, according to the Wall Street Journal,

Etsy executives said the fee hike is a critical investment in the marketplace site and to expanding its seller support services as it looks to become a major e-commerce player, the Journal reported.

Kelly Clausen, Etsy's head of corporate communications, said the company's revised structure "will enable us to increase our investments" in key areas.

Etsy says it has about 7.3 million sellers on its site.

The move by Etsy comes after record sales in 2021, as the company has benefited from the pandemic. Sellers brought in $12.2 billion in merchandise sales in 2021, up from $5 billion in 2019. Shares of Esty closed at $31.69 on March 20, 2020, and would surge to $294.38 by Nov. 19, 2021.

Etsy has seen a pullback from its strong gains on Wall Street. As of Monday at 11:40 a.m ET, shares of Esty were trading at $117.62, a gain of $1.04, or 0.89%.

Despite concerns that the company is trying to compete more directly with Amazon, Etsy appears to be adjusting its strategy in the saturated market.

“We must and are competing against the biggest names in e-commerce and all of retail. But we believe we have a real opportunity to win," CEO John Silverman told the told analysts in February.

Sellers on Etsy aren’t convinced that a fee hike is the way to do it.

Kristi Cassidy, an Etsy shop owner and one of the platform’s petition organizers, has told multiple outlets that sellers are limited by hand orders, so more advertising by the company doesn’t necessarily mean more revenue.

“It’s like they’re trying to be Amazon, and there’s a reason why I don’t sell my products on Amazon,” she said.

Other issues include the push to offer free shipping and a requirement to participate in an off-site ads program for shops that make more than $10,000 a year.

Etsy debuted in 2005 and gained major traction in 2020 with face mask sales. The platform has about 100 million active buyers, according to its website.