Etsy sellers will go on strike in April and want customers to boycott

Illustration by Lyssa Park / The Verge

In February, Josh Silverman told investors that sales and revenue were at an all-time high. Transaction fees were going to go up from 5 percent to 6.5 percent, or a 30 percent increase, beginning April 11th.

The fee increase was the straw that broke the camel's back for Kristi Cassidy. Cassidy had a happy first decade on the platform. She was able to reach a customer base that was eager to buy handmade products, and she grew her business selling made-to-order and custom pieces. She felt that the marketplace no longer felt like a place where artisan products and hand-picked vintage items were, because of the changes that she felt hurt sellers.

After hearing of the fee increase, Cassidy went to the sellers section of the website and wrote a post.

Cassidy wondered what would happen if so many sellers put their shops on vacation mode.

On April 11th, Cassidy and thousands of other sellers will suspend sales for a week in protest of recent changes to the platform. A campaign in support of the strike has received over 15,000 signatures in just over a week. More than 5,000 sellers have signed on to strike, Cassidy says, and shop owners are welcome to go offline for the full period or even a day. Cassidy hopes that this strike will be the beginning of organizing within seller communities.

She says that the strike is just action number one.

Cassidy says shoppers understand why sellers are shutting down and that customer support for the action has been overwhelming. Many comments on the petition come from buyers, who say they would take their business to another place if the sellers couldn't make a living.

Changes at the expense of sellers have made some shop owners feel like their success on the platform is tenuous.

D., a long-time crafts seller on Etsy who requested anonymity due to fear of reprisal, says that he is constantly waiting for the other shoe to drop.

The campaign's list of demands centers on controversial policy changes made by the company since the beginning of the year, including layoffs and a new CEO. Some of the demands are related to fees, such as canceling the most recent round of increases and allowing large sellers to opt out of a mandatory advertising program loathed by merchants for the steep costs associated with it.

The direction the company is going in and the types of products for sale on the platform are concerns that have been raised by long-time sellers on the platform. The site has been filled with mass-produced, print-on-demand products since it changed its rules to allow sellers to outsourcing production. Striking sellers and supporters want a comprehensive plan for cracking down on the resellers.

Thousands of sellers planned to close shop in 2012 to protest the handling of an internal investigation into a storefront that was accused of selling mass-produced furniture.

The Star Seller program was introduced last year. If a seller maintains certain customer metrics, such as a consistent five-star ratings and fast shipping, they will be given a Badge. Some sellers say it amounts to micromanaging every transaction to the detriment of customer service, putting too much pressure on small businesses to operate like a corporation. Cassidy says the requirements to stay in good standing aren't always possible for her, for example, a custom order could take longer to make than ship time, even with an extension.

Rather than making us mad at buyers who leave glowing 4-Star reviews, or making us feel that we can no longer offer letter class shipping on items like cards and stickers, we should be left to individually do the best we can for each and every customer.

The fee increase is a good thing for 5.3 million sellers. In announcing the planned increase, Silverman said that the company had demonstrated its ability to make improvements that would translate into more sales for sellers.

Kelly Clausen said the company is committed to helping sellers grow their businesses. Clausen says sellers want the company to expand marketing services and customer support.

Clausen says that the revised fee structure will allow them to increase their investments in each of the key areas so that they can better serve the community and keep the marketplace thriving.

Longtime sellers who decry the recent changes often want a version of the company that no longer exists. B Corp certification is a designation for companies that meet high social and environmental standards that sellers often reference. After going public in 2015, the company gave up its B Corp status. The former CEO of the platform, Chad Dickerson, was fired and replaced by the new CEO, Matthew Silverman. The pivot has been good for the company.

sellers worry about their future even as theyut their successes D., the crafting supplies seller, says the majority of their income comes from Etsy sales, but the email notice of fee hikes starting on April 11th prompted them to reconsider their presence on the platform.

D. gave himself a year to get off of Etsy after getting an email from the CEO.

A flat listing fee, payment processing fees, and other service fees must be paid by sellers like D. According to their data, D. paid more than 16 percent of their total sales in fees to Etsy.

The portion of shops going into vacation mode on April 11th is just a small portion of the total storefronts, and sellers say they have reached a breaking point.

I can't afford it, D. says of the strike.