From August 1, under the new Etsy shopping protection policy, Etsy customers can get a full refund if they buy goods that do not fit the description, are damaged or never come.
The marketplace company will invest at least $ 25 million annually “Reimburse on behalf of sellers for relevant orders up to $ 250” in situations beyond their control, according to the company press release.
Meanwhile a group of vendors who held a strike in April announced its registration as a nonprofit organization via Twitter. The Indie Vendors Guild “will fulfill the role a union would play in a traditional workplace,” blog post. An Etsy spokesman said by phone that the group’s goals coincided with the company’s existing efforts, including the just-announced purchase protection.
Etsy is facing a crisis as e-commerce weakens while shoppers return to stores and inflation reduces discretionary purchases.
One way to convince shoppers would be to increase their confidence in purchases, given that three out of five Etsy Buyers “aren’t sure we’ll stand up for them if something goes wrong with their transaction,” CEO Josh Silverman told analysts last month. “Similarly, sellers are worried if something goes wrong through their fault. And we want them to know that we will support them. “
“We are deeply convinced that making Etsy a more trusted and reliable place to shop can be a significant boost,” he said. I’m looking for an alpha transcript.
The program could benefit from gross margins in the medium to long term, but in the short term it should cut profits, UBS analysts led by Kunal Madhukar said in a June 2 client note.
Prolonged macro-uncertainty, “Etsy’s skew toward consumer goods at its discretion” and its niche status are pressures in the short term, “although we expect growth to accelerate to mid- and high-aged teens in 2023,” UBS warns.
https://www.retaildive.com/news/etsy-invest-25m-purchase-protection-policy/624930/ Etsy will invest $ 25 million each year in a new purchasing protection policy