Etsy, the popular e-commerce website for handmade and vintage items, has been delaying seller payouts following the collapse of its banking partner, Silicon Valley Bank. This has left many sellers frustrated and worried about their financial wellbeing.
Etsy has stated that they are working to transfer their banking relationship to a new provider, but this process takes time. Meanwhile, they have implemented a manual payout system, which means sellers receive their funds later than usual. Some sellers have reported waiting for over a month to receive their money, causing financial strain and hardship.
The delay in seller payouts is a result of Silicon Valley Bank’s sudden closure in March 2021. The bank was a trusted partner for Etsy, providing secure banking services for their global marketplace. When Silicon Valley Bank announced their closure, Etsy had to scramble to find a replacement provider.
Etsy’s decision to delay payouts has sparked outrage among their seller community. Many rely on the income from their Etsy shops to make a living, and the delay in payment can have serious consequences. In addition, the lack of communication from Etsy has only added to the frustration.
Etsy has apologized for the inconvenience and promised to expedite the process of finding a new banking partner. They have also promised to provide regular updates to their sellers on the progress of this transition.
If you are an Etsy seller who has been affected by the payout delay, there are a few things you can do to protect yourself. First, consider diversifying your income streams, so you are not relying solely on Etsy. This can include opening a separate online store or participating in local markets and events. Secondly, be sure to save money for emergencies, so you have a cushion during times of financial uncertainty.
In conclusion, the delay in seller payouts following Silicon Valley Bank’s collapse is a challenging situation for Etsy sellers. However, it is important to stay informed and take proactive steps to protect your financial wellbeing. As Etsy works to find a new banking partner, sellers can seek out alternative income sources and save for emergencies. We will continue to follow this story and provide updates as they become available.