For many, Etsy started as a haven for handmade goods, vintage treasures, and a personal connection between buyer and seller. But over the years, the platform has evolved — and not for the better. What once felt like a supportive community now feels more like a corporate machine that prioritizes profits over people. Many buyers and sellers alike are finding themselves unfairly treated, misled, or taken advantage of by Etsy. I’m one of them.
This is a firsthand account, and I’m not alone. Thousands have voiced similar frustrations. Whether it’s hidden fees, delayed payouts, lost orders, or lack of customer support, Etsy has increasingly become a nightmare to deal with.
The Seller’s Side: Excessive Fees and Withheld Earnings
Let’s start with the seller experience. At first, Etsy seems like a great place to showcase your craft and earn some money. But behind the appealing storefront lies a mess of hidden costs and policies that nickel-and-dime sellers out of their hard-earned money.
First, there are the listing fees. Every time you add an item, it’s 20 cents. That’s fine — manageable even. But then come the transaction fees (6.5%), payment processing fees (3% + $0.25 per transaction), offsite ad fees (up to 15%), and currency conversion fees if you’re outside the US. Before you know it, nearly 25–30% of your sale price is gone — eaten up by Etsy.
It gets worse. Etsy reserves the right to withhold seller funds for weeks under the excuse of “security reviews.” New sellers are especially vulnerable to this. Even with consistent five-star reviews and on-time shipping, funds are held hostage without warning or timeline. For a small business, this can be devastating. You ship the product using your own money, but Etsy keeps the customer’s payment locked in their system.
In my case, Etsy delayed a $600 payout without explanation, despite a spotless record. Customer service was virtually non-existent. Their support team sent canned responses and never provided a solution. I was left wondering if I’d ever get paid. That’s not business — that’s theft.
The Buyer’s Experience: No Recourse, No Support
Buyers, unfortunately, face their own horror stories. From counterfeit items sold as handmade, to non-delivery scams, Etsy seems to do little to protect its customers.
One buyer shared their experience of ordering a custom item that never arrived. They contacted the seller, only to be ignored. Etsy’s “Resolution Center” was a joke — no live support, just automated replies. After waiting nearly a month, Etsy closed the case without issuing a refund, stating there wasn’t enough evidence.
Another customer purchased a supposedly handmade painting, only to discover it was a mass-produced print available on Alibaba for a tenth of the price. Etsy did nothing, claiming it didn’t violate any policies. Unless you have video evidence of fraud, you’re on your own.
For a platform that prides itself on “unique, handmade goods,” this kind of blatant inaction feels like betrayal.
Etsy’s Priorities: Shareholders Over Sellers
Let’s be honest — Etsy isn’t the cozy, artist-first marketplace it used to be. It’s now a publicly traded company with investors to please. That shift is obvious in every aspect of the platform.
Sellers are being pushed into participating in Offsite Ads, which take up to 15% of a sale, and you can’t opt out if your shop made over $10,000 in 12 months. That means Etsy advertises your products without your input and then takes a huge chunk if it sells.
On top of that, Etsy has introduced Star Seller badges, which penalize sellers who don’t respond to messages fast enough or who have one delayed delivery, even if it was the fault of the courier, not the seller. It’s demoralizing and punishing to those who don’t run their shops 24/7.
Final Thoughts: Etsy Has Lost Its Soul
Etsy may still have its charming interface and a few decent sellers, but behind the scenes, it’s become a profit-hungry, unaccountable platform that rips off both creators and customers. They’re capitalizing on the illusion of a friendly marketplace while exploiting those who depend on it.
If you’re a seller hoping to build a sustainable business or a buyer expecting honesty and protection, think twice. Etsy may have been built on good intentions, but today, it’s more about revenue than relationships. And if you get ripped off, good luck getting help.
Etsy isn’t just broken. It’s actively failing the very community it was meant to serve.