Etsy - The Strategy to Survive Boot Out Old Sellers - Get More Ads, Sales and Fees with New Sellers

Etsy, described as the fallen angel in the stock market 2012 to 2022 gain $75 million to $2.5 billion. for 10 years. It peaked during the pandemic which we all experience as seller and then suddenly we felt the brakes and everything slowed down. 

It's acquisition of UK's Depop in 2021 for 1.7 billion ate the cash and profits made over the years. 

As a result, management has completely redirected the company's management towards sustained share buy-backs: these reached $577 million in 2023, and already $309 million in the first half of 2024.

In the absence of a sales trend reversal, with earnings per share expected to reach $2.4 in 2024 and the share price still above $50, it is not certain that these share buybacks will be truly accretive in the long term.

Etsy has been strategizing on the Sellers too. Sellers that have are even established with Star Seller badges with thousands of reviews and sales but have been on the platform for more than 5 years have been suddenly and randomly suspended and shops closed with a policy violation of "creativity standards". On top of that, you will not win on the appeal, they will hold your seller payments in reserved first, they won't say any  specific time while you go back and forth on the so called appeal which is usually 90 days, then they will say 45 days on the payment reserved. Then after when you re-appeal as that's what they want, they will say again you will wait for 180 days. 

It is much easier to get new sellers, get them to use Etsy ads, fees on listings and convince them to drive traffic to Etsy using outside ads. This is the trial they are doing to drive revenue.

Here is a very good example when someone is really having really money problems, as they will try everything under the sun to hold your money while at the same saying your done, you cannot open your store. While at the same we had communicated to 98% of all the buyers that they have received all the orders so there was no point to put the seller payments in reserve.  People need to know the story of what's going on with Etsy, 

December 05, 2024 at 08:50 am EST

Etsy, Inc. announced that Kruti Patel Goyal, currently Chief Executive Officer of Etsy's Depop subsidiary, has been appointed President and Chief Growth Officer of Etsy, Inc. In this newly-created role, Patel Goyal will report to Etsy's CEO, Josh Silverman, and be responsible for bringing together all customer touch points to deliver a more compelling and inspiring experience for Etsy's millions of buyers and sellers. She will oversee Product, Marketing, Member Support, Trust and Safety, and Strategy and Operations. Patel Goyal will also continue as acting CEO of Depop through April 2025, working closely with Depop's executive team to identify their next leader. Raina Moskowitz will be joining another company as its Chief Executive Officer, stepping down as Etsy's Chief Operating and Marketing Officer.