Etsy Launches Purchase Protection Program for Buyers and Sellers

Rhea-AI Summary

Etsy has announced the launch of its new Purchase Protection program, effective August 1, 2022, designed to enhance buyer confidence by offering full refunds for qualifying purchases that do not meet expectations. The company will invest over $25 million annually to cover these refunds, ensuring sellers retain their earnings. This initiative aims to improve the shopping experience and foster trust in the Etsy marketplace. Etsy has stated that the program will not affect its Q2 2022 financial guidance.

Positive

• Launch of Purchase Protection program enhances buyer confidence.
• Investment of over $25 million annually to cover refunds, helping sellers retain earnings.
• Aims to improve the shopping experience and foster trust in the Etsy marketplace.

Negative

• None.

The program will refund buyers for orders when something goes wrong, enabling them to shop from small businesses with confidence

Etsy will invest over $25 million annually to cover refunds at no additional cost to sellers

BROOKLYN, N.Y., June 5, 2022 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced the launch of Etsy Purchase Protection. Starting August 1, buyers will receive a full refund for purchases on Etsy.com in the rare cases that they don't match the item description, arrive damaged, or never arrive.

Etsy is focused on generating more value and opportunities for sellers by creating a trusted shopping experience that brings more buyers to the marketplace, all while investing in crucial areas to scale seller support. The company plans to invest at least $25 million per year into the purchase protection program to cover refunds on behalf of sellers for qualifying orders up to $250, enabling them to keep their earnings from sales when things happen outside of their control.

"Easy issue resolution is a critical part of the e-commerce shopping experience, and our new Etsy Purchase Protection program aims to help make shopping on Etsy even more worry free," said Raina Moskowitz, Etsy's Chief Operating Officer. "This program will help buyers feel more confident when they shop from small businesses on Etsy, while we invest directly in our sellers to provide them an important layer of assurance."

In addition to the purchase protection program, Etsy will continue to invest in product and customer service improvements to make the issue resolution process as seamless and efficient as possible for both buyers and sellers.

"This is just one of many steps we are taking to inspire trust and confidence in the Etsy brand," said Moskowitz. "Etsy's Purchase Protection program will complement our broad efforts to improve customer support, increase trust signals across the user experience, and maintain the integrity of our marketplace as a destination for unique and special items."

Note for the financial community: Etsy's Purchase Protection program will go into effect August 1, 2022, and has no impact on Etsy's Q2 2022 financial guidance provided on May 4, 2022. 

About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to keep commerce human, and we're committed to using the power of business to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.

Etsy, Inc.'s "House of Brands" portfolio also includes fashion resale marketplace Depop, musical instrument marketplace Reverb, and Brazil-based handmade goods marketplace Elo7. Each Etsy, Inc. marketplace operates independently, while benefiting from shared expertise in product, marketing, technology, and customer support.

Etsy was founded in 2005 and is headquartered in Brooklyn, New York.

Etsy has used, and intends to continue using, its investor relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings and public conference calls and webcasts.

Investor Relations Contact:
Deb Wasser, Vice President of Investor Relations & ESG Engagement
Jessica Schmidt, Sr. Director of Investor Relations
ir@etsy.com

Media Relations Contact:
Lily Cohen, Senior Manager, Corporate Communications
press@etsy.com

View original content:https://www.prnewswire.com/news-releases/etsy-launches-purchase-protection-program-for-buyers-and-sellers-301561513.html

SOURCE Etsy

FAQ

What is Etsy's Purchase Protection program?

Etsy's Purchase Protection program offers full refunds for qualifying purchases that do not match the item description, arrive damaged, or do not arrive at all.

When will the Purchase Protection program go into effect?

The Purchase Protection program will go into effect on August 1, 2022.

How much will Etsy invest in the Purchase Protection program annually?

Etsy will invest over $25 million annually to cover refunds through the Purchase Protection program.

Does the Purchase Protection program affect Etsy's Q2 2022 financial guidance?

No, Etsy has stated that the Purchase Protection program will not impact its Q2 2022 financial guidance.

What qualifies for refunds under Etsy's Purchase Protection program?

Refunds are available for purchases that do not match the item description, are damaged, or do not arrive.