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The Street
The Street
Business
Colette Bennett

Etsy Strike Picks Up Momentum

Makers — a common name for folks that run their own businesses selling goods they've created by hand — seem like a gentle group of humans, making things they love for consumers who far prefer a handmade item to one quickly procured via Amazon (AMZN).

But after a February announcement from the online marketplace Etsy that seller fees would go up this year, makers organized an uprising that proves that behind their chill vibe lies a courageous community that's not afraid to speak up against unjust conditions.

While it's understandable that some upticks in price are necessary for businesses to grow, makers claim that Etsy's 30% increase in fees (from 5% to 6.5%) will bite into their costs to the point that using the platform will become unaffordable for many of its longtime sellers. 

Not only that, but the community has also made it clear that the rate hike is only the most recent of issues it had to deal with, and it's not going to take it anymore. Sellers are also posting exactly how much they're paying in fees to prove their point.

What is the #EtsyStrike?

In reaction to the announcement of the fee hike, Etsy seller Kristi Cassidy decided it was time to take action. She did so by setting up a Twitter account and a website she called Etsy Strike, which suggested that unhappy makers shutter their Etsy shops for one week starting April 11.

The hashtag trended on Twitter Monday morning, the day of the strike's kickoff, with many sellers announcing their Etsy shops were closed for the week and redirecting buyers to other ways to purchase their goods. Other sellers used their art skills to make eye-catching infographics to help more people understand the community's reasons for the strike.

Esty

Cassidy also created a petition asking Etsy CEO Josh Silverman to reconsider the fee hike. It has gained 48,471 signatures at the time of this writing.

What The Etsy Strike Is Asking For

Cassidy told TheStreet in a phone interview that she sent an email to Etsy CEO Josh Silverman and the board of directors on the morning of April 11 outlining the reasons for the strike as well as the community's demands, which include canceling the fee increase, cracking down on resellers, improving Etsy's support system, ending the Star Seller program, and letting sellers opt out of offsite ads.

"Over the past few years, our perception as members of Etsy’s seller community is that Etsy is shifting away from its handmade, vintage, and small business roots," the email reads. "From the flood of illicit drop-shippers and resellers onto the market, to recent policy changes and fee increases, Etsy has become a downright hostile place for authentic small businesses to operate. For both full-time and part-time sellers alike, the changes on Etsy have brought many of us to the brink of financial ruin."

"We realize that Etsy has to generate a profit and that Etsy provides a service to sellers for which it is entitled to seek a payment. But, without sellers, Etsy couldn’t even exist! After giving Etsy two years of record profits under the most difficult circumstances imaginable, we’re tired, frustrated, and ready to fight for our seat at the table."

Despite the overwhelming support on day one, Cassidy says she has "no idea" how it will all turn out.

"I'm so new to activism and what we are doing is new," she said. "[But] what the public is finding out right now is that there's a huge disconnect between Etsy's brand and the people behind Etsy's brand."

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