Etsy Sellers Protest Fees Hike After Platform's Pandemic Revenue Soars

More than 15,000 of the site's 5.3 million sellers signed a petition decrying the growing costs of selling on Etsy.

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Laura Hautala

Etsy increased its seller fees from 5% to 6.5% on Monday.

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Thousands of Etsy sellers are criticizing the company for increasing fees that they must pay with each sale. The increase from 5% to 6.5% of sales started Monday, which prompted Etsy seller Kristi Cassidy to call for sellers to close their online stores and customers to stop buying on the platform for one week. 

More than 15,000 people have signed the petition. It's not clear how many sellers have also closed down their online stores. Etsy grew its revenue significantly during the pandemic and acquired the Brazilian e-commerce platform Elo7.

"Etsy made bank over the pandemic," Cassidy said in the petition. "They followed up these record pandemic gains by turning around and sticking it to their sellers."

Also at issue is an ad program that some sellers can't opt out, adding unpredictable costs to sales, according to Cassidy. Additionally, she's called for the site to crack down on sellers who resell goods they didn't make. 

In a statement, an Etsy spokesperson said the increased fees will help pay for efforts to address some of the problems identified by Cassidy, including removing listings that violate the company's policies. "We are committed to providing great value for our 5.3 million sellers so they are able to grow their businesses while keeping Etsy a beloved, trusted and thriving marketplace," the spokesperson said.