Why I Left Etsy After 15 Years: A Cautionary Tale for Small Businesses

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When I first started selling on Etsy 15 years ago, it felt like the perfect home for my handmade business. Over the years, I poured countless hours, energy, and creativity into building my shop from the ground up. I provided excellent customer service, created unique products, and fostered relationships with loyal customers. In March 2024, I even achieved Star Seller status—a recognition of my consistent dedication to quality.

But despite all that hard work, my shop was abruptly suspended in April 2024 with no explanation. This experience made me realize just how much Etsy has changed over the years, and not for the better. Today, I want to share my story to warn other small business owners about the risks of relying too heavily on platforms like Etsy and to provide actionable advice to protect their businesses.

What Happened to My Etsy Shop

In early April, I logged into my Etsy account to update my bank account information, a routine task I’ve done before without issue. Later that day, I was shocked to discover that my shop had been suspended. The message simply stated that I could file an appeal, with no prior warning, explanation, or communication.

I immediately filed an appeal, confident that I had done nothing to violate Etsy’s rules. I was not involved in copyright infringement, disputes with customers, unpaid bills, or any other misconduct. To my dismay, I received a response within two minutes stating that my account had been permanently suspended. The email claimed a “comprehensive review” had been conducted—an impossibility in such a short timeframe.

For months, I appealed the decision, even filing a complaint with the Better Business Bureau. Finally, after posting publicly on LinkedIn, Etsy admitted that my account had been suspended in error. Both the original email about my suspension and the subsequent one reopening my shop were signed off with just a first name—no surname, reply email, or phone number. For a company generating over $2.5 billion in annual revenue (as of 2023), this lack of professionalism is both astonishing and sketchy.

Although I’m relieved to finally have closure, I briefly blamed myself for not thinking to post on LinkedIn or X sooner. However, the truth is that this was an incredibly stressful and disappointing situation, and I shouldn’t have to blame myself for Etsy’s failings.

The Bigger Problem with Etsy

My case is not an isolated incident—it’s a symptom of deeper issues within Etsy.

Etsy’s tagline, “Keep Commerce Human,” has never felt more ironic. Over the years, the platform has strayed far from its roots as a handmade marketplace, prioritizing policies and practices that hurt the very sellers who built its reputation:

• Flooded with Resellers: The marketplace is now dominated by mass-produced items, forcing true artisans to compete on price rather than craftsmanship.
• Algorithmic Overreach: Decisions like mine are made by algorithms with no human oversight, leaving sellers vulnerable to errors.
• Weak Support System: Etsy never truly had a robust support system for sellers, but the situation has only worsened. Automated responses and the lack of real human assistance make resolving issues nearly impossible.
• Restrictive Policies: Etsy has gradually introduced policies that limit sellers' ability to run their shops independently. For example, the “free shipping over $35” policy pressures sellers to absorb shipping costs, often at the expense of their margins.

These changes reveal a troubling shift in Etsy’s priorities—away from empowering small businesses and toward maximizing profits.

Lessons Learned

This experience has taught me valuable lessons that I want to share with other sellers:

1. Diversify Your Sales Channels: Don’t rely on any single platform. Build your own website and explore alternative marketplaces.
2. Protect Your Assets: Download your reviews regularly—they’re invaluable and inaccessible if your shop is suspended.
3. Build an Email List: Focus on connecting directly with customers, so you’re not dependent on a third party to reach them.
4. Drive Traffic to Your Own Domain: Prioritize sending free and paid traffic to your website, not your Etsy shop.

A Checklist for Etsy Sellers

• Regularly download your Etsy reviews and sales data.
• Secure a domain and set up your own online store.
• Start growing an email list and engaging directly with your customers.
• Have a backup plan—don’t let one platform control your entire business.

A Message to Etsy

Etsy, if you truly want to “Keep Commerce Human,” start by treating your sellers with humanity. Invest in better customer service, bring back meaningful oversight, and create a platform that values the artisans who built your reputation.

If Etsy makes these changes, I’d consider returning. But for now, I’m moving forward—on my terms.

Moving Forward

Closing my Etsy shop was not an easy decision, but it was the right one. I’ll be focusing on building my own independent sales channels and encouraging other sellers to do the same.

To my fellow small business owners: Don’t wait for a crisis to prioritize your independence. Platforms like Etsy can be part of your strategy, but they should never define it.