RECENT ECOMMERCE NEWS (INCLUDING ETSY), LATE JULY 2024
Things have been hectic so this is a long one update - all the Etsy and other ecommerce news from the past month, broken down for your convenience!
Next week could be a big Etsy news week, with the 2nd quarter report being released, and the mature items ban kicking in. I'm also working on analysis of the new Creativity Standards, but we may not have more substantial information on those until Etsy makes another move. Right now the categories are a mess, but that could change.
A reminder that you can receive more timely updates plus exclusive content - including live chats with me on select topics such as Etsy's new Creativity Standards - by supporting my Patreon: patreon.com/CindyLouWho2
The European Union is considering making packages valued under 150 euros subject to customs duties when entering the EU. This is widely seen as a way to reduce Shein and Temu orders.
The Etsy Creativity Standards announced on July 9th have a lot going on; here is my short summary so far. [post by me on Patreon] While I would not worry too much about this just yet, I expect them to be more important in the near future.
Etsy adding "Made by", "Handpicked by" to every listing is currently full of errors, but more disturbingly, even when a seller points out these errors with arguments from the written policy, Etsy Support is sometimes insisting that the designations are correct. For example, original paintings are lumped in with AI designs and digital downloads. [Post by me on LinkedIn]
Amazon is imposing new rules regarding on-time delivery rates (OTDR); sellers that do not meet the standard of 90% on time delivery will not be able to continue selling. Businesses are exempted if they use the following tools: Shipping Settings Automation, Automated handling time, and Amazon Buy Shipping. Amazon is allowing only 5 days after shipment for products to arrive within the US. You can read the announcement and vigorous forum discussion here, and EcommerceBytes did a summary of the changes and some complaints.
As Etsy's widespread ban on many adult-themed products is about to take effect on Monday, I considered why Etsy felt the need to take far more drastic steps than Amazon & eBay has in the same markets. [post by me on Tumblr]
The upcoming ban started by getting media attention from Mashable, and quickly escalated to the New York Times [not a gift link; soft paywall]. Etsy is still not commenting on why they are doing this.
From the NYT article: "Even before the ban, it was getting harder to run his business, Mr. Goldstein said. So, he thought, “Why don’t we just make our own marketplace?” This year, he started the website Spicerack as an independent alternative to Etsy. The online boutique already has about 75 sellers, which are vetted to make sure they’re not “dropshippers” or simultaneously listing products on e-commerce behemoths like AliExpress or Amazon. Mr. Goldstein said that Spicerack is in the process of adding about 100 more sellers, half of whom signed up when the Etsy ban was announced."
From the BBC: “In many countries there is pressure on platforms, sometimes backed by new legislation, to do more to prevent under-18s from encountering explicit content, and to remove illegal or "harmful" content from their platforms.
Payment processors are also increasingly wary of working with platforms that enable sex based commerce....those concerns could be addressed by more clearly labelling and separating adult product listings..."
The Guardian interviewed a few sellers who are affected.
While Etsy previously stated that the new shop set-up fee would be $15 USD, they quietly changed that, to whatever they feel like charging. [post by me on Patreon]
In case you missed it, the new listing form seems to be triggering Etsy Ads campaigns to start without the seller’s knowledge. [post by me on LinkedIn] Since my post, there are still more reports of this happening, and even more.
I regret to inform you that Etsy’s Search Analytics are going to disappear after August 14 [post by me on LinkedIn], per a banner on the page.
Canadian sellers will have to pay a 1.15% “Regulatory Operating Fee” on all of their sales income (including shipping and gift wrap) starting August 15. This is likely due to a new law taxing large ecommerce platforms 3% of their Canadian income, which came into effect June 28. The tax applies retroactively back to the beginning of 2022, so Etsy is likely overcharging us to cover those earlier amounts.
Sellers having difficulties with the domestic pricing tool not working correctly may want to try these tips from an Etsy forum thread: Set the domestic price to the global price amount, save, and then go back in and change the domestic price to your preferred amount, then save again. This apparently works for both new and existing listings, but there are 3 drawbacks: 1) it is time-consuming, 2) it needs to be done any time a listing is changed/edited (including renewals), and 3) it doesn’t seem to work for France. (I don’t ship to France so I cannot test the last point.)
Remember, if you have a sale go through for the wrong price, contact Etsy and demand to be compensated the difference.
Still don’t believe that Etsy is serious about shipping on time? See this Reddit thread by a seller who ignored a 30-day warning, so all of their items were removed from search. From this screenshot, it appears their average order value was fairly high, but that doesn’t mean Etsy will tolerate late shipping from shops with cheaper items, so beware.
Etsy is testing filtering out digital items from search results unless the terms match a digital item search. See Etsy forum threads here and also here.
A new academic study calls out Etsy and other online marketplaces for allowing illegally-killed bats to be sold on their sites. “We refute any assertion that the online bat trade is ethical. Again, statements that bats were captive-bred are absurd—bat farms are nonexistent—and it would be impossible for suppliers to find bats that have died naturally in the kind of condition and numbers needed to supply an ornamental trade. These bats were hunted.” The New York Times has also now covered this story [soft paywall].
The virtual seller education event Etsy Up is scheduled for September 10. You can register here, but there is no program yet. Usually this event has almost nothing worthwhile for experienced shops, and Etsy generally uses it to push their paid services and integrations along with basic info.
Etsy is looking for sellers to join their Advocacy program and “share your story”. Beware that sometimes Etsy’s “advocacy” is as much for Etsy as for its sellers, so they are looking for stories that fit Etsy’s own goals.
The Etsy Design Awards have opened; the final date for submissions is August 8.
Etsy’s second quarter results for 2024 will be released July 31.
ECOMMERCE NEWS (minus social media)
Shein and Temu are facing investigations under the EU’s Digital Services Act. “In a press release, the EU said it’s asking Shein and Temu for more information about measures they’ve taken to meet DSA obligations related to what’s known as “Notice and Action” mechanisms, which should allow users to notify the marketplaces of illegal products.It has also requested info related to the design of their online interfaces, which the pan-EU law mandates must not deceive or manipulate users, such as via so-called “dark patterns”.”
Temu is also being sued by Arkansas for having an invasive app that is accused of harvesting data without user permissions. “According to the complaint, Temu is allegedly obscuring its unauthorized access to data through misleading terms of use and privacy policies that do not alert users to the full scope of data that the app can potentially collect. That includes not telling users about tracking granular locations for no defined purpose and collecting "even biometric information such as users’ fingerprints."
Amazon now has an AI shopping “assistant” on its US app, called Rufus. “Customers can ask questions about products, comparisons and buying considerations. The AI can provide suggestions for specific tasks or projects.” As per usual with AI, “tests show Rufus doesn’t always provide accurate information.”
A review from Marketplace Pulse notes that “Amazon’s AI assistant fails to help shoppers find the best product among the millions in the catalog. It transforms broad questions like “What are the best cycling gloves for winter?” into a few links to product searches — the same searches a shopper could have typed themselves. It refuses to make product recommendations, show specific products, or suggest from the thousands of options. It can’t directly answer the question, “What are the cheapest batteries for my TV remote?”
Any sellers who had items removed for being plants or seeds when they actually aren’t should follow the instructions linked to here to get the situation resolved. An Amazon employee warned sellers: “Please do not acknowledge the violations as these will result in the deactivation of your listings.” Affected businesses should instead appeal the flags.
Amazon is planning a discount drop shipping from China section, widely seen to be competition to Temu and Shein. However, “[i]t is not clear if these shipments will be made using a U.S. trade provision that exempts individual packages worth less than $800 from U.S. customs duties.”
The European Commission has asked Amazon for more information on “recommender systems, ads transparency provisions and risk assessment measures.”
Only 1% of US Amazon sellers also offer their items outside of North America. “Due to its proximity to the U.S., Canada has more successful sellers from the U.S. than Canada.” If you have a unique product, this could be an opportunity.
Amazon returns are creating huge workloads for UPS stores and other retailers that accept them. “Amazon “makes up about one-tenth of our profits, but it takes up about 90 percent of the working day,” said Jeremy Walker, a store associate who worked at a UPS Store near Dallas that received between 300 and 600 returns per day.”
After trying it out in the UK, Depop is removing selling fees for the United States, starting July 15. Payment processing fees still apply. “[B]buyers will now be charged a "marketplace fee" of up to 5% plus a fixed amount up to $1.”
An interview with Depop CEO Kruti Patel Goyal reveals they plan “to bring Depop to a bigger and broader audience over time.”
eBay is slowly rolling out changes to the Active Listings page.
eBay sellers can now get cash advance loans through Liberis, the balance of which gets paid as a percentage of the seller's sales.
New sellers in the UK might see “automated feedback” on some of their orders, to "help [users] buy and sell with confidence". It will say "This seller successfully completed an order", and is removed once the actual buyer leaves feedback.
Abby Glassenberg reviews Michaels’ MakerPlace popups inside their retail stores. Results seem mixed.
A few hundred thousand Shopify users may have had their names, addresses and other data put up for sale on July 3 after a breach. Shopify denies it had any security issues and claims the data came from a third-party app. There was a known data breach at Evolve Bank and Trust in June; that institution is a supporting partner for Shopify Balance. It does appear that Shopify is notifying the affected individuals.
Walmart
Walmart is adding pre-owned collectibles to its marketplace. “Eligible categories include Toys (Figures, Dolls, Trains, Plushies, Games, LEGO, Funko, Diecast Cars & Hot Wheels); Media & Music (Movies, Vinyl, Music, SteelBooks, Musical Instruments & Entertainment Replicas); Trading Cards; Comic Books & Books; Sports Memorabilia; and Coins.”
Indiegogo is opening an ecommerce website for items created through crowdfunding campaigns on the platform, called IndieShop.
Etsy-owned Reverb now has an “outlet” page, where businesses can sell off their overstock, seconds and out-of-date models for 20% off and free shipping. Most products sold through the main portion of Reverb are used, not new, so this competes with regular sellers.
Not sure if selling on Faire is right for your business? Here’s a handmade-focussed review of the wholesale site.
Klarna is now available through Adobe Commerce (previously Magento).
USPS rates for labels on most platforms went up July 1, ahead of the previously-announced July 14th increases. Ina Steiner re-posted the numbers from eBay and Pirate Ship.
USPS released the addresses and other data of logged-in Informed Delivery users to Meta, LinkedIn and Snap. The company claims it didn’t know the data transfer was happening.
The free USPS Priority medium shipping tubes are no longer being made, but you can still order existing stock.
Royal Mail’s Tracked 28 & 48 are now available at post offices.
UPS’s holiday surcharge rates for the US have been released; the lower surcharges start September 29th.
Shippo has new Canada Post rates from now until January, and the Tracked Packet rates to everywhere but the United States are cheaper than Etsy’s (which are based on Level 4 of Solutions for Small Business). Remember that Shippo makes you pay for a higher tier of service if you use over 30 labels per month.