Too long to wait: How Etsy is struggling to pay its sellers after SVB collapse
Delhi : The failure of Silicon Valley Bank(SVB) yesterday has apparently made it difficult for Etsy, the American e-commerce site famous for DIY handmade or vintage items and craft supplies, to make payments to its sellers on schedule.
Etsy has not paid payments that were supposed to be credited to sellers' bank accounts yesterday, according to reports made by sellers on the Etsy platforms today on Twitter and Reddit. In response, Etsy immediately emailed affected merchants to let them know that payments are being issued to sellers on the platforms with a delay and that the firm is now coordinating with its other payment partners to find a quick solution.
No specific day or time was given for how long the wait would last, thus it is likely that Etsy has delayed the money that vendors made from selling their goods on the platform indefinitely. This is the first significant impact of the SVB bank failure on the whole US consumer market.
Sellers were venting their worry and rage on social media after receiving the email. However, several sellers went out and complained about the Etsy payment delays to media organizations, stating that the delays would have a "catastrophic effect" on their company.
American small business owner Owen McKinney, who owns the Kentucky Country Home laser engraving company, depends on Etsy's deposits to cover expenses like materials and shipping. He had previously contacted one of his suppliers to ask them to postpone a purchase for materials he required for the following week due of the Etsy delay.
According to official data available online through December 31, 2022, Etsy has over 100 million items in its marketplace and connected 7.5 million merchants with 95.1 million consumers. As a rapidly growing software business, Etsy reported fiscal year 2022 revenue of US$2.6 billion and a net loss of US$694 million.