Seller Handbook

In August 2022, we launched Etsy Purchase Protection—a program that helps support our sellers in the unlikely event that something goes wrong with an order. We’re proud to see this commitment come to life, with Etsy investing over $25 million annually to cover refunds at no additional cost to sellers.

Etsy’s Purchase Protection program is designed to give buyers more peace of mind and help sellers run their businesses with more confidence on Etsy. We know that as an Etsy seller, you do everything you can to ensure a smooth and successful order experience for your customers. We’re committed to doing our part to support you throughout that process.

We’re continually listening to feedback from sellers about Etsy’s Purchase Protection program, and your input plays an important role in shaping our approach. In this article we’ll be addressing some of the common questions we’ve heard from the seller community to help you run your shop with more peace of mind.

How does Etsy Purchase Protection work for sellers?

1. First, your buyer will send you a Message: If your buyer has an issue with their order, first they’ll need to reach out to you via Messages from the Help with my order page. Sellers can easily identify these types of messages marked with a “Help request” label in their message inbox. Responding to messages promptly is a key factor in providing excellent customer service and working towards a resolution with the buyer before they ask Etsy to step in for assistance. Response time is also an important piece of Star Seller criteria. As you assess the buyer’s concern and work towards a resolution, you may consider offering a replacement or refund.

2. Next, your buyer needs to ask Etsy to review: If you believe your buyer's issue qualifies for Etsy Purchase Protection, encourage them to open a case for Etsy to review. It’s possible you may see more cases because of this change, but don’t worry—cases won’t negatively impact your shop, search ranking, or Star Seller eligibility. Cases are just a signal for Etsy to step in and help both parties reach a fair resolution. You can learn more about how cases work on Etsy in the Help Center.

3. Then, Etsy steps in: After a case has been opened, Etsy will check to determine if the order is eligible for Etsy’s Purchase Protection program. While we’ll try to save you and the buyer time, we may ask for more information from you or the buyer during this review process to ensure that we reach a fair resolution for both parties.

4. Lastly, a resolution is reached: Once the case is closed, you and the buyer will receive an email letting you know a resolution has been reached. If the order is eligible for Etsy’s Purchase Protection program, Etsy will refund the buyer and you’ll keep your earnings! There won’t be any additional action required on your part.

If you need help or have questions, you can reach out to us to review the outcome of this case. We’re also continuing to invest in member support, with our popular live Help Center chat available to all sellers, 24 hours a day, seven days a week. Most sellers wait less than one minute to be connected with an agent!

My shop doesn’t accept returns. How is Etsy Purchase Protection different from returns?

A buyer is eligible for Etsy Purchase Protection —regardless of a listing’s individual return policy—if an item doesn’t match the listing description, arrives damaged, arrives after the estimated delivery date window, or doesn’t arrive.

Otherwise, all sales are subject to the return policy that you set for your listing(s). If you decide to accept returns, you’ll be able to customize your policy with information like when and how the buyer needs to send the item back to you.

Does Etsy Purchase Protection cost sellers anything?

Sellers don’t need to pay anything or take any action to participate in Etsy’s Purchase Protection program. Your orders just need to meet the eligibility criteria, which follow best practices for packaging and shipping your items.

I provided tracking information and the order is shown as delivered, why am I responsible for the refund?

If an item doesn’t arrive, arrives damaged, arrives after the estimated delivery date window, or isn’t as described, Etsy will refund buyers for qualifying orders up to $250 USD.

However, tracking is only one part of the eligibility criteria. Make sure future orders are eligible by meeting all requirements, including:

• Ship orders within your stated processing time, with valid tracking info or a label purchased on Etsy
• Double check your order has an estimated delivery date
• Use accurate photos and descriptions in your listings
• Fill out your shop’s policies (especially for returns, exchanges, and custom orders)
• Follow all of our policies for selling on Etsy

Note: Orders must be processed by Etsy Payments to be eligible for Etsy Purchase Protection. See all program terms or check out best practices for shipping.

When can a buyer open a case?

Buyers can open cases for 100 days after the estimated delivery date. The order's estimated delivery date (if applicable) or processing time and/or “ship by” date must have passed, and it must be at least 48 hours after the buyer contacts you about the problem. Once eligible, buyers have 100 days to open a case.

How are refunds handled for transactions over $250?

Orders over $250 USD (including shipping and taxes) are not eligible for Etsy Purchase Protection. Note: Buyers can still open a case if they have an issue with an order over that amount. If the resolution is found to be in the buyer’s favor, the seller is responsible for refunding the cost. Because of this, we strongly recommend purchasing insurance when fulfilling your orders over $250.

Learn more about how we designed Etsy’s Purchase Protection program with you in mind from Etsy’s Chief Operating Officer, Raina Moskowitz.