Online marketplace Etsy accused of 'ruining' Sheffield ceramics maker by withholding money

A Sheffield ceramics maker claims she is being ruined by Etsy after it started holding back three quarters of her income for 45 days.

Rachel Collyer says the company owes her £1,253 she has made since June 1. The lack of cash means she can’t buy supplies or pay bills and was forced to cancel her summer holiday.

She told the BBC: “This is ruining my business - I can't afford to buy any clay or glazes. We might have to move house because I can't pay any bills.”

Etsy is an online marketplace that allows independent sellers to set up their own shop. It specialises in bespoke items, handicrafts or things not usually available in High Street shops.

Rachel, aged 53, says she has no idea why she has been hit by its ‘reserve system’. She is one of hundreds of small businesses reportedly affected.

Etsy's website’s payment policy states the reasons for putting money on hold include a sudden increase in sales, a shop having only made its first sale recently, the shop committing a "policy violation" or "other risk factors".

But Rachel, based at Lane Head Road, Totley, has been running Rachel Collyer Ceramics on Etsy for two years and has a ‘rave review’ of 4.8 from 1,466 sales. She pays 6.5 per cent of sales, plus any postage, to the firm.

Rachel set up in ceramics in 2021 after her recruitment agency was killed by Covid. After being put on 'reserve' she is urging people to buy direct at www.rachelcollyerceramics.com and receive a 10 per cent discount by inputting RETURN at checkout.

An Etsy spokesperson said: “Etsy has long provided sellers with a generous payment schedule – the vast majority receive their funds when they make a sale rather than having to wait until the buyer receives the item, like they might with other selling platforms. In some cases, we will delay a portion of funds from a sale until we can confirm that the order has shipped. This enables us to continue paying sellers in a timely manner while taking the steps necessary to help keep our marketplace safe and protect our customers when there are unexpected issues with their order. As always, we will continue to iterate and improve upon our programs, including payment reserves, in order to support our sellers.”

US-based Etsy says it has 7.4m active sellers offering more than 120m items to nearly 90m buyers.