Etsy says some sellers won’t receive their payments on time due to the sudden collapse of Silicon Valley Bank. In an e-mail sent to affected store owners, the company says it used the closed setting to send deposits to “some merchants” and they may not get their scheduled payments as a result, leaving store owners concerned about the future of their stores.
Etsy began notifying sellers of the potential delays on Friday, the same day the Federal Deposit Insurance Corporation and California regulators closed Silicon Valley Bank. The bank served as a staple of the venture capital and startup industries, with companies like Etsy, Roku, and Roblox holding funds in the institution. The FDIC auction for Silicon Valley Bank assets is expected to take place on Sunday afternoon, and if no buyer shows up, the FDIC will be forced to sell its assets in an effort to repay depositors.
While Etsy hasn’t yet provided a timeline for when sellers can expect their payments, company spokesperson Veronica Heino says Etsy is working on taking deposits using its other payment partners.
“We recently experienced a delay in disbursing payments to some merchants related to the unexpected collapse of Silicon Valley Bank,” said Heino. “Our teams have been working around the clock to implement a solution and we expect to pay merchants through our other payment partners within a few business days.”
Many small business owners on Etsy rely on the income they receive from selling handmade products on the platform, and not receiving those scheduled payments can make it more difficult for them to cover the costs of their craft. The owner of Etsy shop Cultivated Laser, whose name is Gee, is just one of many sellers affected by the late payment.
“The delay in deposits came at the most inconvenient time for our business: right after a major inventory purchase and just before moving across the country,” says Gee. The edge. “I have over 100 orders that have been fulfilled and shipped and no payment has been received.”
It remains unclear how many merchants will be affected by these delays, and not every store owner may have been notified yet. Since sellers have the option to set up daily, weekly, bi-weekly or monthly payments, it seems those with payments specifically scheduled for last Friday are the only ones notified. As a result, those who have set up payments for any time in the near future anxiously await communications from Etsy.
“I’ve set up my account to deposit daily, so luckily the amount that’s in limbo isn’t an entire week’s wages,” cosplayer and Etsy seller Rachel Lynn, otherwise known as Maridah, tells us. The edge. “Still, I use my sales to budget for my day-to-day expenses, and I worry about how long the delay in receiving my money may be.”
Aside from the email sent to merchants, an in-app notification, and a pinned one post on Etsy’s forumsthe company has still not published additional information about the potential impact the collapse of Silicon Valley Bank could have on merchants, causing frustration and confusion among retailers.
Alison Ugur, the owner of HookN20, an Etsy shop that makes custom dice and crochet dice bags, has not yet been notified that she has been affected by the late payment, but says she has never received any form of in-app notification or email. received mail about Etsy’s exposure to Silicon Valley Bank. “If my mother hadn’t texted me, I still wouldn’t have known about the bank collapse,” says Ugur. “There is no Etsy site update or warning, no communication. It doesn’t feel great.”
“I’m confused and worried about Etsy and the future of my shop.”
Both Lynn and Gee expressed similar concerns, with Lynn noting that she never received a follow-up email about the late payment, making it more difficult for sellers to stay on top of the issue. “Searching for a statement from Etsy only returns news articles,” says Lynn. “It’s frustrating to have to search for this information.”
With her next payment date set for Monday, Ugur worries whether or not she will receive the money owed to her. “I have unshipped orders for which I have not received any money,” explains Ugur. “If I send them tomorrow before I receive my payment, will I get paid for my work and when? I am confused and concerned about Etsy and the future of my shop.”
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