BIG NEWS if you want to open an Etsy shop in 2024 - Don't miss this!

Etsy has announced significant changes for new shops starting in 2024. These changes include an enhanced identity check using third-party software called Persona, where shop owners will need to upload a photo ID and a selfie for verification. Additionally, new shops will be required to pay a one-time setup fee of $15 to support enhanced security and verification measures. Lastly, Etsy is exploring changes to payment schedules for new shops, which may affect how long it takes for funds to become available, ensuring that new sellers can fulfill orders or provide refunds. These updates aim to maintain Etsy as a safe and trusted platform, though they may also serve as a barrier to entry for some potential shop owners. Existing shops will not be affected by these changes.

Takeaways

• 📢 Etsy is implementing new changes for new shops starting in the next few months.
• 🆔 An enhanced identity check will be added to the shop setup process using third-party software called Persona.
• 💵 New shops will be required to pay a one-time setup fee of $15 to support enhanced security and verification.
• 🛡️ The fee aims to ensure commitment and weed out scammers or resellers who might not follow through with their business.
• 🚫 Existing shops will not be affected by these changes.
• ⏱️ There may be changes to payment schedules for new shops, potentially affecting how quickly funds become available.
• 💼 Shop managers will be able to see their payment schedule after completing the onboarding process.
• 💰 Funds may be held for a period to ensure new sellers can fulfill orders or provide refunds.
• ❗️ The changes are designed to keep the Etsy community safe and maintain trust.
• 🤔 It is recommended to open an Etsy shop sooner rather than later to avoid the new fee and other upcoming requirements.
• 📝 Brendan M Ryan is the head of Etsy support for any issues or concerns.

Q & A

What recent changes are being implemented by Etsy for new shops?

Etsy is implementing three main changes for new shops: an enhanced identity check using a third-party software called Persona, a one-time setup fee of $15, and potential changes to payment schedules which may affect how long new shops need to wait for their funds to become available.

Why is Etsy introducing an enhanced identity check?

The enhanced identity check is being introduced to strengthen the onboarding process and keep the Etsy community safe. It aims to prevent bad actors from opening shops under false identities and disappearing without fulfilling orders or sharing a true identity.

How does the third-party software Persona work for identity verification?

Persona requires users to upload a photo ID, such as a driver's license or passport, and take a selfie. The system then compares the selfie to the ID to verify that the person is who they claim to be.

What is the purpose of the one-time setup fee for new shops?

The one-time setup fee of $15 is introduced to support enhanced security and verification. It serves as a commitment from new shop owners to run legitimate businesses on Etsy and helps to deter scammers and resellers who might otherwise open shops, sell items, and then disappear.

How does the new payment schedule for new shops work?

While specifics are not detailed in the transcript, the new payment schedule may involve holding funds for a certain period after new shops complete the onboarding process. This is to ensure that new sellers can fulfill orders or provide refunds when necessary.

Will existing shops on Etsy be affected by these changes?

No, the changes will only apply to newly created shops. Existing shops will not be affected by the new requirements for identity checks, setup fees, or changes to payment schedules.

What should someone do if they have been considering opening an Etsy shop?

If someone has been considering opening an Etsy shop, it is recommended to do so as soon as possible to avoid the new one-time setup fee and to get their shop up and running before the changes to payment schedules are fully implemented.

What is the current process for opening an Etsy shop?

As of the time of the transcript, to open an Etsy shop, one must list their first product, which incurs a 20-cent listing fee. There is no other fee to open the shop itself. However, this may change with the new requirements for a one-time setup fee.

How can someone find more information about the Persona security standards used for identity verification?

The transcript mentions a link to Persona security standards, which interested individuals can follow to learn more about the security measures in place for identity verification on Etsy.

What is the role of Brendan M Ryan in Etsy?

Brendan M Ryan is the head of Etsy support. If someone has issues with support, they can contact him as he is the person in charge.

What is the advice for those who are unsure about the name of their Etsy shop?

Individuals are advised that they can change their shop name at least twice, so even if they are not 100% sure about the name, they can open the shop and claim it now, with the option to change the name later.

What is the current situation with new Etsy shops and the availability of funds?

Currently, Etsy has been holding funds for some new shops as a measure to prevent bad actors from taking the money and not fulfilling their obligations. This practice may become more widespread with the new changes, affecting how quickly new sellers can access their funds.

Outlines

00:00

🛒 Etsy's New Shop Policies and Identity Verification

Etsy has announced significant changes that will impact the way new shops operate on the platform. The first major change is the introduction of an enhanced identity check during the shop setup process, which involves using a third-party service called Persona. Sellers will need to upload a photo ID and take a selfie for comparison to verify their identity. This measure aims to prevent fraudulent activities and ensure the safety of the Etsy community. Existing shops will not be affected by this change.

05:02

💵 Introducing a One-Time Setup Fee for New Shops

Starting soon, new shops on Etsy will be required to pay a one-time setup fee of $15 before they can open for business. This fee, which is non-refundable, is intended to support enhanced security and verification measures and to ensure that new shops are committed to running legitimate businesses on the platform. This represents a departure from Etsy's previous policy, which allowed sellers to open shops without any upfront costs, other than the 20-cent listing fee for their first product. The change may serve as a deterrent to scammers and resellers looking to quickly sell items and then abandon the shop.

🕒 Changes to Payment Schedules for New Sellers

Etsy is also exploring changes to payment schedules for new shops. This means that new sellers may have to wait longer before they can access their funds. The platform is implementing these changes to ensure that new sellers can fulfill orders and provide refunds if necessary. While the exact details of how long funds will be held have not been specified, it is clear that new shops will have their payment schedules detailed in their shop manager after completing the onboarding process. This measure is another step Etsy is taking to protect the community from bad actors and to encourage genuine business practices.

Keywords

Etsy

Etsy is an online marketplace that primarily focuses on handmade or vintage items and craft supplies. It is a platform where artisans, crafters, and small-scale manufacturers can sell their goods to a global audience. In the video, the discussion revolves around changes that Etsy is implementing for new shops, which is the central theme.

New Shop Requirements

The term refers to the updated rules and procedures that new Etsy shop owners must follow to set up their online stores. The video discusses three significant changes to these requirements, including an enhanced identity check, a one-time setup fee, and potential alterations to payment schedules.

Identity Check

An identity check is a process where an individual's identity is verified to ensure they are who they claim to be. In the context of the video, Etsy will use a third-party software called Persona to perform an enhanced identity check. This involves uploading a photo ID and taking a selfie for comparison, aiming to prevent fraudulent activities.

Persona

Persona is a third-party software mentioned in the video that will be used by Etsy to enhance the identity verification process for new shop owners. It is part of the platform's effort to strengthen security and ensure that only genuine sellers are operating on the site.

One-Time Setup Fee

This refers to a non-refundable fee of $15 that new Etsy shop owners will have to pay before they can open their shops for business. As explained in the video, this fee is intended to support enhanced security and verification measures and to ensure that new shops are committed to running legitimate businesses on the platform.

Payment Schedules

Payment schedules on Etsy refer to the timeline on which sellers receive payments for their sold items. The video mentions that changes to these schedules may be implemented for new shops, potentially affecting how quickly sellers can access their funds after making a sale.

Bad Actors

In the context of the video, 'bad actors' refers to individuals who engage in fraudulent or deceptive practices on the platform, such as opening shops with false identities, not fulfilling orders, or scamming customers. Etsy's changes are aimed at preventing such activities.

Commitment to Business

The term implies a serious intention and dedication to running a business. The video suggests that the new fee and identity verification process are designed to filter out those who are not genuinely committed to operating a business on Etsy, thus improving the overall quality and trustworthiness of the platform.

Funds Holding Period

This refers to the duration for which Etsy may hold a new shop's funds before releasing them to the seller. The video explains that this is a measure to ensure that new sellers are legitimate and capable of fulfilling orders or providing refunds, which may act as a barrier for those expecting immediate access to their earnings.

Etsy Support

Etsy Support is the customer service arm of the platform that assists users with issues and inquiries. The video mentions Brendan M Ryan, the head of Etsy Support, as a point of contact for users who may need to escalate their concerns.

Etsy Basics Series

This is a series of educational videos created to guide new users through the process of setting up and managing an Etsy shop. The video script encourages viewers to check out this series for more detailed instructions on various aspects of operating an Etsy shop.

Highlights

Etsy is changing the way shops operate with new requirements for new shops.

Three new changes will be introduced that will cost money and affect privacy.

Brendan M Ryan, head of Etsy support, is the point of contact for support issues.

Changes will apply to newly created shops, not affecting existing ones.

New shops will require an enhanced identity check using third-party software called Persona.

A one-time setup fee of $15 will be required for some new shops to enhance security and verification.

The $15 fee is non-refundable and aims to ensure commitment to running a business on Etsy.

Previously, no fees were required to open an Etsy shop, besides the listing fee.

It is recommended to open a shop now to avoid the new fee.

Etsy may hold funds for a while before releasing them to new shops to ensure order fulfillment.

New shops will see their payment schedule in their shop manager after onboarding.

The changes aim to prevent bad actors and scammers from operating on the platform.

The updates will be introduced and tested in the coming months.

If considering opening an Etsy shop, it is advised to do so before the changes take effect.

The changes target resellers and scammers, aiming to maintain the integrity of the Etsy community.

The video provides a link to an Etsy basic setup guide for new sellers.

The speaker is working on an Etsy Basics series for newcomers to the platform.

There is an extensive playlist available with over 150 videos on Etsy topics.