Why Do Etsy Accounts Get Suspended?

Etsy is a powerful platform where many sellers sell many different items like handmade products, arts and crafts, vintage goods, etc. However, a majority of sellers face account suspension challenges as it is very common and happens for various reasons. In this blog, we will talk about the reasons behind why and how Etsy decides to suspend its sellers.

Before starting the blog, I would like to warn our readers that Etsy, and Etsy`s AI are taking customer complaints, intellectual property complaints, and other policy violations strictly. Therefore, they closed 1.2 million listings and deactivated thousands of accounts in 2023 So, be very careful while entering this platform.

1. ID Verification

Etsy strongly believes that verifying the identity of its sellers will provide a safer platform with secure customer service. Therefore, Etsy will require certain documents and information for Email Verification, Bank Account Verification, Identity Verification, Phone Verification, and Address Verification. Additionally, they will require a single verifiable identity for tax, legal, and debt liability.

If a seller fails to fulfill the verification requirements, puts in incorrect information, or has missing details their account might be suspended. There will be different requirements for different purposes, products, and locations.

For example, Etsy requires that international sellers have a valid bank account on file no later than after their first sale. Failure to update and verify a bank account capable of receiving deposits from Etsy may result in the suspension of the seller's account until the issue is resolved.

All the information on the requirements will be on Etsy’s help page, Etsy Guidelines and Terms of Use, and other sources on the internet.

Merit Law LLP successfully reinstated Etsy Seller`s account suspension when they had been suspended due to ID issues.

2. Violation of Etsy’s Seller Policies

Because Etys is a platform with many sellers and buyers, they also provide a list of policies that sellers must adhere to. When a seller violates these policies, some will get off with a warning while some will get their account suspended immediately, depending on the type of policy violated. All of Etsy’s policies can be found on Etsy’s page and Terms of Use and should be carefully reviewed.

Here are some Etsy Seller Policies that get violated the most often and are the hardest to get accounts reinstated as they have a zero-tolerance policy:

Prohibited Items Policy: Etsy does not allow every single item to be sold on their platform for safety and legal reasons. A list of their prohibited items is provided in their Prohibited Items Policy and should be read by all sellers to avoid any violations. The usage of items that promote or glorify hatred, illegal activity, or violence will result in account suspension.

Prohibited Items Policy: https://www.etsy.com/legal/prohibited/

Intellectual Property and Trademark Policies: Etys puts a significant value on respecting IP and trademark policies. Any sellers who infringe on these policies will immediately need to remove those items or they will get their accounts suspended. In this case, you will need to appeal to Etsy and be willing to compromise. Etsy does not involve itself with a dispute with another party which means that if you have your account suspended due to a complaint on property or trademark infringement, you will have to reach out to the other party and resolve the problem.

Intellectual Property Policy: https://www.etsy.com/legal/ip/

Trademark Policy: https://www.etsy.com/legal/trademarks/

Handmade Policy: Most of the time, the items that are being sold on Etsy will be handmade products. According to Etsy’s handmade policy, every single handmade item needs to be original and designed by you. For instance, you are unable to purchase goods from a wholesaler and then resell them on Etsy. Failing to meet the requirement for Etsy’s Handmade Policy might also lead to suspension unless proven otherwise.

Handmade Policy: https://www.etsy.com/ca/legal/handmade

3. Association with Banned Etsy Account

Another reason for account suspension that happens often to sellers is when Etsy’s banning algorithm is triggered by your account. This might happen for different reasons. The other shop and yours may have logged in under the same IP address. You might also be using a VPN or Shared Wifi that might cause a trigger on Etsy’s system. If both shops are logged in under the same IP address, they think your shops are run by the same people or related.

4. Delivery Failure

Etsy is a platform that puts great value on customer service. As a seller, you are expected to meet the delivery requirements and if you often fail to do so, you might lose your seller privileges. Some problems related to delivery issues might include: exceeding the provided delivery timelines, customer reports of late delivery or damaged in-transit items, and providing missing or incorrect information on tracking. Sometimes, these issues might not directly be your fault and you might just have to use different shipping techniques or shipping services.

Summary

Overall, as a seller on Etsy, you need to meet certain requirements like the ones mentioned above to not get suspended. Be aware of the items you are selling and pay attention if you are violating any policies. When your Etsy account gets suspended, do not panic. You can file an appeal where you talk about the details of your business and specifics on how it has not violated any Etsy policies or requirements. In certain cases, you can also get legal assistance from Merit Law LLP.

We, Merit Law LLP, helped our clients to reinstate their Etsy Accounts.