Etsy is delaying seller payouts following Silicon Valley Bank’s collapse

0 0

sleep apnea 4 events per hour

The DIY marketplace is pressing pause on payouts until it can route deposits through one of its other payment partners. But some sellers feel as if they’ve been left in the dark.

Share this story

Etsy is delaying seller payouts following Silicon Valley Bank’s collapse

Illustration by Alex Castro / The Verge

Etsy says some sellers won’t receive their payments on time due to the sudden collapse of Silicon Valley Bank. In an email sent out to impacted shop owners, the company says it used the shuttered institution to send out deposits to “some sellers” and that they may not get their scheduled payments as a result, leaving shop owners worried about the future of their stores.

Etsy started notifying sellers about the potential delays on Friday, the same day the Federal Deposit Insurance Corporation and California regulators shut down Silicon Valley Bank. The bank served as a staple in the venture capital and startup industries, with companies like Etsy, Roku, and Roblox having funds tied up in the institution. The FDIC auction for the Silicon Valley Bank’s assets is expected to take place on Sunday afternoon, and if no buyer emerges, the FDIC will be forced to sell its assets in an attempt to reimburse depositors.

While Etsy hasn’t yet provided a timeline for when sellers can expect to receive their payments, company spokesperson Veronica Heino says Etsy is working to fulfill deposits using its other payment partners.

“We recently experienced a delay in issuing payments to some sellers

“I have my account set to deposit daily, so thankfully the amount of money in limbo is not a whole week’s pay,” cosplayer and Etsy seller Rachel Lynn, also known as Maridah, tells The Verge. “Still, I use my sales to budget my day-to-day expenses, and I do worry about how long the delay in getting my money could take.”

Aside from the email sent to sellers, an in-app notification, and a pinned post on Etsy’s forums, the company still hasn’t published any additional information about the potential impact Silicon Valley Bank’s collapse could have on sellers, causing frustration — and confusion — among shop owners.

Alison Ugur, the owner of HookN20, an Etsy shop that makes custom dice and crocheted dice bags, hasn’t yet been informed that she’s been affected by the payment delay, but says she never received any sort of in-app notification or email about Etsy’s exposure to Silicon Valley Bank. “If my mom hadn’t texted me, I still wouldn’t know about the bank collapse,” Ugur says. “There is no Etsy site update or alert, no communication. It feels not great.”

“I’m confused and concerned 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 delay in payments, making it harder for sellers to stay updated on the issue. “Searching for a statement from Etsy just brings up news articles,” Lynn says. “It’s frustrating to have to dig for this information.”

With her next payment date set for Monday, Ugur’s worried about whether or not she’ll actually receive the money she’s owed. “I have un-shipped orders that I haven’t received funds for,” Ugur explains. “If I ship them out tomorrow before my payment comes through, will I be paid for my work and when? I’m confused and concerned about Etsy and the future of my shop.”


sleep apnea 4 events per hour

Leave A Reply

Your email address will not be published.