Some Etsy sellers have finally accessed money tied to Silicon Valley Bank and have reopened their shops
- Some Etsy sellers were waiting for their payments from the marketplace on Monday after SVB's fallout.
- As of Tuesday, some were able to access their money and reopen their shops.
In the wake of Silicon Valley Bank's fallout, some Etsy sellers were having trouble getting their payouts from the online marketplace on Monday and were unsure as to when they'd get their money.
However, when reached on Tuesday, these sellers said the payments were posted to their bank accounts and they reopened their shops from vacation mode, a strategy they used to prevent receiving any orders from customers.
Some sellers first learned that their deposits didn't go through on Friday, when they received an email from Etsy explaining that payments were delayed because the company used Silicon Valley Bank to facilitate disbursement to some sellers.
Etsy confirmed to Insider on Monday that approximately 0.5% of its active seller base had their payments delayed on Friday. In a statement, the company said: "We are working to pay these sellers today and we've already started processing payments via another payment partner this morning."
On Monday, some Etsy sellers posted on Reddit that said they still hadn't received payment and others said they had been notified that their payments may not come for days or weeks. This created confusion among entrepreneurs.
For example, one user who uses the handle jennifer1911 said that their deposits typically arrive weekly on Mondays but that their next deposit date was changed from March 13 to March 20. When the user selected the option "request it now," the deposit date was updated to March 14, they wrote.
"Mine was just rescheduled for March 20 after failing to be deposited today," wrote user jessgoldrush on Monday.
Insider spoke with three Etsy sellers on Monday who were waiting for their automatic weekly deposits to go through. In the meantime, they set their storefronts to vacation mode to prevent receiving any orders from customers. All three hadn't received communication from Etsy about the issue.
Confusion leads to mistrust from sellers
Yinan Wang, who sells minerals and gemstones on Etsy, said the company's response to the ordeal has led him to distrust the platform.
"The lack of communication hasn't exactly put much trust with Etsy because, over the entire weekend, they posted nothing on their Twitter about any of this," Wang said. "No one's sending any email being like, 'don't panic or we're dealing with it.'"
Renee Donohue wasn't panicked about the ordeal because Etsy only accounts for between 15% and 20% of her lavender business. However, the shortage of updates from Etsy added to her mounting grievances about the platform, she said.
"I haven't been happy with Etsy for a couple of years because of their fees and the way they treat sellers," she said. "They're not seller friendly, they're buyer friendly."
Liv Rainey-Smith sells art prints on Etsy and put her store on vacation mode after Friday's news. At first, her payment from the company was due March 20, she told Insider in a direct message. Then the status changed late Monday afternoon when she received an email from Etsy notifying her that the funds were on their way.
"I'm cautiously optimistic it's actually happening," Rainey-Smith said. "That said, I won't re-open the shop until I see it pending in my bank account."
If you are an Etsy seller affected by delayed payments and want to share your story, please reach out to this reporter at firstname.lastname@example.org.
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