On Monday, Etsy, the online marketplace, announced that it is about to launch the latest Purchase Protection program for shoppers and sellers on its platform. Buyers will be eligible for a full refund starting August 1st if their purchases don’t match the item’s description, arrive damaged, or don’t arrive at all.
Etsy will Launch a Purchase Protection Program
The company also aims to invest a minimum amount of $25 million per year in the purchase protection program, which would cover refunds for qualifying orders up to $250 on behalf of sellers at no additional cost to them. According to Etsy, the investment will allow sellers to maintain their earnings from purchases when events beyond their control occur.
Etsy COO Raina Moskowitz said, “Easy issue resolution is a vital element of the e-commerce buying experience, and our new Etsy Purchase Protection program seeks to help make shopping on Etsy even more stress free.” “Although we make investments in our sellers to offer them a crucial layer of security, this program will help shoppers feel more confidence when shopping from small companies on this platform.”
The Program will be Beneficial to Shoppers and Merchants
Etsy claims that its action today is the result of feedback from both shoppers and merchants on its marketplace. The company has stated that it intends to continue investing in product development and customer support. The platform previously stated that it plans to spend over $50 million on improving customer service.
The announcement of the purchase protection program comes just months after over 14,000 Etsy went on strike in protest of the platform’s decision to raise transaction fees from 5 percent to 6.5 percent.