Etsy Shop Suspensions: Reasons and Solutions

Etsy is deactivating more shops than ever, with around 75% suspended for legitimate rule violations, urging sellers to follow policies diligently.

### Understanding Etsy Shop Suspensions: A Data-Driven Analysis
* 🛑 During the 2024 Q1 Investors Call, Etsy's CEO Josh Silverman mentioned that their automated deactivation system has been taking down more shops than ever, with "**tens of thousands of sellers**" affected.
* 🔍 A review of around 300 suspended shops in April 2024 found that approximately **75% of these sellers had unknowingly broken a legitimate rule**, often due to **lack of clear communication from Etsy**.
* 🛠 The list of potential reasons for suspension includes common issues like **not providing necessary account information**, **falsifying location**, **using a VPN**, **not paying Etsy fees**, and **shilling/review inflation**.
* 🖼 Specific to Print on Demand (POD) sellers, concerns include **not listing print providers**, using **misleading mockups**, and potential issues with stock sites like **Creative Fabrica**.
* 📚 The policy around intellectual property (IP) is highlighted, with a reminder that sellers cannot use **copyrighted or trademarked material without permission**, even if it's prevalent on the platform.
* 🛡 The text emphasizes that scammers offering to restore suspended accounts for a fee are not legitimate, as only Etsy can **reinstate accounts through their appeal process**.
* 🌐 For international sellers, it's noted that **selling from unsupported territories** or trying to **circumvent restrictions** can lead to **swift suspension**.
* 📢 The importance of following rules is stressed, as the current situation is making it harder for legitimately suspended sellers to receive the support they need, with the **appeal system resetting every 10 days**.

Why Etsy Shops Are Being Suspended

Starla Moore

Etsy's automated deactivation system has been taking down a record number of shops, with millions of listings and tens of thousands of sellers affected.

A review of 300 suspended shops in April 2024 found that around 75% of the sellers were deactivated for breaking a legitimate rule, without being informed by Etsy.

Starla Moore, founder of the Handmade Alpha Academy, has been advocating for Etsy to provide justifications for suspensions and has communicated with Etsy's head of customer support for this initiative.

Submitting essential account information is crucial for avoiding suspension, including tax and bank details.

Falsifying your location, using a VPN, or making frequent location changes can give the impression of suspicious activity and lead to suspension.

Updates to your legal name and failure to pay your Etsy bill can also cause problems and potential deactivation.

It is advisable to stay updated with Etsy's policies and to ensure compliance to avoid account suspension.

Unpaid fees and policy violations can lead to the suspension of all connected shops under the same IP address.

Engaging in shilling, review inflation, and poor customer service can also result in suspension.

Additionally, selling non-original items, not disclosing print providers, and using misleading mockups may lead to suspension, as well as using stock sites for products requiring handmade creation.

Selling on Etsy has specific guidelines: original designs are allowed, but reselling handmade items or using traced photos is prohibited.

The platform also restricts the sale of metaphysical items with health claims and services without a digital or physical item.

Furthermore, using images from prohibited sites like Alibaba can result in shop suspension, but creators can file a DMCA takedown request for protection.

If an account is hacked, Etsy will close it to prevent any further damage from scammers.

Etsy's Online Safety Practices and Selling Policies

Etsy users should prioritize online safety by avoiding clicking on links from messages or emails, refraining from sharing bank details, and verifying messages from Etsy.

Selling in unsupported territories, especially those occupied by Russia, may lead to the suspension of an Etsy account.

It is strictly prohibited to sell items that contain copyrighted or trademarked material on Etsy, as the platform does not have the capability to effectively remove all intellectual property violating items.

Etsy's Legal Responsibility in Protecting Intellectual Property

Etsy is facing challenges in protecting intellectual property while honoring legally binding contracts with some sellers.

The platform struggles to navigate the complexity of IP law, leading to incorrect deactivations and challenges for handmade sellers.

The situation is creating difficulties for legitimate sellers to receive the support they need and is putting a strain on Etsy's customer service.