Etsy says that some sellers will not receive their payments on time due to the sudden collapse of Silicon Valley Bank. In an email sent to affected store owners, the company says it used the closed institution to send deposits to “some vendors” and that they may not receive scheduled payments as a result, leaving store owners concerned for the future of their stores.
Etsy began notifying sellers of the potential delays on Friday, the same day Silicon Valley Bank was shut down by Federal Deposit Insurance Corporation and California regulators. The bank served as a staple in the startup and venture capital industries, with companies like Etsy, Roku and Roblox having funds tied up at the institution. He FDIC auction for Silicon Valley Bank assets it 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 repay depositors.
In a statement to the edge Provided by Etsy spokeswoman Veronica Heino, the company says it’s working to fulfill deposits using its other payment partners, and that it will start resuming some payments as soon as Monday, March 13.
“We recently experienced a delay in issuing payments to some sellers related to the unexpected collapse of Silicon Valley Bank,” says Etsy. “Our teams have been working around the clock to implement a solution, and we expect to pay sellers through our other payment partners within the next few business days and that we will be able to start processing these payments as soon as tomorrow, March 13. ..”
Many small business owners on Etsy rely on the income they receive from selling handmade products on the platform, and not receiving those scheduled payments could make it difficult for them to afford the costs associated with their craft. Etsy shop owner Cultivated Laser, who goes by Gee, is just one of many sellers affected by late payments.
“The delay in deposits came at the most inopportune time for our business: right after a large inventory purchase and just before we moved across the country,” Gee says. the edge. “I have over 100 orders that have been completed and shipped and I haven’t received payment.”
It’s unclear how many sellers are affected by these delays, and not all store owners may have been notified yet. From sellers have the option to set up daily, weekly, bi-weekly or monthly payments, it seems that those with payments specifically scheduled for last Friday have been the only ones who have been notified. This leaves those who have payments set up for any time in the near future eagerly awaiting communication from Etsy.
“I have my account set up to deposit daily, so luckily the amount of money in limbo isn’t an entire week’s payment,” says cosplayer and Etsy seller Rachel Lynn, aka Maridah. the edge. “Still, I use my sales to budget my day-to-day expenses, and I worry about how long it might take to get my money.”
In addition to the email sent to sellers, an in-app notification and a pinned message post on Etsy forumsthe company has yet to release any additional information about the potential impact Silicon Valley Bank’s collapse could have on sellers, causing frustration and confusion among store owners.
Alison Ugur, owner of HookN20, an Etsy shop that makes custom dice and crochet dice bags, has not yet been informed that she has been affected by the late payment, but says she never received any kind of notification in the app or email about Etsy Expo to Silicon Valley Bank. “If my mom hadn’t texted me, she still wouldn’t have told me about the bank collapse,” says Ugur. “No update or alert from Etsy site, no communication. She doesn’t feel great.”
“I’m confused and worried about Etsy and the future of my shop.”
Both Lynn and Gee raised similar concerns, with Lynn noting that she never received a follow-up email about the late payments, making it difficult for sellers to stay up-to-date on the issue. “Searching for an Etsy statement only returns news articles,” Lynn says. “It’s frustrating to have to search for this information.”
With his next payment date set for Monday, Ugur is concerned about whether or not he will actually receive the money he is owed. “I have unshipped orders for which I have not received funds,” explains Ugur. “If I send them tomorrow before my payment arrives, will I get paid for my work and when? I’m confused and worried about Etsy and the future of my shop.”
Update March 12, 7:19 pm ET: Updated to add additional information from Etsy about some payments that will resume on March 13.
