Etsy has launched a new purchase protection program, designed to safeguard both buyers and sellers.
Under the current rules, buyers have limited options if something goes wrong with their purchase. Typically, Etsy will direct a buyer back to the seller and the issue must be resolved between the two parties.
However, under the new programme starting on August 1, buyers will receive full refunds on purchases if they “don’t match the item description, arrive damaged, or never arrive,” Etsy stated.
For merchants, the platform will invest a minimum of $25m per year to cover refunds for sellers on orders up to $250 for issues out of their control.
“This program will help buyers feel more confident when they shop from businesses on Etsy, while we invest directly in our sellers to provide them an important layer of assurance,” Etsy chief executive Raina Moskowitz said in a statement.
The news comes as thousands of Etsy sellers recently went on strike against the ecommerce platform over fee hikes. The company defended the increases by pledging to put the extra money back into the business rather than boosting profits.
In addition to the $25m in purchase protection, Etsy recently announced $50 million in spending to improve customer support. The platform will expand its team, improve live chat support and reduce response times.
“Etsy’s Purchase Protection program will complement our broad efforts to improve customer support, increase trust signals across the user experience, and maintain the integrity of our marketplace as a destination for unique and special items,” Moskowitz added.