So I am currently evaluating the new Etsy Direct Checkout Method and considering offering it in my shop, and I’d love your input. Would you guys mind taking a survey for me? Your responses are completely anonymous and confidential. Thank you!
I am hesitant to offer Direct Checkout for a few reasons… and I want to share those with you guys, so that you can better understand why I (and other Etsy sellers) did not immediately start offering Direct Checkout as soon as it was made available.
1. Etsy Direct Checkout holds a seller’s money for multiple days, which makes preorders and deposits for custom orders very complicated. The current setup only releases the money to the seller’s account after the seller has provided shipment information, or after 3 days, whichever is longer. While I’m sure this would work out for a seller who only sells ready-to-ship items, I do a fairly large amount of custom orders and preorders in my shop. I use deposits for custom orders and preorders to pay for the stock I need to dye those orders, and if that money isn’t released til the item has been shipped, then it’s almost pointless to do deposits.
2. The fees associated with Etsy Direct Checkout are substantially higher than those associated with PayPal. This is fairly self-explanatory… it can lead to price increases over time, especially when a seller is mainly dealing in lower-cost items where the profit margin on each item is a lot smaller. Add in coupon codes, and the profit margin becomes even smaller.
3. Etsy is not very seller-friendly when it comes to disputes. I have had more than one situation where a customer was being dishonest, and Etsy would not take up for me as a seller. I understand that the customer should not have to prove that they are telling the truth when dealing with a dispute with a seller (and I have not had to deal with this but three times in my 6 years of business, because I have AWESOME customers on the whole!) but when a seller can readily prove that the customer is lying about not receiving product, or not receiving a refund, then Etsy should not take the customer’s side. And having Etsy be the end-all-be-all arbiter in a dispute makes me very, very nervous.
4. When money goes into my PayPal account, it is immediately available for my use with my PayPal debit card. I can use that money to buy stock the very same day if I want/need to, or supplies for my business, or what have you. Having the money someone just paid for my item tied up in my Etsy shop account would hamper my ability to use the money I make as soon as I make it (and it can be really down-to-the-wire to make money and have it immediately go out the door for stock or supplies… having that money tied up would be catastrophic during really high-volume times in my shop!).
All of that being said, I am still considering adding Direct Checkout to my site for two reasons:
1. Etsy gift cards. I think it would be absolutely awesome to be able to accept gift cards on Etsy! (and use them myself too!) There are a lot of people I’d love to give an Etsy gift card to, and I’d be honored if someone could use one of the gift cards in my shop.
2. Some customers just don’t like PayPal, and I like the option of giving them an alternative payment method.
So, what are your thoughts? Do you have a strong opinion about Direct Checkout one way or the other? I’d love to hear from you! Please take the survey linked above, and feel free to leave a comment here on the blog! (of course, blog comments will be visible for all to see, and the survey responses will be completely anonymous… so keep that in mind! thanks!)