Etsy finds itself in a difficult place as a result of a strike started by thousands of sellers on the e-commerce site. The sellers planned a week-long strike, which started on Monday; however, the stock has yet to be affected. Esty (ticker: ETSY) gained by 0.3% to $117.07 at the beginning of the week.
The company was one of the really big winners during the pandemic as online sales sky-rocketed on the back of stay-at-home directives. Despite this, the site that has been known to favour the sale of trinkets, homemade items, and other DIY items has had its stock drop more than 46% over the past year alone.
The cause of the strike is the fact that Etsy’s 5.3 million businesses, or sellers, on its platform will now be charged a transaction fee of 6.5% of the price displayed on each listing for every item they sell through the site. Previously, the fee was 5%. On top of the increased transaction fee, sellers will also be charged for the regular shipping and gift wrapping. This is the first increase of this nature since 2018.
Sellers started initial discussions regarding the fee hikes almost two months ago on a Reddit thread for Etsy sellers, all of who expressed their anger over the situation and questioned the company’s true motives. These conversations eventually led to the strike.
The company is yet to release any statement regarding the situation.
However, a few Etsy executives have explained that the increases are needed for investments in marketing and other seller-based tools.