eBay used to be the hottest place in town for people to sell their wares online. But in the past decade or so, eBay has become less welcoming to small amateur sellers and more welcoming towards big companies. That means sellers have been moving in droves to alternative platforms. The biggest and most popular one is Etsy, a site where legitimate amateur sellers can sell their products. But is Etsy safe?
Is Etsy a safe website?
The vast majority of Etsy users are honest, but a small minority are determined to ruin it for everybody else.
From a seller’s point of view, you are always taking a risk when you sell online. Scammers who make purchases may lie and claim that they haven’t received the item, demanding a refund. Others will allege poor quality and leave malicious feedback. Many more will do credit card chargebacks and rob you of your earnings.
Etsy safety features
Etsy tries to be a safe and welcoming environment for both buyers and sellers. So, to that end, they have various safety features to help weed out the bad actors.
Buyer protection on Etsy
Etsy’s Purchase Protection is comparable to PayPal’s Purchase Protection, the main exception being that Etsy limits their protection to a maximum of $250 per disputed transaction. PayPal, on the other hand, just says “the value of your transaction and shipping.”
If the buyer doesn’t get the item you bought, if the item is of bad quality, if it is damaged, or if the item is something totally different, then the buyer can use Etsy Purchase Protection to attempt to get their money back.
Etsy says to attempt to contact the seller first and to wait 48 hours before filing a claim with Etsy.
Seller reliability on Etsy
Is Etsy reliable? It often comes down to the seller. There are various parts of a seller’s product page that can help a buyer assess whether a seller is legitimate and ensure that they are on the up-and-up:
- Buyer reviews. There’s always a risk that some of the reviews are fake, in the sense that the seller paid people to leave glowing reviews. The aim here is to focus on the negative comments. Is there a common theme running through them?
- Shop policy. Check to see if the seller has a shop policy outlining refunds, shipping, and returns. If they do, it’s a good sign. If not, consider it a major red flag.
- About section. A detailed About section shows that the seller is open and has nothing to hide. No About section? How about you look for that Hobbit sword someplace else?
Etsy Secure Payment System
The Etsy platform has a highly encrypted payment system, making your payment details harder to steal. If you experience issues, the Etsy Purchase Protection policy kicks in.
Scammers, therefore, often want buyers to pay for their items on a third-party payment platform of their choosing. This way, the buyer is not covered by Etsy’s Purchase Protection. Third-party payment platforms may also be less secure, putting your credit card details under threat of abuse.
Are scams on Etsy a real threat?
Anywhere that there are customers willing to spend money, criminals will be there, waiting to take that money and run off with it. So, scams on Etsy are indeed a real threat. Here’s why:
- Etsy is popular. Criminals naturally gravitate to where the most people are — and where the most money is.
- Etsy products are harder to authenticate. Since many Etsy buyers sell things they make themselves, it is harder for buyers to authenticate any claims made. Is that really a handmade priceless Ming vase, or is it merely an IKEA knock-off?
- Global platform, different laws. Since Etsy is used by people all over the world, with different laws and jurisdictions coming into play, it can be difficult to resolve disputes.
- Product reviews. As we previously stated, it is difficult to know whether or not all a seller’s glowing reviews are real or paid for. Anyone can say anything — how can you be sure that cigarette lighter can really be used as a flamethrower?
Common Etsy scams to be aware of
Let’s now delve into some of the most common Etsy scams, so you have a better idea what to look out for.
Counterfeit products
A seller may claim that an item is an official merchandising product, endorsed by, say, a movie studio. Or the seller might claim that each item is lovingly and individually handmade, when in fact, they are mass-produced in a factory.
One of the most common items being sold on Etsy today are activation codes for software, such as games and Windows OS. Needless to say, there’s a very real risk that the codes won’t work.
Substandard quality
Just because you see a product image doesn’t mean that the product bears any resemblance. That handmade silk dressing gown could very well not be handmade at all, let alone made of silk. Items could also be badly made and about to fall apart if you so much as breathe on them.
Being sent something else
Are you high-fiving yourself for finding that trendy, handmade beaded handbag? Then you open the box and find out that you have received something completely different. It happens a lot more than you might think. Or, in other cases, the box could be completely empty.
Sellers selling items they don’t have
It’s incredibly easy to swipe product images from Google or the website of an official retailer. Then the scammer can set up product listings and “sell” products without ever having them to begin with.
Being asked to pay outside Etsy’s checkout system
As we previously mentioned, being asked to pay for your item outside of Etsy’s secure encrypted checkout system is a common sign of a scam. Security standards on other payment platforms may not be as secure as they are on Etsy, and you lose Etsy’s Purchase Protection if you pay outside the site.
So, if you’re asked to pay by Western Union or cryptocurrency, run away fast.
How to identify a scam on Etsy
There are various common themes that run through sketchy product listings. It pays to look out for them.
All the product reviews are glowing 5-star reviews
Even a credible and honest seller is never going to get a perfect 100% positive streak with their customers. There are always people who are going to ask for unjustified refunds, get angry, want revenge, etc.
What you need to look for are the negative reviews. How many are there compared to the positive ones? Honest sellers get their fair share of negative reviews, too. If there is a 70/30 or 60/40 split in favor of positive comments, that’s good. But if it’s 80/20 or even 90/10 in favor of positive reviews, that is very suspicious.
Also, read the reviews themselves. Fake reviews often sound, well, fake.
Product images are low-quality
Scammers don’t want you to get a good look at the product. Otherwise, you may see that the item is of poor quality. Or that the watermark from the official product website was sloppily removed.
If product images are blurred, too small, or were obviously ripped off from another source, proceed with caution. There could be something wrong with the product.
The price is too cheap
You know what they say. If it’s too good to be true, it usually is. It’s common for Etsy sellers to charge what the item is worth, plus a markup so they make a profit. But if the item is absurdly cheap?
A too-goo-to-be-true price point often means the product is a scam designed to get as many customers to buy it as possible. Believe it or not, $5 gold rings are not made of real gold.
What to do if you get scammed on Etsy
If you get scammed on Etsy, there are some quick, routine things that you can and need to do to limit the damage:
- Get in touch with the seller. If you run into a problem with a transaction, don’t rush to judgement. It may just be a simple misunderstanding and not a scam.
- Tell your credit card company. Your credit card company can monitor your card for suspicious transactions and even freeze the card completely. They can also help with chargebacks.
- Use Etsy’s Payment Protection. After 48 hours, file a claim with Etsy. They will investigate and take appropriate action.
- Leave a review. This is not something you should rush into while passions are high. But if, after a few days, the seller is non-responsive, consider leaving a negative — but measured — review to warn other potential customers.
If the seller is based in Asia, receiving a refund could be extremely difficult due to varying regulations. In the end, you may have to write off the bad experience and learn from it.
How to protect yourself against Etsy scams
Here are some tips on how to preempt any possible scam waiting for you to open your wallet or purse.
Read the product page thoroughly
A lot really boils down to gut instinct. Is there a detailed product description? Are the images high-quality? Does the seller outline their policies on returns, refunds, and shipping? Do they offer tracking numbers for shipping? How do the reviews look?
Consider using virtual credit cards
Many banks these days offer their customers virtual credit card numbers. These are numbers which are randomly generated, designed to be used only once, and are then cancelled. You can then generate a new number for your next purchase. Doing this wipes out the chance of fraudulent transactions later.
Frequently asked questions about Etsy safety
Yes, Etsy offers a Purchase Protection program if you use Etsy’s secure encrypted checkout system.
Etsy is as safe for sellers as any other e-commerce site. You will always have people who will attempt to steal, ask for refunds, or leave negative feedback. It comes with the territory.
If the Etsy seller refuses to give you a refund, you can file a claim with Etsy’s Purchase Protection. Success is not guaranteed, though. Etsy will investigate and decide who was at fault. They may rule against you.
Etsy will consider your refund request if the seller refuses to refund you, as long as you used their secure encrypted checkout system. They will refuse to entertain your refund request if you paid outside Etsy.
When paying on Etsy, always use their encrypted payment checkout. That way, your payment methods will always be safe.
If you suspect that an Etsy listing is a scam, click the “Report this item to Etsy” link below the product image. Etsy will then investigate and, if necessary, remove the listing.
It’s a shame that sites where people are trying to make a living are inhabited by people wanting to ruin the experience for everyone. But where there is money, there are dishonest people determined to take it from you. That’s why everyone should learn what the current threats are and be sure not to fall for the latest scams.
You can be the most careful, savvy online buyer in the world, but eventually, someone is going to get the better of you. We all make mistakes. To err is human. But you can reduce that chance of getting scammed by implementing a mental checklist of things to look for and pitfalls to avoid stepping into. Forewarned is forearmed.
This is an independent publication, and it has not been authorized, sponsored, or otherwise approved by Etsy, Inc. Etsy is a trademark of Etsy, Inc.
