Etsy, the online marketplace known for handmade and vintage goods, is doubling down on seller support. The company has unveiled a new Etsy Seller app designed to give vendors more control over orders, inventory, and customer engagement—all while addressing growing pressure from higher transaction fees and competitive marketplaces.
Why Etsy Is Rebuilding Its Seller Tools
Etsy’s seller community has long relied on the “Sell on Etsy” mobile app to manage shop operations. But after research and feedback, the company determined the app needed a refresh. The new Etsy Seller app consolidates core features from the older version while adding functionality sellers have repeatedly requested.
According to Etsy, the upgrade isn’t just cosmetic—it’s built on a new technology foundation that enables faster feature rollouts and closer alignment with seller feedback. As Kruti Patel Goyal, Etsy’s senior VP of product, explained, “The new Etsy Seller app’s technology enables us to more quickly roll out updates based on seller feedback, so we’ll continue to add features and iterate as we go.”
Key Features in the New Etsy Seller App
The updated app is designed to streamline how sellers run their businesses, offering several new capabilities:
·Real-time insights: Sellers can now see order statuses and repeat customer data at a glance.
·Mobile-first listings: Photos and videos can be uploaded directly from smartphones.
·Smarter messaging: Access to order details while chatting with buyers, plus quick-reply templates for common questions.
·Integrated shipping: The ability to purchase and print labels directly from the app.
·Performance analytics: Deeper insights into shop performance and inventory management.
Importantly, Etsy will keep the original “Sell on Etsy” app available through the end of the year, giving sellers time to transition without losing functionality that is still being fine-tuned in the new version.
A Push to Support Sellers After Fee Increases
The launch of the Etsy Seller app comes at a delicate time for the company. In April 2022, Etsy increased its transaction fee from 5% to 6.5%, sparking frustration among many sellers. To ease concerns, Etsy has expanded its investment in seller services, including the Etsy Purchase Protection plan that began in August 2022.
Under the program, buyers receive full refunds if items don’t match descriptions, arrive damaged, or fail to arrive. Etsy covers the costs—up to $250 per qualifying order—by investing at least $25 million annually. The move provides sellers a safety net while boosting buyer trust, a crucial factor for marketplace growth.
The Bigger Picture: Growth Amid Challenges
Despite fee tensions, Etsy’s marketplace continues to expand. By the fourth quarter of fiscal 2021, the platform boasted 96.3 million active buyers, with 10 million new buyers added in just that quarter—the highest surge since late 2020. More importantly, “habitual buyers,” defined as customers making six or more purchases and spending $200+ annually, grew 26% year-over-year.
These numbers highlight Etsy’s dual challenge: maintaining strong buyer growth while ensuring sellers feel supported. The new app and protection programs reflect Etsy’s recognition that seller satisfaction is directly tied to sustaining momentum in an increasingly competitive e-commerce landscape, where rivals like Amazon Handmade and niche craft marketplaces are eager to poach discontented vendors.
Outlook: Can Etsy Balance Growth and Seller Trust?
The Etsy Seller app’s success will hinge on execution. If Etsy delivers on its promise of iterative improvements and keeps pace with seller needs, it could strengthen its reputation as a seller-first platform. However, rising fees remain a sore point, and Etsy must prove that new tools and protections justify the added costs.
In the long run, Etsy’s future rests on a delicate balance: scaling its marketplace without alienating the very sellers who make it unique. The new Seller app is a step in that direction—but whether it’s enough will depend on how fast Etsy continues to innovate.
This article references data and reporting from[ChainStoreage].