The New Etsy Insider Program: A Critical Perspective

Etsy Insider is a new invite-only buyer membership program launching in September for a select group of buyers in the United States. This program offers buyers exclusive benefits, such as free US domestic shipping, a special birthday bonus, and a limited edition tote bag designed by an Etsy seller.

Additionally, Etsy Insiders will receive deals and early access to select items. Etsy sellers do not need to make any changes to their shops to participate, and there is no cost to sellers as Etsy covers the shipping for eligible orders.

The aim of the program is to keep Etsy top of mind for buyers and encourage repeat purchases.

Potential Pros and Cons for Etsy Sellers

Pros:

1. Increased Visibility: Sellers who participate in offering exclusive deals and early access items could be featured in Etsy Insider marketing, potentially driving more traffic to their shops.

2. Free Shipping Covered by Etsy: The cost of free shipping for Etsy Insiders is covered by Etsy, meaning sellers don’t have to bear the shipping cost.

3. No Changes Needed: Sellers do not need to change their workflow or shipping settings, making it easy to participate without additional effort.

4. Encourages Repeat Purchases: By providing buyers with benefits, the program aims to increase customer loyalty and repeat purchases, benefiting sellers in the long run.

5. Highlighting Products: The opportunity to have products highlighted in exclusive deals and drops could attract more buyers and boost sales.

Cons:

1. Limited Reach Initially: Since the program is in a closed beta phase with a select group of buyers, the benefits and increased traffic might not be immediately noticeable to all sellers.

2. Optional Participation in Discounts: While offering deals is optional, not participating could mean missing out on potential marketing exposure.

3. Dependence on Etsy's Promotion: The success of the program for sellers largely depends on how well Etsy promotes it and engages buyers.

4. Uncertain Expansion: The future expansion of the program is not guaranteed, so the long-term benefits for sellers are still uncertain.

5. Buyer Misunderstandings: Buyers may misunderstand the program and assume sellers are responsible for benefits and issues covered by Etsy, potentially leading to negative reviews and account suspension problems.

6. Hidden Costs: Programs like this often lead to increased seller fees in the long run to cover the costs of buyer bonuses, potentially impacting sellers’ profit margins.

7. Shipping Details: While Etsy covers the cost of shipping, sellers might need to pay attention to eligible listings and ensure they meet the criteria for the free shipping benefit.

While the Etsy Insider program offers potential benefits by driving more traffic and encouraging repeat purchases without additional costs or changes to existing processes, it’s essential to approach with caution. Participation is currently limited, and the long-term impact remains to be seen. Sellers should be aware of potential misunderstandings by buyers regarding the program’s benefits, which could lead to review and suspension issues. Additionally, there is a risk that the costs of such programs might eventually be passed on to sellers through increased fees.

Overall, breaking down the new Etsy Insider program reveals a mixed bag of opportunities and challenges. While it aims to boost visibility and sales for Etsy sellers, it’s crucial to remain vigilant about potential drawbacks and the program’s true cost over time.

What are your thoughts?