What is Etsy's Purchase Protection for Sellers?

Beginning August 1, we’re offering a new program to help protect sellers in the event that a buyer reports an issue with an order. This benefit is our way of investing in you, our sellers, so that you can continue to provide a stellar shopping experience to customers.

This program may protect you from shipping issues outside of your control at no additional cost. Etsy may refund buyers for qualifying orders below $250 USD (or the equivalent of your local currency) including shipping and taxes, and you’ll keep your earnings from the sale.

To see how our current Seller Protection Policy works, check out our policy page.  

What is eligible for Etsy’s Purchase Protection program?

With Etsy Purchase Protection for qualifying orders below $250, Etsy may refund buyers and you’ll keep your earnings if:

  • A buyer never received their package (for example, if it was lost in transit).
  • Their item arrived damaged (for the first instance per calendar year*).
  • Their item matches the listing description and photos, but a buyer claims it does not.
*Orders shipped on or after August 1, 2022 are eligible for Etsy’s Purchase Protection program and the calendar year for damaged coverage also begins on August 1, 2022.

To make sure your orders are eligible for Etsy Purchase Protection, you’ll need to follow the eligibility criteria outlined in our Etsy Purchase Protection for Sellers and remain in good standing with Etsy

What isn’t eligible for Etsy’s Purchase Protection program? 

The following situations will make an order ineligible for Purchase Protection:  

Sellers are responsible for refunding costs for orders that fall outside of these eligibility requirements.

If you have obtained third party insurance, or have carrier, and/or payment processor coverage, we ask that you first submit a claim to their primary coverage. Etsy reserves the right to process a refund only where other coverages do not apply.

See our article of best shipping practices to ensure you're following the proper steps to create a successful shipping experience for your buyer.

How do I qualify for Etsy Purchase Protection? 

Etsy Purchase Protection will automatically cover qualifying orders with no setup required from the seller.  

The usual process for resolving buyer issues still applies to orders that are covered by Etsy Purchase Protection. Our guide to case resolution gives an in-depth breakdown on how the case system works, and the steps that should be taken to manage buyer issues. 

Orders are eligible for Etsy’s Purchase Protection program if: 

If an order meets these requirements and has a cost below $250 USD (including shipping and taxes), the cost of the refund will be covered by Etsy instead of the seller. Sellers are responsible for refunding costs for orders that fall outside of these requirements.

Etsy does not cover orders $250 or over, so it is recommended to purchase shipping insurance when fulfilling those orders.   

In some situations, a specialist may need to reach out for more information about the order. It’s important that you respond to requests for information in the case log within the time frame given to show both the buyer and Etsy that you are working towards a solution.

As we continue to invest in our sellers’ success, your feedback is crucial for helping us improve the seller experience. Our survey is the most effective way to provide your feedback on Etsy’s Purchase Protection program and let us know what you would like to see from it in the future.

Take our survey

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