Etsy Seller In Colorado Among Those Concerned About New Free Shipping Plan

KREMMLING, Colo. (CBS4) - Thousands of people selling homemade goods online on Etsy are now being asked to provide free shipping on orders over $35 or face penalties. Many say it's a policy that could put them out of business.

Sherri Solawetz has sold beads to other jewelry makers on Etsy through her shop living in rural Grand County for 10 years. She says this change coming July 30 could put many of her fellow crafters out of business on the site.

Etsy announced the changes earlier this month to sellers, urging them to build the shipping costs into their products. That is something Solawetz says will make many of her small value items priced too high.

"On a few dollar item including shipping will make it $5, something no one would pay," she said.

Solawetz is refusing to add the free shipping, so she will be penalized by Etsy by being pushed further down the search results online in favor of those sellers who include the free shipping.

Etsy company officials says they are providing sellers with tools and support to help them guarantee free shipping to U.S. buyers who spend at least $35 in their shop.

Josh Silverman, Etsy's Chief Executive Officer, commented, "Shoppers come to Etsy to discover over 60 million special and unique items that often cannot be found anywhere else. Yet we hear that high shipping prices often deter shoppers from completing their purchases. By making free shipping the norm on Etsy, rather than the exception, we'll connect more people with items that they love. Ultimately, we believe this will help increase marketplace conversion and order value, encourage repeat visits, and drive more sales for Etsy sellers."
Etsy will begin actively marketing this free shipping initiative to buyers starting in September, with the goal of driving more traffic to the Etsy marketplace and sellers' shops.

"As with any change, we realize there may be some pockets of discontent or skepticism. We know that this may be a big step for some sellers. But we want them to know that 1) better meeting buyer expectations can help make them more successful and 2) we are here to support them throughout this process. By providing tools and educational resources, we hope that sellers will feel supported and understand how free shipping can help their businesses."

Ten thousand people have signed a change.org petition asking Etsy to not move forward with this plan to add free shipping.