According to reports, Etsy imposes reserves on accounts that take 75% of sellers' income for 45 days, which has left many businesses struggling to make ends meet.

One such seller, who wished to remain anonymous out of fear of having her account shut down, has over $20,000 held in two of her accounts in an enforced reserve.

Another seller, Dan from Aylesbury, has seen his income drop from over $30,000 per month to just $444 in June after a reserve was placed on his account.

He has been unable to pay bills and provide for his family, as his business is their sole source of income.

Dan Vass from Aylesbury runs a furniture business through Etsy, which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning.

He currently has over £5,000 in reserve and it continues to grow, leaving him unable to pay bills and keep his business afloat.

Anthony Whitworth, from Tadcaster in North Yorkshire, owns Etsy shop The Bizzy Box and is ranked in the UK's top three Etsy sellers.

His business has been thriving for seven years through the online marketplace, enabling him to make a good living while supporting his wife who has Multiple Sclerosis.

However, since May, his account has been put into reserve, swallowing his income.

Etsy sellers have taken to social media to express their frustration with the company, with some claiming that they have had to retrain in new jobs to make ends meet.

The issue has also been raised in Parliament, with MPs calling for a review of Etsy's practices.

In response to the criticism, Etsy has stated that it holds reserve funds to protect against potential risks such as chargebacks and refunds, and that the funds are released to sellers once the risk has passed.

However, this has not been enough to assuage the concerns of many small business owners who are struggling to make ends meet.

Etsy, a popular online marketplace for handmade and vintage goods, has come under scrutiny for its payment reserve policy.

The policy, which reserves 75% of sellers' earnings for 45 days, has left many small business owners struggling to make ends meet.

Dan Vass, a furniture seller from Aylesbury, had his account's reserve imposed without warning in June, causing concern for his business's future.

Members of Parliament, including Cheryl Gillan, have called for Etsy to review its payment policies, which have resulted in many small businesses facing "tough decisions." Etsy's purchase protection program, which enables customers to easily apply for refunds, has received mixed reviews.

While it provides protection for both sellers and buyers, some sellers have experienced long delays in receiving payment for their goods.

This is because Etsy holds 75% of sellers' earnings in reserve until they provide tracking information, which can take up to 45 days.

Amazon, another popular online marketplace, also holds reserves for its sellers.

However, it only holds 3% of sellers' daily earnings for 90 days, which is used to cover transaction disputes.

Etsy's policy, on the other hand, holds 75% of sellers' earnings for a longer period, causing financial strain for many small businesses.

Steen Ross, from Norwich, has £1,800 held in reserve on her Etsy account.

She relies on her Etsy income to pay rent and is worried that if she raises her prices to include tracking, she will lose a lot of sales.

Many other sellers have expressed similar concerns, and a Facebook group called 'Etsy Reserve Strike' has been set up to organize a strike among sellers.

The government has no jurisdiction over online selling platforms like Etsy, which are not UK companies.

However, the government is reviewing the tools it has to help small businesses get paid faster, with a report expected to be published in the autumn.

In summary, the payment reserve policy at Etsy has caused financial difficulties for many small businesses.

While Etsy's purchase protection program has received positive feedback, the long delays Etsy's Executive Chairman, Robert Silverman, has sold a significant portion of his shares in the company over the past few months.

According to recent reports, Silverman has divested $24.4 million worth of his holdings in Etsy since the beginning of February.

This sell-off represents a significant decrease in Silverman's investment in the company, which had previously been valued at over $300 million.

The sell-off comes at a time when Etsy's share price has been on a downward trend.

As of July 10th, the company's share price was sitting at $85.83, significantly lower than its all-time high of $297 in 2021.

This drop in share price has led to concerns among investors about the company's long-term prospects.

Etsy is a popular e-commerce platform that specializes in handmade and vintage goods.

The company has faced increasing competition from larger e-commerce platforms like Amazon, which has led to concerns about its ability to maintain its market position.

Additionally, the COVID-19 pandemic has had a significant impact on the company's sales, as many consumers have shifted their spending habits to online marketplaces that offer more convenience and speed.

Despite these challenges, Etsy has been working to diversify its offerings and improve its customer experience.

The company has launched several new initiatives, such as Etsy Studio, which offers exclusive, curated products from top sellers on the platform.

Etsy has also made significant investments in its logistics and delivery infrastructure, in order to provide faster and more reliable service to customers.

In light of these changes, it remains to be seen what the future holds for Etsy.

While the sell-off of shares by Silverman and other investors may be a cause for concern, it could also be seen as a sign that they are re-evaluating their investments in light of changing market conditions.

Ultimately, the success of Etsy will depend on its ability to adapt to the evolving needs and preferences of its customers, while maintaining its commitment to sustainability and social responsibility.