Whether you’re a seasoned seller or new to the platform, having your Etsy account suspended can feel like a major setback. This whole situation can be especially frustrating if you’re not even sure why it happened or how to resolve it. If you are dealing with this, you’re in the right place.
In this guide, we’ll explore common causes of Etsy account suspensions, steps to potentially restore your account, and practical recovery tips to help you bounce back. By understanding these processes, you can get your shop up and running again with minimal disruption.
Understanding Etsy Account Suspension
What Happens When Etsy Suspends My Account?
When Etsy suspends your account:
- All your listings will be removed from the marketplace;
- Buyers can no longer place new orders;
- Any funds in your Etsy Payment account may be put on hold until the issue is resolved;
- You will lose access to your account on the Etsy Seller App.
However, you will still be able to:
- Access your account on Etsy.com using a web browser;
- Process current orders;
- Communicate with customers through Etsy’s messages.
There are 3 levels of suspension: Temporary Suspension, Permanent Suspension, and Account Termination. Temporary Suspension is where all your shop activities are paused until you resolve your shop’s issues. Permanent Suspension is when Etsy permanently revokes your selling privileges but still allows you to appeal. Finally, with Account Termination, the most severe level, your account is permanently closed without the possibility of reinstatement.
Common Causes Of Etsy Account Suspension
Most Etsy sellers have experienced an account suspension at some point, and the causes behind these disruptions can vary greatly, sometimes leaving sellers completely puzzled. In most cases, you’ll receive an email explaining what happened and how to resolve the suspension. There are several common reasons why Etsy might suspend your account, and understanding these can help you avoid such shutdowns. Some of the most frequent causes include:
Missing Tax, Bank Account, Or Identity Information:
Etsy requires sellers to provide specific tax information to comply with U.S. tax laws. For US-based sellers, once their revenue reaches a certain threshold (which varies by state), they must update their 1099-K form. This form is used to report earnings to the IRS. For sellers outside the US, Etsy requires a valid bank account for receiving payments. This must be set up after your first sale, at the latest. Additionally, all sellers must complete their identity verification. If your identity cannot be verified or any of the above information is missing, Etsy may temporarily suspend your account until the issue is resolved.
In some cases, Etsy may request more information from sellers to comply with legal requirements or other regulations. If you fail to provide the requested information within the given timeframe, a temporary suspension will be imposed until you provide the necessary details.
Falling Behind On Etsy Fees:
Etsy charges sellers several fees for using the platform, including listing fees, payment processing fees, subscription fees if you are using Etsy Plus, etc. If you fail to pay your outstanding balance on time for the first time, Etsy will give you a five-day grace period to settle your balance. After that, if the amount is still not paid, your Etsy shop will be temporarily suspended and the suspension is only lifted when you’ve paid them in full.
Violating Etsy’s Prohibited Items Policy:
Etsy implements strict rules against selling prohibited items. This includes products like drugs, certain animal products, or items containing human remains, as well as items that promote hate, violence, and illegal activities. Violations of Etsy’s policies can lead to listing deactivation or immediate permanent suspension, so it’s crucial to familiarize yourself with Etsy’s Prohibited Items Policy to ensure your listings comply with their rules.
Infringing On Intellectual Property:
If you are listing products that infringe on another brand’s or another individual’s intellectual property, copyright, or trademark, it can result in your Etsy shop getting permanently suspended. To reinstate your account, you’ll need to delist the violating items and contact Etsy Support to submit a formal appeal. Check out Etsy’s Intellectual Property Policy for more information and understand the definition of intellectual property, copyright, and trademark infringement.
Recurring Violation Of Etsy’s Policies:
A lot of the time, policy violations or failure to fulfill orders on Etsy only result in warnings. However, repeated violations, severe breaches, or consistently poor service can lead to a temporary ban, a permanent suspension, or even an account termination.
A common reason for a termination is attempting to open a new account after a previous one was suspended. If Etsy detects that a new account is linked to a suspended one, it will ban the new account permanently, with no option to appeal. Therefore, if Etsy suspended your account, don’t open a second one. The best approach is to try and resolve the root cause of your suspension. If you still decide to create a new account, make sure there are no connections between the two.
With that in mind, let’s explore the best practices for handling and recovering from an Etsy account suspension in the next section.
What To Do When Your Etsy Account Is Suspended?
Whether you are dealing with a temporary suspension, a permanent suspension, or an account termination, there are solutions for each scenario. Below, we’ll explore strategies to navigate and potentially resolve these bans.
If No Suspension Reasons Were Provided:
If your Etsy account is suspended, the first step is to check for banners on your Shop Manager Dashboard and check your email for any communication from Etsy. If you don’t see an email, check your spam or junk folder. Reviewing the list of reasons above or checking your listings might also help you find the root cause. If there’s still no relevant information, or if the reasons and instructions given by Etsy were confusing for you, you can try Email Etsy or Request a call back from Etsy for more direct support. It’s essential to be patient and respectful when communicating with Etsy, as this will increase your chances of getting a clear response.
If Your Shop is Temporary Suspension
If your Etsy shop is temporarily suspended, the good news is that it’s usually resolvable. In these cases, Etsy will give you straightforward instructions on what you need to do – whether it be paying your overdue balance, completing your tax information, or verifying your identity. Once you have resolved these issues, your Etsy account should be reinstated automatically, without you having to contact Etsy.
How To Submit An Appeal For Etsy Permanent Ban
If your Etsy account is permanently suspended, you will have a window of 6 months to resolve all the issues and file an appeal to get your shop back on air. After that timeframe, you won’t be able to appeal. Follow these steps to increase your chance of a successful suspension appeal.
Step 1: Identify the specific reason or reasons for the suspension.
Step 2: Address all the resolvable issues, whether it is paying your outstanding balance, providing missing information, deleting items that violate Etsy’s policies, or handling all open cases on your shop.
Step 3: File an appeal to Etsy Support or go to the Appeals Center.
What should you include in your Etsy appeal?
- Choose or write down the reason for your Etsy account suspension.
- Add any actions you’ve taken to resolve the issues that caused the suspension.
- Explain how your practices will change if you regain account access. Show that you understand the policies and know how to adhere to them going forward.
- Provide any related documents or evidence to support the case.
Step 4: Choose “Submit Appeal”. Then wait for the response, and follow up if necessary.
In case you cannot submit an appeal, try replying directly to the email from Etsy informing you of the suspension. You will receive the results over email. But be prepared as this process takes patience and can last from a few days up to 2 weeks. If your appeal is successful, your account may be reinstated. Make sure all the orders received before the suspension are still fulfilled, or buyers should get a refund. Once your shop is open again, make sure you add an announcement to let customers know you are back.
If your Etsy appeal is denied, you won’t be able to submit an appeal for that case again.
What To Do If Your Etsy Account Is Terminated?
Unfortunately, once your account is permanently closed or your appeal is rejected, there’s little you can do to gain back access. In this situation, your best option is to consider moving your business to other e-commerce platforms. In fact, even when you’re not having trouble selling on Etsy, it is recommended that you sell your products on multiple channels to mitigate risks. Every online marketplace can revoke your selling privileges at any moment without warning, so don’t put all your eggs in one basket.
If you want to find other reliable and profitable e-commerce marketplaces to sell your products, check out our detailed analysis of Etsy vs Shopify Comparison and Etsy vs eBay Comparison.
If you believe the termination was a mistake, you can still attempt to contact Etsy Support, but be aware that the chances of reversing a termination are slim.
Payments For Etsy Suspended Account
One of the main concerns for sellers who have their Etsy shop suspended is whether they’ll get their money back. The good news is, in most cases, you will get your payments. Etsy will put your funds on hold for a minimum of 6 months. Within this timeframe, if any buyers have problems with their order and request a refund, the refund will be paid from your balance. After around 6 months, the remaining funds will be released back to your connected bank account. However, if your suspension is due to unresolved issues related to intellectual property infringement or seller identity verification, Etsy may be legally required to withhold your funds indefinitely.
We hope this article has helped you better understand Etsy account suspension and how to handle a shop shutdown or permanent ban. In the long run, remember to stay informed about Etsy’s policies and keep your shop in good standing to avoid future suspensions. You can also consider selling on multiple platforms to diversify your income sources and stay ahead of unexpected suspension. Check out Etsy vs Redbubble Comparison and Etsy vs Amazon Handmade Comparison if you are interested in selling on other platforms.
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