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Etsy Reserves: A Comprehensive Guide to Understanding How They Work in 2023-24

by | Jan 30, 2024 | Uncategorized

e-Commerce Payment Processing | Nationwide Payment Systems

Unveiling Etsy Reserves: A Comprehensive Guide to Understanding How They Work in 2023-24

Is it time to get a Merchant Account? 

Embarking on the journey of selling handmade crafts and vintage treasures through Etsy is an exciting endeavor. As artisans, the platform offers immense exposure and a ready-made marketplace. However, before diving headfirst into the world of Etsy, it’s crucial to grasp the intricacies of Etsy Reserves. In this comprehensive guide, we’ll unravel the workings of Etsy Reserves and explore whether it’s the right time to consider establishing your website and acquiring a merchant account.

Understanding Etsy Reserves

What Are Etsy Reserves?

This has been in the news lately, so we wanted to dive into this subject.

Etsy Reserves are a feature designed to safeguard buyers and sellers in the marketplace. Essentially, they allow sellers to set aside a specific quantity of their products for potential buyers without making them publicly available. This can be particularly useful for managing inventory for upcoming events or accommodating custom orders. Etsy holds reserves for 90 days for new sellers but may extend the reserve if there are concerns with order fulfillment or policy violations. 

How Do Etsy Reserves Work?

Here is how the research works:

45 Days: Etsy Holds 7% of each payment received during the 90 days. Tracking: Sellers can process and ship orders with tracking to release the remaining balance. Early release: Adding a tracking number to an order may help release funds early from a reserve.

Etsy’s Processing fees 

They charge 6.5% - When you make a sale through Etsy.com, you will be charged a transaction of 6.5% of the price you have posted for each listing, plus the amount you charge for shipping and gift wrapping.

This is more than double what you would pay if you had a merchant account with Nationwide Payment Systems.

Evaluating the Need for Your Own Website and Merchant Account

Advantages of an Independent Website

It would help if you were doing at least $20K monthly in sales to consider moving and building a WordPress site, WooCommerce shipping cart, and Nationwide Payment Systems Merchant Account.

Brand Control

Having your website provides unparalleled control over your brand image. You can design it according to your aesthetic, fostering a unique and memorable shopping experience for your customers.


Unlike the standardized Etsy storefronts, your website allows for complete customization. Tailor the layout, color scheme, and overall design to resonate with your brand identity.

Diversified Revenue Streams

Operating your website enables you to explore additional revenue streams. You can integrate a blog, offer exclusive content, or even collaborate with other creators to expand your reach.

Merchant Account Benefits

Payment Processing Control

With your merchant account, you have more control over payment processing. This can lead to quicker access to funds and a smoother transaction experience for your customers.

Reduced Fees

While Etsy charges (6.5%) various fees for listing, transaction, and payment processing, having a merchant account will lower costs, ultimately maximizing your profits.

Enhanced Analytics

Merchant accounts often come with analytics tools, providing insights into customer behavior, popular products, and sales trends. This data can be invaluable for refining your business strategy.

Is it Time for You to Make the Leap?

Assessing Your Business Growth

Consider the trajectory of your business. Find yourself consistently hitting Etsy Reserves or facing limitations due to the platform’s structure. It might be a sign that your brand has outgrown its initial constraints.

Customer Loyalty and Engagement

Evaluate the level of customer loyalty you’ve cultivated. If you have a dedicated customer base eagerly awaiting your products, having your website can strengthen that connection and offer a more personalized shopping experience.

Financial Viability

Please take a look at your financials. If your business is thriving and you want to optimize profits, transitioning to your website with a merchant account could be a strategic move.

Etsy Reserves is crucial in managing inventory and meeting customer demands on the Etsy platform. However, as your business flourishes, it’s worth contemplating the advantages of establishing your website and acquiring a merchant account. This grants you more control and customization and opens doors to diversified revenue streams and reduced transaction fees. It is time to explore the move. Give us a call. 


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