Financial security and income volatility are top challenges for Etsy sellers, the company said as it explores ways to help sellers become more financially secure. Etsy is surveying sellers on four key issues: Tax simplification; Access to benefits; Managing cash flows and unexpected income drops; and Savings tools.
There's some precedent for online marketplaces looking out for sellers' welfare. Former eBay CEO Meg Whitman stunned attendees at the first eBay Live conference in 2002 by announcing eBay would provide health insurance for its powersellers, though the company never ended up offering a viable plan.
In Etsy's current survey, it asks sellers which benefits they have access to; which ones they were enrolled in; and which ones they would be likely to enroll in if they could pay what they would consider to be a "reasonable" monthly premium. It provided the following benefits from which to select:
- Retirement savings account
- Workers Compensation
- Paid time off
- Unemployment insurance
- Health insurance
- Disability Insurance
- Paid Family Leave
Etsy also delved deeply into how respondents managed cash flows and unexpected income drops, asking if they had sufficient savings to manage bills for up to 3 months if they were to experience an unexpected drop in their creative business income; and if they felt confident they could cover an unexpected or emergency expense without suffering a financial setback.
Etsy also asked respondents how they managed periods of time when their creative business experiences low or inconsistent sales (sellers could choose from options such as getting a new or temporary job, taking out loans, or borrowing money from family or friends).
Etsy also asked sellers about options to help simplify taxes or manage cash flows - some of the options we found interesting included:
- "A way to automatically withhold taxes from the income I earn on Etsy and other platforms."
- "A way to automatically withhold benefit contributions (for retirement savings, health insurance, etc) from the income I earn on Etsy and other platforms."
- "A tax-free savings account (or flexible spending account) that I could use to save for (and pay for) medical, dependent care, and transportation expenses."
- "The ability to take a standard business deduction (much like the individual standard deduction), instead of having to itemize my business expenses."
Any advocating Etsy does on behalf of its sellers could impact sellers wherever they happened to be selling - what do you think of some of the ideas it's exploring? Do you feel like you're on the edge, financially speaking?
Etsy underwent a significant management change last year, it's interesting to see the company is still active in this area - here's
more information about Etsy's 2017 public policy initiatives with a link to the survey. And if you've taken the survey, let us know what you think.