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Fri Mar 10 2023 23:45:07

NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

By: Ina Steiner

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Some Etsy sellers failed to get disbursements on Friday, and in a letter that a seller forwarded to EcommerceBytes, Etsy explained it was due to the Silicon Valley Bank (SVB) debacle.

(See update below.)

Things got rocky for the bank, which lends money to startups and handles banking for tech firms. There was a run on the bank after venture capitalists told their portfolio companies to pull out their cash, and SVB went into FDIC receivership on Friday.

Etsy sent the following letter to sellers who were impacted by its issues with the bank:

"We wanted to let you know that there is a delay with your deposit that was scheduled for today. This delay was caused by the recent developments regarding Silicon Valley Bank, who Etsy uses to facilitate disbursement to some sellers. We are working with our other payment partners to issue your deposit as soon as possible.

"We apologize for any inconvenience or disruption this may have caused. We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them. Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible.

"No further action is needed from you at this time. Please feel free to reach out to our Help Center 24/7 with any questions you might have."

However, sellers discussing the issue on the Etsy discussion boards and elsewhere were concerned at the lack of details and some said they were halting activity on the site.

"I will be taking orders through this page only as the bank that is used by Etsy has been seized," one seller posted on Facebook. "I am out a lot of money as I have sent all orders even though I have not yet been paid out by Etsy, and if this isn't fixed, I will never see that money. If you would like to place an order, message me through here and I will get back with you ASAP!"

EcommerceBytes couldn't find any announcement on Etsy, and we reached out to the company on Friday evening. It had not filed any notice with the SEC as of that time, indicating its exposure could be immaterial. But for sellers facing cashflow issues with bills to pay, today's disbursement delay is material to their businesses.

Update 3/11/2023: Sellers will have to wait days to get their disbursements. An Etsy spokesperson provided us with the following statement, which it also posted on its website:

"At Etsy, supporting our sellers is our highest priority, and we understand how important it is for these small businesses to be able to receive their funds when they need them. We recently experienced a delay in issuing payments to some sellers related to the unexpected collapse of Silicon Valley Bank. Our teams have been working around the clock to implement a solution, and we expect to pay sellers via our other payment partners within the next several business days."

(Note that's business days.)

Update 3/12/2023: Relief! Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer, per the FDIC website.

Update 3/13/2023: See the latest news as of Monday morning: "Etsy Starts Unclogging Payout Jam That Impacted .05% of Active Sellers."

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Readers Comments

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

This user has validated their user name. by: toolguy

Mon Mar 13 11:13:39 2023

First Republic Stock is down BIG

24.25 Down -57.51 (-70.34%)

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: Stone Cutter This user has validated their user name.

Mon Mar 13 11:56:48 2023

*** Peter Thiel, the Libertarian ***

Peter Thiel is a billionaire and a co-founder of PayPal. Through the years, he’s been criticized for his right-winged views and a “no government” Libertarian mentality.

This morning, on CNBC, it was said that it was Theil, who yelled fire in a theater by telling SVB customers to withdrawal their cash.

And now, what’s said, is that Theil who doesn’t believe in government now relies on the government to bail out the bank. What an A-hole! Many want the government to go after Thiel for what he did.

Kudos to both Democrats and Republicans who worked fast to keep this problem from being a much bigger issue throughout the banking system.  

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: LDWCallsOut This user has validated their user name.

Mon Mar 13 12:12:27 2023

Yes, Peter Thiel was mentioned as the source for the run on SVB in cable news reports early Friday morning.  He supposedly contacted a bunch of people and told them to get their assets out of SVB, and they in turn contacted more depositors.  It was the run on SVB that caused its collapse.  Since Friday AM, I have not read or heard any mention of Peter Thiel until Stone Cutter's post above.  

Corporations like Etsy had continued to use SVB because the bank wasn't teetering on the brink of collapse.  

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

This user has validated their user name. by: The End

Mon Mar 13 13:54:45 2023

Etsy just extended my payout from today , til next Monday.

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: pace306 This user has validated their user name.

Mon Mar 13 14:59:49 2023

WHO IS WATCHING ADYEN ?

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: pace306 This user has validated their user name.

Tue Mar 14 11:23:06 2023

Following up on my previous post ...

NO single seller has any idea how safe their money is with eBay - just as it was 3 days ago with sellers and Etsy.

Both online platforms contort and twist the law and hide a sellers money (pool) in THEIR own accounts and make $$ off the interest (aka the "float") and have %100 control. Those are the evils of online selling platforms - there isnt much anyone can do about it - but its certainly an unsettling idea.

As a seller, you are a nothing - and ANY platform can EASILY hold your money for a variety of reasons and without a lawyer - you are SOL.

In this case, while its not Etsys "direct fault" (SVP bought fed paper at %1.8 and payed out 2-4x that much to VC's) (THAT was SVP's fault not Etsys) - the situation shows you that when you dont have full control (as a seller) of YOUR FUNDS - you are at the mercy of "people" (and thats being KIND) who just dont care, arent interested in helping you, and you have zero recourse with.

While everyone's upset and concerned (and rightly so) with Etsy and its problems (in the end sellers will get made whole - the Fed is watching all concerns with SVP accounts ie Etsy) 1) you can be sure that you wont get an apology 2) you wont get lost interest or any kind of financial remuneration 3) how safe/secure are your funds (being KINDLY kept by Etsy "somewhere else") going forward?

That brings us to everyone's favorite set of crooks - eBay.

Not exactly being anyone's "paragon of virtue" and with a predilection to steal anything not nailed down (FVF on shipping, on taxes, other people money, sellers items and funds)(the list goes on and on) - what's happening/going on with eBay's "choice" of CC processors/bank ADYEN.

Its "funny" to wisecrack about it - but if there's an issue - could you get your money out of eBay/Adyen?

For those here who think that criticizing eBay is just sport, and not a serious endevour, no problem - you guys - can go back to sleep - all is fine. eBay will send you "what's yours" when they feel like it and if there's an issue ... well then as a certain poster likes to say "its your own fault, you agreed to it in the TOS, its their site and they can do what ever they please" (no not you Tool).

For those of us who actually take business SERIOUSLY and watch our funds and items - MAYBE its time to see/examine (in a time of crisis like we are in now) the people eBay uses.

Certainly if you call Adyen, they wont ever help you - they have NO IDEA who you are (UNLIKE Paypal who actually did)(big shout out to Gloria (Paypal senior manager who helped me out MANY times)).

Adyen.

"Last week, Adyen's stock (OTCPK:ADYEY) (OTCPK:ADYYF) was down a lot after it had announced its earnings, ending the day down more than 15%. It was the biggest single-day drop since the company had its IPO in June 2018, almost five years ago." OOPS.

"The overall macro environment was still marked by turbulence. The second half of this year saw soaring inflation impact households globally. The war in Ukraine waged on, catalyzing both humanitarian crises and economic knock-on effects felt around the world. Commerce naturally slowed as businesses and consumers alike grappled with supply chain disruptions, record debt, and energy price spikes."

"EBITDA was only up 4% year-over-year to €372 million, about $400 million. The consensus stood at €464 million, so Adyen missed earnings by a wide margin, almost 25%."

All the above DOESNT mean anything is wrong with Adyen (though there's of course ALOT wrong with eBay).....

But again .... who is watching Adyen ?

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

This user has validated their user name. by: The End

Wed Mar 15 04:43:07 2023

All resolved  :o)

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: samiamiamsam This user has validated their user name.

Wed Mar 15 11:33:07 2023

they sent a deposit to my bank 3/13323 and 3/14/23

both were returned to my account with the notation 'deposit returned'

no explanation, no email and they seem to have disabled the ability to chat or email for support

so i really don't think this is fixed despite their usual BS 'all is well' cr*p

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: Whatever This user has validated their user name.

Thu Mar 16 13:59:16 2023

Oh no - say it ain't so - Etsy (mini-eBay) run by left over eBay exe's is in trouble? no kidding. There's a reason they don't show you what's been sold like other platforms. And search? drove me away a long time ago. Last place I ever look when shopping. I feel for the sellers who struggle to earn a living on that site.

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

by: Real Patriot? This user has validated their user name.

Thu Mar 16 16:02:16 2023

Deregulating the banking industry is the #1 cause of bank failures. And they were further deregulated in 2018 by the trump administration. BTW, taxpayer money will NOT be used to bail out the investors. Too much misinformation by amateur economists. Reminds me of fakebook Q-anon criminals.

Perminate Link for NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank   NEW: Etsy Delays Seller Payouts due to Run on Silicon Valley Bank

This user has validated their user name. by: toolguy

Fri Mar 17 11:20:26 2023

@Real Patriot

We try to stay away from politics here on this forum!

But since you insist, Biden and his admin. had 2 full years to fix this and they did NOTHING.

How long do they need? (It only took them a full week to shoot down a spy balloon) God help us if china or russia decide to attack while he's at the helm.

PS: Anything the US Government does is with tax dollars, that's the only money they have.

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