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5 Ways Government Can Support Etsy Entrepreneurs

Members of the Etsy community recently met with policy makers in Washington, DC to voice their concerns and suggest ways the government can help.

Avatar image for Althea Erickson by Althea Erickson
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Last week, a group of Etsy sellers traveled to Washington, DC to meet with Ambassador Michael Froman, the United States Trade Representative. During the meeting, sellers talked with Ambassador Froman, the Cabinet member responsible for the US trade agenda, about their challenges with international shipping. They also brainstormed ways the US government could help them export their goods.

The US Trade Representative negotiates and enforces agreements with foreign governments to reduce barriers to trade and open new markets for American businesses. The Ambassador’s office is currently working on agreements with Europe and the Asian Pacific region, and is working with other regulatory agencies to speed transit of goods at the US border through the National Export Initiative.

Ambassador Froman’s invitation to Etsy sellers marked a turning point for our community. Politicians often talk about supporting small businesses, but they rarely consider the unique needs of micro-businesses, focusing instead on high-growth start-ups or more traditional mom-and-pop shops. Why? Because they don't see sole proprietors as job creators, and so they don't think we benefit the economy. That's where we think they're wrong.

Etsy sellers produce a huge amount of economic value. You are creating your own jobs, supporting local suppliers and building creative businesses on your own terms. Together, Etsy sellers around the world sold more than $1.35 billion in goods in 2013, much of which was exported to other countries. And those benefits don't even get at the non-monetary advantages of owning an Etsy shop, like the flexibility and independence that come with being your own boss, or the personal satisfaction that comes from making and selling unique products to people who value them.

During the meeting with Ambassador Froman, Etsy sellers explained that unexpected duties and import taxes often lead to reversed transactions or lost sales from international buyers. Louisa of Chacha Chic, an Etsy shop based in Washington, DC that sells eclectic vintage items, described losing a sale to an international buyer who asked her to lie on a customs form to avoid paying the required duties. One seller described feeling obligated to refund unexpected import fees to a customer in Norway.

Other sellers explained how hard it is to find reliable information about the customs requirements and trade restrictions for each country. Kate Amarelo of Ruivo Armadillo, an Etsy shop based in Arlington, Virginia that sells jewelry and home accessories made with Scrabble tiles, described an instance where she reversed transactions after failing to find clear information, rather than risk breaking the rules. Sarah and Ryan Parker, owners of Milk & Honey, an Etsy shop based in Richmond, Virginia that sells stamped silverware, etched glass and other gifts, explained that they view each returned package as an expensive opportunity to learn about a country’s customs system.

meeting-ustraderepresentative
Etsy sellers voiced their concerns about international trade during a recent meeting with the US Trade Representative in Washington, DC.

Ambassador Froman was very receptive to our concerns and ideas for addressing them, particularly our support for establishing a universal low-value customs exemption with US trading partners. He pointed out that small businesses, including Etsy sellers, play a major role in international trade, accounting for nearly 98 percent of all US exporters. "That’s why our trade policy is focused on unlocking the opportunity that exists for you in new markets around the world where customers are looking for the unique handmade goods that you make," he says. "The sellers on Etsy are the future of e-commerce and that is why we are crafting cutting-edge trade deals that bring greater attention to the issues you confront each day, like streamlining customs procedures and eliminating unnecessary paperwork.”

Last week’s meeting with the US Trade Representative was an early step in our ongoing efforts to help policy makers understand the Etsy community and take action to support them. Etsy sellers around the globe share many challenges, including learning about regulations that apply to their businesses and managing their household incomes when sales slow down.

We think government can be an important partner in building an Etsy economy, one where we create our own jobs and build local, sustainable businesses. Coming together to help policy makers understand our experiences and making concrete suggestions for improvement is the single best way to make a difference.

That’s why we just published our first policy paper, “A Call to Action: Five Proposals to Support the Emerging Maker Economy,” which encourages policy makers to consider the following big ideas for supporting Etsy entrepreneurs around the world:

1. A Micro-Advocate in Every Agency

Advocates inside agencies should help micro-businesses learn about and make sense of compliance requirements.

2. Entrepreneurship Training in Every Jobs Program

Workforce development programs don’t account for the changing nature of work and micro-business; they should include entrepreneurship training, such as Etsy’s Craft Entrepreneurship program.

3. Peer-to-Peer Trade in Every Market

The patchwork quilt of international shipping, customs and duties requirements should be simplified and harmonized across countries.

4. Small-Batch Manufacturing in Every Community

Small designers and manufacturers often don’t know how to work with, or even find each other. Government should help small-scale makers source materials and find partners.

5. Economic Security for Every Entrepreneur

Micro-entrepreneurs lack full-time employment benefits and experience dramatic income swings. The public sector should help micro-entrepreneurs manage income volatility and build financial security.

What's Next?

Going forward, we plan to organize more meetings like the one with the US Trade Ambassador in other countries and communities. In all of these efforts, we hope Etsy sellers will partner with us. What do you think about the five ideas described in our policy paper? What do you think is the most important issue for us to tackle?  Would you attend or organize a meeting with your local officials? How do you think the Etsy community can come together to advocate for ourselves? Please share your thoughts in the comments section below.

Avatar image for Althea Erickson Words by Althea Erickson

Althea Erickson leads Etsy’s advocacy and policy work, educating government folks about our sellers and pitching policy ideas to support them. She also runs a little shop called Brooklyn Assembly, where she sells DIY kits that make it super easy to make awesome, personal objects with your hands.

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