Update: As you know, we’re working to improve direct checkout so that all of our sellers can enjoy the benefits having this payment method in their shop. We mentioned a few weeks ago a few of the improvements and additions we have in store.
Today, for shops that have been selling for more than 3 months on Etsy, regardless of whether they are currently signed up for direct checkout, we’ll be reducing the minimum 3-day hold on funds from direct checkout orders to one day, so that funds are available for deposit the next day if the item is shipped. If you’re already accepting direct checkout in your shop, you can take advantage of this change now. If you’re not, you can sign up at any time. You can read more about this change here.
Rest assured, allowing funds to be deposited prior to shipment is still a feature we are working on.
Gift cards will be available for purchase in the fall, as planned, and we’ll continue to announce improvements to direct checkout throughout the next 8 weeks.
Below is the original blog post that was published on August 30.
Today we announced Etsy Gift Cards! Because sellers will need to offer direct checkout in their shops to accept Etsy Gift Cards, we’d like to update you on the latest in direct checkout — where we are, and where we’re going. We launched this feature back in February, and just last week we hit two big milestones: over 100,000 shops are now offering direct checkout and we’ve deposited $50 million dollars to our sellers!
We want to make it easy for you to try direct checkout, so we’re covering payment processing fees for orders placed now through September 30. If you sign up (or if you have already), you’ll save over 3% on direct checkout orders all month.
Our objectives in launching direct checkout were to provide a seamless checkout experience for buyers, to decrease buyer drop-off when purchasing on both Etsy.com and through mobile channels, and to ensure a safe buying and selling experience. We’ve been pleased with the results and found that many direct checkout sellers report more sales, more international buyers, and higher customer satisfaction.
Here are some stats that show the positive effects of direct checkout thus far:
- On average, buyers spend $2.50 more on items bought through direct checkout compared with other payment methods, and they spend $4.50 more per order when they can choose between direct checkout and Paypal.
- On average, in August, new shops with direct checkout sold 19.3% more than new shops without direct checkout.
- For these same shops, we observed that, when the item added to cart could be bought with direct checkout, shoppers were 16.3% more likely to complete the checkout process and actually buy.
All stats cover shops that made at least one sale in the measured period.
These numbers make it clear that direct checkout eases the buyer experience and benefits those shops that offer it. However, letting buyers purchase more quickly is only part of the equation. We are also dedicated to providing features and tools for sellers that make your payment experience just as convenient. Based on your feedback, here’s what you can expect:
- Several weeks ago, we launched shipping labels so that sellers can print labels directly on Etsy. We’re working on the ability to have the label cost deducted from direct checkout orders directly, instead of adding the cost to your bill. You can expect this by October.
- For eligible shops, we’ll offer pre-shipping deposits, and decrease the minimum 3-day hold. This is one of our most requested features and is especially important to shops selling custom-made items. We expect to offer this by the holidays, but being eligible means having a history of transactions through direct checkout, so adding it to your shop now can help us to ensure you have all the tools you need for the holiday season.
- We’re finalizing some updates to our transaction policies and dispute resolution tools. These changes should make expectations for both buyers and sellers clearer and the process for resolving disputes more intuitive. You can expect detailed information about this before Etsy Gift Cards launch.
- We’ve built a team to manage your direct checkout questions via email, and we’re investigating and experimenting with offering support via phone for some transactional issues.
We’re also excited to share that we’re working to provide the best local checkout experience for Etsy members all over the world. The complexity of handling transactions increases when we take on alternative forms of payment, and multiple languages, currencies, laws and regulations. Our plans include offering deposits and payments in additional currencies and adding additional payment methods on top of credit cards like real-time bank transfers, eWallets, and local debit cards. Look for these new payment options to start launching to an increasing number of countries in the first half of 2013.
The Payments Team at Etsy is proud of the progress we’ve made toward providing the best checkout and payment options for our vibrant community of buyers and sellers. To join the discussion about direct checkout, join this forum thread. We hope you are as excited about Etsy Gift Cards and the upcoming holiday season as we are!