We’ve been making improvements in leaps and bounds to direct checkout in recent weeks, based on top requests from the community. These changes are all coming on heels of each other to reach you, the seller, just in time for the holidays!
We’ve been excited to share some of the recent improvements with sellers in the Forums, and we wanted to take a moment to outline the changes to direct checkout in one place for those of you who may have questions. For anyone who isn’t familiar, direct checkout is the payment method that shops in the US can enable to accept credit cards and Etsy Gift Cards. Learn more here.
Before we get started, we are most excited to share that last week, we passed the $100 MILLION mark in payments through direct checkout! That’s money sold by and deposited to direct checkout sellers’ accounts. We expect the volume to pick up even more in the coming weeks with holiday shopping in full effect, but wanted to take a moment to thank everyone using this payment method for your support and feedback.
So, what’s new with direct checkout?
- Pre-shipping deposits and 3-day hold reduction. Just five months after opening direct checkout to all US sellers, we pushed out the most requested improvement to direct checkout functionality. Sellers whose first sale date is more than 90 days ago, through any payment method, now have funds available for deposit the next business day after the sale, even before the item ships. If your first sale date is less than 90 days ago, or you haven’t yet made that first sale, you must mark the order as shipped, or wait 3 days for the money to become available, whichever is longer. Once you pass the 90-day mark, you will automatically become eligible for 1-day funds availability.
- Expedited bank deposits. I know these two bullets sound similar, so let’s clarify. When you initiate a deposit to your bank account, whether its automatically on Monday, or requested from your Shop Payment Account, we send the deposit to your bank that day. It previously took anywhere from 2-5 days for the money to clear into your account, depending on your bank. We’ve been able to work with our bank to get this money to you sooner. Now, sellers will start seeing their money clear into their bank accounts in 1-2 days! It will still depend on your bank’s typical processing time, but most of you will see a big improvement. We’ve heard that these deposits are hitting accounts even more quickly than deposits received through PayPal.
- Reduction in one-time hold when you add a bank account. Until a couple of weeks ago, sellers who signed up for direct checkout for the first time or changed their bank account experienced a one-time, 10-day hold before the money from direct checkout orders was available for deposit. Now, this one-time hold has been reduced to 5 days. After the 5 days pass, you’ll fall into the normal hold/deposit schedule based on your selling history, as explained above.
We’re thrilled to bring these improvements to sellers and have been pleased with the feedback we’ve heard so far. Sellers are reporting that it is faster and easier than ever to receive money from credit card and Etsy Gift Card purchases. Here are some recent comments we’ve heard after first announcing these changes:
“This change is huge for my shop — and my family’s finances. HUGE.” — letterperfectdesigns
“This is what was holding me back from accepting DC but I have been offering it for a month or so now and I love it! I think my customers do too.” — BrooklynLoveDesigns
“Heck yes! Been a little hectic fronting the money at times for all of my made-to-order and custom stuff (which is a huge part of my business). Thank you! Can’t wait!” — OffBeatBetty
“I just wanted to pop in and say how very pleased I am with DC! It has most definitely increased my sales and I have a constant flow of cash into my checking account.” — GiftsAndTalents
Our data continues to confirm that buyers love to shop with direct checkout, too. It’s quick and painless for the countless buyers who are accustomed to shopping with a credit card on other websites, and once you make a purchase through direct checkout on Etsy, you can check out in the future with just a few clicks. Here are some stats on the health of direct checkout:
- After offering direct checkout to all US sellers since June, we’ve noticed buyers are 15-20% more likely to complete the checkout process and actually buy an item from a shop that has direct checkout enabled.
- For customers with multiple purchases, we see that almost 50% of ALL direct checkout purchases are made by customers who have used direct checkout before.
- The value of a purchase made through direct checkout is about $3 higher than the average;
- Now that we’ve introduced Etsy Gift Cards, we’re finding that orders that have a gift card balance applied are a whopping $10 more than the average order!
We also have some exciting updates on Etsy Gift Cards to share. In the four short weeks since introducing gift cards to the site, we’ve already sold hundreds of thousands of dollars worth of gift cards, and sellers are starting to notice the sales come in! We expect these sales to increase many times over as we approach the busiest shopping time of the year, especially when shoppers are looking for the perfect last minute gift. Keep an eye out for new Etsy Gift Card holiday designs, coming soon!
If you haven’t taken the time to add direct checkout as a payment method in your shop, maximize your holiday sales by signing up now. For all of our international sellers, we know you are anxious to have this available in your shops, too. Stay tuned in 2013 when we will be sharing more information on the international expansion of direct checkout.
Have any feedback or questions? We’ll continue the discussion here.