Etsy, the global online marketplace used by millions, is facing claims from sellers it has been withholding thousands of pounds from small businesses by imposing reserves on accounts that take 75% of sellers’ income for 45 days with no warning.
Sellers say the company is retaining their income with little care for how it will affect families in a cost of living crisis.
Pietra (her surname is not used for fear Etsy will shut her account), a Miami-based Etsy seller, told Sky News she has more than $20,000 (£15,463) held in two of her accounts in an enforced reserve that she is unable to access.
Since 2015 she has designed wedding favours to sell on the platform full-time, balancing work with being a single mum.
Her business was taking in more than $30,000 (£23,195) per month in orders. From that total, once production and shipping costs are removed, she is left with $8,000 (£6,185) profit.
But after a reserve was placed on her account on May 18, she saw her income drop to just $444 (£343) in June.
“It’s insane that in a two-month period my whole life went to hell because of this,” she said. “They’re holding $20,000 (£15,000) of mine, and I basically can’t buy food.
“I’ve just reached two months of my rent being late and I’ve maxed out two credit cards, one for $5,000 (£3,800) the other for $6,000 (£4,600). It’s been close to impossible to get out of bed.”
‘We haven’t been able to pay bills’
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Dan Vass, from Aylesbury in Buckinghamshire, runs a furniture business through Etsy which was going from strength to strength until a reserve was imposed on his account on June 14 without any warning.
“We currently have over £5,000 in reserve and it just seems to keep growing. We haven’t been able to pay bills and this is our only source of income.
“There have been times this month when we literally do not know how we can keep the business going and our family fed because the items take a long time to make, have high material costs and Etsy are holding all of our funds, so we can’t actually begin to make them when orders come in.”
‘I’ve had to retrain’
Anthony Whitworth, from Tadcaster in North Yorkshire, owns Etsy shop The Bizzy Box and is ranked in the UK’s top three Etsy sellers.
He’s been running a thriving business for seven years through the online marketplace which has enabled him to make a good living whilst supporting his wife who has Multiple Sclerosis.
His business pays Etsy over £35,000 in fees per year and has a 5-star rating from more than 63,500 sales, but since May his account has been put into reserve swallowing his income.
“I’ve had to retrain as a locksmith just to make enough money to keep things ticking over since May and in case Etsy goes seriously downhill in the long run.”
‘Quite shocking’
The Small Business Commissioner Liz Barclay told Sky News that over the past few months she has received a rising number of complaints from small business owners that online platforms are holding their money in reserves for a longer period of time than they previously did.
“Up until now, we have been hearing of online platforms withholding smaller amounts of money. This is the first time I’ve heard 75% being withheld in reserves and that is quite shocking.”
“These small suppliers are the lifeblood and the talent that drives your business success. They need to be paid as quickly as possible or they may go to the wall.”
Ms Barclay said the government has no jurisdiction over online selling platforms such as Etsy, which are not UK companies.
She said the government is reviewing the tools it has to help small businesses get paid faster with a report expected to be published in Autumn.
An Etsy spokesperson said: “Etsy Purchase Protection is designed to protect both buyers and sellers as Etsy covers the cost of refunds for all eligible orders; since launching last year, we have received positive feedback around this program.
“And while we understand that payment reserves can cause short-term disruptions to a seller’s payment schedule, these temporary holds are common practice across marketplaces.”
‘I’m worried I’ll lose lots of sales’
Sky News understands Etsy began using payment reserves in 2021.
Reserves are not uncommon amongst seller platforms.
Sellers who have been on Amazon for over a year and have processed at least 100 orders will have 3% of their daily payments held in a reserve for the purpose of covering transaction disputes.
In comparison, Etsy sellers have shown evidence to Sky News that whilst in a “reserve”, 75% of the amount they receive from orders is unavailable to them for 45 days or until they have provided tracking proof.
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This means the money needed to pay for the product and ship it out is not received until after it is made and shipped.
A lot of sellers don’t want to force their customers to pay for tracked shipping because international tracking can rack up a huge cost.
Steen Ross, from Norwich, has £1,800 held in a reserve on her Etsy account.
She has sold custom costumes to a largely American customer base on Etsy for a decade and relies on her Etsy income to pay rent.
“Most of my sales go to America and about 90% of people don’t want to pay the additional cost of tracking because it’s so expensive, they are happy for me to just provide proof of postage.
“I’m worried that if I raise prices to include tracking, I’ll lose a lot of sales, but if I don’t Etsy won’t release funds from my reserve before 45 days.”
Etsy’s purchase protection programme
In June 2022, Etsy introduced a new “purchase protection programme” which enables a customer to easily apply for a refund if they claim their item is lost or stolen.
Since then, Pietra, Steen Ross and Dan Vass claim they have experienced no-challenge refunds, where funds appear to automatically leave their reserve when a claim is made.
These complaints have been echoed by hundreds of people online tweeting Etsy’s CEO John Silverman and a Facebook group ‘Etsy Reserve Strike’ has been set up in the last month to organise a strike amongst sellers.
Etsy has almost 90 million buyers worldwide and about 6 million sellers but last year, for the first time since 2012, Etsy experienced a fall in its number of users and sellers.
Mr Silverman has dropped $24.4m (£18.7m) of his shares in the company since the beginning of February.
As of 10 July, Etsy’s share price sat at $85.83 (£65.56) compared to the all-time high share price of $297 in 2021.
The UK will play its “full part” in peacekeeping in Ukraine, Sir Keir Starmer has said.
The prime minister told Sky News’ political editor Beth Rigby that the conflict with Russia was not just about “sovereignty in Ukraine” but about the impact it also had on the UK, including the cost of living crisis.
Sir Keir was speaking to Sky News while on a surprise visit to Ukraine on Thursday – his first since his party’s landslide election win six months ago.
The purpose of the trip was to discuss the next steps for Ukraine, with the situation now more uncertain following Donald Trump’s election victory in November.
Mr Trump, whose inauguration takes place on 20 January, has said he wants a peace deal between Russia and Ukraine within 100 days.
But some European leaders fear pushing Kyiv into a deal could lead to Ukraine ceding some of its territory to Vladimir Putin.
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Sir Keir said he did not want “to get ahead of ourselves” but that the UK would play its “full part” in any peace negotiations – including by deploying British troops for peacekeeping.
Asked if he would be prepared to do that, the prime minister replied: “Well, I don’t want to get ahead of ourselves, but I do have indicated that we will play our full part – because this isn’t just about sovereignty in Ukraine.
“It’s about what the impact is back in the United Kingdom and our values, our freedom, our democracy. Because if Russia succeeds in this aggression, it will impact all of us for a very, very long time.”
Sir Keir said the drone threat was “a reminder of what Ukraine is facing every day” and that the war was brought about by “Russian aggression”.
Elsewhere in the interview, Sir Keir was asked about his views on Ukraine’s longstanding desire to join NATO – something President Putin strongly opposes.
At a NATO summit in Washington last summer, the alliance’s members announced that Ukraine was on an “irreversible” path to NATO membership.
“We fully support Ukraine’s right to choose its own security arrangements and decide its own future, free from outside interference. Ukraine’s future is in NATO,” the declaration said.
However, Mr Zelenskyy has somewhat tempered his language around NATO membership, telling Sky News in an exclusive interview in November that a ceasefire deal could be struck if Ukrainian territory he controlled falls “under the NATO umbrella” – allowing him to negotiate the return of the rest later “in a diplomatic way”.
However, Mr Trump has acknowledged Moscow’s opposition to Ukraine joining NATO, saying: “Russia has somebody right on their doorstep, and I can understand their feeling about that.”
Watch the full interview with Beth Rigby and Sir Keir Starmer on the Politics Hub with Sophy Ridge at 7pm.
An abusive boyfriend whose girlfriend blamed him for her death in a suicide note – after he subjected her to years of violence – has been jailed for six-and-a-half years for controlling and coercive behaviour and assault.
He was the first defendant in England to face trial for the unlawful killing of his partner after her suicide following domestic violence.
Shortly after Ms Dawes wrote her note on her phone, in which she described Wellings as a “monster”, the 23-year-old hairdresser left it with a friend before she took her own life on 22 July 2022.
Prosecuting, Paul Greaney KC cited the suicide note at Wellings’s trial. In it, Ms Dawes said he had “killed [her]”.
“He ruined every bit of strength I had left,” the note said. “I had dreams. I had a future at one point. That was taken away from me.”
Wellings denied the allegations against him and told jurors “I’m not a monster”.
While a jury cleared Wellings of Kiena’s manslaughter, Mr Greaney invited the court to sentence the defendant “on the basis that [the offending of which he was convicted] formed the background to and set the scene for her death”.
He said the abuse was “both regular and routine across the relationship”.
On one occasion, the court heard the defendant “held a drill to Kiena’s face, switched the drill on and threatened to drill out her teeth”.
‘Breaks my heart’
In a personal statement read out on her behalf in court, Angela Dawes, Kiena’s mother, said: “It breaks my heart that [Kiena’s] beautiful baby doesn’t have her mummy here because of that monster.”
“I truly hope that no other young lady or child has to go through what he did to my daughter and her baby,” she added.
Kiena’s grandmother, Irene Ball, said she had noticed at times during Kiena’s relationship with Wellings that her smile was “false” but recalled her granddaughter “tried to reassure [her]”.
“It was extremely shocking to see my granddaughter hurt and with injuries to her beautiful face,” she said.
“I told Kiena that he would really badly hurt her one day and I pleaded with her not to go back to him.”
Kynan Dawes, Kiena’s brother, said: “I introduced Kiena to this monster and I will regret that for the rest of my life.”
Mr Dawes said he felt “justice [had] been served” as “the world now knows what a monster he is”.
Addressing those who’d been following Kiena’s case online, he added: “I want people to see that domestic violence is not OK and men should respect their partners.”
He also urged anyone experiencing domestic violence to “go to the police”, adding “if you don’t feel like you can do this, speak to family or friends”.
‘Friendly and kind young woman’
In sentencing, Judge Robert Altham said Ms Dawes was “a popular, vivacious, friendly and kind young woman”.
“She pleaded with you to stop hitting her, but you just carried on. You tried to persuade her that it was her fault for upsetting you,” he added.
Ms Dawes had attempted suicide in the past, before her relationship with Wellings, and lawyers for Wellings told the court her death was because of “multiple factors”.
The judge said the defendant was aware of Ms Dawes’s history of mental health issues, he “called her names connected with her illness” and “repeatedly told her that she may as well kill herself”.
However, he said his sentence was based on the jury’s conclusion that the defendant had “no criminal responsibility” for Kiena’s death.
In mitigation, John Jones KC told the court the relationship between Ms Dawes and Wellings, a landscape gardener from Bispham who had a previous conviction for battering an ex-partner, was “inconsistent” throughout its two-and-a-half years.
“It would be wrong to say that that coercive relationship was in existence throughout,” he said.
The court heard the abuse of Ms Dawes included regular slapping and “ragging” by her hair, and threats to use a drill to take out her teeth and throw acid in her face.
After she became pregnant, Wellings gave her a black eye and began criticising her weight, calling her “fat” while contacting escorts and prostitutes online.
Police were called more than once, but Wellings threatened Ms Dawes that their daughter would be taken from them if she told them what was happening, so she declined to help prosecute him.
But she did report Wellings following an attack which left her needing hospital treatment and he was arrested.
He broke his bail conditions but was not locked up, leaving Ms Dawes feeling let down by police. Four days later, she killed herself.
Wellings’ sentences, to run consecutively, were for controlling or coercive behaviour in an intimate relationship and for assault occasioning actual bodily harm.
A further count of assault on the defendant’s former friend Scott Fletcher was also included as part of the sentence, an offence to which he had previously pleaded guilty.
Wellings will serve half of the sentence in prison before he is released on licence.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.
The teenager who stabbed 15-year-old Elianne Andam to death in a row over a teddy bear has been found guilty of murder.
Hassan Sentamu, 18, attacked Elianne with a kitchen knife in “white-hot anger at having been disrespected” after she stood up for his ex-girlfriend, the Old Bailey heard.
He had been due to return items including a teddy bear to Elianne’s friend following their break-up but instead came armed, wearing two pairs of gloves and a facemask.
Elianne collapsed outside the Whitgift Centre in central Croydon, south London, after being stabbed four times in what police described as a “frenzied” attack, which was caught on CCTV, on 27 September 2023.
Her friend compared Sentamu to a character from the Netflix crime drama Top Boy and said Elianne had her hand out begging him to “stop”.
He threw his gloves and mask in a bin and hid the knife in a garden but was arrested within 90 minutes after police stopped a bus near his home in New Addington.
Sentamu, who was 17 at the time, admitted manslaughter but denied murder on the basis of “loss of control” because he has autism.
There were sobs in the public as he was found guilty by a majority verdict of 10 to two, while he stood propping himself up with both arms in the dock and crying.
He was also found guilty on a charge of having a blade. Sentamu had also denied this charge – claiming he had a lawful reason for carrying it.
Grime artist Stormzy was among thousands of mourners who gathered at a candlelit vigil after Elianne – who went to the private Old Palace of John Whitgift School – was killed, and there is now a memorial to her at the scene.
‘I’ll do it again’
The month after Elianne’s death, Sentamu got into a row with a fellow inmate in youth custody and when he was accused of killing girls, said: “I’ll do it again,” the court heard.
“I’ll do it to your mum,” he said. “Do you want to end up like her, six feet under? I’ll do the same again.”
Sentamu, who came to the UK aged five with his mother and three sisters, had a history of violent and aggressive behaviour, as well as making repeated threats to take his own life.
He was given a police caution after pulling a knife out in class and telling a teacher he wanted to kill himself when he was just 12 years old.
Sentamu was expelled from one school after threatening another child with a knife and in other incidents put girls in headlocks and threatened to stab a student with a pair of scissors.
While in foster care he threatened to harm a cat or chop off its tail, the court heard.
‘I can’t let this slide’
Weeks before he killed Elianne, who wanted to become a human rights lawyer, Sentamu said: “The real me is evil, dark and miserable” in a message to a friend.
The day before the attack, he had met Elianne and her friend, who had recently split up with him, at the Whitgift Centre, where the girls “teased” him and his ex-girlfriend splashed him with water.
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Attack caught on CCTV
Sentamu, who was studying sports science at Croydon College, later sent what police called a “chilling” message to a friend saying: “I can’t let this slide bro.”
He met Elianne, his ex-girlfriend and another of their friends the following day to swap belongings.
The girl handed him a plastic bag of his clothes, but he did not have her teddy bear as arranged, and Eliane snatched the bag back.
A Snapchat video shows Elianne smiling and laughing before her expression turned to “abject terror,” jurors were told.
Sentamu pulled the kitchen knife from his trousers and repeatedly stabbed her, plunging the blade 12cm into her neck.
‘He exacted vengeance on a girl running away’
Prosecutor Alex Chalk KC earlier told jurors Sentamu was “angry… having brooded on the insult and he took the knife to the scene to reassert dominance”.
“He exacted vengeance on a young girl clearly running away from him and posing no threat,” he said.
Sentamu, who was diagnosed with autism in 2020, did not give evidence.
His barrister Pavlos Panayi KC said it was not disputed the killing was a “grotesque overreaction” but the “central issue” in the case was Sentamu’s autism history and symptoms.
Metropolitan Police Detective Chief Inspector Becky Woodsford said it was a “violent, aggressive and frenzied knife attack on a young girl”.
“Elianne was doing what was right, she was standing up for her friend,” she added.