This policy will take effect on 9 July 2026. The previous version of this policy can be found here.
These terms are part of our Terms of Use. To qualify for the Etsy Purchase Protection programme for sellers, you agree to these terms and our Terms of Use. The Etsy Purchase Protection programme for sellers is not an insurance policy, a warranty, nor a guarantee. Etsy will decide, in its sole discretion, if a transaction is granted protection under the Etsy Purchase Protection programme or not. Etsy reserves the right to change, suspend, or discontinue the programme at any time, for any reason, and we will not be liable to you for the effect that any changes to the programme may have on you. You have no legal claim under the programme. In the event that Etsy does not refund the buyer, this will not affect the buyer's right to make claims against your shop. Your legal rights remain intact.
1. About Etsy's Purchase Protection programme for sellers
We understand that things can still go wrong even if a seller has taken all of the necessary steps to ensure a good buyer experience. Under Etsy's Purchase Protection programme for sellers, Etsy helps qualified sellers resolve eligible cases. In these cases, where an order meets all of our requirements, Etsy may refund buyers up to $250 USD (including postage & taxes collected on the Etsy Platform) and sellers will not be held responsible. For more information about cases, please refer to our Cases Policy.
Etsy's Purchase Protection programme for sellers applies to cases where the item does not arrive, arrives late or where there are disputes about listing accuracy. In general, it will not apply to cases concerning damaged items, however Etsy may cover a seller’s first case related to a damaged item in each calendar year.
For cases where the item does not arrive or arrives late, Etsy Purchase Protection protects sellers for orders that are dispatched within the stated processing time, but ultimately not received at their final destination or not received when expected. Sellers who meet the eligibility criteria outlined here may not be held financially responsible for such cases that result in a buyer refund.
For disputes about listing accuracy, Etsy Purchase Protection protects sellers for orders that match the listing description and photos, where a buyer claims it does not. Etsy does not cover orders that differ from the listing description, so, we strongly recommend using accurate photos and descriptions when listing an item.
For cases where the item arrives damaged, Etsy Purchase Protection supports sellers with their first eligible case and once for each calendar year (January to December) thereafter. Otherwise, sellers are responsible for resolving cases where the buyer has reported that an item has arrived damaged. For this reason, we recommend packaging all items securely, and purchasing delivery insurance.
Sellers are also responsible for their independent warranty or return requirements under local applicable law.
When a buyer sends an item to a seller for modification, the buyer assumes risk for that item both during delivery and while in the seller’s possession. Etsy may reimburse only the modification fee if a qualifying issue arises – not the value of the buyer’s original item.
2. Order Eligibility Requirements
Sellers are automatically covered under Etsy's Purchase Protection programme if they take the steps detailed below. Here's what you need to do to make sure your orders are covered:
A. Meet Etsy’s minimum Customer Service Standards and respond to buyer’s Help with Order message within 48 hours.
B. Provide an accurate “dispatched from” location and use valid tracking and/or, where available, a postage label purchased on Etsy. If not using Postage Labels on Etsy, mark your order as dispatched after you send it out, and provide Etsy with a valid tracking number on the order that shows the order route and delivery progress.
C. Use Etsy's payment platform, Etsy Payments, where available. Please note that Etsy Payments is only available in certain countries. See our Etsy Payments policy for more details. If Etsy Payments is not yet available to you, you will not be eligible for Purchase Protection for Sellers. For PayPal transactions, buyers will be directed to handle cases through PayPal.
D. Dispatch the order to the address provided on Etsy. If your buyer provides an alternate delivery address through Messages, be mindful of fraud or scams. You may choose to cancel and refund the order and ask the buyer to purchase the item again with the corrected delivery address.
E. Package your order carefully to avoid damage in transit.
F. Include processing times on your listing and dispatch your order within those stated processing times. You must also have an Estimated Delivery Date (EDD) for a listing, which includes transit times and, where applicable, pincode. Informal agreements through Etsy Messages to change the dispatch date will not qualify; we use the processing times you set for each listing to determine the dispatch-by-date.
G. Complete your made-to-order digital orders in Shop Manager. Check out this Help article to learn more.
H. Fill out all of your Shop Policies (it's especially important to have policies for returns, exchanges, and custom orders). Your Shop Policies have to comply with Etsy's policies, as well as your local laws.
I. Keep your shop in good standing (that means you're not violating any of Etsy's policies).
J. For orders delivered to the United States, use a Delivery Duty Paid (DDP) delivery method to ensure buyers are not charged additional import duties, taxes, or customs fees after purchase. Etsy may, in its sole discretion, recognise limited exceptions to this requirement in rare circumstances where a DDP option is genuinely not available. In these limited exception cases, sellers must obtain explicit buyer confirmation via Messages acknowledging that additional charges may apply on delivery, and provide an accurate estimate of those charges. Etsy may verify the seller’s claim that no DDP option was available.
Sellers are responsible for refunding costs for orders that fall outside of these requirements, refund amounts that exceed $250 (including postage & taxes), or are damaged in transit following the first case covered by Etsy. Etsy strongly recommends purchasing insurance when fulfilling your order for these reasons.
If a seller has obtained third party insurance, or has carrier, and/or payment processor coverage, we ask that they first submit a claim to their primary coverage. Etsy reserves the right to process a refund only where other coverages do not apply.
Last updated on 09 Jun, 2026