Summary

Etsy's 2024 updates introduce significant changes for sellers, including tax data sharing with UK authorities and restrictions on sharing buyer emails with third parties, which aim to enhance tax compliance and buyer privacy.

Abstract

Etsy has announced major changes for 2024 that will impact sellers, particularly those in the UK who will now have their sales data shared with HMRC for tax purposes. Globally, all sellers will be affected by the new policy that prohibits sharing buyer emails with external apps and services, a move that prioritizes buyer privacy and encourages sellers to build opt-in email lists. These updates are part of Etsy's efforts to professionalize its marketplace by enforcing stricter standards for tax compliance and data privacy, pushing sellers to adapt their business practices for long-term growth and industry improvement.

Opinions

The author, an Etsy seller, initially expresses shock at the announcements but sees the tax data sharing as a potential wake-up call for sellers to ensure their tax affairs are in order.
While the restriction on sharing buyer emails may seem disruptive, the author believes it to be a positive change that will lead to better customer relationships and a more engaged email subscriber list.
The author advises sellers to view these updates not as setbacks but as opportunities to improve their businesses by focusing on compliance, privacy, and direct customer engagement.
The author emphasizes that the increased requirements from Etsy, although initially inconvenient, will ultimately benefit the handmade industry by raising standards and strengthening businesses that adapt to these changes.

How Two New Etsy Updates Could Change Your Business Forever

Have you heard about Etsy’s major 2024 changes?

Etsy just dropped some huge announcements that could seriously impact your shop this year and beyond.

As an Etsy seller myself, I was shocked when I heard the news.

These updates signal a major shift in how the handmade marketplace operates.

Should you be worried? Excited? Confused?

Let’s take a closer look at these changes to find out everything you need to know about Etsy’s 2024 updates and what they mean for you.

Tax Crackdown Coming for UK Sellers

Let’s start with the update that will only affect sellers living in the UK.

Beginning January 1st, Etsy has to start sharing your personal sales data with HMRC, the UK tax authority.

This includes your name, address, sales totals — everything needed to make sure you are paying taxes.

I know this sounds scary. But don’t panic yet.

HMRC isn’t necessarily targeting small Etsy shops with this policy.

The goal is to catch people making over £1,000 per year who haven’t registered as self-employed.

As long as you’ve already got your tax situation sorted, this update likely won’t apply.

Still, it’s better to be safe than sorry when dealing with taxes.

My advice?

Take this as a wake up call to double-check that your bookkeeping is airtight, even if you are already registered with HMRC.

The last thing any of us need is an audit!

Buyer Emails No Longer Shared with Third Parties

Now onto the big update that impacts all Etsy sellers globally.

Starting immediately, Etsy will no longer share buyer emails with partner companies or external apps.

What does this mean?

Basically, you can no longer export your customer email list or use third-party services to manage Etsy contacts.

Some sellers relied on apps that automated email marketing and provided other insights based on customer data. That data flow has now been severed.

I won’t lie to you, this one had me panicking at first.

Building an email subscriber list can be one of the most important things you do for long-term business growth.

But after I thought it through, I realized this update may actually be a good thing.

Here are two reasons why:

It pushes us to collect emails the right way — with opt-in subscribers who genuinely want to hear from us.
It protects buyer privacy. I don’t know about you, but I want customers to feel good about sharing their info with my shop!

So don’t look at this as a setback.

It’s an opportunity to get creative and build a top-quality, engaged email list.

You’ve got this!

Just focus on adding email sign-up forms and incentivizing subscribers. It may take more work upfront, but the rewards will be worth it.

The Bottom Line

If I had to sum up my takeaways in a few words, it would be this: Etsy is upping its standards for sellers in 2024.

Tax compliance, privacy rules, shop policies — all of these areas are getting more strict. It’s just the cost of doing business on a major global platform.

While more requirements may be inconvenient at first, they ultimately raise the bar for the entire handmade industry. And the sellers who adapt will only get stronger.

So be proactive, play by the rules, and keep improving your business.

Trust me, it will pay off down the road. Etsy’s updates signal big changes ahead, but bigger opportunities too.

Thanks for reading!

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