One of the 'clarifications' in the changed Dos and Don'ts was regarding cancelled transactions:
The seller may cancel an invalid or void transaction, as defined by these circumstances:
-The buyer did not pay (see Non-payment) at the time the transaction was created, according to the transaction agreement or according to the terms in the seller's Shop Policies.
-Both the buyer and seller agree to cancel the transaction prior to shipment. If the buyer has already paid, the seller has refunded buyer (price paid for item plus shipping).
-The seller has refused service to the buyer (see Refusing service). If the buyer has
already paid, the seller has refunded the buyer (price paid for item plus shipping).
-The buyer paid for the item(s). Although the seller shipped the item(s), the buyer did not receive the item(s). The seller has refunded the buyer (price paid for item at minimum).
But sellers wonder, what about when the sale is refunded because the item was returned? As far as Etsy cares, it was a sale, so they keep their fees... Even if you don't get paid!
The DOs & DON'Ts of Etsy define transactions as such: "A transaction is created when a buyer completes Etsy's checkout process. [...] An Etsy transaction is completed when the buyer pays and the seller ships the item."
Canceling a transaction is linked to refunding a seller their listing and transaction fees. In the case that the buyer wishes to return the item and the seller agrees to a refund, that is still a valid, completed transaction for which Etsy requires fees to be paid by the seller. Etsy has provided a completed transaction service to the seller. If the seller chooses to accept a return and possibly refund the buyer, that does not negate that Etsy has provided an agreed-upon service for which we should be paid.
This was not clearly outlined in our policies in the past, and some sellers took advantage of the opportunity to cancel valid, completed transactions for the purpose of avoiding Etsy's fees or feedback from buyers.
Yep, it's the sellers' fault. Offering refunds on returns like good business people...expecting a completed sale to be the point of a listing. Paypal may do it, but they're suckers!
Don't you all realize that the point of listing on Etsy is to pay them!? All those poor admin working all day and you guys want to take away their fees for doing nothing! shame on you.
On a nonsarcastic note, if the seller doesn't get paid, Etsy shouldn't either. They already received the listing fee for the interaction with the buyer, but if the seller isn't paid for the item (including refunds on returns) then Etsy shouldn't get the percentage cut of the sale price. But then again, Etsy likes to take money that isn't theirs, like the fee for sale prices on weekend deals.
By the way, kind of nice of Etsy to put this policy into play without notifying their members. Hands up for everyone who's gotten an email about the new Dos and Don'ts...yeah, it doesn't matter that I can't see you, I know there aren't any hands up.