I have the same problem when I log on with Internet Explorer I get the message that my photo needs to be a jpg or png (and they are), but it will not upload them. One of the forums someone said to log in with Google Chrome and then I have no problems uploading. I don't use the Google Chrome browser otherwise, but I use it for photo uploads. I sent Etsy an email about it, but they sent one right back saying "we see that you have uploaded photos and your problem has been solved." Google Chrome wins!!