When Etsy AI Gets It Wrong: Navigating Mistaken Policy Violations and Lack of Resolution

[WellReadCompany]

Hi Etsy Community,

I'm reaching out today to share a not-so-unique and frustrating situation we've encountered since Etsy's update to their Creativity Standards. As a long-standing Etsy seller with over 25,000 sales, a consistent 5-star rating (7,000+ reviews), and until recently, a Star Seller badge, we've suddenly found ourselves in a frustrating predicament.

We design and manufacture all our products, which are not only one-of-a-kind but also carry our registered trademarks. However, we've been repeatedly hit with incorrect policy violations, seemingly due to a flaw in Etsy's AI moderation system. Our listings have been taken down multiple times due to alleged violations. These were only reversed after weeks of back-and-forth communication with support (time-consuming), where we provided images and videos of our design and manufacturing processes.

We operate a wholesale business alongside our Etsy shop, and also sell on multiple platforms (who wouldn't?). Many bookstores worldwide stock our products and use our product images for their listings. We believe this is causing Etsy's system to incorrectly flag our listings as resale items when, in fact, we are the original creators and manufacturers. There is also the issue of copycats on various dubious websites using our designs and selling products that resemble ours - but as you all well know, DMCA takedown requests take time and effort, and it is almost impossible to keep on top of it.

This situation has led to a series of policy violations, each of which we've successfully appealed. Etsy has acknowledged these violations were incorrect. However, the damage has been done - our Star Seller badge was revoked due to these erroneous flags and has yet to be reinstated, despite Etsy admitting their mistake.

Etsy's current system doesn't seem equipped to handle this sort of nuance, which seems to affect multiple sellers on this platform. As creators who also wholesale our products, we're being penalized for our success and growth.

How can Etsy better support sellers who are expanding their businesses? We'd love to hear your thoughts and experiences and, hopefully, bring attention to this issue so Etsy can improve its systems to better support sellers like us.

Thank you for your time and any insights you can share!

Andrey

[CraftyCornishMaids]

Etsy wants unique,

It doesn't sound like your stuff is unique at all,

The other problem is, etsy will be competing on platforms like google, against your items that are sold eleswhere, and it will be costing them megabucks in ads to do so.

Do not allow anyone else to use your pictures, that you have as the first photo here,
don't give them to others,
and issue takedowns where you find them.
if you have that many sales, then you can hire a company to do it for you.

I would concentrating selling stuff here, that you don't wholesale elsewhere.
Or at least, keep your main photos, to yourself.

Don't assume etsy's AI has flaws, it is probably working as intended - unique is all over etsys marketing

[ZenCatPottery]

I agree with @CraftyCornishMaids 100%!

[Olympias]

Personally, I do not trust AI at all , and yes I believe that it can do mistakes.

You have a good standing business that can afford a presentation from a Laywer that can contact their legal department. I am here since 2008 and I once had contacted their legal department when there was nothing more I could do.... It was 10 years ago, but it worked for me back then.

Also do not trust etsy, get your own e shop. You have great items at your shop

[AFinerCutWoodworking]

I found a great quote that sums it all up. "I want AI to do my laundry and dishes so that I can do art and writing, not for AI to do my art and writing so that I can do my laundry and dishes". Writer Joanna Maciejewska, quoted in The Millions

[AutumnHollowStudio]

I think, now I am not 100% sure - Etsy's AI is confusing what's in the public domain and what isn't. What was taken down, specifically? I do see a couple of issues, though, with what's listed in your shop currently. "1984" by George Orwell is not in the public domain here in the US, and Etsy has to comply with US intellectual property laws. Your Alice in Wonderland / Beauty and the Beast may be problematic because "Alice's Adventures in Wonderland" by Lewis Carroll is public domain, but "Alice in Wonderland" (Disney) is not and it's important to be very careful in the keywords and whole phrases you are using in titles and tags.

Disney is a beast.. I know the original works they pulled from are in the public domain but anything that could be associated with their intellectual property that is currently protected can be difficult.

Editing to add: your cases for ipads should be re-worded to say "case for iPad" instead of "iPad case", because the latter (what you are using) implies it's a genuine Apple product and we've seen many items taken down here on Etsy that use the incorrect wording for Apple products.

[CuriousApothecary]

Yes Etsy has issues using AI and they cannot assume that people ONLY want to sell here. They don’t know how to train their bot to realize people sell elsewhere. Frankly it would be stupid to ONLY depend on Etsy as a source to sell your products. That is not a business model for any maker.

“It doesn't sound like your stuff is unique at all” that is wrong. The issue is Etsy has not figured out their AI and working with makers who sell elsewhere. Their great idea is to have ai find duplicate photos that may or may not indicate drop sellers. This is a dumb idea. Also lots of people work with companies to help manufacture their items - obviously all the mugs here are generally made with outside help, candles, t shirts. Etsy screwed up.

[CraftyCornishMaids]

“It doesn't sound like your stuff is unique at all” that is wrong.

It is not wrong,

they even say they sell wholesale, and give their own pictures of their items for them to use.

100% not unique

[digitaldoodlebug]

AI is 100% not unique and yet etsy has no problem with it being sold here. Or countless other non unique things that are allowed. Such as POD personalized with a name. It doesn't even need the sellers artwork. The argument that etsy wants unique just doesn't hold water. They want $$$. POD and AI give them that. As does handmade, unique or not. But resellers hurt their reputation too much and they finally realized that the $ from them wasn't worth it.

This is purely them trying to stop resellers and not caring about the innocent sellers it catches. Unique is nothing more than a marketing word to try and gain back buyers who value handmade or draw in other buyers. Without actually catering to handmade buyers because they know that much of what is sold here is with production partners and POD so much if it is not true handmade. 

[ArtDollsbyJD]

@digitaldoodlebug Yes Etsy wants money.  Don't we all but the difference here is Etsy wants that money through the selling of unique gift items.  They want that special something to be available here and not elsewhere as much as reasonable possible.

I understand that the money angle is constantly used as an excuse for what Etsy does but that can be said of all of us.  We all want money for our efforts.  Etsy is no different from the rest of us.

It's not that Etsy does not care about the sellers innocently getting caught.  It is the price unfortunately that needs to be paid to remove those that don't fit Etsy's guidelines.   If Etsy does nothing then the site goes down.  Guess that old adage the many needs outdo the needs of one comes into mind.  Etsy is willing to take the risk with a few innocents getting caught up if it removes thousands of resellers.  

It's hurtful that this happens to innocent sellers but if Etsy does not try something then we all lose.  Not all sellers can sell elsewhere.  Etsy is home for many because it serves that purpos not found elsewhere, 

[JackieDuckworthArt]

This has just happened to me, and I am a small business. My best selling item has now been ruled to contain a banned phrase (mystery box - its a box with a mystery puzzle it!) I can’t even work out how to dispute the ruling - an email reply has been completely unhelpful. I don’t know if it is worth trying to fight but it will be a lean Christmas for me! 

[JackieDuckworthArt]

My item is completely hand made by me!

[GroundZeroCreations]

@JackieDuckworthArt Etsy prohibits the sale of mystery boxes. So if you are using the term mystery box, you can bet it will be taken down. 

I took a look at your shop and your book puzzles confused me. I was expecting a box that looked like a book with puzzle pieces inside of it. LOL I see they are popups, so I am not sure why you want to use the word mystery, but it isn't going to serve you well. Perhaps it is because you don't want people to know what is inside the book until it is opened. Personally, I think you might get more sales if people knew what was going to be inside. Also, I couldn't find the dimensions for the books, just that they are small.

These are really lovely pieces and it is evident that you spend a lot of time creating them! If I were you, I wouldn't use the word mystery as the bots may grab it as prohibited. 

[CraftyCornishMaids]

I think it's more like solving  a murder mystery

[GroundZeroCreations]

@WellReadCompany Your bags are really neat! I like them a lot. Unfortunately, if you choose to wholesale your product then it does indeed make it questionable if it really belongs on Etsy, because it cannot be classified as a craft supply or vintage item. I believe this may be what @CraftyCornishMaids was trying to explain to you. So I think you may have a larger problem than your images appearing on other sites. 

Selling on multiple sites isn't an issue. I sale on Amazon as well as Etsy. The issue is wholesaling and someone other than you selling the products. I agree that AI is messing up quite a bit, but in this case it doesn't appear to be a flaw in AI. If you are a wholesaler and it isn't a craft supply and isn't vintage, then it violated Etsy's creative standards and cannot be sold here. I am sorry to say these things because I know that isn't what you want to hear.

Also, you may want to check with your SEO team because using bad punctuation in titles is not going to help your SEO. Here is an example I saw, "Halloween Costume Accessories,Book Handbag,Book Clutch".

Good luck to you!

[PWOriginals]

@GroundZeroCreations 

I agree especially with your comment about the wholesale issue. All Etsy's bots see are same items being sold from sites not owned by the OP, to do the takedown.

[digitaldoodlebug]

Some people have had progress at etsy by constantly replying to the case. Even after they said it was closed. Just keep at it until you get help. Others have had the problem fixed by filing a DMCA at places like temu and aliexpress where their photos were stolen and then sending proof of that to etsy.

The sad truth is this is etsy's very late try at taking down resellers. If your image is found on other sites, at least the main reseller sites but possibly others, then their little bots flag you as a reseller. They have no appeals process and don't seem to accept any proof otherwise from the seller that they are handmade. This is the etsy of today. At least until they drive away too many handmade shops that they feel it hurt their bottom $ or there is enough public backlash from it. The only other option would be seeking legal help, but in the USA at least that is cost prohibitive. 

[GroundZeroCreations]

@digitaldoodlebug I think the OP's problem is because they are a wholesaler. They supply other people/companies that in turn sale the items. So that would be prohibited on Etsy since it isn't a craft supply or vintage. 

[digitaldoodlebug]

@GroundZeroCreations 

Possible, but many sellers offer wholesale. "We design and manufacture all our products." That fits etsy definition of handmade.  Perhaps letting them use their pictures is the issue though with the new bots. Didn't etsy at one time even have a guide that included pricing for wholesale? (actually at one time I think they had a wholesale sub platform). Yep, they ended it in 2018 due to not enough buyer interest. 

If someone buys from my website in bulk and resells the stickers that doesn't have anything to do with etsy or me fitting their definition for handmade. 

If their overzealous bots and not having an appeal system means large successful sellers (that they one time really wanted which is why they didn't put limits on number of employees and opened up to production partners) end up leaving etsy then so be it. But I doubt that's their intent (it limits their income too much to have too tight of rules). Eventually I think they would adjust this system but it will be a day late and a dollar short. 

If they truly don't want sellers here who also offer wholesale then they should say it. But unique and wholesale don't seem to be the issue. It's all about image matching to certain websites after being called out for reseller stuff time and again and buyers getting duped thinking it was handmade. That or it's a subtle strong hand move to try and stop sellers from selling the same things anywhere else (even though they still have links to sellers websites right on our shop pages). If they wanted to corner the market with handmade sellers then wouldn't that be the first thing to go?

[CraftyCornishMaids]

etsy wants unique

You don't want to copy someone else, but looking around may inspire ideas for something you can make that's uniquely yours.

is there something that you feel is a great product that no one, or few people, are selling on Etsy? Selling something different will help you stand out from the crowd! 

Etsy’s mission is to Keep Commerce Human. We are the marketplace for original items from real people. We stay true to this by connecting buyers with unique items made, designed, handpicked, or sourced by creative sellers around the world.

Original designs created by a seller

E.g. A unique dress designed by a seller 

One-of-a-kind natural items that the seller personally found or cultivated,

 the seller personally selected and creatively packaged to create a new, unique set

Etsy really does want unique, don't ignore it

[digitaldoodlebug]

And there are other parts of their creativity standards that shows they don't really want unique. They want to appear unique, and use it as a buzzword. Like businesses that greenwash. Even including handpicked/sourced items in "unique" shows that isn't really unique. Something isn't unique just because a person picked it. The unique dress designed by a seller can be made by the thousands or millions with a production partner. You can quote from parts of creativity standards but it's clear the word means nothing in reality. It's only meaning is marketing (and take downs of image duplicates). 

[GroundZeroCreations]

@digitaldoodlebug I think Etsy is becoming so confusing to the consumer that it is no wonder that they are having issues. Etsy promotes handmade, but when it is mass produced by someone else and is available for purchase on multiple sites, it makes the buyer think not so handmade. Etsy's attempt to be more like Amazon hasn't gone well for them. Their position has become too muddled. If Etsy wants to avoid becoming another retail platform, they need to return to some of the original values and policies. But with the everchanging environment of online selling, only the strong seem to survive and grow. I am not sure Etsy is remaining strong. That is apparent in their flagging stock. 

According to information on marketbeat.com:

Should you invest $1,000 in Etsy right now?

Before you consider Etsy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Etsy wasn't on the list.

While Etsy currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

[digitaldoodlebug]

Agreed. They are trying to recover something since they realized they can't beat amazon or Temu at their own games (and amazon is trying to compete with temu now). So they want to appear "unique" to standout from the crowd. However untrue it may be. They had a USP at first. They tossed it for growth and more $ because handmade had too many limits with a strict definition. They can't get USP back without giving some of that up. So let's just call everything sold here unique and remove any photos found on other sites. That will fix it. 

Truly unique items would be a very small % of etsy with few items/sellers and even fewer buyers and high price points. 

[PrairiePrimitives]

Waaaay back in 2013 when "Outside Manufacturing" (since renamed "Production Partners") was announced, I emailed Etsy Support (we could do that back then!) to say I felt they were opening a Pandora's Box that they'd never be able to close again. (Legend says Pandora's Box also holds hope, but I sure didn't see any of that!)

Etsy Support replied that they thought "Outside Manufacturing" would actually help reign in the stuff that wasn't Etsy-legal. 

And we all know how that went. 

Now it appears Etsy is trying to do something about that (since a year ago August, as I recall), but they seem to be taking their own unique path to get the job done and it's catching honest sellers in the process. 

Etsy laid off 11% of their staff last December. I can't find anything on Google that implies they've hired anyone this year. Personally, I'd like to see them hire a few people to work specifically on AI and to verify the listings AI has marked for deactivation before they're deactivated. Some of the employees should also be tasked with removing the black marks / demerits / whatever from the Star Seller status when it's proven beyond a doubt that earlier AI deactivations were done in error!

Just my $.02. And, Etsy, if you're hiring remote workers for the "reviewing" type jobs, let me know! I'd love to help with this! 

[DigTheDesign]

@craftycornishmaids. Given what you have said, when are you going to decide between selling on Etsy and selling on Amazon. After all your products are as unique on Etsy as the questioner. You both manufacture and you both sell on multiple platforms so shouldn’t your statements be taken as criticism of your own business too? 
The reality is that if Etsy insists on only having items unique to itself it has no future. If it wants a future it has to become far more sophisticated in dealing with increasingly savvy makers - many of whom have a justifiable mistrust of Etsy and its ability to properly support their business - so will naturally only use it as a second or third string to their bow - much like you