Etsy recently made headlines with the launch of their card reader app that enables sellers to accept credit or debit payments offline. An Etsy spokesperson told Ecommerce Bytes that 35% of US based Etsy sellers participate at craft fairs. The card reader app can also accept and record cash sales. More impressive still are the Etsy specific functions it can perform. With the new card reader, Etsy artisan’s can
- Create electronic sales receipts that will drive traffic directly back to their Etsy shops. This is possible even with cash transactions.
- Sync inventory with what is available in their online store, helping Etsy-only sellers integrate offline and online sales to mitigate the risk of over selling.
- Record sales that will appear in their online store (Etsy seller’s have clear displays of how many sales they have made).
- Allow offline buyers to leave feedback and help build the seller’s reputation.
Though other card readers have integrated with website providers like Shopify, Etsy’s card reader app is unique in that it encourages shop owners to improve their reputation, while also keeping inventory levels in check. It aims to make the transfer of money easier, and deposit funds directly into the seller’s account. Free to Etsy sellers, the card reader charges 2.75% per swipe – but the regular 3.5% Etsy commission fee is waved since the sale is generated offline. An Etsy spokesperson shared (with Ecommerce Bytes) they felt that “establishing the 2.75% fee for our reader was fair, as it’s inline with the [merchant payment processing] industry standard.”
Etsy sellers agree. So far, feedback for the credit card reader app has been positive. An Etsy seller revealed that the new app will remove the fear of overselling, and they will no longer have to “deactivate listings before the shows in fear of selling the same item twice.” The only push back so far revolves around internet connectivity. If a connection needs to be established to sync with the inventory in an Etsy shop, what happens when internet coverage is spotty, which is often the case at trade shows? Etsy moderators assured sellers that connection only needs to be established to swipe the card. After that, the transaction can be completed offline. Cash payments don’t need an internet connection at all.
To download the Etsy credit card reader app, sellers must be US based and own either an iOS or Android device. Etsy opened a discussion thread to answer questions. Despite the potential issues with connectivity, would you use the Esty card reader app on the go? Let us know.
Source: Steiner, Ina. “Etsy Extends Into the Real World with Its Own Card Reader.” Etsy Extends Into the Real World with Its Own Card Reader. Ecommerce Bytes, 24 Oct. 2014. Web. 30 Oct. 2014.