Will Etsy cover this refund?

Under its Purchase Protection program for sellers, Etsy may refund the buyer up to $250 on a case — the item didn’t arrive, arrived late, or the buyer says it isn’t as described — and leave you out of it, if the order meets all ten of Etsy’s requirements. Damaged items: only your first case each calendar year. Tick what applies to one order to see whether it qualifies on Etsy’s terms, and which requirement it misses. Nothing you type leaves your browser.

What is the case about?

The item didn’t arrive It arrived late The buyer says it isn’t as described It arrived damaged The buyer sent me their own item to modify

Etsy’s requirements — tick every one this order meets

A. I meet Etsy’s minimum Customer Service Standards and answered the buyer’s Help with Order message within 48 hours B. The order has an accurate “ships from” location and valid tracking (or an Etsy shipping label) C. The buyer paid through Etsy Payments (not PayPal) D. I shipped to the address on the Etsy order E. I packaged the order carefully F. The listing shows a processing time and an Estimated Delivery Date, and I shipped within that processing time G. Not a made-to-order digital order — or I completed it in Shop Manager H. All my Shop Policies are filled out, including returns, exchanges and custom orders I. My shop is in good standing (not violating any of Etsy’s policies) J. The buyer pays no import duties, taxes or customs fees after purchase — for orders shipped to the United States, a Delivery Duty Paid (DDP) method

Refund amount, USD — including shipping and tax (optional)

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What Etsy covers, in Etsy’s words

• Etsy may cover buyer refunds up to $250 on any case arising from a qualified order. In these cases, where an order meets all of our requirements, Etsy may refund buyers up to $250 USD (including shipping & taxes collected on the Etsy Platform) and sellers will not be held responsible.
• Etsy’s Purchase Protection program for sellers applies to cases where the item does not arrive, arrives late or where there are disputes about listing accuracy. In general, it will not apply to cases concerning damaged items, however Etsy may cover a seller’s first case related to a damaged item in each calendar year.
• For cases where the item does not arrive or arrives late, Etsy Purchase Protection protects sellers for orders that are shipped within the stated processing time, but ultimately not received at their final destination or not received when expected.
• For disputes about listing accuracy, Etsy Purchase Protection protects sellers for orders that match the listing description and photos, where a buyer claims it does not. Etsy does not cover orders that differ from the listing description, so, we strongly recommend using accurate photos and descriptions when listing an item.
• For cases where the item arrives damaged, Etsy Purchase Protection supports sellers with their first eligible case and once for each calendar year (January to December) thereafter. Otherwise, sellers are responsible for resolving cases where the buyer has reported that an item has arrived damaged. For this reason, we recommend packaging all items securely, and purchasing shipping insurance.
• When a buyer sends an item to a seller for modification, the buyer assumes risk for that item both during shipping and while in the seller’s possession. Etsy may reimburse only the modification fee if a qualifying issue arises—not the value of the buyer’s original item.

Etsy’s ten requirements

Sellers are automatically covered under Etsy’s Purchase Protection program if they take the steps detailed below.

1. A. Meet Etsy’s minimum Customer Service Standards and respond to buyer’s Help with Order message within 48 hours.
2. B. Provide an accurate “ships from” location and use valid tracking and/or, where available, a shipping label purchased on Etsy. If not using Shipping Labels on Etsy, mark your order as shipped after you send it out, and provide Etsy with a valid tracking number on the order that shows the order route and delivery progress.
3. C. Use Etsy’s payment platform, Etsy Payments, where available. Please note that Etsy Payments is only available in certain countries. See our Etsy Payments policy for more details. If Etsy Payments is not yet available to you, you will not be eligible for Purchase Protection for Sellers. For PayPal transactions, buyers will be directed to handle cases through PayPal.
4. D. Ship the order to the address provided on Etsy. If your buyer provides an alternate shipping address through Messages, be mindful of fraud or scams. You may choose to cancel and refund the order and ask the buyer to purchase the item again with the corrected shipping address.
5. E. Package your order carefully to avoid damage in transit.
6. F. Include processing times on your listing and ship your order within those stated processing times. You must also have an Estimated Delivery Date (EDD) for a listing, which includes transit times and, where applicable, zip code. Informal agreements through Etsy Messages to change the shipping date will not qualify; we use the processing times you set for each listing to determine the ship-by date. Processing time rules
7. G. Complete your made-to-order digital orders in Shop Manager.
8. H. Fill out all of your Shop Policies (it’s especially important to have policies for returns, exchanges, and custom orders). Your Shop Policies have to comply with Etsy’s policies, as well as your local laws. Etsy’s return policy rules
9. I. Keep your shop in good standing (that means you’re not violating any of Etsy’s policies).
10. J. For orders shipped to the United States, use a Delivery Duty Paid (DDP) shipping method to ensure buyers are not charged additional import duties, taxes, or customs fees after purchase. Etsy may, in its sole discretion, recognize limited exceptions to this requirement in rare circumstances where a DDP option is genuinely not available. In these limited exception cases, sellers must obtain explicit buyer confirmation via Messages acknowledging that additional charges may apply on delivery, and provide an accurate estimate of those charges. Etsy may verify the seller’s claim that no DDP option was available.

Requirement A points to Etsy’s minimum Customer Service Standards — the Star Seller checker tests your numbers against them. For J, Etsy lists the DDP services and carriers for each country you might ship from: Etsy DDP to the US. When the buyer can open the case at all: Etsy case timeline.

When you pay anyway

Sellers are responsible for refunding costs for orders that fall outside of these requirements, refund amounts that exceed $250 (including shipping & taxes), or are damaged in transit following the first case covered by Etsy. Etsy strongly recommends purchasing insurance when fulfilling your order for these reasons.

If a seller has obtained third party insurance, or has carrier, and/or payment processor coverage, we ask that they first submit a claim to their primary coverage. Etsy reserves the right to process a refund only where other coverages do not apply.

Refunding yourself? See which of Etsy’s fees come back.

It is not insurance

The Etsy Purchase Protection program for sellers is not an insurance policy, a warranty, nor a guarantee. Etsy will decide, in its sole discretion, if a transaction is granted protection under the Etsy Purchase Protection program or not.

Source: Etsy’s “Purchase Protection Program for Sellers” policy, “Last updated on Jun 9, 2026” (4 Aug 2026 copy, the newest archived). In effect since July 9, 2026; the policy, written before that date, says: This policy will take effect on July 9, 2026. This checker reads the policy; Etsy decides each case.

Common questions

Every rule on this page is quoted from Etsy’s policy. · Fees on refunds · Star Seller checker · All free tools