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Today, I want to share a cautionary tale about a major issue a friend of a friend experienced on Etsy and how it brought her thriving business to a screeching halt. This story highlights some critical lessons for anyone relying on third-party platforms to run their business. Here’s what happened and how you can protect yourself.
A friend of a friend was running a successful Etsy shop, making thousands of dollars in monthly sales. During a brief visit to a relative’s home, she logged into her Etsy account. After returning home, she tried to access her store again to add new items and check on pending orders, only to discover that she had been locked out. Her account was closed, with Etsy claiming there was suspicious activity.
Etsy’s explanation? Her account was flagged for logging in from the same IP address as other accounts that had been shut down. Essentially, Etsy believed she was operating multiple stores, some of which had violated their policies. Despite her attempts to resolve the issue, Etsy refused to provide details about the flagged accounts, leaving her with no access to:
Her business, which she had built over years and generated over $100,000 annually, was gone overnight. She had to start from scratch.
This situation made me think about potential risks. For instance, I manage a vacation property that we rent out to guests. If guests log into Etsy while staying at our property, they would be using the same IP address I use when I log in. If one of those guests had their Etsy shop flagged or banned, Etsy could potentially link their activity to my account and shut it down too.
When I contacted Etsy to ask how to avoid such issues, their response was vague. They confirmed that using the same IP address as a flagged account could contribute to an account ban, but they wouldn’t clarify how to fully prevent this.
Platforms like Etsy, Amazon, Facebook, or even website builders like Squarespace and Wix offer convenience, but they come with risks. You don’t own these platforms, and they can change their rules, enforce them how they see fit, and even shut you down with little warning.
If your entire business depends on one of these platforms, a sudden account suspension could destroy your business overnight. This is why I always recommend diversifying and having control over your own assets.
Use a platform you own and control. My top recommendation is WordPress with WooCommerce for e-commerce. Both are free, open-source, and highly customizable. Pair this with reliable hosting like Bluehost.
Always work to move your customers off third-party platforms and onto your own email list. MailChimp is a great option for email automation and newsletters. It offers a free tier until you hit a certain number of contacts.
Implement tools like Zapier to automatically export order information into a spreadsheet or database. This ensures you have the details you need even if your account is closed.
Collect customer emails and contact details outside the platform. If something goes wrong, you’ll still be able to reach out to them and complete orders through alternate payment methods.
Don’t rely solely on one platform. Whether it’s Etsy, Facebook, or Amazon, use them as part of your strategy, not the whole strategy. Direct customers to your own website and email list as much as possible.
The devastation my friend’s friend experienced was real. Imagine losing a $10,000/month business overnight. While she’s working to rebuild, the emotional toll of such a setback can be overwhelming. We’re offering her support and resources to get back on her feet, but this is a reminder for all entrepreneurs: Own your platform. Own your customer list. Own your business.
Have you ever faced a similar issue? Share your experience or questions below. I’m here to help you protect your business and navigate your entrepreneurial journey successfully.
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