So we always hear the problems on the buyers' side. However, ETSY is a complete scam ring, specifically for sellers.
I had my store for 2+ years with 100s of transactions. Everything was smooth, but I never invested too much, because I read reviews, like this one. There were no real profits, if you count shipping charges, ETSY fees, my invested time and overall experience. I considered it to be a self-sustained green house environment, where all profits went right back to listing fees and paying for materials; that is not a business for profit, more a charity on my part.
So this lady buyer purchased something from me with overseas shipping. And after 3 month opened a request for item not received! Leaves negative feedback and speaks very rude. So ETSY jumps in and refunds. Ok.
In a day or so I find my account suspended and entire seller balance TAKEN by ETSY. They STOLE ALL MY MONEY!
What is even more amusing is that I never received a human email with warning, instructions, asking me my side of the story... NOTHING! Not a single line, not a single email or message. ZERO.
So if you are a seller, expect that at some point you will be robbed of all your money and will not have a means to contact them to resolve this issue. Emails are not answered, as expected.
If you are a buyer on ETSY, you got a green light to cheat, lie, whatever. Claim not received, claim not as described. ETSY will refund you, but take down sellers account, together with whatever is in the accounts.
Just hoping this scam company will bankrupt itself soon enough.
UPDATE! I recently found an illegal charge on my credit card from ETSY.com. They take whatever amount they decided, without asking for my consent, without notifying me of a charge they are going to do, nothing. This activity, (to charge other people's credit card) without consent nor notification is a definition of INTERNET FRAUD. And they did exactly this.
So be aware, ETSY is an Internet scam website.