Etsy Purchase Protection now pays up to $250 on orders of any value and requires 48-hour replies

The new rules apply to every seller's cases opened on or after May 7, 2026.

Alura News

What changed

On April 7, 2026, Etsy announced changes to Purchase Protection, starting May 7, 2026:

  • Orders over $250. The program "may now cover buyer refunds of up to $250 USD per eligible order, even when the total order value is higher than $250." Until then, the Help Center said: "Etsy does not cover orders over $250."
  • New conditions. To qualify, you must meet Etsy's minimum customer service standards and "respond to Help with Order messages within 48 hours."
  • Case window. Buyers can open a case only up to 30 days after the estimated delivery date.
  • Late orders. An order is late if it arrives 7 or more days after the estimated delivery date. The Help Center already used "7+ days" in March 2026, so this restates the rule.
  • Reviews. Etsy says it is adding more people to review complex cases.

Cases opened before May 7, 2026 follow the policy in effect at that time.

Who it affects

Every seller with orders that qualify. Damaged items are still covered only for "the first instance per calendar year," the same limit the Help Center showed in March 2026. Since July 9, 2026, orders shipped into the US also need duties and import fees included upfront to qualify.

What it costs

For an eligible order, Etsy covers up to $250 of the refund (or the converted equivalent in your local currency), and "any remaining amount will be charged to the seller."

Example: a $400 order is lost in transit. Before May 7, Etsy did not cover orders over $250, so the full $400 refund was yours. Now Etsy pays $250 and you pay $150. On a $180 order, Etsy still covers the whole refund.

The new conditions cut the other way. If you miss the 48-hour reply or fall below the customer service standards, the order can lose cover, and you refund it yourself.

What to do

  • Answer every Help with Order message within 48 hours.
  • Check your shop against the customer service standards: reply to 80% of first messages within 24 to 48 hours, and ship at least 80% of orders on time. If you have fewer than 40 reviews, no more than 4 can be rated 3 or lower; with 40 or more, under 10%. If you've completed fewer than 300 orders, no more than 3 can have cases refunded from your Payment account; with 300 or more, under 1%.
  • Ship on time with tracking. Etsy says it may use carrier tracking scans to confirm on-time shipping.
  • For orders over $250, Etsy suggests shipping insurance to protect the full value.

What we don't know

Etsy called the 30-day limit a "shorter case window," but neither the announcement nor the Help article gives the old window. Etsy also hasn't said whether the 48 hours count weekends, or over what period it checks the customer service standards when it reviews a case.

Sources

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