Etsy Shutting Down Nigerian Shops, What Next?
Thousands of artisans affected
This first issue of VendorBeat underscores why we started this newsletter – to keep African e-commerce entrepreneurs informed about market shifts and to advocate for a more inclusive digital economy.
If you're affected by Etsy's decision and want to share your story with me, please reach out via lara[@]vendorbeat.com
On May 27, Etsy announced it would be closing all Nigerian shops as part of its move to standardise payments across its platform.
Starting August 5, Etsy will be fully transitioning to Etsy Payments across all regions.
While the move is intended to streamline the payment process for buyers and sellers, it brings tough news for sellers in Nigeria and other countries where Etsy Payments hasn't yet been introduced.
The move will terminate the ability of Nigerian sellers to operate on the platform, as PayPal, which was the only payment method available for Nigerian sellers to accept payments, will no longer be supported.
The global online marketplace for unique, handcrafted goods informed Nigerian sellers that due to "resource considerations," Etsy Payments cannot be extended to Nigeria at the moment.
In an email sent to Nigerian sellers, Etsy stated: "Starting August 5, we'll be standardizing the payments process so that all sellers on Etsy are using Etsy Payments. Buyers and sellers have told us over the years that Etsy Payments provides a more streamlined payment process when they're shopping or selling on Etsy, and we have prioritized making Etsy Payments available to as many sellers as possible.
"Unfortunately, due to resource considerations, we are unable to bring Etsy Payments to Nigeria at this time. After careful consideration, we've made the difficult decision to stop supporting standalone PayPal on August 5. As a result, we'll be closing seller shops in Nigeria."
The email further reads, "As a seller in Nigeria, August 4 will be the last day you'll be able to receive an order, and your shop will be closed August 5. If you need to process refunds or returns, you'll be able to do that until December 31 through your PayPal account. You'll also be able to message your customers until December 31. We recommend downloading your shop data before August 5 if you want to keep it for your personal records."
Thousands of artisans and small businesses have built their livelihoods on the platform.
Those affected by the change will now be forced to find alternative marketplaces or build their e-commerce presence from scratch.
I saw this coming
Etsy had been gradually phasing out standalone PayPal globally since 2020 and asking sellers to use Etsy Payments instead.
While Etsy Payments has been rolled out to many countries, several African nations, including Nigeria, have been left behind in the transition.
This further reflects the persistent challenge in Africa's digital economy with the integration of global payment systems.
Over the years, many international platforms have struggled to implement their standard payment infrastructure across Africa due to regulatory differences, banking system variations, and risk assessment models that often disadvantage African markets.
What next?
African online sellers remain vulnerable to policy changes by global platforms.
If you're a seller in Nigeria or other countries not supported by Etsy Payments, here's what you should do:
Download Your Shop Data: Make sure you download all your shop data before the August 5 deadline.
Explore Alternative Platforms: Consider other e-commerce platforms or marketplaces that may better suit your needs, such as Shopify, Bumpa, Amazon, and Anka.
Until next time,
Lara and the VendorBeat Team