Etsy Purchase Protection for Sellers covers up to $250 of a refund on an eligible order, and Etsy refunds the buyer itself, so you keep the earnings from the sale; anything above $250 is charged to you. It covers qualifying orders automatically with no setup, but it only starts once the buyer sends a Help request and then opens a case.
Here's the catch. That $250 is a cap, not full cover, and you can lose it easily. Reply to the buyer's Help with Order message after 48 hours, ship outside your processing time, skip valid tracking, or hold your own shipping insurance, and the order isn't covered. Damaged-item cover only applies to the first damaged item in a calendar year.
These rules come from Etsy's US help pages as of October 2026. Sellers in other countries may see local versions. The $250 figure is in US dollars, and Etsy uses the converted equivalent in your local currency.
What Purchase Protection covers, and what it doesn't
| Situation | Covered by Purchase Protection? |
|---|---|
| Package never arrived, for example lost in transit | Yes, Etsy covers up to $250 of the refund |
| Arrived 7 or more days after the delivery window shown at checkout | Yes, if you met the other requirements |
| Arrived damaged | Yes, for the first instance in a calendar year only |
| Item matches the photos and description but the buyer says it doesn't | Yes, if the order is eligible |
| Buyer delays or refuses to pay customs or import charges | No, and you're not responsible for a refund |
| You hold third-party insurance or carrier cover | Claim from that first |
| You replied to the Help message after 48 hours | Not eligible |
Late arrivals caused by things outside your control, such as a carrier strike, severe weather, war or civil unrest, as Etsy decides, don't qualify either. Buyers pay customs, import duties and other charges due on delivery, so if a parcel's late or never arrives because the buyer delayed or refused to pay them, you don't owe a refund, though you can still offer one.
The eight checks your order has to pass
Etsy's eligibility list, as of October 2026, works best read as a shipping routine:
- Ship the order within the processing time you've stated.
- Provide valid tracking, or use a shipping label bought through Etsy, or both.
- Give the listing an estimated delivery date, using transit time plus your origin zip code where that applies.
- Make sure the item matches your photos and description.
- Meet Etsy's customer service standards.
- Reply to the buyer's Help with Order message within 48 hours.
- For damage, make sure it's the first damaged-item case in the calendar year.
- For orders shipping into the US, include duties and import fees upfront.
On check one, Etsy may use carrier tracking scans, plus you marking the order shipped and uploading valid tracking, to confirm it went out on time.
What voids your cover
- Missing one or more of the eight requirements.
- An item that doesn't match the listing description.
- Holding third-party insurance, or carrier or payment processor coverage, on the order. Etsy asks you to claim from that primary source first.
- A shop that isn't in good standing because of policy violations.
If an order falls outside the rules, you refund it yourself. Etsy doesn't step in.
Orders worth more than $250
Even when the order total is above $250, Etsy covers only up to $250 of the refund, and you refund the rest. For orders over $250, Etsy suggests shipping insurance to protect the full order value. Just remember the order of play: if you've got insurance, Etsy expects you to claim there first.
If a case goes against you
While a case is open, you talk to the buyer in the case log in Shop Manager. If a specialist asks you for more information, reply within the time frame they give.
If a case closes and you disagree, you can ask Etsy to review it, but only for items that arrived damaged or different from the description. You explain what happened, a trained specialist reviews the case, and you get a final decision by email within 1-3 business days. Cases about items that never arrived, or arrived 7 or more days late, generally can't be reviewed further.
Two more things worth knowing. Cases opened before May 7, 2026 follow the policy that was in place at the time. And Etsy says an occasional case opened against you won't hurt you or your shop.
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For the next step, see the Etsy Shipping Labels guide.
What the buyer side looks like
On the buyer side, Etsy gives a full refund on qualifying orders that don't arrive, arrive damaged, arrive 7 or more days after the latest estimated delivery date shown at checkout, or differ significantly from the description or photos, such as the wrong material or colour. The buyer starts with a Help request to you, and can ask Etsy to step in by opening a case if it isn't sorted and 48 hours have passed since their first message. Guest checkout buyers have to connect the order to an Etsy account to be eligible.
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My verdict on Etsy Purchase Protection
It's a useful safety net, but only if your shipping habits earn it. The rule I'd stick on a note by your desk is the 48-hour reply, because it's the easiest one to miss on a busy week and it costs you the whole cover. Ship on time, upload tracking every time, keep listing photos honest, and think about insurance on anything over $250. If you're setting up shipping and policies for the first time, my guide on how to sell on Etsy walks through it, and for the rest of the rules sellers ask about, here's Etsy seller help. If you want the shopper's view, read is Etsy legit.
Frequently asked questions
How much does Etsy Purchase Protection cover?
Up to $250 of a refund on an eligible order, or the converted equivalent in your local currency, as of October 2026. Anything above that is charged to you.
Do I need to sign up for Etsy Purchase Protection?
No. Etsy covers qualifying orders automatically with no setup. The process starts when the buyer sends a Help request and opens a case.
What is the 48 hour rule for Etsy Purchase Protection?
You need to reply to the buyer's Help with Order message within 48 hours. Miss it and the order isn't eligible.
Does Etsy Purchase Protection cover damaged items?
Yes, but only the first damaged-item instance per calendar year.
Can I appeal an Etsy case decision?
For items that arrived damaged or different from the description, yes. You get a final decision by email within 1-3 business days. Cases about items never received or 7 or more days late generally can't be reviewed.
