As usual I was lurking in the Etsy and Ebay forums when someone posted that Paypal was holding 10% of their funds for 60 days. After a bit of research, I came across a hundred or so others who were in the same predicament. Paypal was holding their funds for apparently no reason. On top of that, Paypal hadn't issued any changes to policy requirements, leaving a lot of people wondering what the heck happened. Well after I sent off a quick email to Paypal, basically asking if and what their changes were. This is the response I received:

"Hello XXXXXXXX,

Your business is important to us, and we are working hard to provide an easy, fast and secure payment service to you and your customers while keeping our prices competitive. We're also committed to clearly communicating changes to our policies and procedures. To that end, we are writing to inform you of a change to your PayPal account, which will take effect 30 days from the date of this email.

Beginning 07/26/2009, a small percentage of the total payments you receive will be held temporarily as a reserve in your account. This small reserve amount helps to ensure that funds are available to cover payment reversals or buyer chargebacks, if you do not have a sufficient PayPal account balance and do not provide the funds to do so.

A reserve is like a security deposit for your PayPal account and is standard practice in the payments industry, especially for retail segments like Cell Phones & PDAs where there is a higher-than-average risk of reversals or chargebacks. This does not mean that you have done anything wrong. We are requiring a small reserve in your account because you sell in a category that has a higher risk of reversals and chargebacks and because you are relatively new to PayPal as a seller.

Your reserve amount will be 10% of the total payments you receive, which will be held on a rolling 60-day schedule. That means 10% of the money you take in each day will be held in your account, and then made available for withdrawal 60 days later.

For example, if you receive $2,000 every 60 days into your PayPal account, then a reserve amount of about $400 would be required on a rolling 60-day period. In other words, about $6.67 would be held in reserve each day, then released 60 days later.

If you are a PayPal Money Market Fund customer, you will still earn interest on your total balance while your money is in reserve. Click here for more information or to enroll in the PayPal Money Market Fund.

We recognize this is a change in the way we do business with you. By requiring some merchants to reserve money in their accounts, we're able to lower our own costs. Keeping our costs low helps us to continue providing competitive pricing for all sellers who use PayPal.

If you have any questions about this change, please call us at 1-877-729-7252. We appreciate your business and look forward to a continued partnership.

Sincerely,

Paypal"

So, in case anyone else was wandering lost in the dark about this situation too, here's the facts straight from the horse's mouth!

I just came across a 50% off coupon for Michaels and I figured I would pass it on;

http://img.dealspl.us/images/coupon/1247427663_0022.jpg

Lately, I’ve been hanging around the Critiques forum on Etsy and I’ve noticed a lot of sellers are going straight to Critiques without really making sure that they could have done everything they should have before asking for a critique.

Why is it important to make your done your part?

When someone is taking just a glance at your shop, all they’re going to see is the big stuff, if you’re missing a banner and your location; they’re going to come back and say you’re missing a banner and your location and move on.

If you’ve got your basics covered, it forces them to look deeper. Do you have a good description, what are your photos really like, are you using all the right tags, could your announcement be shorter/longer/better, etc.

So I put together a list of some of the major things you should make sure you have in place first;

1.) Do you have a banner? Is it well done?
- Your banner is the first thing a potential buyer sees, it should draw them in.

2.) Do you have your location noted?
- You should include your city and state or country – they are a number of cities with the same name in different states and different countries.

3.) Is your avatar relevant?
- You should consider using a photo of your work or a picture of you – to capture people’s attention especially in the forums.

4.) Are your descriptions complete?
- This thread is an invaluable resource concerning all of the things that could/should be included in your description:
- http://www.etsy.com/forums_thread.php?thread_id=6093673&page=1

5.) Do you photos capture your wares as good as they possibly could?
- Check out the hundreds of tutorials on taking photographs, building light boxes, which light bulbs to use, understand the settings on your camera, understand basic photo editing, etc.
- Ask yourself, if you would buy the item just based on the photo?

6.) Are you using all 5 slots for your photographs?
- Capturing the item from every angle, showing it in use, displaying on someone, etc.

7.) Are you using the feature slots for your 3 favorite pieces?

8.) Are you using all of your tags? Are they all relevant? Are you spamming with any of your tags?

9.) Are you adding new items on a regular basis?

10.) Are you promoting yourself on/off of Etsy?
- The forums, Flickr, Twitter, Facebook, My Space, A blog, etc.
- Check out any of the threads on self promotion.

11.) Go in with an open mind!
- Every person has their own point of view, with a critique you'll be able to see through someone's eyes.

12.) Don't use Critiques as just another promotion venue!
- i.e. Look at this ware, what do you think?

This is just a short list of some of the things that need to be analyzed but it’s still a starting point. I wish everyone the best of luck in their Etsy endeavours!