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Etsy Purchase Protection now pays up to $250 on any eligible order
For cases opened from May 7, 2026, Etsy Purchase Protection pays up to $250 of the refund on an eligible order, even if the order total is higher, and the seller is charged the rest. Etsy suggests buying shipping insurance for orders over $250. To qualify, you must ship within your processing time with valid tracking or an Etsy label and reply to the buyer's Help request within 48 hours. A damaged item is covered only the first time it happens in a calendar year.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A rule, not a fee. On an eligible order over $250 that ends in a refund, you pay everything above $250 unless you have insurance.
Source: Etsy help: What is Etsy's Purchase Protection for Sellers? (edited Jul 9, 2026) · verified
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